The current position of Russia in comparison with industrialized countries. Developed countries Group of developing countries
Compared to developed countries, Russia consumes less meat, fish, milk and fruit, but more potatoes
A comparison of indicators of consumption of basic types of food by the population of Russia and other countries makes it possible to look at the nutrition problem from another point of view. Compared to developed countries, Russia has a low consumption of meat, fish, milk and fruit, but a higher consumption of potatoes.
The highest level of consumption of meat and meat products is in the USA and Australia, where it exceeds 100 kg per year per capita.
Meat consumption by the average Russian is almost three times lower than that of the average American (Figure 6). Bulgaria consumes slightly less meat than in Russia, and approximately the same amount in Japan, where fish consumption is more widespread. Consumption of fish products is high in Denmark and France. Vegetable oil consumption is also low in Russia, although it is even lower in the UK and Finland. However, in Italy it is almost three times higher, in Austria, Germany and Poland - 1.8 times higher.
Figure 6. Consumption of meat, fish and vegetable oil in Russia and some countries of the world, kg per year per capita, 2001
The level of milk consumption is highest in France and Germany - 430 kg per year per capita. In Russia it is almost twice as low, but noticeably higher than in Japan, Bulgaria and Great Britain (Fig. 7).
The level of egg consumption is highest in Japan and the Czech Republic - about 320 eggs per year per capita. Russia ranks average among developed countries in egg consumption.
Figure 7. Consumption of dairy products and eggs in Russia and some countries of the world, kg (pieces) per year per capita, 2001
Figure 8. Consumption of potatoes and bread products in Russia and some countries of the world, kg per year per capita, 2001
In terms of consumption of vegetables and food melons, Russia occupies an average position (Fig. 9). In Italy, the level of consumption of these food products is almost 2.5 times, and in Bulgaria, the Netherlands, Poland, France, the USA and Japan - 1.3-1.5 times higher than in Russia.
At the same time, in Finland and Great Britain it is 1.4 times lower, which, of course, reflects the characteristics of traditional national cuisine and food culture.
In terms of consumption of fruits and berries, Russia lags significantly behind other countries, although, in fairness, it should be noted that Poland, Bulgaria and Hungary, which in recent times were the main exporters of goods in this group for Russia, are not very far behind it, being inferior to such more northern countries such as Finland and the Netherlands.
Figure 9. Consumption of vegetables, melons, fruits and berries in Russia and some countries of the world, kg per year per capita, 2001 Sources
: www.gks.ru,
Russian statistical yearbook, 2003. pp. 157-158.
3 - Russia - 2001, foreign countries - 1995-2000 (Poland -2000; Bulgaria, Great Britain, Italy, USA, Finland - 1999; Austria, Hungary, Germany, France, Czech Republic - 1998; Australia, Denmark, Japan - 1997 ; Netherlands - 1995).
Different houses, different cars, different amounts of money. What is the concept of economic inequality? What are the characteristics of developed countries and developing countries?
What is economic inequality?
There are a number of differences between developed and developing countries. In almost any city you can see various houses, cars and people engaged in various activities. These differences can be indicators of economic inequality, which distinguishes individuals or entire population groups in terms of their wealth, assets or income. Although it is most common to see differences in economic levels within one's city, economic inequality can also occupy a broader scale, affecting entire peoples and nations.
Economically, the world has been divided into two types - developed countries and developing countries. These two categories are based primarily on per capita income, which is calculated by taking the total national income for a country and dividing it by the number of people living in the country. For example, if a small country has a total national income of $800,000 and a population of 20,000, then the per capita income is $40.
The most important characteristics of developing countries
Least developed (developing) countries have the following common features:
- Low standard of living. Reasons include: slow growth of national income, stagnant growth of per capita income, concentration of income in the hands of a few and uneven distribution of national income, poor health care, low literacy rates and insufficient educational opportunities.
- Low level of labor productivity due to lack of technology, capital, etc.
- High population growth rates. Underdeveloped countries have higher population growth rates. Mortality rates are also high compared to developed countries.
- High and rising levels of unemployment and underemployment. Some work less than they could. Part-time workers also include those who usually work full-time but who do not have suitable vacancies. Disguised unemployment is a feature of developing countries.
- Significant dependence on agricultural production. The vast majority of people, almost three quarters, work in rural areas. Likewise, three-quarters of the workforce is employed in agriculture. The contribution of agriculture to the gross national product of developing countries is very high compared to developed countries.
- Dependence on the primary product. Most economies from less developed countries are focused on primary production rather than secondary activities. These commodities constitute the main exports to other countries.
- Dependency in international relations. The highly unequal distribution of economic and political power between rich and poor countries is evident not only in the dominant power rich countries have to control international trade, but also in their ability to often dictate the terms in which technology, foreign aid, and private capital are channeled to the needs of developing countries.
- Dualistic economics. Almost all developed countries have dualistic economies. One of them is the market economy; The other is subsistence economics. One is in and near the city; The other is in the countryside.
- Distribution of wealth. Inequality in wealth and asset distribution is a major cause of unequal income distribution in rural areas. The highest concentration of assets is on the industrial front in the hands of large business houses.
- Lack of natural resources: fertile lands, clean water and mineral resources, iron, coal, etc.
- Lack of entrepreneurship and initiative. Another characteristic feature of underdeveloped countries is the lack of entrepreneurial prospects. Entrepreneurship is inhibited by a social system that denies the possibility of creativity.
- Inefficient capital equipment and technology.
Developed nations
The first economic category is developed countries, which can generally be classified as those that are more industrialized and have a higher level of per capita income. To be considered a developed country, a country typically has a per capita income of around US$12,000. Additionally, most developed countries have an average per capita income of approximately $38,000.
As of 2010, the list of developed countries included the USA, Canada, Japan, the Republic of Korea, Australia, New Zealand, Scandinavia, Singapore, Taiwan, Israel, Western European countries and some Arab states. In 2012, the combined population of these countries was about 1.3 billion people. This figure is relatively stable and is estimated to grow at around 7% over the next 40 years.
In addition to high per capita incomes and stable population growth rates, developed countries are also characterized by resource use patterns. In developed countries, people consume large amounts of natural resources per person and are estimated to consume almost 88% of the world's resources.
Developing nations
The first economic category is developed countries, and developing countries are, accordingly, the second economic category. This broad concept includes countries that are less industrialized and have lower per capita income. Developing countries can be classified into more developed or less developed countries.
Moderately developed countries have an approximate per capita income of between US$1,000 and US$12,000. The average per capita income for moderately developed countries is around US$4,000. The list of moderately developed countries is very long and amounts to about 4.9 billion people. Some of the more recognizable countries that are considered moderately developed include Mexico, China, Indonesia, Jordan, Thailand, Fiji and Ecuador. In addition to them are the states of Central America, South America, North and South Africa, Southeast Asia, Eastern Europe, the former USSR and many Arab states.
Less developed countries are the second type of developing countries. They have the lowest income, with a total per capita income of approximately less than US$1,000. In many of these countries, the average per capita income is even lower, around US$500. Countries listed as less developed are in eastern, western and central Africa, India and other countries in southern Asia. In 2012, these countries had approximately 0.8 billion people living on very little income.
Even though the income range is quite wide, almost 3 billion people still live on less than $2 a day. Can you imagine living on less than $2 a day? This would be a very difficult task for most of us. In addition to low income levels, developing countries are also characterized by high population growth rates. It is estimated to increase by 44% over the next 40 years. By 2050, it is predicted that more than 86% of the population will live in developing countries.
Difference between developed countries and developing countries
The classification of countries is based on economic status (GDP, GNP, per capita income, industrialization, standard of living, etc.) Developed countries refer to sovereign states whose economies have advanced significantly and have a large technological infrastructure compared to other nations. Countries with low industrialization and low human development are called developing countries. Some states provide a free, healthy and prosperous atmosphere, while others lack this.
Developed and developing countries of the world: comparative table
There are developed, developing and transition countries. What is their main difference? The main features of developed and developing countries are presented in the table:
| The developed countries | Developing countries |
| Availability of effective level of industrialization and individual income | A developing country is a country with a slow rate of industrialization and low per capita income |
| Low unemployment rate | Poverty and high unemployment |
| Mortality rates, including infant mortality, and birth rates are low, and life expectancy is high. | High levels of infant mortality, mortality and fertility, as well as low life expectancy |
| Good standard and living conditions | Low standard and satisfactory living conditions |
| Developed manufacturing sector, service sector and high industrial growth. | Dependence on developed countries. Developed agricultural sector of the economy |
| Equal distribution of income and efficient use of factors of production | Unequal distribution of income, factors of production are used inefficiently |
Countries in terms of economy and industrialization
Developed countries are countries that are developing in terms of economy and industrialization. They are also called first and self-sufficient. Human development statistics rank countries based on their development. These states have a high standard of living, high GDP, high child welfare, healthcare, excellent medical services, transport, communications and educational institutions.
They provide improved housing and living conditions, industrial, infrastructural and technological development, and higher per capita income. These countries earn more income from the industrial sector as compared to the service sectors as they are post-industrial economies. Along with others, the list of developed countries includes:
- Australia.
- Canada.
- France.
- Germany.
- Italy.
- Japan.
- Norway.
- Sweden.
- Switzerland.
- USA.
Countries that are experiencing initial levels of industrial development along with low per capita income are known as developing countries. These countries are categorized as third world countries. Economically developed and developing countries differ from each other in many ways, including a low human development index, lack of a healthy and safe living environment, low gross domestic product, high illiteracy rates, poor educational, transport, communication and health services, unsustainable national debt, unequal income distribution, high mortality and fertility rates, both maternal and infant malnutrition, high infant mortality rates, poor living conditions, high unemployment and poverty. These include states such as:
- China.
- Colombia.
- India.
- Kenya.
- Pakistan.
- Sri Lanka.
- Thailand.
- Türkiye.
- UAE, etc.
Key Differences
Countries that are independent and prosperous are known as developed countries. States that are about to begin industrialization are called developing. The former have a higher per capita income, a high literacy rate, and good infrastructure. They are constantly improving health and safety conditions that do not exist in developing countries.
The economies of developed and developing countries may have similar features, but there are more obvious differences. There is a big difference between such states. Developed countries have a high Human Development Index, they have proven themselves on all fronts and have made themselves sovereign through their own efforts, while developing countries are still trying to achieve the same with varying degrees of success.
Socio-cultural characteristics
Different types of social groups live in the same country. They differ on the basis of religion, castes and creeds, cultures and customs, languages and beliefs, etc. These social and cultural values have a profound impact on the economy of a nation. Developing countries may have dissonant social patterns in their economic life. Employment opportunities or activities exist in urban areas while the traditional method of production is used in rural areas. Job opportunities are less than required. Consequently, these countries have a dualistic economy, which leads to various problems in formulating economic policies.
Problems of developing countries: poverty, militarization
Poverty means low income, little investment, less industrialization. In certain industrial and technological areas, developing countries achieve rapid growth provided that economic and geopolitical stability is achieved.
Militarization also prevents sustainable prosperity and improvement. Some developing countries are facing problems of terrorism and threats to national security due to border disputes. They spend billions of dollars on modern military equipment, resulting in reduced funds for development and innovation. Examples are India, China, Vietnam.
The role of education
Speaking about the problems of developed and developing countries, we should not forget about the importance of education for the future of a particular nation. An important feature of a developing country is its illiteracy. Although efforts are being made to eradicate it, the problem of unskilled labor remains acute to this day.
1. Three groups of countries: developed, developing and transition economies
2. Group of developed countries
There is an opinion that in the near future Russia will also join the group of developed countries. But to do this, it needs to go a long way to transform its economy into a market one, to increase GDP at least to the pre-reform level.
Underdevelopment, the lack of rich mineral reserves, and in some countries, access to the sea, an unfavorable internal political and social situation, military operations and simply an arid climate have in recent decades determined the growth in the number of countries classified as the least developed subgroup. Currently there are 47 of them, including 32 located in Tropical Africa, 10 in Asia, 4 in Oceania, 1 in Latin America (Haiti). The main problem of these countries is not so much backwardness and poverty, but rather the lack of tangible economic resources to overcome them.
Based on various criteria, a certain number of subsystems are distinguished in the world economy. The largest subsystems, or megasystems, are three groups of national economies:
1) industrialized countries;
2) countries in transition;
3) developing countries.
The group of developed (industrialized countries, industrialized) includes states that have a high level of socio-economic development and the predominance of a market economy. GDP per capita PPP is at least 12 thousand PPP dollars.
The number of developed countries and territories, according to the International Monetary Fund, includes the United States, all countries of Western Europe, Canada, Japan, Australia and New Zealand, South Korea, Singapore, Hong Kong and Taiwan, Israel. The UN annexes the Republic of South Africa.
The Organization for Economic Cooperation and Development adds Turkey and Mexico to their number, although these are most likely developing countries, but they are included in this number on a territorial basis.
Thus, about 30 countries and territories are included in the number of developed countries.
Perhaps, after the official accession of Hungary, Poland, the Czech Republic, Slovenia, Cyprus and Estonia to the European Union, these countries will also be included in the number of developed countries.
The group of developing countries (less developed, underdeveloped) is the largest group (about 140 countries located in Asia, Africa, Latin America and Oceania).
These are states with a low level of economic development, but with a market economy. Despite the fairly large number of these countries, and many of them are characterized by large populations and considerable territory, they account for only 28% of world GDP.
The group of developing countries is often referred to as the Third World and is not homogeneous. The basis of developing countries are states with a relatively modern economic structure (for example, some countries in Asia, especially Southeast, and Latin American countries), large GDP per capita, and a high human development index. Of these, a subgroup of newly industrialized countries is distinguished, which have recently demonstrated very high rates of economic growth.
They were able to greatly reduce their gap with developed countries. Today's newly industrialized countries include: in Asia - Indonesia, Malaysia, Thailand and others, in Latin America - Chile and other South and Central American countries.
Oil exporting countries are included in a special subgroup. The core of this group consists of 12 members of the Organization of Petroleum Exporting Countries (OPEC).
4. Group of countries with economies in transition
This group includes states making a transition from an administrative-command (socialist) economy to a market economy (therefore they are often called post-socialist). This transition has been happening since the 1980-1990s.
Countries with economies in transition account for about 17–18% of world GDP, including the countries of Central and Eastern Europe (excluding the Baltics) - less than 2%, the former Soviet republics - more than 4% (including Russia - about 3%) , China - about 12%. In this youngest group of countries, subgroups can be distinguished.
The former Soviet republics, which are now united into the Commonwealth of Independent States (CIS), can be combined into one subgroup. Thus, such a unification leads to reforming the economies of these countries.
Another subgroup can include the countries of Central and Eastern Europe and the Baltic countries. These countries are characterized by a radical approach to reforms, a desire to join the EU, and a relatively high level of development for most of them.
But due to the strong lag behind the leaders of this subgroup of Albania, Bulgaria, Romania and the republics of the former Yugoslavia, it is advisable to include them in the first subgroup.
China and Vietnam can be divided into a separate subgroup. The low level of socio-economic development is currently increasing rapidly.
Of the large group of countries with administrative command economies, by the end of the 1990s. only two countries remained: North Korea and Cuba.
LECTURE No. 4. Newly industrialized countries, oil-producing countries, least developed countries. A special place for the group\leaders of the developing world: newly industrialized countries and OPEC member countries
In the structure of developing countries, 1960-80s. XX century are a period of global change. Among them, the so-called “newly industrialized countries (NICs)” stand out. Based on certain characteristics, NIS are distinguished from the bulk of developing countries. The features that distinguish “new industrial countries” from developing countries allow us to talk about the emergence of a special “new industrial model” of development.
These countries are unique examples of development for many states, both in terms of the internal dynamics of the national economy and in terms of foreign economic expansion. The NIS include four Asian countries, the so-called “small dragons of Asia” - South Korea, Taiwan, Singapore, Hong Kong, as well as the NIS of Latin America - Argentina, Brazil, Mexico. All these countries are first wave or first generation NIS.
Then they are followed by NIS of subsequent generations:
1) Malaysia, Thailand, India, Chile - second generation;
2) Cyprus, Tunisia, Türkiye, Indonesia – third generation;
As a result, entire zones of new industrialization emerge, poles of economic growth, spreading their influence primarily to nearby regions.
The United Nations identifies the criteria by which certain states belong to the NIS:
1) the size of GDP per capita;
2) average annual growth rate;
3) the share of the manufacturing industry in GDP (it should be more than 20%);
4) the volume of exports of industrial products and their share in total exports;
5) the volume of direct investment abroad.
For all these indicators, NIS not only stand out from other developing countries, but also often exceed similar indicators of a number of industrialized countries.
A significant increase in the well-being of the population determines the high growth rates of the NIS.
Low unemployment is one of the achievements of the NIS of Southeast Asia. In the mid-1990s, the four “little dragons”, as well as Thailand and Malaysia, were the countries with the lowest unemployment in the world. They showed lagging levels of labor productivity compared to industrialized countries. In the 1960s, some countries in East Asia and Latin America followed this path - NIS.
These countries actively used external sources of economic growth. These include, first of all, the free attraction of foreign capital, equipment and technology from industrialized countries.
The main reasons for separating NIS from other countries:
2) the development of the modern structure of the NIS economy was greatly influenced by direct investment. Direct investments in the NIS economy account for 42% of direct capitalist investments in developing countries.
The main investor is the USA, and then Japan. Japanese investment contributed to the industrialization of NIS and increased the competitiveness of their exports. They played a particularly noticeable role in the metamorphosis of NIS into large exporters of manufacturing products. It is characteristic of Asian NIS that capital flowed mainly into manufacturing and primary industries. In turn, the capital of Latin American NIS was channeled into trade, services, and manufacturing. The free expansion of foreign private capital has led to the fact that in NIS there is virtually no sector of the economy where there is no foreign capital. The profitability of investments in Asian NIS significantly exceeds similar opportunities in Latin American countries;
3) the “Asian” dragons intended to accept these changes in the international economic situation and use them for their own purposes.
The following factors played a significant role in attracting transnational corporations:
1) convenient geographical location of the NIS;
2) the formation in almost all NIS of autocratic or similar political regimes, loyal to industrialized countries.
Foreign investors were provided with a high degree of guarantees of the security of their investments;
3) such non-economic factors as hard work, diligence, and discipline of the population of the NIS of Asia played a significant role.
All countries can be divided into three categories according to their level of economic development.
Oil importers and exporters are especially distinguished.
The group of countries with high per capita incomes, which are typical for industrialized countries, includes Brunei, Qatar, Kuwait, and the Emirates.
The Organization of Petroleum Exporting Countries (OPEC) was founded in September 1960 at a conference in Baghdad (Iraq). OPEC was established by five oil-rich developing countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
These countries were subsequently joined by eight others: Qatar (1961), Indonesia and Libya (1962), UAE (1967), Algeria (1969), Nigeria (1971), Ecuador (1973). ), and Gabon (1975). However, two minor producers - Ecuador and Gabon - refused membership in this organization in 1992 and 1994. respectively. Thus, the real OPEC unites 11 member countries. OPEC's headquarters are located in Vienna. The Organization's Charter was adopted in 1961 at a January conference in Caracas (Venezuela). In accordance with Articles 1 and 2 of the Charter, Trusteeship is a “permanent intergovernmental organization”, the main objectives of which are:
1) coordination and unification of the oil policy of the participating countries and determination of the best ways (individual and collective) to protect their interests;
2) finding ways and means to ensure price stability on world oil markets in order to eliminate harmful and unwanted price fluctuations;
3) respecting the interests of producing countries and providing them with sustainable income;
4) efficient, economically feasible and regular supply of oil to consumer countries;
5) ensuring investors directing their funds to the oil industry a fair return on their invested capital.
OPEC controls about half of the world's oil trade and sets the official price for crude oil, which largely determines the world price level.
The conference is the highest body of OPEC and consists of delegations usually headed by ministers. It usually meets for regular sessions twice a year (in March and September) and for extraordinary sessions as needed.
At the Conference, the general political line of the Organization is formed, and appropriate measures for its implementation are determined; decisions are made to admit new members; the activities of the Board of Governors are checked and coordinated, members of the Board are appointed, including the Chairman of the Board of Governors and his deputy, as well as the Secretary General of OPEC; the budget and changes to the Charter, etc. are approved.
The Secretary General of the Organization is also the Secretary of the Conference. All decisions, with the exception of procedural issues, are made unanimously.
The conference in its activities relies on several committees and commissions, the most important of which is the economic commission. It is designed to assist the Organization in maintaining stability in the global oil market.
The Board of Governors is the governing body of OPEC and, in terms of the nature of the functions it performs, is comparable to the board of directors of a commercial organization.
It is composed of governors appointed by member states and approved by the Conference for a two-year term.
The Council administers the Organization, implements the decisions of OPEC's supreme body, forms the annual budget and submits it to the Conference for approval. He also analyzes reports submitted by the Secretary General, draws up reports and recommendations to the Conference on current affairs and prepares agendas for Conferences.
The OPEC Secretariat acts as the headquarters of the Organization and is (essentially) the executive body responsible for its functioning in accordance with the provisions of the Charter and the directives of the Board of Governors. The Secretariat is headed by the Secretary General and consists of a Research Division headed by a Director, an Information and Public Relations Department, an Administration and Personnel Department, and the Office of the Secretary General.
The Charter defines three categories of membership in the Organization:
1) founding participant;
2) full participant;
3) associative participant.
The founding members are the five countries that founded OPEC in September 1960 in Baghdad. Full members are the founding countries plus those countries whose membership was approved by the Conference. Associate participants are those countries that, for one reason or another, do not meet the criteria for full participation, but were nevertheless accepted by the Conference on special, separately agreed conditions.
At the same time, in recent years, other tasks have appeared, sometimes contradicting the above.
For example, Saudi Arabia lobbied hard for the idea of maintaining a long-term and stable level of oil prices, which would not be too high to encourage developed countries to develop and introduce alternative fuels.
Tactical goals decided at OPEC meetings are to regulate oil production. And yet, at the moment, OPEC countries have not managed to develop an effective mechanism for regulating production, mainly because the members of this organization are sovereign states that have the right to pursue an independent policy in the field of oil production and its export.
Another tactical goal of the Organization in recent years has been the desire to “not spook” the oil markets, i.e., concern for their stability and sustainability.
For example, before announcing the results of their meetings, OPEC ministers wait until the end of the oil futures trading session in New York. They also pay special attention to once again assuring Western countries and Asian NIS of OPEC’s intention to conduct a constructive dialogue.
At its core, OPEC is nothing more than an international cartel of oil-rich developing countries. This follows both from the tasks formulated in its Charter (for example, respecting the interests of producing countries and providing them with sustainable income; coordination and unification of the oil policies of member countries and determining the best ways (individual and collective) to protect their interests), and from specifics of membership in the Organization. According to the OPEC Charter, “any other country with significant net exports of crude oil, having fundamentally similar interests with member countries, can become a full member of the organization if it receives consent to join from? its full members, including the unanimous consent of the founding members.
LECTURE No. 5. Openness of the national economy. Economic security
For the normal functioning of the world economy, it is necessary to ultimately achieve complete freedom of trade between countries, the same as is now characteristic of trade relations within each state.
The economy is open- an economic system focused on maximum participation in world economic relations and in the international division of labor. Opposes autarkic economic systems that develop in isolation on the basis of self-sufficiency.
The degree of openness of the economy is characterized by such indicators as the export quota - the ratio of the value of exports to the value of the gross domestic product (GDP), the volume of exports per capita, etc.
A distinctive feature of modern economic development is the rapid growth of world trade in relation to world production. International specialization not only benefits the national economy, but also contributes to an increase in global production.
At the same time, the openness of the economy does not eliminate two trends in the development of the world economy: the increasing orientation of national-state economic entities towards free trade (free trade), on the one hand, and the desire to protect the internal market (protectionism) on the other. Their combination in one proportion or another forms the basis of the state’s foreign economic policy. A society that recognizes both the interests of consumers and its responsibility for those it disadvantages in its pursuit of more open trade policies must work out a compromise that avoids costly protectionism.
The advantages of an open economy are:
1) deepening specialization and cooperation of production;
2) rational distribution of resources depending on the degree of efficiency;
3) dissemination of world experience through the system of international economic relations;
4) increased competition between domestic producers, stimulated by competition in the world market.
An open economy is the elimination by the state of the monopoly of foreign trade, the effective application of the principle of comparative advantage and the international division of labor, the active use of various forms of joint entrepreneurship, and the organization of free enterprise zones.
One of the important criteria for an open economy is the country’s favorable investment climate, stimulating the influx of capital investments, technology, and information within the framework determined by economic feasibility and international competitiveness.
An open economy presupposes reasonable accessibility of the domestic market to the influx of foreign capital, information and labor.
An open economy requires significant government intervention in the formation of a mechanism for its implementation at the level of reasonable sufficiency.
There is no absolute openness of the economy in any country. A number of indicators are used to characterize the degree of participation of a country in the system of international economic relations or the degree of openness of the national economy. Among them, we should mention, first of all, export (K exp) and imported (K
imp ) quotas, the share of the value of exports (imports) in the value of GDP (GNP): where Q
exp. – export value; Q
imp. ) quotas, the share of the value of exports (imports) in the value of GDP (GNP): – the cost of exports and imports, respectively.):
Another indicator is the volume of exports per capita (Q / D.N. where H
n.
– the population of the country. The export potential of a country is assessed by the share of manufactured products that the country can sell on the world market without damaging its own economy and domestic consumption: where E
P. – export potential (the coefficient has only positive values, a zero value indicates the limit of export potential); D
Doctor of Science
– maximum permissible income per capita.
The entire set of foreign trade export operations is called the “foreign trade balance of the country”, in which export operations are classified as active items, and import operations are classified as passive. The total amount of exports and imports will create a balance in the country's foreign trade turnover.
The international division of labor is the most important basic category that expresses the essence and content of international relations.
Since all countries of the world are in one way or another included in this division, its deepening is determined by the development of productive forces experiencing the impact of the latest technical revolution. Participation in the international division of labor brings countries additional economic benefits, allowing them to satisfy their needs more fully and at the lowest cost. International division of labor (ILD)
- this is a stable concentration of production in certain countries of certain types of goods, works, and services. MRI determines:
1) exchange of goods and services between countries;
2) capital movement between countries;
3) labor migration;
4) integration.
Specialization related to the production of goods and services increases competitiveness.
1) For the development of MRI, the following are important: comparative advantage
2) – the ability to produce goods at a lower cost; public policy
3) , depending on which not only the nature of production, but also the nature of consumption can change; concentration of production
4) – creation of large industry, development of mass production (orientation to the foreign market when creating production); country's growing imports
5) – formation of mass consumption of raw materials and fuel. Typically, mass production does not coincide with resource deposits - countries organize resource imports;
development of transport infrastructure.
The international division of labor is an important stage in the development of the social territorial division of labor between countries. It is based on the economically beneficial specialization of countries' production on certain types of products, leading to the mutual exchange of production results between them in certain proportions (quantitative and qualitative). In the modern era, the international division of labor contributes to the development of world integration processes.
The documents adopted by the UN recognize that the international division of labor and international economic relations cannot develop spontaneously, only under the influence of the laws of competition. The market mechanism cannot automatically ensure rational development and use of resources throughout the global economy.
LECTURE No. 7. International labor migration
The slogan “to catch up and overtake America” needs adjustment - the more pressing task is to catch up and overtake the USA of 1950. In terms of GDP per capita, Russia has only now caught up with the USSR in 1990, which then reached the level at which the States were 40 years earlier . However, the Soviet economy is an exotic beast, very skinny but with long claws. Too much of the economy came from the military-industrial complex.
Now there is another imbalance: wealth in Russia is concentrated in large cities and oil centers. The so-called human development index, calculated by the UN based on a variety of economic and social parameters, shows that in general Russia is somewhere in the top ten countries in terms of development level: life here is a little worse than in Bosnia, but a little better than in Albania. Moreover, since 2000, we have even dropped by three positions in this ranking. But last year, UN experts decided to calculate the index for individual Russian regions. It turned out that if Moscow, St. Petersburg, and Tyumen were separate countries, they would be in the third top ten of the ranking, standing next to the Czech Republic and Cyprus.
During the upcoming New Year holidays, residents of large Russian cities are preparing to plunge into an atmosphere of consumption that Soviet people could not even dream of. According to a Deloitte study, the average Muscovite plans to spend €545 on the holidays. Residents of the five largest cities in Russia expect a slightly lower amount, €480. But even they have already overtaken the Germans and Dutch and are gradually approaching the French.
It's good to go crazy during the holidays when you have free money. They appeared not only among residents of megacities. In 2000, the majority of Russians “worked for food”—it accounted for 53.5% of expenses. Food is still the main item in the budget of the Russian family, but now, according to the Independent Institute of Social Policy, its share has dropped to 35.7%. Food costs are one of the most significant indicators of well-being. Countries where more than half of citizens' money is spent on daily bread are considered poor. We have already emerged from this unprestigious category of states, but we are still far from prosperity. Even Muscovites, who eat 27% of their income, are only at the level of today's Lithuania or Japan in the mid-1970s, whichever you prefer. When we, like Western Europeans, leave no more than 12-13% of our money in grocery stores, prosperity will finally come. However, in some areas it has already arrived. In others, there is very little left to happiness. And in some places, even after tens of years, we will not achieve what is commonly called the Western way of life.
LET'S GO AWAY
Instead of food, we now buy services. Their share of costs since 2000 has increased from 19.4 to 29.5%. Services took over the entire relative reduction in spending on food, and at the same time tore off a noticeable chunk from durable goods. The freed up money was generally used for trifles: for recreation and entertainment.
In 2000, Russians spent $8.8 billion on traveling abroad, in 2006 - already more than $18.6 billion. It’s as if we are making up for lost time in the “restricted” times. After all, for example, Brazilians, no matter how much economists draw parallels between our countries, are surprisingly little interested in tourism. In 2000, they spent half as much as we do on trips abroad; last year, they spent three times less. The overseas vacation model generally implies less interest in travel, and it’s not about income. Every year, 40% of Italians and only 21% of Americans travel abroad. And Russians are already 19%. Let's catch up with the West! And not only in terms of the number of tourists, but also in terms of expenses. The World Tourism Organization calculated that in 1995 the average Russian spent $580 on a trip. Ten years later, the amount has increased by 14%, while the Germans, the world's main tourists, have reduced their spending abroad over the same time and are now less than 1.5 times ahead of us. Citizens of other Western countries, however, are also traveling more and more, so we will soon not be able to catch up with the West as a whole in this indicator. Now, if Russian outbound tourism grew like Chinese tourism - 6 times in 10 years - there would be no doubt.
There are also more trips around the country. According to Euromonitor, since 2000, Russian residents have increased their spending on accommodation in Russian hotels by 5 times, the total amount already exceeding $2.5 billion. They would have spent more, but the supply is lame. In 2000, in terms of the number of hotel beds per capita, our country lagged behind the European leaders, Finland and France, by about 10 times. Behind us was only Albania. Over the course of six years, there was a change in leadership: Bulgaria took first place with 275 hotel beds per 10,000 inhabitants. Russia increased this figure by only 21%: 29 places per 10,000 people - this is ridiculous. But Moscow came out on top among European capitals in terms of the average price of a hotel room. As a result, our country is practically the only one where the incoming tourist flow is decreasing.
In the service sector, consumption in general is growing at a crazy pace: we were too far behind at one time. The average Russian now goes to the cinema twice as often as five years ago, but still less than once a year. An American - almost five times a year. It's the same with catering. Our spending on eating out has increased 8-fold over the same six years. However, having increased the number of cafes and restaurants by a quarter since the beginning of the century, Russia has only taken a tiny step closer to role models: in France there are three times as many cafes and restaurants, in America - 11 times.
The volume of air transportation in Russia has increased by almost 40% over seven years. And yet France is twice as ahead of us in this indicator, and Germany is three times ahead.
It seems that the only service where the backlog has been completely eliminated is mobile communications. Six years ago, when in many countries its penetration already exceeded 50%, Russia was just starting - two subscribers per 100 inhabitants, less than in Brazil. Now we have overtaken not only Brazil, but also Japan, the USA, and Canada. Another thing is that mobile penetration has ceased to be an indicator of well-being. Belarus, for example, beat Canada. The Internet is more illustrative. In terms of the number of users, Russia is at the level of France six years ago. But it is quickly catching up: Internetization is growing by 20-40% per year, while the leaders, having connected half the population to the Internet, have stopped, and in some places the percentage of users is even decreasing. If this continues, in three years we will catch up abroad.
QUALITY AND QUANTITY
A good thing is the service industry. But the increase in costs is associated not only with our desire to please ourselves. Take education, for example. The level of penetration of higher education in Russia has increased, but it cannot be said that we have suddenly rushed to knowledge: many attribute the growth to the preservation of the conscript army. But the price of knowledge is tending to Western levels very quickly. According to the State University Higher School of Economics, since 2000, the cost of education at Russian universities has doubled. On average, one semester now costs about $700. This is already quite close to the level of payment in universities in the UK and Germany, where the cost of a semester for their own citizens is limited to approximately $900-1000 (foreigners pay tens of times more). However, everyone knows that truly high-quality education in Russia can be obtained only in a few universities, and there the prices are completely different: at the Higher School of Economics they reach $6,000 per semester, at MGIMO - up to $5,500, at Moscow State University - up to $5,000.
Increasing prices for education are a headache not only for Russian parents. In the UK, controversy has erupted over the removal of government-imposed restrictions on the cost of education for citizens of this country. If the reform proposed by the Blair government passes, British parents will have to pay ten times more than now. In the United States, since 2000, the cost of education has increased on average by more than 1.5 times. So the rise in price of Russian education is not only a consequence of the transition from a socialist model to a capitalist one, but also part of a global trend. For Russian dads and moms, this is bad news: it’s unlikely that prices will stabilize in the foreseeable future.
One should not hope for stabilization in the housing and communal services sector. The share of household expenses on utilities and fuel in Russia is still 2 times lower than in Western Europe (10.5% versus 21.9%), but in 2000 the difference was 3.5 times. The costs of housing and communal services and fuel are combined into one indicator in Western statistics, since in many countries central heating in our understanding does not exist and people themselves buy fuel not only for cars, but also for houses. Energy prices are rising, citizens are grumbling.
However, the rise in prices in the West cannot be compared with ours. According to the research organization GTZ, in the G7 countries in 2000-2006. High-octane gasoline rose in price by 43%, and diesel fuel by 53%. In Russia - by 133 and 127%, respectively. Despite the fact that on the eve of December 2, the authorities are trying to contain the rise in gasoline prices. After the elections, its social significance will decrease, and in pursuit of the West we will make another leap. At this rate, Russia will overtake France within five years, where gasoline is twice as expensive as ours. We overtook the United States in terms of gasoline prices three years ago.
“The main reason for the rise in prices for housing and communal services is the rise in energy prices, and it will accelerate as the state liberalizes the market,” says Alexander Shkolnikov, head of the planning and analysis sector at Smolenskenergo. His company sells electricity and provides utility services, the latter of which does not make a profit. “The sale of electricity helps out,” says Shkolnikov, “but there are many housing and communal services companies that are consistently unprofitable and will go completely bankrupt with rising energy prices.” Housing and communal services tariffs, still controlled by the state, are growing much slower than prices for fuel oil and gas, so utility companies will have less and less funds that could be used to improve quality. In this indicator, we will lag behind the West.
HOUSING PROBLEM
It is still pointless to compete with the West in terms of housing. In 2006, 50.6 million m2 of housing were built in Russia, which is 67% more than in 2000. It seems like a lot. An even more impressive increase is obtained per capita (71%), since the population decreased by 3.5 million people during this time. It turns out that in 2006, 0.35 m2 was built per person. Is it a lot or a little? Slightly more than in Germany, but still less than in Belgium. There, according to the Royal Institution of Chartered Surveyors, approximately 0.4 m2 per capita is introduced annually. And the leader, the United States, has demonstrated rates of up to 1.2 m2 per person in recent years. Only this year will we possibly catch up with Belgium in terms of the area of housing built per person, and as for the USA, Ireland, Israel, Norway, our gap from them is only increasing.
“In the West, it is generally not customary to calculate the housing area commissioned, since this is a crafty indicator,” explains Andrei Tumanov from the Institute of Urban Economics. “They count how many new houses and apartments have been built.” And the improvement in living conditions is judged by the number of families that have moved to new apartments or houses. If we count according to European statistical standards, the pace of housing commissioning in our country increased in 2000-2006. only 63%. With the lag that we have now, it's too slow. In 2000, there were 19.2 m2 of housing per resident of Russia, now it is 21.6 m2. We are closer to the indicators of Poland and Moldova. Many European countries have greatly reduced the pace of construction in recent years - in Germany, for example, they have fallen by more than half since 1998 - and we have a chance to catch up with them. But we must take into account that we are starting from a very low start. In the USA, there are 70.6 m2 per person - almost 3.5 times more than ours. In Portugal, which we are constantly trying to catch up with in various economic parameters, it is 41.3 m2. Considering that the Portuguese build about 1 m2 of housing per person every year, we are not destined to catch up with them in terms of housing supply. Our pace is even more insufficient if we take into account the scale of deterioration of Russian houses, many of which are long overdue for demolition.
The automotive market has similar problems. In 2000, 46% of Russian cars were over 10 years old. Now there are already 51% of them. What's happening? The market is not keeping up with the park. In France, a country similar to ours in terms of the number of cars and market size, almost every new car that hits the road corresponds to one that is scrapped. In Russia, there is almost no decommissioning: everything goes towards expanding the fleet. Sales are growing at a fantastic rate, more than doubling since the beginning of the century, despite the fact that in most developed countries the market is stable and in some places even declining. But the West received too much of a head start during the Soviet years. Last year, motorization in Russia reached 188 cars per 1000 people. This is less than in Europe in 1980, which means we still have 30 years to catch up with the Europeans.
You can imagine it differently. In 1995, there were 308 cars per 1,000 inhabitants of developed Europe. Now this is already the level of Eastern Europe. In Poland, for example, there are 324 cars per 1,000 citizens, and six years ago there were 264. If Russia maintains the current rate of motorization, we will catch up with Poland at the turn of the millennium in six years. In another six we will reach its current level. And it will take another 12 years to reach the level of current Europe. The result is almost the same: about a quarter of a century. There is only one clear and positive structural shift so far: foreign cars are advancing. In 2000 there were 16% of them; now it is 31%. Moscow, as usual, lives by its own laws: there are already more than half of the foreign cars here.
With other goods it is simpler - in terms of the number of refrigerators and televisions, it is simply not interesting to compare Russia with the West; the differences lie only in their interest in energy saving while we completely ignore this criterion. Another thing is where we buy all this. The trade format turned out to be a much more stable thing than the range and quantity of goods. The rich Russians shop, if you look at it as a whole, in the same place as their poorer predecessors. According to research company IGD, over the past five years the share of “Soviet-style stores” has decreased by only 2 percentage points and still accounts for about a quarter of grocery retail turnover. The share of public markets fell from 63 to 50%, and in 2010, according to analysts, it will still be 47%. In terms of the development of modern distribution channels, we are now at the level of Poland in 1999, and have only surpassed Turkey, where organized trade does not reach even 40%. In Europe, meanwhile, the share of market trade has long stabilized around 5%. Russia buys and sells in full accordance with its position between the East with its bazaars and the West, and this will not change soon.
EVERYTHING ON THE CARD
“In financial terms, we are catching up with the West, but this is more like Achilles catching up with a tortoise,” says Oleg Solntsev from the Center for Macroeconomic Analysis and Short-Term Forecasting. The size of our financial system is extremely small: banking assets will reach 60% of GDP this year alone, while in the West twice this level is considered normal.
But the pace at which financial culture and services are being introduced in our country is amazing. In 2000, the distance between Russia and the West seemed almost endless. The population was practically excluded from the financial system. The share of consumer loans in GDP fluctuated between 0 and 1%, “mortgage” was an unknown foreign word, and the number of simple salary plastic cards was 55 per 1000 people. Now every second person has plastic cards, the volume of consumer loans doubles every year (in developed countries the growth does not exceed 10%), and mortgages are discussed in every family.
At the end of 2006, about $5.7 billion was invested by the population in open-end mutual funds - 32 times more than in 2000. Credit cards, however, have not yet become widespread: there are only 40 of them per 1,000 people. This is negligible compared to Western Europe and especially the United States, where there are seven credit cards per adult. But in 2000 there were no credit cards in Russia at all, and since 2003 their number has doubled every year. The huge gap in the finance sector guarantees rapid growth in the coming years. In almost all developed countries, the credit burden of households is greater than their annual income, sometimes several times, but our debt is at most 15% of annual income. Most Russians have yet to experience all the delights of life on credit. The wait, however, is not too long.
The image shows what developed and developing countries look like today: developed countries are marked in blue, moderately developing countries are marked in yellow, and underdeveloped countries are marked in red.
The developed countries
According to encyclopedic information, developed countries are countries that occupy a dominant position in the world economy. These countries are home to 15-16% of the world's population, but at the same time they produce 3/4 of the gross world product and create the bulk of the economic, scientific and technical potential of the world. Developed countries are also called industrialized countries or industrialized countries.
Developing countries
Developing countries are generally those that have low standards of democratic governments, free market economies, industrialization, social programs, and human rights guarantees for their citizens.
Nuances of separation
However, there is no single universally accepted definition of the term, and the level of development of so-called developing countries can vary widely. Some developing countries have average living standards. Countries with more developed economies, compared to others that have not yet fully demonstrated the characteristics of a developed country, are grouped under the general term “newly industrialized countries.” The term "Developing Country" is not applicable to all countries that are underdeveloped, since in a number of countries there is practically no development. Such countries are classified as least developed countries or failed states.
However, it should also be added that there is no established convention within the UN system to designate developed and developing countries or regions. The UN notes that, according to common practice, Japan in Asia, Canada and the United States in North America, Australia and New Zealand in Oceania and Europe are considered developed regions and areas. According to international trade statistics, the Southern African Customs Union is also classified as a developed region, and Israel is classified as a developed country; countries of the former Yugoslavia are considered developing countries; and the states of Eastern Europe and the CIS in Europe are not included in the lists of either developed or developing regions.