World Economy: A Quest for the New Growth Model

Author(s):  
S. Afontsev

As a consequence of the global crisis, a major shift to the new growth model is under way in the world economy. The article analyses principal changes in the role of resources, technologies, institutions, and economic policies in shaping new growth patterns in developed as well as developing markets. With human capital and capital intensive technologies replacing cheap labor and natural resources as principal sources of comparative advantage, global economy is likely to be rebalanced in favor of richer countries. The resulting adjustment calls for more flexible regulatory rules and social institutions, while growth-friendly economic policies at subnational level are expected to complement (and sometimes substitute for) more traditional national policies.

2013 ◽  
pp. 97-116 ◽  
Author(s):  
A. Apokin

The author compares several quantitative and qualitative approaches to forecasting to find appropriate methods to incorporate technological change in long-range forecasts of the world economy. A?number of long-run forecasts (with horizons over 10 years) for the world economy and national economies is reviewed to outline advantages and drawbacks for different ways to account for technological change. Various approaches based on their sensitivity to data quality and robustness to model misspecifications are compared and recommendations are offered on the choice of appropriate technique in long-run forecasts of the world economy in the presence of technological change.


Author(s):  
Barbara Bennett Woodhouse

Chapter four explores how the activities and relationships occurring in the spaces where microsystems overlap function as seedbeds of solidarity, generating a shared sense of identity, fostering social cohesion and transforming “other people’s children” into “our children.” The author focuses on interactions among the primary social institutions comprising children’s microsystems: family, faith community, school, peer group, and neighbourhood. Drawing on observations from the villages under study, the author illustrates the dynamic created when these social institutions cooperate, collaborate and even engage in friendly competition in support of the community’s children. The chapter highlights the role of rituals and traditions in building community identity and solidarity in both villages. It explores how village identity can endure across time and distance in migrants’ attachments to their home towns. In closing, it predicts further erosion of community identity due to global economic policies and divisive political movements.


Author(s):  
Anna Zorska

The article aims at an analysis of changes in development of globalization which took place during the 2007-2008 crisis and the following years of the economic slowdown. The analysis is conducted against the background of the situation in the world economy and includes investigation of changes (dynamics and structures) in global flows of merchandise, exports of services and foreign direct investments. The structural transformation of global flows indicates the increasing share and role of China in the world economy. The significance of transnational corporations in the globalization process calls for portraying the evolution of their activity and relations with nation states and other groups of economic actors. Attention is drawn to changes in the set and forces of key globalization factors, including technological progress (in the age of information revolution), economic, social and demographic as well as political factors. The increasing impacts of evolving States' policies and socio-demographic situation on trends in the global economy are acknowledged. The transformation of globalization factors considerably affects the development and evolution (or metamorphosis) of the investigated process. Six signs of the initiated metamorphosis of globalization, which indicate possible intensification and direction of changes in the futurę development of the process, are discussed


2021 ◽  
Vol 69 (3-4) ◽  
pp. 14-30
Author(s):  
Gordana Kokeza ◽  
Mihailo Paunović

This paper explores the characteristics of intellectual capital, competitiveness and industrial policies of innovation-intensive sectors in Serbia. It consists of four parts. The first part presents the characteristics of intellectual capital as the basis of economic growth and competitiveness. The second part analyses the characteristics of national intellectual capital and competitiveness of individual countries in the global economy, while the third part of the paper discusses the competitiveness of the Serbian economy and gives recommendations for a new growth model. The fourth part of the paper is concerned with analysis of the characteristics of intellectual capital and industrial policies of innovation-intensive companies in Serbia, presenting also the results of the research study. The paper proposes that the new growth model of the domestic economy should be based on advanced industrial production and services with a high degree of added value, as well as the application of new economic policies, which should be based on a heterodox approach. It is also concluded that the level of development of intellectual capital of the analyzed companies is at a relatively high level, their structural capital is relatively developed, and the surveyed companies have an excellent reputation. Finally, it is concluded that further development of innovation-intensive sectors implies the application of appropriate industrial policies specific for containing the elements of both vertical and horizontal policies which should focus on encouraging development and innovation.


2021 ◽  
Vol 1 (72) ◽  
pp. 333-349
Author(s):  
Mircea COȘEA

Coronavirus has generated changes and mutations not only in the conduct of our daily lives, but also in the organization and functioning of the economic mechanism at national and global level.The rapid changes and shifts that are taking place in the economy are for the moment the result of the political mainstream, especially the governmental one, and of the system of internationalfinancial institutions. What is visible and certain is the elimination of some limits in giving up ideological principles and established rules of the functioning of the economic mechanism. Thus, the neoclassical ideology, the foundation of the whole scaffolding of the global economic policies, easily compromises by admitting that in the current conditions state interventionism has a more  important role than free market laws in counteracting the effects of the pandemic on the economy. This process easily went beyond the regulations of the liberalization of trade in goods, returning to protectionism with nationalist accents as well as to bans on food and medicine exports. The principle of European solidarity is being threatened by unilateral decisions taken by Member States, or by the abandonment of European agreements in order to replace them by national decisions. Globalization was based on the imperative to produce, sell and buy, move, circulate, move on. Its ideology of progress is based on the idea that the economy must definitely replace politics. The essence of the system was the abolishment of limits: more trade, more and more goods, more and more profits to allow money to circulate and turn into capital. This whole concept of development has ceased to be the guiding principle of economic growth and development, thecurrent trend being the return to national borders, if not in a strictly territorial sense, at least in an economic sense. That is why one of the important changes of recent months is the emergence of policies designedto change the meaning of supply chains. Rethinking supply chains is a consequence of border closures or of the sudden closure of transport. It is a critical point of pressure that weighs mainly on car manufacturers and capitalgoods. As a result, there will be a trend of relocating production to European or Maghreb countries where wages remain lower than the European average. Another quick and important change is the one related to the role of the state in the economy, neoliberalism successfully promoting throughout the global economy the idea of the need for the limited role of state decision and state interventionism in the economy. The current change consists precisely in reversing the role of the state from passivity to activity, considered as the only one capable of ensuring an efficient system for managing the pandemic and restarting the economy. For many analysts, the coronavirus crisis could lead to a profound change in the global economic model and in the individual economic behavior.This is an extremely important issue also from the perspective of Romania's future. We are at a turning point and will have to make quick and complex decisions, because Romania risks entering a post-crisis period in an economic stagnation difficult to overcome, due to the lack ofproductivity, innovation and modern management. The gaps between Romania and the vast majority of European countries will be maintained, condemning us to occupy a marginal and lower place in the hierarchy of the European economy, characterized by a high and dangerous degree of dependence on the evolution and dynamics of markets in the strong states of the European Union. The explanation of this situation lies in the type and functioning of the structure of the Romanian economy. The current structure of the Romanian economy lies on the last concentric circle of European integration, if its center is considered the western core of theEU. There is no doubt about this inevitability. The crisis caused by the pandemic already exists and despite the optimism of some international financial institutions it will profoundly affect the state of the world economy and the life of the citizens. There will be not only major changes in the paradigm of the neoliberal model of the global economy but also changes in the balance of power between the world's major economic and political actors. The trade war between the USA and China is also beginning to have important political aspects, as the fight for world leadership between these two superpowers is generating tensions over the entire world. These tensions will surely have many "collateral victims" through the direct and indirect damage that many national economies, even the European Union, will suffer, as a result of the economicand political consequences of the US and China entering a state that some Western analysts define as " a cold war but with a tendency to warm up". These elements will aggravate the pressure that the pandemic crisis will put on the state of the world economy, determining the extent and depth of the effects of the crisis not only on the economic field but also on the balance and stability of international relations.Keywords: coronavirus crisis; value chains; multilateralism-unilateralism; protectionism, neoliberal global economic model. 


Author(s):  
Maryam Bichi ◽  

In the Global economy, tourism is one of the most noticeable and growing sectors. This sector plays an important role in boosting a nation’s economy. An increase in tourism flow can bring positive economic outcomes to the nations, especially in gross domestic product GDP. The tourism industry is an engine of economic development and GDP growth. As the number of COVID-19 positive cases increasing day by day, government bound to take this hard decision (lockdown). All international flight have been cancelled and stopped for long days accommodation business, hotels, motels/resort owners, already started to face a countless loss, hotels/motels, restaurant, travel agencies already closed their businesses, thousands of people working in tourism industry have started to become jobless. Already government of Nigeria offered different special packages for recovery and ensuring sustainability of different sector. This study also presents the real scenario of tourism industry during COVID-19 pandemic which will help to know the update knowledge regarding the impacts of COVID-19 in tourism and hospitality industry and to take proper recovery steps.


2011 ◽  
Vol 50 (2) ◽  
pp. 179-180 ◽  
Author(s):  
Uzma Zia

Asia and Policymaking for the Global Economy is a collection of analysis on global economic cooperation. In particular it highlights Asia’s accomplishments, opportunities, its potential, and the role it can play in the global economy. It is divided into five chapters each constituting a different insightful article. The first chapter gives an introduction and an over view of the topics analysed in this book. It focuses on the structural transformation in Asia and the world economy, and discusses the rise of Asia and implications for economic coordination at international level. The second chapter focuses on growth dynamics in Asia in a global context. It provides an important contribution to the subject issue as it analyses the sources of structural transformation experienced by world economy. It suggests that policy-makers should focus on global savings and investment structures to rebalance world economy. The rebalancing debate is then connected to the debate on the international monetary system and role of reserve currencies in this chapter.


Author(s):  
Vijay Joshi ◽  
Devesh Kapur

The paper aims to analyse three questions which arise naturally in examining India’s closer engagement with the world economy in the last two decades. First, how has it evolved and what is its extent? Second, what is its impact on India? Third, what is its impact on the world? Evolution and Extent: For four decades after independence, India’s economic policies had a marked autarkic bias and by 1990 it had become one of the most closed economies in the world. A major goal of the historic reforms launched in 1991 was to reintegrate the country into the global economy, and there has been a progressive move in this direction Effect on India: In post-independent India, many sceptical voices made dire predictions about the effects of opening up, such as deindustrialisation and destabilisation of the economy, and impoverishment of the people. After opening-up, these alarming prophecies did not materialise. Undesirable features of India’s development, such as inadequate poverty alleviation despite rapid growth, have domestic causes and are not the result of globalisation. Effect on the World: India’s effect on the world economy is growing but has to be seen in the context of China’s simultaneous rapid rise. It is very likely that on all the major contentious global economic issues such as exchange rate coordination, trade liberalisation, and climate change mitigation, global action will have to involve the participation of China and India. For good or ill, China and India will matter in the 21st century both for each other and for the world.


2020 ◽  
pp. 251484862090238
Author(s):  
Nicholas Beuret

The only existing plans to arrest dangerous climate change depend on either yet to be invented technologies to keep us below 2°C or on crashing the world economy for decades to come. The political choice appears to be between doing what is scientifically necessary or what is politically realistic; between shifting to an entirely different kind of global socio-economic system or suffering catastrophe. We are thus in a moment of governmental impasse, caught between old and still-emerging political rationalities. Working through the liminal governmental role of environmental non-governmental organisations, this paper explores the shift from governmental regimes centred on biopower to ones that work through the register of geopower, from governing life to governing the conditions of life. Confronted with climate change as an irresolvable problem, what we find emerging are techniques that aim to contain the worst effects of climate change without fundamentally transforming the global economy.


Author(s):  
Yuriy Gumenyuk

The role of ensuring the economy of the country as factors of production for its competitiveness in the world markets of goods and services is substantiated. It is proved that the artificial reduction of the share in the production function of one of the factors leads to an increase in its price (share) in the national product. This gave a chance to scientifically and methodologically substantiate the position according to which emerging market countries must form an effective aggregate demand through the formation of the middle class and any slowing down in this direction leads to cur­tailment of economic development. Instead, the uneven distribution of the global economy is spreading and the death penalty is formed, which consumption costs are motivated by scientific and technological progress.


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