Research and publications on the world economy

Problems of economics

Problems of economics
The problems of the economy are global violations in the development and conduct of economic activities of individual countries or the world. As a rule, the global economic problems include the division of the community into development poles, deep depletion of the planet's resources (including water resources), food problems, poverty, weak scientific and technological progress, and so on.
Global economic problems in the world
To global, it is possible to carry a whole set of problems that call into question not only the development of the planet and each individual state in the economic sense but the existence of mankind as a whole. It touches on the most important issues that require urgent action and full-scale action on the part of the world community. Thus, the most important problems of the economy are:
1. The problem of different "poles" of economic development, the emergence of the "North" and "South". The essence is a deep division (primarily economically) between those countries that are already developed and those that are classified as developing. The latter need the help of more "strong colleagues", leniency, more flexible conditions. For example, developed countries can open access to goods from developing countries without any serious conditions, ensure a stable inflow of investment capital, restructure most of the debts and so on.
The backwardness of most countries is dangerous not only at the domestic level but also for the economy of the planet as a whole. The more backwards "SOUTH" is an integral part of the economic space, so its problems inevitably become common. For example, every year there is an increasingly active movement of people from less developed countries to states with a high level of development. As a result, it is possible to transfer a number of diseases, increase the burden on the economy, the appearance of problems with social security and so on.
Since the 60s a new concept has been working in the world, the essence of which is active assistance to developing countries with an unstable economy. The main ideas of this concept are as follows:
- Creation of preferential treatment for countries that are only following the path of development. This is especially important in the formation of international relations - the provision of real assistance on a stable basis to address both social and economic problems. All this allows you to reduce the debt burden and help you deal with current problems.

By the mid-1980s, it was possible to see the real results of labour that enabled developing countries to advance in their development to strengthen their sovereignty, achieve world recognition, open an international market for their goods, increase financial assistance, and so on. But by the end of the 80s, something had happened. Economic support has ceased to be effective. In fact, developed countries were forced to admit defeat. There were two reasons:
- a reduction in the level of unity of developing countries, which was caused by a strong development gap. Against the backdrop of other states, the powerful countries exporting natural resources (primary oil) and also the newly formed industrial countries became more and more prominent - the level of dialogue between the developed and developing countries has significantly decreased, which led to the suspension of the positive process.
2. The problem of poverty is, in fact, already a consequence of obvious "gaps" in the economy and the inability (or unwillingness) of the government to provide for its people. In such a situation, there is a huge gulf between people who have good means of subsistence, and another category of residents below the poverty line.
For today, there are two main criteria for this problem - national and international. In the first case, it is a population that belongs to the poorest. Such groups exist in many countries of the world and Russia is no exception. The phrase "below the poverty line" implies income below the subsistence minimum. That is, a person can not afford to buy a minimum set of products for adequate nutrition. In developed countries, the poor are those who have about 40-50% of the average salary in the country.
At the same time, there are international poverty criteria, which are about two dollars per day (GDP PPP). The lowest level of poverty (extreme) is recognised when income falls below one dollar a day.
In the 1980s, over two hundred million people lived below the poverty line. Since the beginning of the 1990s, people have become poor in post-socialist countries. For example, only Moldova had more than 60% of poor people, and in Mongolia, this figure reached 75%. As for Russia, here the percentage of the population with earnings less than a dollar a day is about two percent.

3. The problems of the economy and the food crisis are also closely interrelated. Developing countries are not able to provide the population with vital food. This is paradoxical, because the natural resources of developing countries are very rich, and the economy itself has great prospects.
But the problem of food shortages still exists and requires an operative solution. Over the past 50 years, it has been possible to significantly reduce the number of people who are starving (almost 50%). But despite this, nearly 800 million people are still malnourished, and 4-5 million children die each year due to the effects of starvation.
The problem of hunger has ceased to be relevant only for developed countries, which managed to fully meet the needs of their population. But in general, on the globe, there is a significant run-up in the food supply. In this case, the planet can be divided into four main zones for food problems:
1) Industrial states, such as North and West Europe, Australia and North America. Such regions today almost do not know the word hunger - they have enough food.
2) The regions of Central Asia and southern Europe, the countries of the Maghreb and Latin America, ASEAN and others. Here, the level of food is at the proper level and is approaching the minimum standards of the UN World Health Organization.
3) CIS countries, Eastern Europe, Indonesia, Egypt, India and others. Here, the level of food is at a minimum level but still, falls within the norm of deviations from the UN World Health Organization.
4) Developing countries are a large part of the world's population (almost 80%). This is where the biggest food problems are.
In 2007, the food problem looked like this, but today it has not changed much.
4. Energy problems inevitably affect the economic development of countries with a weak economy. At the same time, the global problem with energy resources manifested itself most acutely in the 1970s, when a powerful energy crisis broke out in the world. At that time, the cost of oil increased almost 15 times. All this created enormous problems for the economies of many countries in the world. Some states managed to get out of energy dependence, but the world economy still suffers from an acute shortage of resources.
The main cause of the energy problem is a sharp increase in resource consumption. This is especially true since the beginning of the 20th century. On the one hand, large deposits were discovered in Alaska, in Western Siberia, on the shelf of the North Sea, and so on. On the other hand, the car fleet grew every year, and the demand for the economic sphere increased.
At the same time, mankind started developing new deposits. For example, in the early 1980s oil reserves were estimated at 1.2 trillion tonnes, and by early 2000 they had increased to almost 1.8 trillion tonnes. Even 30 years ago it seemed that oil would last only 20-30 years, but with the current level of natural resources, these fears were in vain.
In addition to the above-mentioned problems of the economy, it is possible to single out the problem of the development of the World Ocean, the demographic problem, the deterioration of the environment, the acute depletion of the animal and plant world, global warming, the threat of a nuclear catastrophe against the arms race, and so on.
Solution of global economic problems
Each problem has its own solutions. The only question is how much the governments of developing and developed countries are interested in cooperation and restoring parity. Problems, in turn, can be solved as follows:
1. The problem of "North and South" has three main solutions:
- Liberal. There is an opinion that the main problem of developing countries is the inability to switch to a market mechanism of the economy. This means that, in order to achieve the goal, the main task of developing countries is to adhere to the existing policy and move on to the market economic structure, that is, to focus on privatisation of state property, liberalisation of the economic sector, and so on;
-Anti-global. In this theory, the emphasis is on the fact that economic relations are more unequal. At the same time, the world economy is under the control of a number of monopolies. The result is the exploitation of the South by the North. There is an opinion that it is much more profitable for the developed countries to drive developing countries into a "trap" or leave them at a low level of development in order to reduce the prices of raw materials. Consequently, the solution can only be a revision of the world order system and a change in the substance of the North-South relationship;
- Structural. The followers of this theory agree that international relations do not in principle contribute to the economic recovery of the developing countries. They are also convinced that in order to achieve results, approaches to the economy need to be changed in the direction of market relations. On the other hand, the system of international relations must also be reformed. Supporters of this theory of problem-solving insist that trade indulgences from developed countries should be more serious.
2. The main solution to the problem of poverty is the economic growth of the country, the increase in GDP and, as a consequence, the growth of the consumption fund. But there are cases when GDP growth did not contribute to poverty reduction. For example, in Nigeria for 13 years from 1990 to 2003, it was possible to annually increase GDP by 2-3%, but this did not contribute to the increase in employment.
The second solution to the problem is international and state assistance to people who are beyond the poverty line. Such an approach can help to cope with the disaster, overcome it by common efforts. Worst of all, when with time stagnant poverty appears. Its essence is that the able-bodied population is accustomed to living on the "neck" of the state and already refuses to work.
Ways to overcome poverty
1.economic growth, because it leads to an increase in gross national income, due to which the consumer's account is formed.
2. In the fight against poverty, state aid to the poor is also important, although its increase leads to a reduction in the problem of poverty, it does not lead to its solution.
Today, much attention is paid to the problem of poverty on the part of the international community. A number of organisations are set up that are ready to work for the common good and reduce the overall level of poverty and economic growth in developing countries. All this gives fruit, but only a comprehensive solution can help in solving the problem.
3. The best solution for combating hunger is to increase yields in developing countries, increase cultivated land, livestock and so on. At the same time, special attention should be paid to raising the level of development of agriculture, improving technology, improving soil cultivation, sowing areas with high-yielding varieties of plants, and so on. At the same time, most problems are difficult to solve within the country - they need to be combated collectively.
Great hopes are placed on the so-called green revolution, which allows the active introduction of new machinery in the agricultural sector, using only high-quality and high-yield cereals, the best fertilisers and so on. The main thing is the country's participation in the development of this industry, additional investments, both within the country and attraction of investments from outside. With the help of the "green revolution," the problem of hunger was eliminated in many countries of the world, in particular, in the Philippines, India, Mexico and others.
4. Lack of energy resources. The main way to solve the problem is to increase the amount of development and extraction of useful resources. The work should not stop even at a time when stocks seem more than enough. World consumption of oil and gas is growing every year. Only from 1995 to 2005 the level of energy consumption increased by four billion tonnes of equivalent fuel. Recently, China has reached its production limit, and the UK is gradually reducing production. In such a situation, it is important to expend energy resources more economically.

The second important issue is the restructuring of the economy and a decline in the share of energy-intensive production. For example, engineering requires almost 10 times fewer energy resources than metallurgy or the fuel and energy complex. At the same time, qualitative restructuring allows saving up to 20-25% of energy per share of GDP.
But most countries, unfortunately, do not take into account the above recommendations. For example, in the same China, India, Russia and Ukraine, the share of non-ferrous and ferrous metallurgy, as well as the chemical industry, is only growing. Worst of all, that in the production process is used already outdated technology. Thus, the general solution to the problem of shortage of energy resources will continue for a long time
Depend on the expenditure of energy per unit of GDP.
To other ways out of the difficult situation can be attributed:
- Refusal from the arms race and from weapons capable of destroying the planet. First of all, nuclear weapons must be eliminated, - overcoming the crisis associated with the unequal interaction of man and nature. Particular attention should be paid to issues of environmental protection, awareness of the depletion of natural resources and their protection. At the same time, the main task of the world community is the saving of world resources, as well as the fight against water, soil and air pollution, - combating overpopulation in various countries of the world, as well as addressing the demographic crisis in developed countries, - protecting against negative consequences of scientific and technological revolution; Solving problems with alcoholism, oncological diseases, drug addiction, AIDS and so on.
Problems of the Russian economy and ways to solve them
The world economy is made up of many economies of different countries. At the same time, each country has its own problems, which require urgent decisions from its government. Not an exception is Russia, in whose economy it is possible to single out a whole "heap" of problems:
- excessive emphasis on the sale of raw materials. This, on the one hand, suppresses the development of other branches of the economy, while the other does not provide its citizens with affordable energy because most of the fuel goes abroad;
- monopolised market, which leads to higher prices in all sectors of the economy. Life under the "dictation" of monopolies inevitably leads to a decrease in the quality of the service and a high level of inflation - the centralization of the Russian economy. In this case, some earn their capital, while others redistribute it. Thus, entrepreneurs are not interested in improving the quality of products and growth in production - insufficient development rates and weak protection of the country's monetary and settlement system. Particularly affected by the budgetary sphere, concerning the servicing of individuals - the lack of stability in the legislative sphere, the possibility of a dual interpretation of many laws; - Excessive outflow of capital abroad, which is carried out under a variety of pretexts;
Insufficient influence of the economic sector on the development of the country - a high level of corruption of officials, as well as regular violations in all areas of activity (including at the highest level) - mixing of commercial and public economy - problems with the employment of young professionals and people after 50 years - inefficient use of funds by businessmen and commercial entities - low level of training of specialists, both working professions and specialists - inadequate level of development of health care Storage in the country - low state control over the work or inactivity of civil servants (including major officials).
The solution of the problems of the Russian economy lies solely in the reforms that must take place in three directions:
- economic. Particular attention should be paid to equalising the terms of competition, determining the licensing procedure, simplifying inspections, and so on - administrative. Establishment of the work of the "top" in the management sphere, the fight against corruption;
- social. Reforms in health care, education.