DIGITAL TRANSFORMATION AS A CATALYST FOR ECONOMIC MODERNIZATION IN UZBEKISTAN: OPPORTUNITIES AND STRATEGIC DIRECTIONS

Abstract

Digital transformation has become a key factor in economic modernization, enhancing productivity, innovation, and national competitiveness. Uzbekistan has identified the development of the digital economy as a strategic priority and is implementing comprehensive reforms to accelerate digitalization. This study examines the theoretical foundations of the digital economy and analyzes the main directions of digital transformation in Uzbekistan, with particular attention to e-government, digital financial services, digital infrastructure, and IT entrepreneurship. The research is based on qualitative methods, including institutional and comparative analysis. The findings suggest that digital transformation contributes to economic modernization by reducing transaction costs, improving public services, and fostering innovation-driven growth. However, challenges such as digital inequality, cybersecurity risks, and the need for skilled human capital remain significant. The study concludes that sustainable digital development requires a combination of technological innovation, institutional reforms, investment in digital infrastructure, and the enhancement of digital competencies. These measures can strengthen Uzbekistan's competitiveness and support its integration into the global digital economy.