Page 43 - Theoretical and Practical Interpretation of Investment Attractiveness

budget, the average income that directly goes to the state budget, and investments directed to
basic capital are also higher.
If we look at the distribution of investments (basic capital) to regions (provinces) over
the years, it has been unevenly distributed. If we consider the value of investments directed
to the region's economy and their impact on its development, the highest indicators compared
to the average republic indicator are observed in Tashkent city, Kashkadarya, Tashkent, and
Fergana regions, while all other regions have lower indicators than the average. The lowest
indicator is seen in Sirdaryo region (2.3%). Due to the deepening of market relations and the
modernization of the economy through the implementation of targeted measures and the
adoption of national programs, in 2005, Tashkent city's performance in the total republic
indicator increased by 3 percentage points, while in Sirdaryo, Namangan, and Fergana
regions, a decline was observed.

“Constantly revisiting reality is necessary because it
reminds us to always pursue improvement, as it
constantly points out our shortcomings”. Goethe

1.3. Explanation of the investment attractiveness of the investment environment,
classification of investment potential, and investment risk.

Transforming the economy from a technological perspective and ensuring its
competitiveness through the development of investment is considered one of the methods
learned from global practice. Creating a favorable investment environment and increasing the
investment activity of business entities are essential conditions for ensuring sustainable
economic growth.
The current state of development in our country and the changing nature of state
economic policy require a regular review of economic science issues, including those related
to investments. However, in recognizing the factors used to attract investment, the lack of a
single opinion and the presence of some misconceptions lead to opposition from a
methodological standpoint and to resistance to certain complexities. Therefore, in practice,
the concept of "investment capacity" is often used as a synonym for the concept of
"investment opportunity". According to our opinion, the terms "investment opportunity" and
"investment capacity" describe different structural parts of an investment process.
Certainly, investment opportunity and investment capacity are parameters necessary
for the investment process. Despite being accepted as a single system; these categories consist
of independent structural parts. Identifying the different characteristics of these categories and
clarifying the economic nature of the concept of "investment capacity" is necessary to
understand the concept of "investment opportunity" and "investment capacity".
"Investment opportunity" and "investment capacity" can be distinguished from each
other based on the economic characteristics of these categories using a method of theoretical
analysis. In this method, the nature of the economic category is revealed through the following
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