Using World Experience in Accounting

Abror Rashidov

and Habibullo Sirlibekov

National University of Uzbekistan, Jizzakh, Uzbekistan

Keywords: Investment, Accounting, The "Franco Zone," Kyoto Convention, Offshore Zones, "Duty-Free" Stores,

Technoparks, Free Trade Zones, and Scientific Technology Zones.

Abstract: This article explores the theoretical and economic underpinnings of the accounting concept. The evolution of

accounting is examined through the experiences of various foreign countries, including Japan, South Korea,

China, the USA, and Russia, leading to the formulation of corresponding conclusions. Furthermore,

recommendations and suggestions are put forth for the ongoing enhancement of the organizational structures

within the accounting system.

1 INTRODUCTION

At present, industrialized countries are creating free

economic zones with different goals. There are

economically different district definitions regarding

free economic zones. More than 20 definitions are

presented in the UN work on this problem. The first

grant of Free Economic Zones, or “Franco zone”, was

made at the Kyoto Convention in 1973. Free

economic zones can be defined as the part of the

territory of the state in which preferential conditions

of economic activity, a separate regime of

management, and other organizational administrative

activities for national and foreign entrepreneurs are

introduced in order to achieve certain results. Now

there are more than 4 thousand free economic zones

in the world. They perform different tasks,

summarizing different goals for themselves. For

example, - attracting foreign capital and advanced

technologies due to special benefits, a stable legal

base, and simplification of organizational procedures;

- taking advantage of the benefits of the division of

Labor to expand the export of finished products; -

growing foreign exchange revenue to the budget of

the country and region; - to create new jobs; - to

improve labour skills at the expense of studying and

introducing into practice the world experience in the

field of organization, management, and financing.

https://orcid.org/0009-0008-6156-7736

https://orcid.org/0009-0008-4110-681X

2 LITERATURE REVIEW &

ANALYSIS

A. from Russian economists, Kuznesov and S.A.

Ribakov, and N.A. The orlovas of the Free Economic

Zone—an area where foreign goods can be stored,

sold, or purchased without any customs duties.

Vakhabov A.V., Khajibakiev Sh.X., Muminov N.G.,

and Russian authors Danko T.P., Okrot Z.M., Igoshin

N.V., unanimously concluded, "The Free Economic

Zone is a demarcated area where special preferential

economies operate for both domestic and foreign

entrepreneurs."

According to the research of the South Korean

scientist Kim, "Free Economic Zones are territories

specially created for foreign countries, enterprises,

and firms. In these zones, enterprises and workers,

due to the benefits provided by the government, can

receive income subject to existing regulations. The

state aims to create free economic zones with the goal

of having a more economically transparent

environment than any other land. Through this, it

aims to shape the flow of investment and the

characteristics of competitive industry and trade."

According to V. Papov's research, "Free

Economic Zones are areas in which special privileges

and facilities are granted by the state. These

advantages, separated from other regions, are not

observed in any other land or economic network of

the state."

Rashidov, A. and Sirlibekov, H.

Using World Experience in Accounting.

DOI: 10.5220/0012955500003882

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd Pamir Transboundary Conference for Sustainable Societies (PAMIR-2 2023), pages 1159-1162

ISBN: 978-989-758-723-8

1159

From the scientists of our country, V. Vakhobov,

S.S. Mirzalieva, M.A. Raimzhonova, and A.A.

Ostonakulov outlined their scientific vision of Free

Economic Zones and their activities in their research

and scientific and methodological work.

A.V. Vakhobov stated, "Free economic zones are

geographical areas where the state's intervention in

economic processes is reduced. This is part of the

National Economic space, and a certain system of

benefits is introduced, which is not applicable in other

regions of the country."

Scientific abstraction, analysis, and dialectical

methods were used throughout our research. In the

current globalized period, it is clear that each state

sets ambitious goals for itself, but these goals are

difficult to organize without investments. Free

economic zones are considered the foci of investment

in a figurative sense. Today, free zones established in

more than 150 countries around the world serve for

the development of countries. Uzbekistan also has

nearly 10 years of experience. This process will

definitely require the study of the experience of

developed and developing countries for Uzbekistan.

It cannot be assumed that the work on the creation of

Free Economic Zones in all states was organized on a

scientific basis, through the policy of carefully

thought-out free economic zones.

We want to analyze the work carried out in zones

in some countries with extensive experience in this

regard. There are many countries with extensive

experience in this regard, but when focusing on the

experience of which state, we took into account two

things: firstly, they have their own role in the policy

of Free Economic Zones, and secondly, more

important countries have been selected for the use of

their experience in Uzbekistan.

The first country we choose is Japan. This state

has its own perspectives on the issue of the policy of

Free Economic Zones, relying on the following

system of criteria:

• the most efficient use of the limited land

resources of the regions as possible.

• taking into account the relative poverty

of Natural Resources.

• adaptation of the interests of the local

and central administration.

• to weaken the excessive concentration of

the population and industrial production

in large cities.

The country has its own methods of planning the

development of regions on a national scale. State

planning includes plans for the development of zones

with different methods of joint entrepreneurship of

both general and individual ministries of the

development plan. Free economic zones bearing the

name free import zones are common in Japan. Such

zones include "special measures in legislation for the

purpose of developing in the account of the

development of imports and attracting investments."

They are organized in sea and airports, with the

purpose of establishing zones:

• as a result of the accumulation of goods

at the regional level in ports, the

treatment in all areas of the Japanese

economy consists of cost optimization.

• consists in slowing down the process of

"washing out" industrial bases in the

country in conditions of growing foreign

investment.

• consists of promoting the expansion of

the division of labor with neighbouring

Asian countries.

• consists in creating specific "polygons"

for testing new methods of regulation.

South Korea. Korea has come to its country for a

long time practically without attracting foreign

investment. There were no foreign joint ventures on

the territory of the country. Only with the passage of

the law of 1960 "on the attraction of Foreign

Investment" did the conditions change. This gave

investors a number of benefits. But this konun began

to give his privileges after 10 years. In 1970, the first

free economic zone was established in South Korea,

accelerating the flow of foreign capital. The main

goal was to increase the number of enterprises in the

country's economy that work exclusively for export,

to achieve the development of the country's agrarian

development, and labour-intensive industries. One

important aspect to learn from Korea is that

businesses in free economic zones do not require

licenses for export-import activities.

China. The free economic zones in China are of

great importance in the rapid course of economic

reforms. In this, the contribution of Free Economic

Zones is 20%. China was the first Asian country to

decide on free economic zones. The fact that Chinese

scientists thoroughly and comprehensively studied

the experience of the United States, Japan, Hong

Kong, Singapore, and Taiwan before creating free

economic zones is also reflected in the policies of the

free economic zones that they have maintained.

The USA. It is the United States of America that

is doing a great deal of work and making great strides

on the issue of Free Economic Zones. Currently, the

number of Free Economic Zones operating in the

United States is more than 2,000. Many of them are

PAMIR-2 2023 - The Second Pamir Transboundary Conference for Sustainable Societies- | PAMIR

1160

organized by entrepreneurship, foreign trade, and

technical and research zones. From the experience of

the United States, it can be seen that one of the forms

of Free Economic Zones has high experience in the

creation and development of technical research zones

or technopolises. In the program for the creation of

US technopolises, the main focus will be on:

• technical support.

• help with personnel.

• commercial assistance in the form of

licenses and subsidies for the preparation

of construction sites and structures.

• financial assistance (provision of loans,

subsidies, and loans for the technical

training of employees, tax relief for

scientific research work).

Russia. In Russia, Free Economic Zones were

established using Chinese experience. Russia

considers the following as the main factors that attract

the flow of investments:

• a large domestic market.

• cheap raw materials and energy

resources.

• skilled and relatively cheap labor and

unused scientific potential.

• a relatively low cost of staff of scientists

and highly qualified specialists.

• the power and modern potential of the

military-industrial complex.

3 RESULTS & DISCUSSIONS

The main zone policy direction of the development

strategy of our country is the further liberalization of

the political, and economic life of the country, the

construction of the state and society. In this regard, a

lot of laws have been passed in our Republic. The law

on “free economic zones”, adopted in April 1996,

provides for Economic Freedom in accelerating the

processes of integration of the liberalization of the

economy into a lawful economic system, which is the

main core of an effective transition period.

Currently, the following types of Free Economic

Zones are operating in our Republic.

The organization of the most optimal models of Free

Economic Zones in cooperation with foreign

investors, on the one hand, positively and effectively

affects the sustainable socio-economic development

of our Republic, and on the other hand, raises its

position in the international division of Labor. On the

basis of such cooperation lies the fundamental

property that is host to the world economy, that is, the

process of internationalization. This is the formation

of relations, the main criterion for the globalization of

the processes of the world economy.

4 CONCLUSIONS

The primary prerequisites for establishing free

economic zones in any country include ensuring

political stability, a high degree of international

integration, sufficient electricity supply, and well-

developed international transport communications.

To facilitate the development of Free Economic

Zones in Uzbekistan, the following tasks must be

undertaken:

• Formulating a specialised programme to

regulate activities within Free Economic

Zones, addressing all legal and economic

aspects.

• Developing transportation networks to

enhance connectivity.

• Establishing essential infrastructure,

encompassing water supply, power supply,

and social amenities.

• Building commercial infrastructure,

including the availability of banking,

consulting, and legal services.

• Implementing a Market Access Project.

• Initiating a programme aimed at enhancing

labour value and productivity.

• Assessing the existing industrial base.

• Establishing an efficient administrative

management structure for Free Economic

Zones.

REFERENCES

Kuznetsov, A. (1990). Free zones and national economy.

World Economy and International Relations, 12, 24.

Rybakov, S. A., & Orlova, N. A. (2006). Special economic

zones in Russia. Moscow: Vershina.

Vaxabov, A. V., Xajіbakіev, Sh. X., & Mumіnov, N. G.

(2010). Foreign investments. Practical manual.

Tashkent: Molіya.

Danko, T. P., & Okrut, Z. M. (1998). Free economic zones

in the world economy. Moscow: INFRA-M.

Igoshin, N. V. (2000). Investments. Organization,

management, and financing. Moscow: Finances,

YUNITI.

Kim, Young Rae. (2009). The study on issues related

between limits of land development and total control

restriction system in the actual.

Using World Experience in Accounting

1161

Papava, Vladimer. (2007). The Immortal idea of a free

economic zone. Georgian Foundation for Strategic and

International Studies, 1-16.

Vaxobov, A. V., et al. (2010). Foreign investments.

Practical manual. Tashkent: Molіya.

Rashidov, M. K. (2012). "Evaluation measures of the

effectiveness of free economic zones". Economic and

Finance Scientific-Practical Journal, 12, 44–48.

Bykov, A. (1993). Free economic zones in Russia. Myth

and reality. Foreign Trade, 9, 30-34.

PAMIR-2 2023 - The Second Pamir Transboundary Conference for Sustainable Societies- | PAMIR

1162