DEVELOPING COUNTRIES

Developing countries include about 150 countries and territories, which together occupy more than half of the earth's land area and concentrate about 3/5 of the world's population. On the political map of the world, these countries cover a vast belt extending in Asia, Africa, Latin America and Oceania north and especially south of the equator. Some of them (Iran, Thailand, Ethiopia, Egypt, Latin American countries and others) had independence long before the Second World War. But the majority won it in the post-war period.

The world of developing countries (when there was a division into the world socialist and capitalist systems, it was usually called the “third world”) is internally very heterogeneous, and this complicates the typology of the countries included in it. However, at least as a first approximation, developing countries can be divided into the following six subgroups.

First from them form the so-called key countries- India, Brazil, China and Mexico, which have very great natural, human and economic potential and in many respects are leaders in the developing world.

These three countries produce almost as much industrial output as all other developing countries combined. But their per capita GDP is significantly lower than in economically developed countries, and in India, for example, it is $350.

In second group includes some developing countries that have also achieved a relatively high level of socio-economic development and have a per capita GDP indicator exceeding 1 thousand dollars. Most of these countries are in Latin America (Argentina, Uruguay, Chile, Venezuela, etc.), but they are also in Asia and North Africa.

TO third subgroup include the so-called newly industrialized countries. In the 80s and 90s. they achieved such a leap in their development that they received the nickname “Asian tigers” or “Asian dragons”. The “first echelon” or “first wave” of such countries included the already mentioned Republic of Korea, Singapore, Taiwan, and Hong Kong. And the “second echelon” usually includes Malaysia, Thailand, and Indonesia.

Fourth subgroup form oil-exporting countries in which, thanks to the influx of “petrodollars,” per capita GDP reaches 10, or even 20 thousand dollars. These are, first of all, the countries of the Persian Gulf (Saudi Arabia, Kuwait, Qatar, United Arab Emirates, Iran), also Libya, Brunei and some other countries.

IN fifth, the largest subgroup includes most of the “classical” developing countries. These are countries lagging behind in their development, with a per capita GDP of less than 1 thousand dollars per year. They are dominated by a rather backward mixed economy with strong feudal remnants. Most of these countries are in Africa, but they also exist in Asia and Latin America.

Sixth subgroup form approximately 40 countries (with a total population of more than 600 million people), which, according to the UN classification, belong to the least developed countries (sometimes called the “fourth world”). They are dominated by consumer agriculture, there is almost no manufacturing industry, 2/3 of the adult population is illiterate, and the average per capita GDP is only $100-300 per year. The last place even among them is Mozambique with a per capita GDP of $80 per year (or a little more than 20 cents per day!).

Table 12. Least developed countries of the world

Asia	Oceania	Latin America	Africa
Afghanistan	Vanuatu	Haiti	Benin	Lesotho	Tanzania
Bangladesh	Kiribati		Botswana	Mauritania	Togo
Butane	Zap. Samoa		Burkina Faso	Malawi	Uganda
Yemen	Tuvalu		Burundi	Mali	CAR
Laos			Gambia	Mozambique	Chad
Maldives			Guinea	Niger	Eq. Guinea
Myanmar			Guinea-Bissau	Rwanda	Ethiopia
Nepal			Djibouti	Sao Tome and Principe	Sierra Leone
			Cape Verde	Somalia	Sudan
			Comoros

>

Countries with economies in transition. Inclusion of post-socialist countries with transition economies into this two-part typology presents certain difficulties. In terms of their socio-economic indicators, most countries of Eastern Europe (Poland, Czech Republic, Hungary, etc.), as well as the Baltic countries, certainly belong to the economically developed ones. Among the CIS countries there are both economically developed (Russia, which together with the leading Western countries forms the “Big Eight” countries of the world, Ukraine, etc.), and countries that occupy an intermediate position between developed and developing.

China occupies the same contradictory position in this typology, which has its own characteristics both in the political system (a socialist country) and in socio-economic development. Recently, China, developing at a very high pace, has become a truly great power not only in world politics, but also in the world economy. But the per capita GDP in this country with a huge population is only $500.

Table 13. Share of selected groups of countries in world population, world GDP and world exports of goods and services in 2000

	World population	World GDP*	World export
Industrialized countries	15,4	57,1	75,7
G7 countries	11,5	45,4	47,7
EU	6,2	20	36
Developing countries	77,9	37	20
Africa	12,3	3,2	2,1
Asia	57,1	25,5	13,4
Latin America	8,5	8,3	4,5
Countries with economies in transition	6,7	5,9	4,3
CIS	4,8	3,6	2,2
CEE	1,9	2,3	2,1
For reference:	6100 million people	$44550 billion	$7650 billion
*By currency purchasing power parity

Problems and tests on the topic "Developing countries"

• Countries of the world - Population of the Earth 7th grade

  Lessons: 6 Tasks: 9

• Population and countries of South America - South America 7th grade

  Lessons: 4 Assignments: 10 Tests: 1

• Population and countries of North America - North America 7th grade
  Basic concepts: Territory and border of the state, economic zone, sovereign state, dependent territories, republic (presidential and parliamentary), monarchy (absolute, including theocratic, constitutional), federal and unitary state, confederation, gross domestic product (GDP), human index development (HDI), developed countries, G7 Western countries, developing countries, NIS countries, key countries, oil-exporting countries, least developed countries; political geography, geopolitics, GGP of the country (region), UN, NATO, EU, NAFTA, MERCOSUR, Asia-Pacific, OPEC.

  Skills and abilities: Be able to classify countries according to various criteria, give a brief description of groups and subgroups of countries in the modern world, assess the political and geographical position of countries according to plan, identify positive and negative features, note changes in GWP over time, use the most important economic and social indicators for characterization (GDP, GDP per capita, human development index, etc.) of the country. Identify the most important changes on the political map of the world, explain the reasons and predict the consequences of such changes.

How to identify countries with strong economies among the huge number of countries in the world? To identify highly developed states, let's pay attention to ratings - the results of comparative studies done by international experts and organizations to rank countries according to various indicators. Every year, studies are published demonstrating which countries have risen to the TOP and which have fallen down. Let's consider the main indicators that determine which countries in 2019 became the most influential in the economic field and have the highest standard of living, prosperity and freedom.

Level of economic development

The level of economic development evaluates the efficiency and maturity of the country's economy. It is not for nothing that only countries with a high level of economic development are included in the developed group, while the rest are called developing. This level is determined by various ratings.

Rating of countries by GDP

The key indicator is the level of gross domestic product (GDP). This is the name given to the total value of goods, services and other results of the activities of enterprises, firms, companies, institutions, organizations, and individuals. This is the result of the work of all residents of the country in question during the year. It is calculated in two ways. The first is when all income received during the year is added up: interest, profit, salary, and so on. The second is when expenses are summed up (government purchases, investments, consumption, exports minus imports). The official source of such information is the World Bank database. Statistics are updated every year and published in the fall. The indicator is also recorded by the International Monetary Fund and the UN.

The backbone of the world's GDP is produced by only a few countries, mostly large in territory and population.

If all goods and services produced in monetary terms (GDP) are an absolute value, then by comparing the gross domestic product with the population size, we obtain a relative indicator indicating the well-being of citizens.

According to the World Bank and the IMF, the United States of America has the best GDP indicators. Based on countries, the first places in this indicator are occupied by:

№	A country	2016	2017
1	USA	18624	19391
2	China	11222	12015
3	Japan	4949	4872
4	Germany	3479	3685
5	Great Britain	2661	2625
6	India	2274	2611
7	France	2466	2584
8	Brazil	1793	2055
9	Italy	1860	1938
10	Canada	1536	1652
11	Russia	1285	1578
12	The Republic of Korea	1411	1538
13	Australia	1265	1380
14	Spain	1238	1314
15	Mexico	1077	1149
16	Indonesia	864	932
17	Türkiye	859	857
18	Netherlands	751	771
19	Switzerland	671	660
20	Saudi Arabia	652	640

The presented table with indicators is an actual value, which does not take into account the difference in prices for similar goods and services. As a consequence of this omission, the GDP of developed countries is often overstated, while developing countries have lower figures.

Since purchasing power parity is a more important measure of the quality of life in countries around the world, another ranking based on PPP is more credible.

According to the International Bank, the GDP level at PPP for the countries of the world is:

№	A country	2017	2018	2018
1	China	23190	25270	18,69
2	USA	19485	20494	15,16
3	India	9597	10505	7,77
4	Japan	5427	5594	4,14
5	Germany	4199	4356	3,22
6	Russia	4027	4213	3,12
7	Indonesia	3250	3495	2,59
8	Brazil	3255	3365	2,49
9	Great Britain	2930	3038	2,25
10	France	2854	2963	2,19
11	Mexico	2464	2570	1,90
12	Italy	2324	2397	1,77
13	Türkiye	2186	2293	1,70
14	The Republic of Korea	2035	2136	1,58
15	Spain	1778	1864	1,38
16	Saudi Arabia	1777	1858	1,37
17	Canada	1764	1837	1,36
18	Iran	1640	1611	1,19
19	Thailand	1240	1320	0,98
20	Australia	1254	1318	0,98

The International Bank evaluates all the economies of the world with the exception of Syria (due to active hostilities), Somalia (since the state has actually broken up into several separate parts) and Venezuela (domestic politics is extremely closed, it is impossible to reliably estimate the level of GDP based on PPP).

Economic freedom

The most important indicator of a country's development is the level (or index) of economic freedom. It has been determined by the American think tank The Heritage Foundation since 1995 and published annually on its website and in the Wall Street Journal.

Experts from the Heritage Foundation center, based on the theories of Adam Smith, define economic freedom as the level of non-interference by the state in the process of production, distribution and consumption, except in situations where it is necessary to protect citizens.

The index is calculated based on the arithmetic average of ten freedom criteria - property, absence of corruption, government share in regulating the economy, freedom of trade, investment, labor, entrepreneurship, monetary, fiscal, financial. For each of them, a rating scale is developed from 0 to 100 points, which are ultimately summed up. The higher the score, the higher the level of economic freedom.

Available
1.	Hong Kong	90,2
2.	Singapore	89,4
3.	New Zealand	84,4
4.	Switzerland	81,9
5.	Australia	80,9
6	Ireland	80,5
Mostly free
7.	Great Britain	78,9
8.	Canada	77,7
9.	UAE	77,6
10.	Republic of China	77,3
11.	Iceland	77,1
12.	USA	76,8
13.	Netherlands	76,8
14.	Denmark	76,7
15.	Estonia	76,6
16.	Georgia	75,9
17.	Luxembourg	75,9
18.	Chile	75,4
19.	Sweden	75,2
20.	Finland	74,9
21.	Lithuania	74,2
22.	Malaysia	74,0
23.	Czech	73,7
24.	Germany	73,5
25.	Mauritius	73,0
26.	Norway	73,0
27.	Israel	72,8
28.	Qatar	72,6
29.	The Republic of Korea	72,3
30.	Japan	72,1
31.	Austria	72,0
32.	Rwanda	71,1
33.	North Macedonia	71,1
34.	Macau	71,0
35.	Latvia	70,4

Thus, countries with a free economy (from 80 points and above) in 2019 are considered to be Hong Kong, Singapore, New Zealand, Australia, Ireland and Switzerland.

As for the countries of the former USSR, in most cases the level of economic freedom in them is weak. Most states are characterized by active influence of the state on all spheres of life, which often creates some inconveniences and hinders the free development of the economy.

As an example, we present data from 2 studies conducted in 2016 and 2019 for comparison:

2016 Countries with predominantly free economy 9. Estonia 77,2 14. Lithuania 75,2 23. Georgia 72,6 36. Latvia 70,4 Countries with moderate free economy 54. Armenia 67 68. Kazakhstan 63,3 91. Azerbaijan 60,2 Countries with predominantly unfree economy 96. Kyrgyzstan 59,6 117. Moldova 57,4 149. Tajikistan 51,3 153. Russia 50,6 Countries with unfree economies 157. Belarus 48,8 162. Ukraine 46,8 166. Uzbekistan 46,0

2019 Countries with predominantly free economy 15. Estonia 76,6 16. Georgia 75,9 21. Lithuania 74,2 35. Latvia 70,4 Countries with moderate free economy 47. Armenia 67,7 59. Kazakhstan 65,4 60. Azerbaijan 65,4 79. Kyrgyzstan 62,3 Countries with predominantly unfree economy 97. Moldova 59,1 98. Russia 58,9 104. Belarus 57,9 122. Tajikistan 55,6 140. Uzbekistan 53,3 147. Ukraine 52,3

Prosperity Rating

The economic achievements of countries around the world are also measured by their level of prosperity. This indicator is offered by the English analytical center Legatum Institute. He has been calculating it since 2006. This index is determined by the level of social well-being of countries in the areas of economic development, entrepreneurship, governance, health, safety, education, personal freedoms and social capital. Each of the eight criteria is calculated on the basis of statistical studies by the UN, the World Bank, sociological data from the Gallup Institute and other authoritative centers. Based on the results of comparative studies, a ranking of states is published annually. In 2019, such results were published for 142 countries.

RATING	A COUNTRY	INDEX
1	Norway	80.98
2	New Zealand	80.90
3	Finland	80.58
4	Switzerland	79.71
5	Denmark	79.33
6	Sweden	79.15
7	UK	79.12
8	Canada	79.02
9	Netherlands	78.99
10	Ireland	78.95
11	Iceland	78.47
12	Luxembourg	78.15
13	Australia	78.10
14	Germany	77.72
15	Austria	76.64
16	Belgium	76.00
17	United States of America	76.00
18	Slovenia	74.65
19	Malta	74.10
20	France	74.06
21	Singapore	73.73
22	Hong Kong	72.93
23	Japan	72.79
24	Portugal	72.61
25	Spain	72.49
26	Estonia	72.44
27	Czech	72.08
28	Cyprus	70.53
29	Mauritius	69.76
30	Uruguay	69.72
31	Costa Rica	69.33
32	Slovakia	68.84
33	Poland	68.33
34	Italy	68.27
35	South Korea	67.82
36	Lithuania	67.72
37	Israel	67.66
38	Chile	67.59
39	United Arab Emirates	67.01
40	Latvia	66.71

The best indicators on the prosperity index are in Norway, Switzerland, Denmark, New Zealand, Sweden, Canada, Australia, and the Netherlands.

Other indicators

There are other indicators by which the rating of a country's economic development is measured. This is the level of GDP per capita. It is not considered a strict characteristic, but is considered an important indicator.

Recent studies of GDP per capita (nominal) according to World Bank estimates show the following results:

№	A country	$
1	Luxembourg	104103
-	Macau	80893
2	Switzerland	80190
3	Norway	75505
4	Iceland	70057
5	Ireland	69331
6	Qatar	63506
7	USA	59532
8	Singapore	57714
9	Denmark	56307
10	Australia	53800
11	Sweden	53442
12	San Marino	49664
13	Netherlands	48223
14	Austria	47291
-	Hong Kong	46194
15	Finland	46703
16	Canada	45032
17	Germany	44470
18	Belgium	43324
19	New Zealand	42941
20	UAE	40699
60	Russia	10743
-	World	10714

A more accurate characteristic is the level of the same indicator in terms of parity (ratio of several currencies) of purchasing power per capita for a certain set of services or goods.

Here the first places are occupied by:

№	A country	2017	2018
1	Qatar	127755	130475
-	Macau (PRC)	110592	116808
2	Luxembourg	103298	106705
3	Singapore	95508	10345
4	Brunei	78971	79530
5	Ireland	73215	78785
6	Norway	72170	74356
7	UAE	68639	69382
8	Kuwait	66197	67000
9	Switzerland	62131	64649
-	Hong Kong (PRC)	61529	64216
10	USA	59895	62606
11	San Marino	68624	60313
12	Netherlands	53933	56383
13	Saudi Arabia	54595	55944
14	Iceland	53834	55917
-	Taiwan (PRC)	50593	53023
15	Sweden	51180	52984
16	Germany	50804	52559
17	Australia	50609	52373
18	Austria	50035	52137
19	Denmark	50643	52121
20	Bahrain	49035	50057
49	Russia	27964	29267

The Human Development Index, which has been published in the reports of the UN Development Program since 1990, is another traditional comparative indicator of living standards and the economy. Norway, Australia, Switzerland, the Netherlands, the USA, Germany, New Zealand, Canada, Singapore, and Denmark have a very high human development rating, according to the latest 2014 report.

Based on all these indicators, the strongest and most efficient economies in the world for 2019 are:

2. Hong Kong

3. Australia

4. Germany

5. Switzerland

7. Netherlands

8. New Zealand

9. Singapore

10. Japan

Corruption Perception Index

Since 1996, the corruption level rating has been recognized as the most important indicator of the state of the country’s economy. The official name is the Corruption Perceptions Index. It was introduced by the international non-governmental organization Transparency International. It takes into account how widespread corruption is in the public sector. This ranking is calculated by analyzing surveys and statistical data. Within the framework of the study, corruption is understood as any extraction of personal gain through abuse of official position.

Interesting: the study is not based on statistics of criminal cases or sentences, but on the opinions of those who suffer from corruption or study this phenomenon.

To determine this index, a scale from “zero” to “one hundred” was developed, where 0 means the maximum level of corruption, and 100 means its absence. Although the methodology by which the rating is determined has been subject to criticism, it is generally considered by experts to be relatively reliable.

2018	A country	2018	2017	2016	2015	2014	2013
№		№	№	№	№	№	№	№
1	Denmark	89	90	91	91	91	90
2	New Zealand	88	90	91	92	91	90
3	Finland	85	89	90	89	89	90
4	Sweden	85	85	87	86	86	85
5	Switzerland	85	86	86	86	85	86
6	Singapore	84	88	89	87	89	88
7	Norway	84	84	85	84	86	87
8	Netherlands	82	83	87	83	83	84
9	Canada	82	82	83	81	81	84
10	Luxembourg	82	81	81	79	78	79
11	Germany	82	81	81	78	76	74
12	Great Britain	81	81	81	82	80	80
13	Australia	77	77	75	74	75	77
14	Iceland	75	78	79	79	78	82
15	Hong Kong	75	77	77	76	75	75
16	Austria	75	79	79	80	81	85
17	Belgium	75	75	76	72	69	69
18	Ireland	75	74	76	74	73	73
19	Japan	74	73	75	74	72	69
20	Estonia	73	72	75	76	74	74

The most difficult situation with corruption is observed in the following countries:

170	Sudan	17	18	18	18	20	25
171	Yemen	17	16	17	19	19	25
172	DPRK	17
173	Syria	17	14	16	18	15	21
174	South Sudan	17	12	8	8	8	8
175	Somalia	16	14	12	11	11	13
176	Yemen	16	14	18	19	18	23
177	Afghanistan	15	15	11	12	8	8
178	Syria	14	13	18	20	17	26
179	South Sudan	12	11	15	15	14
180	Somalia	9	10	8	8	8	8

Credit ratings

The economic “health” of a country is also assessed by financial or credit ratings. They are calculated taking into account the financial history of the state, the size of its property and the ability and desire to pay debts. Such an index is needed to make it clear to potential lenders or investors how safe it is to deal with the country. Financial ratings are assessed by international agencies. Moody's, Standard and Poor's and Fitch have the most serious reputations. They work all over the world and help distinguish reliable partners from unreliable ones. Each of them has its own naming system, but in general, countries with a high degree of commitment are designated by the letter A, those of average and below - Ba, risky - B, with high risk and close to default - C.

№	A country	Long-term rating	Short-term rating
1	USA	AAA	F1+
2	Great Britain	A.A.	F1+
3	Germany	AAA	F1+
4	France	A.A.	F1+
5	Japan	A	F1
6	Spain	A-	F1
7	Italy	BBB	F2
8	Portugal	BBB	F2
9	Greece	BB-	B
10	Ireland	A+	F1+
11	Andorra	BBB+	F2
12	UAE	A.A.	F1+
13	Armenia	B+	B
14	Angola	B	B
15	Argentina	B	B
16	Austria	AA+	F1+
17	Australia	AAA	F1+
18	Azerbaijan	BB+	B
19	Bangladesh	BB-	B
20	Belgium	AA-	F1+
21	Bulgaria	BBB	F2
22	Bahrain	BB-	B
23	Benin	B	B
24	Bolivia	BB-	B
25	Brazil	BB-	B
26	Belarus	B	B
27	Canada	AAA	F1+
28	Congo	CC	C
29	Switzerland	AAA	F1+
30	Ivory Coast	B+	B
31	Chile	A	F1
32	Cameroon	B	B
33	China	A+	F1+
34	Colombia	BBB	F2
35	Costa Rica	BB	B
36	Cape Verde	B	B
37	Cyprus	BB+	B
38	Czech	AA-	F1+
39	Denmark	AAA	F1+
40	Dominican Republic	BB-	B
41	Ecuador	B	B
42	Estonia	A+	F1+
43	Egypt	B	B
44	Ethiopia	B	B
45	Finland	AA+	F1+
46	Gabon	B	B
47	Georgia	BB-	B
48	Ghana	B	B
49	Gambia	CCC	C
50	Guatemala	BB	B
51	Hong Kong	AA+	F1+
52	Croatia	BB+	B
53	Hungary	BBB-	F3
54	Indonesia	BBB	F2
55	Israel	A+	F1+
56	India	BBB-	F3
57	Iraq	B-	B
58	Iran	B+	B
59	Iceland	A	F1
60	Jamaica	B	B
61	Kenya	B+	B
62	South Korea	AA-	F1+
63	Kuwait	A.A.	F1+
64	Kazakhstan	BBB	F2
65	Lebanon	B-	B
66	Sri Lanka	B+	B
67	Lesotho	B+	B
68	Lithuania	A-	F1
69	Luxembourg	AAA	F1+
70	Latvia	A-	F1
71	Libya	B	B
72	Morocco	BBB-	F3
73	Moldova	B-	B
74	Macedonia	BB	B
75	Mali	B-	B
76	Mongolia	B	B
77	Malta	A+	F1+
78	Maldives	B+	B
79	Malawi	B-	B
80	Mexico	BBB+	F2
81	Malaysia	A-	F1
82	Mozambique	R.D.	C
83	Namibia	BB+	B
84	Nigeria	B+	B
85	Nicaragua	B	B
86	Netherlands	AAA	F1+
87	Norway	AAA	F1+
88	New Zealand	A.A.	F1+
89	Oman	BBB-	F3
90	Panama	BBB	F2
91	Peru	BBB+	F2
92	Papua New Guinea	B+	B
93	Philippines	BBB	F2
94	Pakistan	B	B
95	Poland	A-	F2
96	Paraguay	BB	B
97	Qatar	AA-	F1+
98	Romania	BBB-	F3
99	Serbia	BB	B
100	Russia	BBB-	F3
101	Rwanda	B+	B
102	Saudi Arabia	A+	F1+
103	Seychelles	BB-	B
104	Sweden	AAA	F1+
105	Singapore	AAA	F1+
106	Slovenia	A-	F1
107	Slovakia	A+	F1+
108	San Marino	BBB-	F3
109	Suriname	B-	B
110	Salvador	B-	B
111	Thailand	BBB+	F2
112	Turkmenistan	CCC-	C
113	Tunisia	B+	B
114	Türkiye	BB	B
115	Taiwan	AA-	F1+
116	Ukraine	B-	B
117	Uganda	B+	B
118	Uruguay	BBB-	F3
119	Venezuela	R.D.	C
120	Vietnam	BB	B
121	South Africa	BB+	B
122	Zambia	B	B

Rating	Rating value
AAA	lowest risk, maximum creditworthiness
AA+	moderate risk, very high creditworthiness, first level
AA	moderate risk, very high creditworthiness, second level
AA-	moderate risk, very high creditworthiness, third level
A	moderate risk, high creditworthiness, second level
A-	moderate risk, high creditworthiness, third level
BBB+	moderate risk, sufficient creditworthiness, first level
BBB	moderate risk, sufficient creditworthiness, second level
BBB-	moderate risk, sufficient creditworthiness, third level
SSS	high risk and threat of default, significant credit risk

Index with a “human face”

The past few years have demonstrated the importance of such an indicator of economic development as social progress. Previous indicators corresponded to economic theories, but they did not show how economic growth affected people's lives. Therefore, in 2013, the Social Progress Index was developed as an alternative to economic indicators. Its author is Harvard University professor Michael Porter. This rating is calculated based on the analysis of data from sociological surveys, expert opinions and statistical information from international organizations. When determining each country's achievements in this area, researchers took into account more than fifty factors.

1. This is the satisfaction of basic needs - food, provision of water and medical care, housing, degree.
2. Then the fundamental foundations of well-being are taken into account - access to education and information, literacy and communication levels.
3. And finally, development opportunities are analyzed - the level of protection of civil and political rights and self-realization is determined.

RATING	A COUNTRY	INDEX
1	Norway	90.26
2	Iceland	90.24
3	Switzerland	89.97
4	Denmark	89.96
5	Finland	89.77
6	Japan	89.74
7	Netherlands	89.34
8	Luxembourg	89.27
9	Germany	89.21
10	New Zealand	89.12
11	Sweden	88.99
12	Ireland	88.82
13	UK	88.74
14	Canada	88.62
15	Australia	88.32
16	France	87.88
17	Belgium	87.39
18	South Korea	87.13
19	Spain	87.11
20	Austria	86.76
21	Italy	86.04
22	Slovenia	85.50
23	Singapore	85.42
24	Portugal	85.36
25	United States of America	84.78
26	Czech	84.66
27	Estonia	83.49
28	Cyprus	82.85
29	Greece	82.59
30	Israel	82.47
60	Russia	70.16

It is clear from the research we have analyzed that there is a direct link between economic freedom, financial security, standard of living and social progress. Countries such as New Zealand, Australia, Canada, Switzerland, Norway, and the Netherlands lead the way in providing their citizens with decent, civil and political rights, and paying their bills fairly. Little Asian “tigers”: Singapore or Hong Kong, like the oil “millionaires” (UAE, Qatar) are “ahead of the rest of the planet” in terms of economic freedom and per capita income. But countries with strong and efficient economies - the USA, China, Japan, Great Britain, Germany - are distributed in different positions in the ranking, because they are not always able to provide the people living there with a high level of income and opportunities for development.

1. The essence and forms of international capital movement

2. World capital market. Concept. Essence

3. Euros and dollars (eurodollars)

4. Main participants in the global financial market

5. World financial centers

6. International credit. Essence, main functions and forms of international credit

1. Natural resource potential of the world economy. Essence

2. Land resources

3. Water resources

4. Forest resources

5. Labor resources of the world economy. Essence. Population. Economically active population. Employment problems

1. World monetary system. Her essence

2. Basic concepts of the world monetary system: currency, exchange rate, currency parities, currency convertibility, foreign exchange markets, currency exchanges

3. Formation and development of international military forces

4. Balance of payments. Structure of the balance of payments. Balance of payments imbalance, causes and problems of settlement

5. External debt problems

6. State monetary policy. Forms and instruments of monetary policy

1. The essence of international economic integration

2. Forms of international economic integration

3. Development of integration processes in Western Europe

4. North American Free Trade Association (NAFTA)

5. Integration processes in Asia

6. Integration processes in South America

7. Integration processes in Africa

1. The essence and concepts of international economic organizations

2. Classification of international economic organizations

1. Asia in the world economy. Main indicators of economic and social development

2. Africa. Main indicators of economic and social development

• 1. Three groups of countries: developed, developing and transition economies

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.

• 2. Group of developed 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.

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.

Developed countries are the main group of countries in the world economy. In this group of countries, the “seven” with the largest GDP are distinguished (USA, Japan, Germany, France, UK, Canada). More than 44% of world GDP comes from these countries, including the USA - 21, Japan - 7, Germany - 5%. Most developed countries are members of integration associations, the most powerful of which are the European Union (EU) and the North American Free Trade Agreement (NAFTA).

• 3. Group of developing 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).

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.

• 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.

These are 12 countries of Central and Eastern Europe, 15 countries of the former Soviet republics, as well as Mongolia, China and Vietnam (the last two countries formally continue to build socialism)

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;

3) Philippines, southern provinces of China - fourth 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:

1) for a number of reasons, some NIS found themselves in the sphere of special political and economic interests of industrialized 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 group of countries with average GDP per capita includes mainly oil-exporting countries and newly industrialized countries (these include countries whose share of manufacturing in GDP is at least 20%)

The group of oil exporters has a subgroup consisting of 19 states, the export of oil products of which exceeds 50%.

In these countries, the material basis was initially created, and only then was space given for the development of capitalist production relations. They formed the so-called rental capitalism.

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.

Maximizing profits from oil exports for participants is the main goal of OPEC. Basically, achieving this goal involves a choice between increasing production in the hope of selling more oil, or cutting it in order to benefit from higher prices. OPEC has periodically changed these strategies, but its share of the world market has been stagnant since the 1970s. has dropped quite a bit. At that time, on average, real prices did not change significantly.

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

A characteristic feature of globalization is the openness of the economy. One of the leading trends in world economic development in the post-war decades was the transition from closed national economies to an open economy.

The definition of openness was first given by the French economist M. Perbot. In his opinion, “openness and free trade are the most favorable rules of the game for a leading economy.”

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.– the cost of exports and imports, respectively.

Another indicator is the volume of exports per capita (Q exp. / 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 foreign trade balance is the difference between the amount of exports and the amount of imports. The trade balance is positive if exports exceed imports and, conversely, negative if imports exceed exports. In the economic literature of the West, instead of the balance of foreign trade turnover, another term is used - “export”. It can also be positive or negative, depending on whether exports predominate or vice versa.

LECTURE No. 6. International division of labor - the basis for the development of the modern world economy

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.

For the development of MRI, the following are important:

1) comparative advantage– the ability to produce goods at a lower cost;

2) public policy, depending on which not only the nature of production, but also the nature of consumption can change;

3) concentration of production– creation of large industry, development of mass production (orientation to the foreign market when creating production);

4) country's growing imports– formation of mass consumption of raw materials and fuel. Typically, mass production does not coincide with resource deposits - countries organize resource imports;

5) 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.

MRT plays an increasingly important role in the implementation of processes of expanded reproduction in countries of the world, ensures the interconnection of these processes, and forms the corresponding international proportions in the sectoral and territorial-country aspects. MRT does not exist without exchange, which occupies a special place in the internationalization of social production.

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

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Developed countries are characterized by a high standard of living of the population. Developed countries tend to have a large stock of produced capital and a population that is largely engaged in highly specialized activities. This group of countries is home to about 15% of the world's population. Developed countries are also called industrialized countries or industrialized countries.

Developed countries generally include the 24 high-income industrialized countries of North America, Western Europe, and the Pacific. Among the industrial ones, the most significant role is played by the countries of the so-called Group of 7. The Big “7”: USA, Japan, Germany, Canada, Great Britain, Italy, France.

The International Monetary Fund identifies the following states as economically developed countries:

Countries qualified by the WB and IMF as countries with developed economies at the end of the 20th - beginning of the 21st centuries: Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Israel, Italy, Japan, South Korea, Luxembourg, Malta, the Netherlands, New Zealand, Norway, Portugal, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Great Britain, USA.

The more complete group of developed countries also includes Andorra, Bermuda, the Faroe Islands, Vatican City, Hong Kong, Taiwan, Liechtenstein, Monaco and San Marino.

Among the main characteristics of developed countries, it is advisable to highlight the following:

1.GDP per capita averages approximately 20 thousand dollars and is constantly growing. This determines the high level of consumption and investment and the standard of living of the population as a whole. The social support is the “middle class”, which shares the values ​​and basic foundations of society.

2. The sectoral structure of the economy of developed countries is evolving towards the dominance of industry and a pronounced tendency to transform the industrial economy into a post-industrial one. The service sector is developing rapidly, and in terms of the share of the population employed in it, it is the leader. Scientific and technological progress has a significant impact on economic growth and economic structure.

3. The business structure of developed countries is heterogeneous. The leading role in the economy belongs to powerful concerns - TNCs (transnational corporations). The exception is a group of some small European countries where there are no world-class TNCs. However, the economies of developed countries are also characterized by the widespread prevalence of medium and small businesses as a factor of economic and social stability. This business employs up to 2/3 of the economically active population. In many countries, small businesses provide up to 80% of new jobs and influence the sectoral structure of the economy.

The economic mechanism of developed countries includes three levels: spontaneous market, corporate and state. It is consistent with a developed system of market relations and diversified methods of government regulation. Their combination provides flexibility, rapid adaptability to changing conditions of reproduction and, in general, high efficiency of economic activity.

4. The state of developed countries is an active participant in economic activity. The goals of state regulation are to create the most favorable conditions for the self-expansion of capital and maintain the socio-economic stability of society. The most important means of state regulation are administrative and legal (developed systems of economic law), fiscal (state budget funds and social funds), monetary and state property. The general trend since the beginning of the 60s has been a decrease in the role of state property from an average of 9 to 7% in GDP. Moreover, it is concentrated mainly in the field of infrastructure. Differences between countries in the degree of state regulation are determined by the intensity of the redistributive functions of the state through its finances: most intensively in Western Europe, to a lesser extent in the USA and Japan.

5. The economies of developed countries are characterized by openness to the world economy and a liberal organization of the foreign trade regime. Leadership in world production determines their leading role in world trade, international capital flows, and international currency and settlement relations. In the field of international labor migration, developed countries act as the receiving party.

Developing countries

Developing countries today represent the largest group of countries (more than 130), which sometimes develop so significantly in terms of per capita income, economic structure, and social structure of society that sometimes doubt arises as to the advisability of including them in one classification group.

However, while recognizing the extreme diversity of the Third World, it is necessary to evaluate the common things that unite its participants not only formally, but also in reality, discovering a common position on world problems. The commonality of approaches to world problems is found in a common policy, for the more effective implementation of which developing countries create various interstate organizations (for example, the Organization of African Unity).

Without pretending to make an unambiguous assessment, in our opinion, we can determine the following general characteristics of third world countries:

1) The extent of poverty.

Most developing countries are characterized by a very low standard of living. It should be taken into account that the bulk of the population of these countries has a low standard of living not only in comparison with developed countries, but also in comparison with the few rich groups of the population in their countries. In other words, in poor countries there are rich people, but there is no middle class. As a result, there is a system of income distribution where the income of the top 20% of society is 5-10 times higher than the income of the bottom 40%.

2) Low level of labor productivity.

According to the concept of the production function, there is a systemic relationship between the volume of production and the combination of factors that create it (labor, capital) at the existing level of technology. But this concept of technical dependence must be complemented by a broader approach. For example, factors such as management, employee motivation, and the effectiveness of institutional structures need to be taken into account. In third world countries, labor productivity is extremely low compared to industrialized countries. The reason for this may be, in particular, the absence or severe shortage of additional factors of production (physical capital, management experience). To increase productivity, it is necessary to mobilize domestic savings and attract foreign capital to invest in physical factors of production and human capital. And this requires an improvement in the system of general and special education, reforms, land tenure reform, tax reform, the creation and improvement of the banking system, and the formation of a non-corrupt and effective administrative apparatus. It is also necessary to take into account the attitude of workers and management to improve their skills, the ability of the population to adapt to changes in production and society, attitude towards discipline, initiative, and attitude towards authority. The impact of low income on labor productivity in third world countries is reflected in the poor health of the bulk of the population.

It is known that poor nutrition in childhood has an extremely negative impact on the physical and intellectual development of the child. An irrational and inadequate diet, lack of basic personal hygiene conditions can in the future undermine the health of workers and negatively affect work motivation. The low level of productivity in this situation is largely due to apathy, physical and emotional inability to withstand competition in the labor market.

3) High population growth rates. The most obvious indicator characterizing the differences between industrialized countries is the fertility rate. No developed country reaches a birth rate of 20 births per 1,000 people. population. In developing countries, the birth rate varies from 20 people (Argentina, China, Thailand, Chile) to 50 people (Niger, Zambia, Rwanda, Tanzania, Uganda). Of course, the death rate in developing countries is higher than in industrialized countries, the improvement in health care in third world countries makes this development not so significant. Therefore, population growth rates in developing countries today average 2% (2.3% excluding China), and in industrialized countries - 0.5% per year. Therefore, in third world countries, approximately 40% of the population are children under the age of 15 (less than 21% in developed countries). In most third world countries, the burden on the economically active part of the population (from 15 to 64 years old) to support the disabled part of society is almost 2 times higher than in industrialized countries.

4) High and growing unemployment rate.

Population growth in itself is not a negative factor in economic development. But in conditions of economic stagnation, additional jobs are not created, so high natural population growth generates huge unemployment. If we add hidden unemployment to visible unemployment, then almost 35% of the labor force in developing countries is unemployed.

5) Large dependence on agricultural production and export of fuel and raw materials.

Approximately 65% ​​of the population in developing countries lives in rural areas, compared to 27% in industrialized countries. Agricultural production employs more than 60% of the labor force in third world countries and only 7% in industrialized countries, while the contribution of the agricultural sector to the creation of GNP is about 20% and 3%, respectively. The concentration of labor in the agricultural sector and the primary sector of industry is due to the fact that low incomes force people to care primarily about food, clothing, and housing. Agricultural productivity is low due to an excess of labor relative to the natural area available for cultivation, as well as primitive technology, poor organization, lack of material resources and poor quality of labor.

The situation is complicated by the land tenure system, in which peasants are most often not owners, but tenants of small plots. This nature of agricultural relations does not create economic incentives for productivity growth. But even in countries where land is abundant, primitive tools do not make it possible to cultivate an area of ​​more than 5-8 hectares.

In addition to the dominance of the agricultural sector in the economy, third world countries export primary products (agriculture and forestry, fuel and other minerals). In sub-Saharan Africa, primary production accounts for more than 92% of foreign exchange earnings.

6) Subordinate position, vulnerability in the system of international economic relations.

It is necessary to highlight the stark disparity in economic and political power between Third World countries and industrialized countries. It is manifested in the dominance of rich countries in international trade, in the ability of the latter to dictate the terms of technology transfer, investment and foreign aid.

A significant, although less obvious, factor in the persistence of underdevelopment is the transfer of a system of Western values, behavior and institutions to developing countries. For example, in the past, the implantation in the colonies of educational systems and programs that were inappropriate for them, the organization of trade unions and administrative systems according to Western models. Today, the high economic and social standards of developed countries have an even greater impact (demonstration effect). The lifestyle of the Western elite and the desire for wealth can contribute to corruption and the theft of national wealth in developing countries by a privileged minority. Finally, the brain drain from third world countries to developed countries also negatively affects the economic development of the emigration of qualified personnel. The cumulative impact of all negative factors determines the vulnerability of developing countries from external factors that can have a major impact on their economic and social situation.

The diversity of developing countries necessitates a certain classification that could reflect their differentiation.

The classification of developing countries developed by the UN allows us to distinguish 3 groups of countries: least developed (44 countries), developing countries that are not oil exporters (88 countries) and OPEC member countries (13 oil exporting countries).

Another classification is proposed by the Organization for Economic Cooperation and Development (OECD), which includes some countries and territories not covered by UN statistics. This classification includes low-income countries (61 countries), middle-income countries (73 countries), newly industrialized countries (11 countries), and oil-exporting OPEC members (13 countries).

The International Bank for Reconstruction and Development (IBRD) has developed its own classification system. This classification includes 125 countries (developing and developed), each with a population of more than 1 million people. These countries are then divided according to per capita income into four groups: low income, middle income, upper middle income, high income. The first three groups cover 101 countries, most of which are developing countries. The remaining 24 high-income countries are divided into 2 groups: 19 countries are typical industrialized countries, and 5 countries (Hong Kong, Kuwait, Israel, Singapore, and the United Arab Emirates) are classified by the UN as developing countries.

To assess the degree of differentiation of developing countries, 7 indicators can be used:

1) Size of countries (territory, population and per capita income).

Of the 145 UN member countries, 90 countries have a population of less than 15 million people. Large countries neighbor small ones. A large territory usually provides advantages: possession of natural resources and large potential markets, less dependence on imported raw materials.

2) Features of historical development and the colonial period.

Most developing countries were in the past colonies of Western European countries, the USA, and Japan. The economic structures and social institutions of the colonies were created according to the model and likeness of the metropolises.

3) Provision of material and labor resources. Some developing countries are very rich in mineral resources (Gulf countries, Brazil, Zambia), others are very poor (Bangladesh, Haiti, Chad, etc.).

4) The role of the private and public sectors.

In general, the private sector in the economy is more developed in Latin America and Southeast Asia than in South Asia and Africa.

5) The nature of production structures.

There is a certain differentiation in the sectoral structure of the economies of developing countries, although most of them are agricultural and raw materials. Subsistence and commercial agricultural production provides employment for the majority of the population. But in the 70s - 90s, South Korea, Taiwan, Singapore, Hong Kong and Malaysia sharply accelerated the development of the manufacturing industry and actually turned into industrial countries.

6) The degree of dependence on external economic and political forces.

The degree of dependence on external factors is influenced by the country’s provision with material resources, the structure of the economy and foreign economic relations.

7) Institutional and political structure of society.

The political structure, interests of social groups and alliances of the ruling elites (large landowners, comprador part of big business, bankers, military) usually predetermine the development strategy, and can be a brake on progressive changes in the economy and society, preserving economic backwardness if the changes that occur seriously infringe on their interests.

It should be noted that whatever the balance of power between the military, industrial and large landowners in Latin America, between politicians, senior officials and tribal leaders in Africa, between oil sheikhs and financial magnates in the Middle East, most developing countries are open or is veiledly controlled by small but rich and powerful elites. Democratic attributes (elections to local authorities and parliament, freedom of speech) are often just a screen that covers the real power in the country.

Industrialized countries

Industrialized countries include the 24 countries that are members of the Organization for Economic Co-operation and Development (OECD). These are Australia, Austria, Belgium, Great Britain, Denmark, Germany, Greece, Ireland, Iceland, Spain, Italy, Canada, Luxembourg, the Netherlands, New Zealand. Norway, Portugal, San Marino, USA, Finland, France, Sweden, Switzerland. Japan. Since 1996 Singapore began to be classified as an industrialized country.

Main features of industrialized countries:

1) High level of GDP per capita. In most industrialized countries this figure ranges from 15 to 30 thousand dollars per capita per year. Industrialized countries have a GDP per capita per year that is approximately 5 times the world average.
2) Diversified structure of the economy. At the same time, the service sector currently accounts for more than 60% of the GDP of industrialized countries.
3) Social structure of society. Industrialized countries are characterized by smaller income gaps between the poorest and richest 20% of the population and the presence of a powerful middle class with high living standards.

Industrialized countries play a leading role in the world economy. Their share in the world gross product is more than 54%, and their share in world exports is more than 70%. Among the industrialized countries, the most important role is played by the so-called Group of Seven, or C-7, countries. These are the USA, Canada, Germany, Great Britain, France, Italy, Japan. They provide 47% of the world's gross product and 51% of world exports. Among the seven countries, the United States dominates.

In the 90s, the US economy consistently ranked 1st in terms of competitiveness, but US economic leadership in the world tended to weaken. Thus, the share of the United States in the GDP of the non-socialist world decreased from 31% in 1950. up to 20% currently. The US share in the exports of the non-socialist world decreased especially significantly - from 18% in 1960 to 12% in 1997. The US share of global foreign direct investment has fallen from 62% in 1960 to 20% today. The main reason for the relative weakening of the US position in the world economy is the high rates of economic growth in Japan and Western Europe, which quickly, using American assistance under the Marshall Plan, restored the war-ravaged economy and carried out profound structural changes in the economy, creating new industries. At a certain stage, Japanese and Western European sectors of the economy achieved international competitiveness and began to successfully compete in the world market with American companies (for example, German and Japanese automobile corporations).

However, despite the relative weakening of the US economic position, the US role in the world economy after World War II has always been leading. Firstly, compared to any country in the world, the United States has the largest GDP - more than 7 trillion. dollars per year and, accordingly, the most capacious domestic market in the world. But the main factor in the economic leadership of the United States is leadership in the field of scientific and technological progress and the implementation of its results in production. The United States today accounts for 40% of global R&D (research and development) spending. The US share in global exports of high technology products is 20%. The US leads most notably in the area of ​​information technology. Currently, 75% of the data banks of all industrialized countries are concentrated in the United States. In addition, the United States leads in world food production, providing, in particular, more than 50% of world grain exports.

After the collapse of the USSR and the world socialist system, the United States became the only world superpower, which is the economic, political and military leader of the modern world. The preservation and strengthening of the US's leading role in the world is officially enshrined in the US National Security Concept.

The second center of economic power is Western Europe.

In Western Europe, two models of market economies predominate: democratic corporatism and the social market model.

Both models have a lot in common, so there is no hard boundary between them:

1. Democratic corporatism.

Typical for countries such as Sweden and Austria. This model is characterized by a high share of state entrepreneurship in the production of goods and services and in investments. The promotion of economic growth and general welfare is achieved through the coordination of public and private interests. The labor market is characterized by strong trade unions and sectoral labor agreements. Preference is given to adapting the workforce to the labor market through professional retraining. The state pursues an active employment policy and provides a high level of unemployment benefits.

2. Social market model.

This model is more typical for Germany. The share of state entrepreneurship in the production of goods and services and in investments is insignificant. This model provides support for both individual groups of the population (youth, low-income people) and entrepreneurs who cannot resist large corporations (small businesses, farmers). The social market model is based on an unspoken consensus of social and political forces.

The economic development of Western Europe after the Second World War is inseparable from the integration process that swept across Western Europe.

The economic development of Western Europe in the post-war period, which took place in the context of deepening and expanding integration, was dynamic and successful. Western Europe quickly restored its war-ravaged economy and created modern competitive industries, increasing its share in world production and exports compared to the United States.

The world leadership of Western Europe can be characterized by the following components:

1) Western Europe today is the main center of international trade, providing more than 50% of world exports, ahead of the United States and Japan. Western Europe today accounts for more than 40% of the world's gold and foreign exchange reserves.

2) Western Europe is a leader in the pharmaceutical industry, in certain branches of transport engineering, and in some branches of light industry. In addition, Western Europe is a major center of international tourism.

Main economic problems

The share of Western Europe in the world economy has decreased slightly over the past 20 years, economic growth rates have been low, and many traditional industries have experienced a crisis (metallurgy, textile industry). European firms have failed to achieve high competitiveness in the electronics and telecommunications sector, where the United States leads. In the sphere of mass production of knowledge-intensive goods, Western Europe lags behind Japan and the newly industrialized countries of Southeast Asia. But the main economic and social problem of Western Europe remains mass unemployment, the level of which reaches 10% of the labor force, which is significantly higher than in the USA and Japan.

The third center of the world economy is Japan. The concept of hierarchical corporatism is currently used to characterize Japan's economic model.

The characteristics of this model include the following features:

1) insignificant participation of the state in the production of goods and services, in sales, in investments.
2) active participation of the state in stimulating business activity and changing the structure of the economy.
3) in the labor market, the simultaneous conclusion of labor agreements at the firm level is practiced. Labor relations are characterized by corporate paternalism (lifetime employment system, the company is our common home).
4) Firms and the state pay special attention to improving the skills of the workforce and involving workers in production management.

In the economic literature, the concept of the Japanese economic miracle is used to characterize the economic development of Japan, which emphasizes the phenomenal success of the country, which has transformed from a second-rate and isolated country into a world power with a dynamic and competitive open market economy.

Population of developed countries

The population of developed countries is aging.

For the majority of the population in developed countries, wages are the main source of subsistence; they usually range from 2/3 to 3/4 of national income.

The average standard of living of the population of developed countries is largely determined by unearned income, and the inequality of individuals is primarily due to uneven ownership of property. For example, in the United States, 1% of the population owns 19% of the country's total wealth.

Loans are provided, firstly, to increase food production and improve the living standards of the poorest people in food-deficit least developed countries. Second, to improve food production capacity in other developing countries to improve the living conditions of the poorest.

78% of the population of developed countries and 40% of the population of developing countries of the world will live in cities and urban agglomerations. The highest rates of urbanization are typical for Europe, North and Latin America, and Oceania.

The most complex at present is the complex of ethical problems associated with the inevitable decrease in the level of consumption of material goods by the population of developed countries and changes in social relations.

The reasons for the increasing role of environmental management in the service sector are related both to the aggravation of the environmental situation and to the formation of an ecological worldview among the population of developed countries.

The age pyramid of the population of developing countries sharply narrows from the base to the top, while the wall of the age pyramid of the population of developed countries is almost vertical, and sometimes even has a negative slope - until the rise reaches the oldest age classes. These stark differences are partly explained by the fact that developing countries have higher birth rates and lower survival rates.

A person’s organization is also characterized by his neatness, discipline, commitment, and law-abidingness. The population of developed countries possesses these qualities to a much greater extent than the population of other countries. This is due to various reasons, including traditions and the education system.

But there are also pessimistic scenarios. The decline in the population of developed countries opens Eldorado to the countries of the big demographic explosion. Disadvantaged peoples, but on the rise in population growth, can appropriate - by goodness or force - the lands and resources of peoples of wealth, but in decline. These latter will gradually mix with the aliens until they lose their individuality. They will disappear, as many nations have already disappeared when they find themselves in a similar situation.

In recent decades, the population of developed countries has been focused on searching for social compromises. The majority of residents prefer to solve social problems rationalistically, without extremes, on the basis of rules defined by existing laws.

The scientific and technological revolution is also associated with a change in the position of man as a consumer of material and spiritual goods. In conditions of satisfying the most pressing needs of the overwhelming majority of the population of developed countries, the evolution of needs that stimulate production is moving in the direction of not quantitative, but qualitative improvement in all aspects of people's lives. At the same time, we can trace both the process of unification of the needs of various groups and strata of society, erasing the visible boundaries between these social formations, and the process of individualization of needs associated with a more general movement aimed at increasing the autonomy of the individual in the light of the less rigidity and greater mobility of social connections of modern man.

When analyzing the quality of life in a country, the distribution of the population by income is of significant importance. Distribution curve typical for Russia in the late 80s. It has been repeatedly noted that in a normally functioning economy, the differentiation of personal incomes can be approximated by a logarithmically normal distribution law.

Thus, 25% of the planet's population living in developed countries consumes 80% of the world's gross product. Dynamics of the fertility rate. In developed countries, the overall population growth rate (minus mortality) is 0 6% / year, and in developing countries it reaches 2 1% / year. Using these data as initial data, it can be obtained that the doubling time of the population of developed countries is 117 years , and developing ones - only 33 5 years.

The population below working age is projected to decrease by 5 5 million people. The risk of dying at a younger age among the Russian population is noticeably higher than among the population of developed countries. The population of working age is more likely to die due to external causes, which include accidents, poisoning, and injuries. Older and middle-aged populations are most likely to die from cardiovascular disease.

The gap between the two groups of countries in per capita indicators is especially pronounced. In developing countries, per capita production of heavy industry products is 30 times less, and metalworking products are 60 times less than per capita of developed countries.

The rudimentary state of technology in less developed countries moves these countries away from the forefront of technological progress. The vast amount of technological knowledge accumulated by developed countries could be used by less developed countries without significant research costs. For example, the use of modern experience in crop rotation and contour farming does not require additional capital investments, but significantly increases labor productivity. Large grain losses can be avoided by simply increasing the height of the bins by a few inches. Such technological changes may seem quite trivial to the population of developed countries. But for poor countries, the increased productivity resulting from such changes could mean ending hunger and reaching a level sufficient to survive.

Levels of developed countries

The stage of economic development of a country largely determines its level of economic development, i.e. degree of economic maturity of the national economy. Based on the level of economic development, countries (more precisely, their economies) are divided into two large groups - developed and less developed. Almost all developed countries belong to an international organization called the Organization for Economic Co-operation and Development (OECD), and therefore it is often identified with the club of developed economies, although the OECD also includes several less developed countries (Turkey, Mexico, Chile, Central and Eastern European countries ). Less developed countries are often referred to as developing countries or emerging market countries, although these terms are sometimes given a narrower meaning. Therefore, cautious researchers refer to the entire group of less developed countries as emerging market and developing countries or developing and transition economies.

There are various subgroups among developed and less developed economies, although they are more often called groups. For example, they distinguish the group of twenty (G20) of the largest economies in the world - from developed countries these are the seven leading developed economies plus the country holding the EU presidency plus Australia and South Korea, and from less developed countries these are the BRICS countries (eng. BRICS - Brazil, Russia, India, China, South Africa) plus Mexico, Argentina, Turkey, Saudi Arabia, Indonesia. These countries account for 90% of world GDP, 80% of world trade and two-thirds of the world's population.

Among developed countries, the Group of Seven (G7) of the largest developed economies is often analyzed - these are the USA, Japan, Germany, France, Great Britain, Italy, Canada (at political meetings of this group, Russia is also included in it). There is also a group of developed newcomer countries such as South Korea, Singapore, Fr. Taiwan and Hong Kong.

Among the less developed countries, the abbreviation BRICS identifies the five leading economies on their continents. At the same time, other groups are analyzed: these are the newly industrialized countries (NICs) at the stage of active industrialization, led by China, India and Brazil; countries with economies in transition, which include former socialist countries transitioning to a market economy; countries that export fuels, as well as countries that export other raw materials, where fuel or other raw materials account for more than half of their exports; least developed countries, whose GDP per capita is less than $750, the human development index is low, and economic growth is highly unstable; debtor countries, which the International Monetary Fund (IMF) classifies as countries with a negative current account balance over the past four decades, as well as poor countries with large external debt. Many countries fall into several groups at the same time, such as Russia: it is part of BRICS, is a country with a transition economy and belongs to fuel exporting countries.

The typology of countries by level of economic development differs among different international organizations. The following is the IMF typology, combined with its statistics on the share of groups, subgroups and individual countries in world GDP production (calculated at purchasing power parity (PPP) of national currencies, i.e. in American prices).

Traditional and socialist economic systems

The traditional economic system (traditional economy), often called pre-capitalist, continues to dominate only in the backward countries of Asia and Africa, which are still at that stage of economic development when labor and land remain the main economic resources.

The traditional system is characterized by the dominance of such forms of ownership as communal (mainly in the form of communal ownership of land), state (again, mainly of land), and previously such forms of ownership as feudal (characterized by ownership of land under the conditions of fulfilling feudal duties). In this system, the freedom of economic agents is greatly constrained by the community, state and feudal lords. Economic decisions are made not only in conditions of constrained private property rights, but also on the basis of time-honored traditions (in medieval Russia they tried to “live in the old days”), which also reduces the independence and, accordingly, the activity of economic agents.

Previously, the traditional system dominated all countries for thousands of years and hence its name. There are no longer states in the world in which it dominates, but there are many countries where it coexists with the market system. Such islands of traditional economics in a market system are called structures.

The socialist economic system (socialist economy, socialism) now functions only in the DPRK and Cuba, although in the last century it existed in our and many other countries. It is based on the dominance of public, primarily state, property (predominantly state-owned or cooperative enterprises), which greatly constrains the independence of economic agents. In such a system, it is not customary to reward entrepreneurs other than managers of state-owned firms. Key economic decisions are ultimately made by the main owner - the state, mainly in the form of directives (orders) for enterprises.

The shortcomings of the socialist economic system have led to the transition of the vast majority of the states of this system to the market system, and therefore their economies are often called transitional, and they are countries with transition economies.

Socially developed countries

The world economy is a system of national economies of individual countries, united by the international division of labor, trade and production, financial, scientific and technical ties. This is a global geo-economic space in which, in the interests of increasing the efficiency of material production, goods, services, and capital circulate freely: human, financial, scientific and technical. The world economy is an integral, but at the same time contradictory system of national economies. Not all countries (and there are about two hundred of them) are equally involved in the world economy. From the point of view of the level of their development and the socio-economic organization of production, the center and periphery are quite clearly visible in the complex structure of the world economy. The center is mainly industrialized countries with an efficient, more or less regulated market economy, capable of quickly adapting to the global economic situation and mastering the achievements of scientific and technological progress, and exporting high-tech products. The periphery is primarily developing countries, as a rule, with raw materials specialization, an insufficiently effective mechanism for self-development, and a relatively low level of integrated economy.

The center is a relatively small group of industrialized countries (24 states (USA, Canada, Western European countries, Japan, Australia, New Zealand)), which account for almost 55% of world GDP and 71% of world exports. These countries have highly efficient and well-organized economies and are developing according to the “social market economy” type. Their economic mechanism, which has high elasticity, allows them to flexibly adapt to the global economic situation. They quickly implement the achievements of scientific and technical thought.

The periphery consists mainly of developing countries. With all their diversity, a number of common features can be identified:

The multistructured nature of the economy with the predominance of non-market relations and non-economic levers of economic organization;
Low level of development of productive forces, backwardness of industry and agriculture;
Raw material specialization.

In general, they occupy a dependent position in the world economy.

Center and periphery are two advantages of a single world economy. They are not isolated, but, on the contrary, closely interconnected. However, economic cooperation between them is quite contradictory, since they are aimed at solving different problems.

Having achieved a high standard of living, developed countries are creating a qualitatively different structure of production and consumption, which is increasingly associated with the leisure and service industries, while in many developing countries there is not even enough food. In general, the difference in living conditions between the center and the periphery of the world economy continues to increase.

Main groups of countries: developed countries with market economies, countries with transition economies, developing countries. The most complete picture of groups of countries in the international economy is provided by data from the largest international organizations in the world - the UN, the IMF and the World Bank. Their assessment is somewhat different, since the number of member countries of these organizations is different (UN - 185, IMF - 182, World Bank - 181 countries), and international organizations monitor the economies of only their member countries.

For the purposes of economic analysis, the UN divides countries into:

Developed countries (states with market economies);
countries with economies in transition (formerly socialist or centrally planned countries);
developing countries.

Let us consider the features of each of the selected subsystems. Countries with developed economies are considered to be those states that are characterized by the presence of market relations in the economy, a high level of rights and civil liberties in public and political life. All countries with developed economies belong to the capitalist model of development, although the nature of the development of capitalist relations has serious differences here. The level of GDP per capita in almost all developed countries is not lower than 15 thousand dollars per year, the state-guaranteed level of social protection (pensions, unemployment benefits, compulsory health insurance), life expectancy, quality of education and medical care, level cultural development. Developed countries have passed through the agricultural and industrial stage of development with the predominant importance and contribution to the creation of GDP from agriculture and industry. Now these countries are at the stage of post-industrialism, which is characterized by the leading role in the national economy of the sphere of intangible production, creating from 60% to 80% of GDP, efficient production of goods and services, high consumer demand, constant progress in science and technology, strengthening the social policy of the state .

The IMF includes, first of all, the leading capitalist countries, called the Group of Seven (G7), which includes the United States, Japan, Germany, Great Britain, France, Italy and Canada, as a group of countries with developed economies. These states occupy a dominant position in the world economy, primarily due to their powerful economic, scientific, technical and military potential, large population, and high level of total and specific GDP. Further, the group of developed countries includes relatively small countries in comparison with the G7 potential, but highly developed economically, scientifically and technologically, the countries of Western Europe, Australia and New Zealand. States such as South Korea, Hong Kong, Singapore, Taiwan (the so-called dragon countries of Southeast Asia) and Israel began to be considered economically developed. Their inclusion in the group of developed countries was a credit for the rapid progress in economic development in the post-war period. This is truly a unique example in world history, when people who represented absolutely nothing back in the 1950s. countries captured world economic leadership in a number of positions and turned into important global industrial, scientific, technical and financial centers. The level of GDP per capita and quality of life in the dragon countries and Israel have come very close to those of leading developed countries and in some cases (Hong Kong, Singapore) even exceed most of the G7 states. However, in the subgroup under consideration there are certain problems with the development of the free market in its Western understanding; it has its own philosophy of the formation of capitalist relations.

The UN includes South Africa among the developed countries, and the Organization for Economic Cooperation and Development (OECD) also includes Turkey and Mexico, which are members of this organization, although they are more likely developing countries, but they are included in it on a territorial basis (Turkey belongs to part of Europe, and Mexico is part of the North American Free Trade Agreement (NAFTA). Thus, the number of developed countries includes about 30 countries and territories.

Developed countries are the main group of countries in the world economy. At the end of the 90s. they accounted for 55% of world GDP, 71% of world trade, and most international capital flows. The G7 countries account for more than 44% of world GDP, including the USA - 21, Japan - 7, Germany - 5%. Most developed countries are members of integration associations, of which the most powerful are the European Union - EU (20% of world GDP) and the North American Free Trade Agreement - NAFTA (24%).

Countries with economies in transition

This group includes states that, since the 80-90s. make a transition from an administrative-command (socialist) economy to a market economy (therefore they are often called post-socialist). These are 12 countries of Central and Eastern Europe, 15 countries are former Soviet republics, and according to some classifications they also include Mongolia, China and Vietnam (although formally the last two countries continue to build socialism). Sometimes this entire group of countries is classified as developing (for example, in IMF statistics), based on the low level of GDP per capita (only the Czech Republic and Slovenia exceed 10 thousand dollars), and sometimes only the last three countries are classified as such.

Countries with economies in transition produce about 6% of world GDP, including countries of Central and Eastern Europe (excluding the Baltics) - less than 2%, former Soviet republics - more than 4% (including Russia - about 3%). Share in world exports - 3%. China produces about 12% of world GDP. There are countries here that have achieved significant success in economic development over ten years of market reforms: Poland, Hungary, the Czech Republic, Slovakia, Slovenia, Croatia, Lithuania, Latvia and Estonia. In some of them, the standard of living has almost come close to the standards of Western European countries, and economic growth rates remain consistently high and even exceed Western European ones. Major structural changes in the economy have already been carried out, and the issue of integration into the single European market is on the agenda.

Other states, such as Bulgaria, Romania, Ukraine, Albania, Macedonia, are at the stage of transformation of the entire economic system, and they have yet to solve rather complex problems of the transition period. There are also countries that are experiencing stagnation and have already stopped moving towards a market orientation. These include, for example, Belarus, where market reforms have stalled and there is a serious threat of a return to the old administrative-command system. Countries that have been seriously affected by military operations as a result of violations of their territorial integrity and numerous ethnic conflicts also belong to this group. Such states now simply have no time for reforms; they are faced with the problem of restoring their war-damaged economies. These are Serbia, Montenegro, Bosnia and Herzegovina.

If we try to identify subgroups in this youngest group of countries, then different classifications are possible. One group includes the former Soviet republics, which are now united into the Commonwealth of Independent States (CIS). This is made possible by a similar approach to economic reform, a similar level of development of most of these countries, and unification in one integration group, although the subgroup is quite heterogeneous.

Another subgroup can include the countries of Central and Eastern Europe, including the Baltic countries. These countries are characterized by a predominantly radical approach to reform, a desire to join the EU, and a relatively high level of development for most of them. However, the strong lag behind the leaders of this subgroup and the less radical nature of the reforms lead some economists to the conclusion that it is advisable to include Albania, Bulgaria, Romania and some republics of the former Yugoslavia in the first subgroup.

China and Vietnam can be identified as a separate subgroup, carrying out reforms in a similar way and having a low level of socio-economic development in the first years of reform, which is now rapidly increasing.

From the previous large group of countries with administrative-by the end of the 90s. only two countries remained: Cuba and North Korea.

Developing countries (DC)

The group of developing countries (less developed, underdeveloped) includes states with market economies and low levels of economic development. Of the 182 member countries of the International Monetary Fund, 121 are classified as developing. Despite the significant number of these countries, and the fact that many of them are characterized by large populations and vast territories, they account for about 40% of world GDP, their share in the world export 26%.

They represent the periphery of the world economic system. This includes African countries, countries of the Asia-Pacific region (except Japan, Australia, New Zealand, the dragon countries of Southeast Asia and the Asian CIS countries), countries of Latin America and the Caribbean. Subgroups of developing countries are also distinguished, in particular, a subgroup of Asia-Pacific countries (West Asia plus Iran, China, countries of East and South Asia - all other countries in the region), a subgroup of African countries (sub-Saharan Africa minus Nigeria and South Africa - all other African countries beyond with the exception of Algeria, Egypt, Libya, Morocco, Nigeria, Tunisia).

The entire group of developing countries is very heterogeneous, and, rather, it would be correct to call them third world countries. Developing countries include, in particular, those states that, in many indicators of the level and quality of life, are higher than any developed country (United Arab Emirates, Kuwait or the Bahamas). GDP per capita and the volume of government social spending here correspond to or even exceed those of the G7 countries. In the group of developing countries, there are medium-sized states with a good level of development of economic and social infrastructure; there are also a significant number of countries with extremely backward national economies, the majority of whose population is below the poverty line, which corresponds, according to the UN methodology, to one dollar of expenditure per day for each inhabitant. It also cannot be said that all of them are economies of the agricultural or agrarian-industrial type.

The name of the group - developing countries - rather reflects the model of their national economy, in which the role of market mechanisms and private entrepreneurship is extremely small, and subsistence or semi-subsistence farming, the predominance of the agricultural and industrial sectors in the sectoral structure of the economy, and a high degree of state control are of primary importance for development. interference in the economy and low levels of social protection. Due to the general nature of the above-mentioned features, it is quite legitimate to classify most of the transition economies as developing countries, the standard of living in which has significantly decreased due to ineffective management of economic transformations. Due to such difficulties in classification and the diversity of developing countries, the easiest way to classify them is by exclusion. Accordingly, developing countries should be considered those states that are not included in the group of countries with developed market economies and are not former socialist countries of Central and Eastern Europe or former republics of the former USSR.

For the purposes of specific economic analysis, developing countries are divided into:

Countries are net creditors: Brunei, Qatar, Kuwait, Libya, UAE, Oman, Saudi Arabia;
countries - net debtors: all other RS;
energy exporting countries: Algeria, Angola, Bahrain, Venezuela, Vietnam, Gabon, Egypt, Indonesia, Iraq, Iran, Cameroon, Qatar, Colombia, Congo, Kuwait, Libya, Mexico, Nigeria, UAE, Oman, Saudi Arabia, Syria, Trinidad and Tobago, Ecuador;
energy importing countries: all other DCs;

Least developed countries: Afghanistan, Angola, Bangladesh, Burkina Faso, Burundi, Bhutan, Vanuatu, Haiti, Gambia, Guinea, Guinea-Bissau, Djibouti, Democratic Republic of the Congo (formerly Zaire), Zambia, Yemen, Cape Verde, Cambodia, Kiribati, Comoros, Laos, Lesotho, Liberia, Mauritania, Madagascar, Rwanda, Western Samoa, Sao Tome and Principe, Solomon Islands, Somalia, Sudan, Sierra Leone, Togo, Tuvalu, Uganda, Central African Republic, Chad, Equatorial Guinea, Eritrea, Ethiopia.

Problems of developed countries

Functional illiteracy, which will be discussed in the article, is somewhat similar to an iceberg: the visible but smaller part is on the outside, the larger but hidden part is on the inside. This phenomenon is complex and multifaceted. Currently, it is being studied by scientists and comprehended by the general public in many countries. They argue about it, look for approaches, develop special programs, etc. The information presented below represents one attempt to approach this problem and in no way pretends to be a comprehensive analysis of it. However, in our opinion, they are necessary, because For Russia, this problem is likely to become extremely acute in the near future. In the early 1980s, a number of developed countries were struck by reports of the presence in them, hitherto considered cultural, of a paradoxical phenomenon called “functional illiteracy.” This was the beginning of widespread awareness of a new process, which later led to significant reforms in educational systems and sociocultural policies. “The nation is in danger,” “there is a reading crisis,” “are we becoming proletarians?” - these and other similar expressions reflected the acute concern of different sections of society in America, Canada, Germany, France and other countries about new social cataclysms.

What exactly were we talking about? Functional illiteracy is not adequate to the traditional concept of illiteracy. According to UNESCO, this term applies to any person who has lost significant reading and writing skills and is unable to comprehend short and simple text relevant to everyday life. The problem turned out to be so acute that 1990, at the initiative of UNESCO, was proclaimed by the UN General Assembly as the International Year of Literacy (IGY). During 1991, the results of relevant activities in many countries and international organizations were summed up. Currently, on their basis, legislative acts, decisions, plans and programs are being developed to continue and develop the movement to overcome and prevent illiteracy in its various forms.

How does functional illiteracy manifest itself in everyday life, why has it come to be regarded as a phenomenon that poses a danger to society, what are the reasons for the development of this process? Experts from different countries interpret this phenomenon differently and focus on its different aspects. The terms used are also different: “functional illiteracy”, “secondary illiteracy”, “semiliterate”, “dyslectic”, “dyslexic” (“semi-literate”). those who do not speak a dictionary, with poor vocabulary"), etc. In recent years, in the USA, the term “family litOracy” associated with this problem is widely used - “family literacy”, as well as the term “at-Risk” - “those who belong to at risk” or “is at risk”. But what is meant here by “danger” and “risk” is not at all what is usually meant, because this “risk” is associated precisely with a low level of education, in other words, with functional illiteracy. This term took root in the United States after the report “A nation at risk”.

Illiteracy statistics in the USA

To illustrate the scale of this phenomenon, here are some impressive figures. According to American researchers, one adult in four has poor literacy skills. There is also such a thing as passive literacy, when adults and children simply do not like to read. In the report A Nation at Risk, the National Commission cites the following figures, which it considers to be “risk indicators”: about 23 million American adults are functionally illiterate, having difficulty performing basic tasks of daily reading, writing and arithmetic, about 13% of all Seventeen-year-old US citizens may be considered functionally illiterate. Functional illiteracy among young people may rise to 40%; many of them do not have a range of intellectual skills that one would expect from them: about 40% cannot draw conclusions from a text, only 20% can write an essay with a convincing argument, and only 1/3 of them can solve a mathematical problem a task that requires step-by-step actions.

According to D. Kozol (1985), data from various sources show that approximately 60 to 80 million Americans are illiterate or semi-literate: from 23 to 30 million Americans are completely illiterate, i.e. actually cannot read or write; 35 to 54 million are semi-literate—their reading and writing skills are far below what is needed to “cope with the responsibilities of daily life.” The author makes a compelling case for how "illiteracy takes a heavy toll on our economy, affects our political system, and, more importantly, the lives of illiterate Americans."

According to researchers, this problem is especially serious because it is latent in nature. Adults usually try to hide the defects of their education and upbringing - inability, ignorance, poor level of information content and other skills and qualities that interfere with success in the modern information society.

A functionally illiterate person really has a hard time even at the everyday level: for example, it is difficult for him to be a buyer and choose the necessary product (since these people are guided not by the information about the product indicated on the packaging, but only on the labels), it is difficult to be a patient (t Because when buying a medicine, the instructions for its use are unclear - what are the indications and contraindications, side effects, rules of use, etc.), it is difficult to be a traveler (to navigate road signs, terrain plans and other similar information if you have not been before in this place; the problem is to calculate in advance and plan travel expenses, etc.). Other problems include paying bills, filling out tax receipts and bank documents, processing mail and letters, and so on. Functionally illiterate people experience problems related to raising children: sometimes they cannot read a letter from a teacher, they are afraid of visiting him, it is difficult for them to help their child with homework, etc. Problems with household electrical appliances, the inability to understand the instructions for them, lead to their damage, and sometimes to household injuries to the owners. Those who are functionally illiterate cannot operate computers and other similar systems. According to experts, functional illiteracy is one of the main causes of unemployment, accidents, accidents and injuries at work and at home. The losses from it amounted, according to experts, to about 237 billion dollars.

Millions of indigenous residents of developed countries, who studied at school for a number of years, have either practically forgotten and lost the skills and abilities of reading and basic calculations, or the level of these skills and abilities, as well as general educational knowledge, is such that it does not allow them to “function” effectively enough in an increasingly complex society. In Canada, 24% of people aged 18 years and over are illiterate or functionally illiterate. Among the functionally illiterate, 50% had nine years of schooling and 8% had a university degree. The results of a survey in 1988 indicate that 25% of the French did not read any books during the year, and the number of functionally illiterate people is about 10% of the adult population of France. Data presented in a 1989 report by the Ministry of National Education indicate a low level of school preparation: approximately one in two students entering college can write reasonably well, 20% of students do not have reading skills. Meanwhile, success in learning is closely related to the level of reading activity.

According to French researchers, not all functionally illiterate people can be classified as persons rejected by society in a professional or economic sense. However, all of them are, to one degree or another, culturally limited and cut off from social and intellectual communication. Regardless of age, economic status and life experience, a functionally illiterate person can be characterized as follows: poor performance at school, a negative attitude towards cultural institutions due to the inability to use them and the fear of being judged by experts, etc. From the characteristics it follows that the difficulties experienced by these people are not so much pragmatic difficulties as cultural and emotional ones.

Weak readers

The group of people closest to the functionally illiterate, or to some extent coinciding with them, can be called “weak readers” - weak readers, who are characterized by “passive reading”. This includes adults and children who do not like to read. This group of readers was recently studied by French sociologists.

The definition of “weak reader” indicates a level of mastery of cultural skills and experience, depending primarily on education, social background and especially on changes in family, professional or social relationships. The authors emphasize that a “weak reader” is usually thought of as someone who does not have time to read. In reality, we are talking about a psychological reason: neither his life circumstances nor his professional orientation contribute to the transformation of reading into a permanent habit. He reads occasionally and does not spend much time on it, considering this activity inappropriate. When reading, such people usually look for “useful” information, i.e. information of a practical nature. In addition, those around them most often read little and rarely (or not at all) talk about books. For this category of readers, the world of culture is beyond the limit - the barrier of his own lack of education: the library evokes a feeling of timidity and is associated with an institution intended for initiates, bookstores also offer too much choice, which is more of an obstacle than an incentive to read. School literary education, received in childhood and falling on unprepared soil, rather caused rejection from literature (largely due to the compulsory nature of education), rather than contributing to the development of interest in reading and self-education skills.

Experts have not yet come to a consensus on whether a “reading crisis” really existed and still exists, or whether the reason lies in something completely different - the ever-increasing gap between the level of “school production” provided by modern educational systems and the requirements of the “social order” with aspects of society and its social institutions.

Features of modern development of society are informatization, the development of high technologies and the complication of the fabric of social life. The competitiveness of developed countries and their participation in the global division of labor market increasingly depend on the level of education of workers, their skills and abilities for continuous professional development (“lifelong learning” - lifelong learning, i.e. continuous self-education). The aforementioned A Nation at Risk report states: “... these shortcomings come at a time when the demands placed on highly skilled workers in new fields are becoming ever more complex. For example...computers, computer-controlled equipment penetrates into all aspects of our lives - into homes, factories and workplaces. One estimate is that by the end of the century, millions of jobs will involve laser technology and robotics. Technology is radically transforming many other activities. These include health care, medical, energy, food processing, maintenance, construction, science, education, military and industrial equipment."

As we see, the attitude towards the level of development of an individual’s reading culture, as well as the process of reading activity, has changed today and is acquiring paramount importance for society. According to French sociologists, the idea of ​​reading as a skill acquired at school is not true enough, because in fact, reading is the result of cultural experience, the degree of mastery of which largely depends on social conditions, level of education and age.

Many researchers of “weak reading” and functional illiteracy believe that the roots and causes of the development of these phenomena lie in early childhood and stem not only from the school, but also from the preschool period of the child’s personality development. And a huge, decisive role here is played by the family, its sociocultural environment and the reading culture of the parents. The level of literacy and reading culture of children and adolescents today causes concern among parents, teachers, and librarians in different countries. Thus, in the Netherlands in 1984, among 12-year-old children, 7% were unable to understand the simplest text. In Poland, Germany and the USA, about 40% of school-age children have difficulty understanding the simplest literary texts.

There are practically no absolutely illiterate people in Sweden. However, among a population of 8.5 million, about 300-500 thousand adults have difficulty reading and writing. It is estimated that 5-10% of the 100,000 schoolchildren who graduate from Level 1 school each year cannot read and write with ease. Secondary school teachers say they encounter too many 16- to 20-year-old students who are unable to read what they want and need to read. These are young people whose life chances after leaving school are severely limited by their print inability. Swedish experts emphasize that this is a nationwide problem that is steadily worsening.

What lies at its core? Heated debates among experts have mainly focused on improving teaching methods, but some of them believe that, most likely, the main reason is the insufficient development of the child's linguistic abilities in preschool age. Teachers emphasize that parents have neither the energy nor the opportunity to engage in the language development of their children. Many of them are unable to show children the value of books and reading. Too many students say their parents are so busy watching television that they don't have time to talk to their children. Here's what one teenager said: “My parents are much more interested in people from Dallas... than me! They can’t even imagine that I’m at least as interesting as these stereotypes,” which illustrates a typical picture of leisure time in such families. Meanwhile, it is parents who bear enormous responsibility for the child’s speech development in early childhood. Society cannot guarantee the correction of all previously made mistakes and negligence in family education. However, Swedish teachers believe that schools and society must ensure that students do not leave secondary school without adequate reading and writing skills.

Signs and characteristics of a weak reader (a person who cannot read)

What are the characteristics of “weak readers”? First of all, because they find it boring and tiring to read. But these readers have other characteristics as well. And the most typical of them are reading errors. Thus, these readers cannot always correctly correlate a symbol - a letter of the alphabet with the corresponding sound. This, firstly, leads to the fact that they have to pause in order to understand the text they read, and, secondly, it leads to guessing. Guessing when reading, changing several other things (this especially applies to long words). But even small errors with the replacement and rearrangement of letters lead to a change in the meaning of the text. The weakest are characterized by slow reading, abrupt, constant repetition of phrases, stuttering at the beginning of reading words, reading syllables. They make morphological and syntactic errors, errors from rearranging letters, etc., and also lose rhythm when reading. Many of them regard reading as hard work, boring, gloomy and dull, because they lack words and expressions. Many schoolchildren can read quite phonically, but words and images mean nothing to them. They read only because they have to. But at the same time, they never think about what they read and do not pay attention to the content. For them, reading is something unpleasant that must be endured and accomplished. Of course, those who lack words and expressions, and those who struggle with their extremely poor reading technique, do not enjoy it. Reading is hard work! Typically, adults involved in child development spend a lot of time and energy trying to find the truly best books for children and adolescents. When they begin to offer them, they often encounter stubborn resistance from such readers.

Educators emphasize that students whose reading skills are at the initial level cannot always, even if they want, read what is meant by “good literature.” And only towards the end of school do these students begin to realize that they need to improve their reading skills. As a rule, this leads them to low self-esteem and an inferiority complex. Young people enter life with half-reading, which gives them half-knowledge and half-understanding, so they feel half-capable of full-fledged activities. And this group of people is quite large today in any, even the most developed, society with cultural traditions.

So, from early childhood to old age, functional illiteracy accompanies a person, introducing troubles and additional suffering into his life. However, today modern developed countries are making a number of efforts to solve this problem, which affects large sections of the population and concerns almost all spheres of life.

Markets of developed countries

The economic development of countries is largely determined by the nature and depth of the social division of labor, during which the development of internal markets occurs. The conditions of their functioning affect the efficiency of production of both its individual types and the economic system as a whole. The internal market, which refers to the system of exchange within the national economy without the export-import sector, is the primary element of the entire system of functioning of the world economy.

It includes internal connections that characterize the scale and forms of interaction between various types of production that make up the economy. External relations serve the participation of the national economy in the world economy. Analysis of domestic markets shows the driving forces of economic processes in each individual country and, to a certain extent, in the subsystem as a whole.

If for the first half of the 20th century. While developing countries have been traditional destinations for capital flows, recent decades have been characterized by an increasing interweaving of capital from developed countries. The average annual growth rate of foreign direct investment in developed countries exceeds the growth rate of GNP and merchandise exports. Currently, in France and England, one fifth of all manufacturing products is produced through foreign investment, in Italy - a quarter, in Germany - about one third. England and the USA, which traditionally were the largest exporters of capital, now act as its main importers.

In the 1980s, Latin American countries experienced a period of severe economic crisis. The average rate of economic growth in the region fell from 6% in the 70s to 1.8% in the 80s, and inflation and unemployment increased significantly. There was a sharp decline in the influx of foreign investment, and many countries were forced to temporarily refuse to service their external debt.

Developing countries are among the main borrowers on the international capital market, attracting an average of about 26 billion US dollars per year. The majority of external debt is short-term floating-rate debt, with approximately 80% of the debt held by the government.

Tight monetary policy and fiscal expansion carried out by a number of developed countries, especially the USA and Great Britain, led to an increase in real interest rates and a decrease in the rate of economic growth in them.

Developing countries are characterized by a fundamentally different structure of financial markets and a pattern of interaction between fiscal and monetary policies than in developed countries.

The capacity of the financial market in developing countries is relatively small compared to the government's needs to finance the budget deficit. High investment risks and significant issue volumes lead to high costs of raising funds for the state, which necessitates the use of seigniorage to finance the gap between revenues and planned government expenditures.

As a result, the need to finance current government expenditures, including the costs of servicing previously accumulated debt, becomes the most important motive for the formation of money supply in the country.

The low capacity of the financial market and low confidence in the state on the part of investors are among the main reasons for the growth of money supply and the increase in the rate of inflation.

The factors listed above also necessitate the governments of developing countries to borrow from the international financial market by issuing bonds denominated in foreign currencies. The cost of funds raised in this way depends on interest rates in developed countries, as well as on the prices of exported and imported goods. The reasons for the increase in the cost of servicing external debt for developing countries may be an increase in interest rates in developed countries, a decrease in the cost of a unit of exports and an increase in the cost of a unit of imports.

The limited funds available for investment lead to competition for capital between the government and the private sector. The government's additional placement of its debt obligations leads to a reduction in investment in private production, that is, a substitution effect occurs between government spending and private investment. Foreign capital entering the financial market plays a dominant role in the pricing process. Prices of financial instruments are weakly dependent on fundamental economic indicators.

Due to the fact that in developing countries there is a high state participation in the capital of the banking system and a low professional level of banking personnel, the distribution of credit resources often does not depend on economic factors (profitability and profitability). This is associated with low investment efficiency. State participation also means that in the event of insolvency of the final borrower, servicing private debt can fall on the shoulders of the state budget.

The main foreign investors in emerging markets are the so-called qualified investors (banks, investment funds, speculative hedge funds), who are able to competently assess the risk and potential return of investments and invest their funds primarily in the most liquid instruments (government debt obligations and securities of export-oriented companies , belonging to the number of “blue chips”). Such investors are focused primarily on making short-term investments, making profits through arbitrage and speculative operations.

The insufficiency of domestic financial resources and the underdevelopment of domestic financial markets, causing the high cost of borrowed capital for the manufacturer, government intervention and the unfavorable structure of public debt are one of the main reasons for the high dependence of emerging markets on shocks in the international capital market. Other important factors in generating financial crises are expansionary monetary and/or fiscal policies and negative current account balances.

Less developed countries

A special category on a global scale are the least developed countries. These states have extremely low levels of poverty, very weak economies, and people and resources exposed to the elements.

According to recent studies and calculations, 48 ​​of the existing countries are classified as the least developed countries of the world. Changes to this list are made every 3 years. Checks and calculations are carried out by the Economic and Social Council (ECOSOC). And the composition of the group of least developed countries is approved by the UN. A similar term to designate underdeveloped states was adopted in 1971. In order to be included in the list of least developed countries, it is necessary to satisfy three criteria put forward by the UN, and in order for a country to be excluded from the list, it is necessary to exceed the minimum threshold for two values.

Suggested criteria:

Economic vulnerability (instability of exports, agriculture, industry);
low level of income (GDP per capita is calculated for the past 3 years. To be included in the list - less than $750 US, to be excluded - more than $900 US);
low level of human resource development (the real standard of living is assessed by indicators of health, nutrition, adult literacy, education).

In any case, inclusion in the group of least developed countries, although based on economic indicators, is subjective.

List of underdeveloped states

Over the past 40 years, only 3 countries have been able to leave this list. These are the Maldives, Botswana and Cape Verde.

The list of least developed countries is also called the “Fourth World”. They are singled out from the “third world” countries largely due to the lack of any progress. Most often, states do not develop due to civil wars.

The bulk of the least developed countries are located in Africa (33 countries), the second largest group is located in Asia (14 countries), and one country is located in Latin America - Haiti.

Some of the most famous states include:

The least developed countries in Africa are Angola, Guinea, Madagascar, Sudan, Ethiopia, Somalia;
The least developed countries of Asia are Afghanistan, Nepal, Yemen.

A clear example of the difference between developed countries and countries of the “fourth world” can be represented by the fact that 13% of the entire world population is forced to survive on 1-2 dollars a day, while at the same time, a person in a developed country spends the same amount on a cup of tea.

The world community and underdeveloped states

Often, developed and developing countries, in order to help the least developed countries, relieve them of the obligation to pay duties and fulfill quotas when importing goods. The international community develops and adopts programs to support such states. A special role in such assistance is played by powers that have never owned colonies, but have the experience of an underdeveloped country behind them. These states can help exactly as needed, and not selectively and selectively, like countries with a long history of colonization, paying special attention to their former colonies and neighboring territories.

The last UN conference on least developing countries was held in Istanbul. A program of development, support and control for the next 10 years was adopted there, it is recorded in the “Istanbul Declaration”. Also, the Turkish Foreign Minister made a proposal to change the name of this group of countries. He proposed calling them “Developed Countries of the Future” or “Potentially Developing Countries.” This proposal was accepted for consideration. There are opinions that the conference in Turkey could become a turning point in the development of world states, the fight against poverty and entering a new stage of the world economy.

Politics of developed countries

Politics of developed countries. Demographic policy in economically developed countries is carried out exclusively by ECONOMIC MEASURES and is aimed at stimulating the birth rate. The arsenal of economic measures includes cash subsidies - monthly benefits for families with children, benefits for single parents, promotion of increasing the prestige of motherhood, paid parental leave.

In some countries where the position of the Catholic Church is strong (for example, in Ireland, the USA, Poland), according to its demands, laws have recently been discussed in parliaments that would provide for criminal liability for a woman who terminates a pregnancy and a doctor who performs an abortion. The attitude in Western countries to demographic problems is defined as egalitarian, including adherence to the principles of democracy, social justice and human rights.

They presuppose the exclusion of repressive measures and the superiority of individual decisions. Most industrialized capitalist countries have a vague attitude towards low birth rates.

Policies to increase the birth rate were noted in France, Greece, and Luxembourg. This does not mean that Western governments do not have demographic goals. Most likely, they do not express them explicitly. Germany has a policy of promoting birth rates. The German government in 1974 allowed the distribution of contraceptives and lifted restrictions on abortions in the first three months of pregnancy, but early the next year the country's supreme court ruled unconstitutional the authorization of abortions “at will” and limited the right to them only for “medical indications” or other extreme emergencies. circumstances.

Nowadays, Germany has adopted a complex system of incentives for demographic policy, which is divided into three main groups: Family benefits and allowances; Childbirth benefits; Housing benefits. 4.Russian Politics Russia entered the twentieth century with a record high birth rate. Even in 1915, when a significant proportion of men were drafted into the army, the country's population continued to grow.

The generation born in 1980-1987 will soon enter their childbearing age. The last large generation capable of replacing their fathers and mothers. The state demographic policy of Russia should be aimed at stimulating the birth of a second and third child, because this still remains an acceptable value and is possible with the creation of appropriate material and living conditions.

Expenditures on demographic policy should take first place in the state budget. The volume of benefits and incentive payments for two- and three-child families should reach a level at which such families will be financially more profitable than one-child families. The current situation in the field of demography in the Russian Federation is characterized by a number of negative trends. In Russia, there is a depopulation of the population, which is due to low birth rates on the one hand (the parameters of which are almost 2 times less than those required to replace generations) and a high mortality rate, especially in infancy and working age.

Among those who die of working age, men make up about 80%, which is 4 times higher than the mortality rate of women. The main causes of death are accidents, poisoning and injuries, diseases of the circulatory system and neoplasms. The health status and mortality rate of the population are reflected in the life expectancy of the country's population.

The average life expectancy of the country's population was 65.9 years. The difference in life expectancy between men and women is 12 years. The goal of demographic policy for the medium term is to take measures to reduce the mortality rate of the population; creating prerequisites for stabilizing birth rates. In this regard, the main tasks of the Government of the Russian Federation in the field of demographic policy are: developing the main directions of action for the implementation of the demographic policy of the Russian Federation for the long term, including specific measures for the implementation of the Concept of demographic policy, taking into account the prospects for the socio-economic development of the Russian Federation, the constituent entities of the Russian Federation Federation, individual ethnic groups of the population and regional characteristics of demographic processes; development and implementation of a set of federal target programs to protect public health, including the prevention and treatment of arterial hypertension among the population of the Russian Federation; providing oncological care to the population of the Russian Federation; prevention and control of AIDS, etc. development of measures providing for certification of workplaces in order to identify adverse factors on the health of workers, as well as procedures for economic incentives for employers to improve working conditions and labor protection; development and implementation of measures to prevent crime, drunkenness and drug addiction.

The ongoing All-Russian Population Census, as well as the creation of the State Population Register of the Russian Federation, will be of great importance for obtaining the most complete and reliable information about the country’s population in its various aspects, conducting a wide range of studies on the formation and adjustment of demographic policy.

In the area of ​​creating family living conditions that make it possible to raise several children, the main focus should be to ensure that the demographic aspect is taken into account when developing and implementing state housing policy, including: maintaining a system of housing standards, ensuring a favorable system of housing standards for families with children; promoting the development of market forms of ensuring affordable housing that best meet the housing needs of families in the active phase of the reproductive cycle; taking into account the number of children in a family in need of improved housing conditions when determining the amount of assistance from the state (free subsidies for the purchase of housing, assistance in repaying mortgage loans, etc.). The natural population decline in Russia was 4.8 people per 10 thousand citizens. As ITAR-TASS reports, such data was presented today by the Minister of Labor and Social Development of the Russian Federation, Alexander Pochinok, speaking in the State Duma.

He said that last year the Russian population dropped to 145.6 million people.

A. Pochinok noted a generally unfavorable demographic trend in the country.

Moreover, the minister clarified, such forecasts were calculated taking into account the positive migration balance. Without taking this factor into account, according to A. Pochinok, the population of Russia could reach 171 million people, as a result of which the country would drop from seventh place in the world in terms of the number of its citizens to fourteenth. Such a demographic situation, according to A. Pochinok, could lead to “catastrophe” of the Russian pension system and a labor shortage in the country.

To prevent a demographic crisis, serious, consistent measures are needed, the minister said. The government has already developed a concept for the demographic development of the Russian Federation, which provides for the implementation of a number of social programs, in particular, to reduce the level of sudden mortality, protect working conditions, and combat tuberculosis and drug addiction. A. Pochinok also noted that in order to increase the birth rate in the country, it is necessary to significantly increase the socio-economic standard of living of people. “In order for families to give birth to children today, they need confidence in the future,” the minister said. 5. Conclusion Difficulties in the socio-economic development of Third World countries contributed to the growing priority of demographic policy, i.e. purposeful activities in the field of regulation of demographic processes.

This was facilitated by the position of industrialized Western countries, which believe that control over population growth is also a necessary condition for socio-economic development.

In a joint communiqué of heads of state and government of leading Western countries in Houston, it was noted that sustainable development in a number of countries requires that population growth be in a reasonable balance with economic resources, and maintaining this balance is a priority for countries supporting economic development.

The importance of demographic policy varies for different subsystems and countries, depending on the level of their economic development and the stage of demographic transition. In particular, a fifth of all countries, where 26% of the world's population lives, believe that population growth or natural increase has little impact on the country's development and there is no need to achieve special goals in this area.

Demographic policy, being part of socio-economic policy, is not always clearly manifested. It is most definitely carried out when its direct goal is to influence demographic development. Demographic policy influences two aspects of the reproductive behavior of the population - the realization of the need for children and the formation of the individual and family's need for a number of children that would correspond to the interests of society.

This is achieved by economic, administrative, legal and socio-psychological measures. A characteristic feature of these measures is their long-term nature due to the fact that demographic processes are characterized by significant inertia, determined by the stability of standards of demographic behavior. The peculiarity of the measures taken lies in their impact on the dynamics of demographic processes mainly not directly, but indirectly, through human behavior.

Structure of developed countries

Developing countries are the countries of Asia, Africa, Latin America - former colonial, semi-colonial and dependent countries that became politically independent states after the collapse of the colonial system of capitalism. Composition and structure of developing countries: Capital-excess oil countries: Brunei, Qatar, Kuwait, Libya, Oman, Saudi Arabia. NIS, including: city-states: Hong Kong, Macau, Singapore. Countries with a more capacious domestic market: South Korea, Brazil, Argentina, etc. Relatively developed small countries: Bahrain, Cyprus, Lebanon. Agricultural and raw materials exporters, including: oil exporters: Algeria, Iraq, Iran. Other agricultural and raw materials exporters: Egypt, Indonesia, Jordan, Malaysia, Morocco, Syria, Thailand, Tunisia, Turkey, Philippines, Sri Lanka.

Countries of endogenous development, including: large countries: Pakistan, India. Backward agricultural countries: Afghanistan, Bangladesh, Burma, Bhutan, Mauritania, Nepal, Sudan, etc. Let us briefly consider the main characteristics of groups and subgroups: 1 Capital-rich oil countries. Main characteristics of the group: high GDP growth rates in the 70s; significant balance of payments surplus; massive export of capital; the highest level of per capita income; high degree of dependence on external development factors; one-sided diversified structure of GDP and exports. The main and rapid factor in the rise of the countries in this group was oil. A sharp and repeated increase in oil prices on the world market in the early 80s led to a significant influx of petrodollars into these countries, however, their economies were unable to absorb this influx. In recent years, the situation on the oil market has deteriorated sharply, oil production has decreased, which, combined with the fall in world prices, has sharply aggravated the economic problems of these countries. As a result of the budget deficit, foreign assets are gradually being “sold”. Economic restructuring and diversification of the industry structure are proceeding slowly. Newly industrialized countries (NICs). The main characteristics of the group: the highest GDP growth rates; relatively high level of GDP per capita; active involvement in the international division of labor; industrial specialization of export; export-oriented development strategy.

Within the group, there are certain differences between the countries included in it. Hong Kong, Singapore and Macau (to a lesser extent), in addition to the export of industrial products, have important intermediary functions in the world capitalist economy (re-export, transit, financial transactions, tourism, etc.). In city-states there is no agricultural sector; such a category as the internal market is practically inapplicable to them. The subgroup, including South Korea and Taiwan, has a relatively large domestic market; the existing agricultural sector is much less developed than the industrial sector. The involvement of South Korea and Taiwan in the international division of labor is somewhat lower than that of city-states.

Comparatively developed small countries. The following characteristics are common to this group: industrial specialization of exports; a fairly high level of GDP per capita. At the same time, serious economic problems for Cyprus and Lebanon are generated by internal and foreign political instability. For this reason, Lebanon has practically lost its role as a financial, trade, transit and tourism center in the Mediterranean and the Middle East. Bahrain's economic development is undergoing an evolution from a capital-rich oil exporter to an NIS group. Bahrain is gradually turning into a major trade and financial center of the Mediterranean-Middle Eastern region. Bahrain has virtually no agricultural sector and, accordingly, no agricultural exports. Agricultural and raw materials exporters. The most numerous and heterogeneous group. Factors that determine the similarity of agricultural and raw materials exporters: moderate GDP growth rates; relative balance of exports and imports; a higher share of the agricultural sector than in capital-abundant and newly industrialized countries; significant role of mineral raw materials in exports. According to the commodity structure of exports, three countries are distinguished in the group: Algeria, Iraq and Iran, forming a subgroup of oil exporters.

These oil exporters differ significantly from capital-abundant oil countries in a more diversified sectoral structure of the economy, a more capacious domestic market, the presence of an agricultural sector in the national economy, and smaller oil reserves. Among other agricultural and raw materials exporters, there are many countries that export oil: Indonesia, Tunisia, Egypt, Malaysia, Syria. In addition to oil, they export non-ferrous metal ores, natural rubber, timber, food and industrial goods. Countries of endogenous development. The main factors of similarity between countries are: low level of per capita income; low share of exports in GDP; significant share of the agricultural sector; relatively weak involvement in the international division of labor.

The main difference between the subgroup of large countries is that they have already created the foundations of a perfect reproduction complex, and the import-substituting stage of industrialization has almost been completed. The export structure of these countries (especially India) is quite diversified, and the share of industrial goods in exports is growing. The countries of the subgroup have their own base of research and development work, they carry out nuclear and space programs. However, the growing industrial potential of large countries is under pressure from the backward and numerous agricultural periphery. As for the subgroup of backward agrarian states, the backwardness of their ecological structures, limited access to external resources, the narrowness of the export base, the underdevelopment of the domestic market, etc. does not allow these countries to achieve a change in their economic status in the future.

Newly developed countries

South Korea

Area: 98.5 thousand sq. km.
Population: 48,509,000
Capital: Seoul
Official name: Republic of Korea
Government structure: Parliamentary republic
Legislature: Unicameral National Assembly
Head of State: President
Administrative structure: Unitary country (nine provinces and six cities under central jurisdiction)
Common religions: Buddhism, Confucianism, Christianity (Protestants) Member of the UN
Public holiday: Day of the Proclamation of the Republic (September 9), Day of the Foundation of the State (October 3)
EGP and natural resource potential. The state is located in East Asia, on the Korean Peninsula, washed by the waters of the Sea of ​​Japan and the Yellow Sea, borders the DPRK at the thirty-eighth parallel, and has maritime borders with China and Japan. It also maintains the closest ties with Western countries and the USA. The country's government is trying to intensify foreign relations and economic cooperation with North Korea.

In the bowels of the country there are deposits of coal, iron and manganese ores, copper, lead, zinc, nickel, tin, tungsten, molybdenum, uranium, gold, silver, thorium, asbestos, graphite, mica, salt, kaolin, limestone, but its own mineral the base is not enough for economic development.

The country's population is almost 99.8% Korean, there is a twenty-thousandth Chinese community, the official language is Korean. Population density 490 people. sq. km. The urban population is about 81%. Before the outbreak of World War II, quite a lot of Koreans migrated to China, Japan and the USSR. About 3.3 million people. returned to the country after 1945. About 2 million Koreans fled from the Democratic People's Republic of Korea to the Republic of Korea. The largest cities are Seoul, Suwon, Daejeon, Gwangju, Busan, Ulsan, Daegu.

Seoul, the capital of the republic, the largest transport hub (Gimpo International Airport, Incheon seaport), cultural, scientific, financial and economic center of the country, is one of the most densely populated cities in the world.

The city was first mentioned in the 1st century. AD, in the XIV century. was called Hanyang, a modern name that means “capital”, the city received in 1948 after it was declared the capital of South Korea.

Together with Incheon, the city's economy accounts for about 50% of the country's industrial output. There are enterprises in the light, textile, automobile, radio-electronic, chemical, cement, paper, rubber, leather, and ceramic industries. Metallurgy and mechanical engineering are developed. The metro was built in 1974. The layout of the city in certain parts is very dependent on the hilly terrain. A number of areas of the old city are built up with modern high-rise buildings.

Seoul is home to the Academy of Sciences, the Academy of Arts, Seoul National University, Korea University, Hanyang and Sogang Universities, the National Museum, a traditional dance theater, drama and opera theaters.

The country's economy ranks 12th in the world in terms of GDP. Developed high-tech mechanical engineering, electronics. The country owes large-scale American, Japanese and Western European investments to the policy of economic openness to foreign investors (since 1979). Since the late 80s of the last century, their own Korean conglomerate companies - the world-famous concerns Samsung, LG and others - began to compete with Western transnational companies. GNP per capita is about $18,000. Industry. Industry accounts for 25% of the country's GDP and employs a quarter of the working population. Most businesses are small, family-owned businesses, with a small number of firms listed on the national stock exchange. About 20 large companies produce up to a third of all industrial products. Industrial production in the Republic of Korea has shifted from textiles to electronics, electrical goods, machinery, ships, petroleum products and steel.

The mining industry is engaged in the development of graphite deposits, the extraction of kaolin, tungsten and low-quality coal, which is used in the energy sector. The economy of the Republic of Korea, like the Japanese economy, is evidence that a country can be rich thanks to imported raw materials.

Agriculture makes up a small percentage of GDP, but it fully supplies the population with food and creates food residues that are exported. It employs one seventh of the working population. After the land reform of 1948, a significant part of the large farms was restructured; currently, small family farms predominate here, which cultivate almost a fifth of the country's territory. Half of the land is irrigated. The government purchases most of the crop at stable prices.

The main crop is Rice (provides 2/5 of the cost of all industry products). In addition to rice, barley, wheat, soybeans, potatoes, vegetables, cotton, and tobacco are grown. Gardening, ginseng cultivation, fishing and seafood are developed; the industry fully meets the needs of the population, and surplus fish and seafood are exported). Family farms raise pigs and cattle.

Transport. The tonnage of the country's merchant fleet is more than 12 million deadweight tons. The main seaports are Busan, Ulsan, and Icheon. In the middle of the country, rivers are also used for navigation. Rail transport is much less developed than road transport, the length of roads is 7 and 60 thousand km. There are international airports in Seoul and Busan.

Foreign economic relations. The country's main foreign trade partners are the USA, Japan, and Southeast Asian countries. The country exports products from manufacturing industries - Transport equipment, electrical equipment, cars, ships, chemicals, shoes, textiles, agricultural products. Imports oil and oil products, mineral fertilizers, engineering products, and food.

Singapore

Area: 647.5 sq. km.
Population:4,658,000
Capital: Singapore
Official name: Republic of Singapore

Legislature: Unicameral Parliament
Head of state: President (elected for a term of 6 years)
Administrative structure: Unitary republic
Common religions: Taoism, Confucianism, Buddhism
Member of the UN, ASEAN, member of the Commonwealth since 1965
Public holiday: Independence Day (August 29)
EGP and natural resource potential. Singapore is a country in Southeast Asia, on the island. Singapore and the surrounding 58 small islands, off the southern part of the Malay Peninsula. The island's greatest wealth is considered to be a convenient deep-water harbor in its southeastern part. From the north, the island of Singapore is separated from Malaysia by the Strait of Johor, about 1 km wide, the banks of which are connected by a causeway. It is separated from Indonesia in the west by the Strait of Malacca. The relief of the island is flat, the low-lying shores are significantly swampy, and have a significant number of bays such as estuaries. In the southwest there are clusters of coral reefs. The highest point of the island is the Bukittimah hump (177 m).

The climate is equatorial monsoon with no clearly defined seasons. Temperatures throughout the year are constant from 26 to 280C. High humidity and rain occur throughout the year, with 2440 mm of precipitation per year. The monsoon season lasts from November to February. On the islands there are remnants of tropical rainforests, mangroves, and rest cities for migratory birds. There are no mineral deposits in the country; even drinking water is supplied by piped water from neighboring Malaysia, and oil and natural gas deposits have been discovered only on the shelf off the Malacca Peninsula.

Population. Almost the entire population of the country lives in its capital, the city of Singapore; in addition to it, there are several other settlements on the island.

People from the predominantly southern provinces of China make up 77.4% of the country's population, 14.2% are Malays, 7.2% are Indians and 1.2% are from Bangladesh, Pakistan, Sri Lanka, and Europe. Almost a third of the population professes Buddhism, a fifth - Confucianism, Christianity, Islam, Hinduism.

Singapore - One of the most densely populated countries in the world with a density of more than 4884 people. per sq. km. Singapore, the capital of the state of the same name Singapore. Situated in the low-lying coastal area of ​​the Kalang and Singapore Rivers on the southern shore of Singapore Island and the adjacent smaller islands of the Singapore Strait. It is connected to the Malacca Peninsula by rail and road.

The city began to be called Singapore in 1299 (translated from Sanskrit - “Lion City”). Due to its favorable location on the island of Singapore, the city has become a crossroads of sea routes for traders from India, China, Siam (Thailand) and Indonesian states. During its history, the city was repeatedly sacked and destroyed by the Javanese and Portuguese. Since 1824, Singapore was recognized as a possession of England and for more than a century served as its main naval and trading base as the “oriental pearl of the British crown.”

In 1959, Singapore became the capital of the “self-governing state” of Singapore, and since December 1965 the capital of the independent Republic of Singapore.

Singapore consists of several districts, contrasting with each other: the central or colonial and business districts, Chinatown.

Today Singapore is one of the largest commercial, industrial, financial and transport centers in Southeast Asia; one of the world's largest ports in terms of cargo turnover of more than 400 million tons per year; Changi International Airport operates here; the Singapore Currency Exchange is the fourth in the world after London, New York and Tokyo; the largest center of the electronics industry in Southeast Asia. The city has metalworking, electrical engineering, shipbuilding and ship repair enterprises. The city's oil refining industry processes more than 20 million tons of crude oil per year. Chemical, food, textile, light industry, primary processing of rubber and other agricultural raw materials are also developed. There are about 135 large banks in the city, one of the world's largest rubber exchanges.

Singapore is a significant scientific and cultural center of Asia. At the University of Singapore, which was founded in 1949, the Center for Economic Research operates; the city also has Nanyang University, the Polytechnic Institute, the Technical College, the Institute of Southeast Asian Studies, the Institute of Architecture, scientific societies and associations. The National Library, founded in 1884, has more than 520 thousand volumes.

The city has the National and Art Museums, museums of philately, navy, World War II Memorials, a national theater, the Victoria Concert Hall, the Drama Center, numerous theaters and cinemas, the Chinese street opera "Wayang", a botanical garden with an orchid garden, and a marine aquarium. , a bird and reptile park and a zoo, numerous architectural monuments, Hindu, Confucian-Buddhist, Buddhist temples and Muslim mosques.

In the northeastern part, the so-called “city of the 21st century” is being built. A large oil refinery has been established on the islands of the new western port of Jurong. Singapore has several small islands, one of which, Sentosa Island, has become a resort area of ​​the city.

Economy. The country is one of the largest commercial, industrial, financial and transport centers in Southeast Asia, the basis of which economy is formed by traditional foreign trade operations (mainly re-export), as well as export industries operating on imported raw materials. Singapore is the largest investor in the economies of Indonesia, Malaysia and Vietnam. In terms of investment volumes, it is second only to Japan.

The government of the country took vigorous measures to stimulate economic development: provided significant tax benefits to industrialists whose enterprises produced export products; benefits were introduced for investors in industrial production and exporters. In the 1990s, Singapore became one of the largest regional and international centers of trade, finance, marketing and the development of new technologies. In terms of computerization, it has reached second place in Asia after Japan.

Industry. The country's industrial enterprises use imported raw materials. Products made from imported raw materials are often imported. The country has enterprises in the metalworking, electrical, radio-electronic, optical-mechanical, aviation, steelmaking, shipbuilding and ship repair, oil refining, chemical, food, textile, and light industries. Singapore ranks second in the world (after the USA) in the production of mobile well equipment for the development of offshore oil fields, second place (after Hong Kong) in the processing of sea containers, and third place (after Houston and Rotterdam) in oil refining. The country has a highly developed military industry. There are enterprises for the primary processing of tea, coffee, and natural rubber.

Agriculture occupies a small place in total production. They cultivate the coconut palm, rubber-bearing hevea, spices, tobacco, pineapples, vegetables, and fruits. Pig farming, poultry farming, fishing and marine fishing are developing.

Transport. Singapore is one of the largest (second largest in the world in terms of cargo turnover) ports in the world. The length of railways is 83 km, roads are over 3 thousand km. Merchant fleet tonnage 6,900,000 registered. gross. Changi International Airport is one of the best in the world in terms of quality and efficiency of passenger service. It receives up to 36 million passengers a year, on its territory there are more than 100 shops, 60 restaurants, a large swimming pool and several free cinemas, 200 Internet zones with a free worldwide network and the largest art gallery in Asia.

Foreign economic relations. The country exports office equipment, petroleum products, and television and radio equipment. The country's economy receives significant funds from the sale of exotic fish and orchids. Main foreign trade partners: USA, Japan, Malaysia, etc.

Its location at the crossroads of trade routes from European countries to the countries of the Far East contributed to the growth of Singapore and its transformation into the largest re-export trade port in Southeast Asia. Today, re-export operations account for almost 30% of foreign trade. It is a financial and investment center of global scale. A major center for international trade and industrial exhibitions.

Imports consist of food necessary for the country (up to 90% of the country's needs). A replacement water supply from Indonesia has been built. More than 8 million tourists visit the country every year, which brings significant income to the country.

Taiwan (Ukraine is not recognized as a state)

Area: 36.18 thousand square meters. km.
Population: 22.7 million people.
Capital: Taipei
Official name: Republic of Taiwan
Government structure: Republic
Legislative body: National Assembly
Head of state: President (elected for 4 years)
Administrative structure: Unitary state
Common religions: Buddhism, Taoism, Confucianism
UN member
Public Holiday: Taiwan Day (October 10)
EGP and natural resource potential. The country's territory consists of the island of Taiwan, the Penghuledao archipelago (Pescadores Islands), the Kinmen Islands, the Mazu Islands, the Paracelsian Islands, the Pratas and Spratly Islands. More than half of the territory is occupied by mountains, there are active volcanoes, and there are frequent earthquakes. The flat areas of the islands are covered with tropical rainforests, the wood of which is an important natural resource of the country.

The climate ranges from subtropical to tropical monsoon with air temperatures ranging from 15 to 280C. 1,500 - 5,000 mm of precipitation falls annually. Typhoons occur from July to September. Mineral resources include oil, natural gas, coal, iron ore, salt, limestone, and marble. The country's population is 98% Chinese, the indigenous population of the islands - Guoashan - is 1.5%. The most widespread and officially recognized religion is Buddhism; Taoism, Protestantism, Catholicism, and Islam are also common.

Largest cities: Taipei, Kaohsiung, Taichung, Tainan. Taipei, the largest city on the island of Taiwan, the administrative center of Taiwan province, the capital of the country, the largest industrial and cultural center in which metallurgy and mechanical engineering enterprises operate (production of electronic calculators, tape recorders, televisions, computers), cement, chemical, woodworking, food industries. The Keelong seaport and Taoyuan and Songshan international airports are built here. Taipei became the main city of Taiwan in 1956. The tallest skyscraper “Taipei-101” (509 m, 101 floors) was erected here, which became the tallest building in the world. The lower floors of the skyscraper are reserved for restaurants and shops, and the upper floors for offices. It is here that the fastest elevators in the world operate, with the help of which in just 39 seconds you can rise to the 88th floor with an observation deck.

Economy. Both Taiwan and the PRC are putting forward programs to unite into a single country, but significant differences between the two countries do not allow this to happen. Since the late 1980s of the last century, travel has resumed, and cultural, scientific and personal ties are developing between citizens of the two parts of China. Since the 90s of the last century, economic and cultural contacts between Taiwan and mainland China began to actively develop. Taiwanese investment in China's economy is growing every year. Relations are regulated on both sides by non-governmental organizations.

Taiwan is an economically highly developed territory, one of the so-called “newly industrialized countries”. Its GNP since 1995 has allowed the country to enter the top twenty world leading countries; in terms of foreign currency reserves, the country ranks second in the world after Japan.

The country's industry is characterized by high-tech products known throughout the world. Taiwan produces so many goods and components for the global computer market, which is called the “Silicon Island”. Developed branches of the manufacturing industry: radio-electronic, chemical, instrument and shipbuilding, textile, leather and footwear, clothing. Taiwan is the world's largest producer of camphor. The industrialization of cranes has had a significant impact on its environment.

Agriculture. Only 30% of the territory is suitable for agricultural cultivation. The industry provides only 4% of GDP. Farmers harvest 2-3 crops per year. Rice, grains, sugarcane, betel nut, coconuts, bamboo, sorghum, tea, yutuyn, tropical fruits and vegetables are grown. Developed fishing, pig farming, poultry farming.

Transport. The length of the railways is about 4 thousand km. There are over 17 thousand km of roads. The main ports are Kaohsiung, Keelung, Taichung, Hualien, Suao.

Foreign economic relations. In terms of total foreign trade, Taiwan ranks 14th in the world. The country's exports include textiles, information technology, electronic products, sugar, camphor, and metal products. They import weapons, metals, oil, etc. The main trading partners are the USA, China, Japan.

Experience of developed countries

World experience has shown the active development of the following areas for retail trade: hypermarket chains, large retail enterprises such as shopping and entertainment centers (MECs), malls, convenience stores such as discounters and “pocket supermarkets” united in retail chains. Today, these same areas are the most promising in Moscow and the Moscow region.

All over the world, hypermarket chains are economically sustainable entities, are in demand and continue to develop. The construction of hypermarkets in the Moscow region is favored by the changing rhythm and lifestyle of Muscovites and residents of the region. We are now reaching a level where families can travel on weekends (including out of town) and make complex purchases, as well as use additional services (for example, a hairdresser, beauty salon, etc.), therefore, it is worth considering it as the most promising direction for the development of trade. In addition, the hypermarket also becomes a place of relaxation, where visitors do not waste time, but spend it with pleasure. On its territory it is possible to locate a cinema, restaurants, cafes, children's rooms, etc., which is already being done.

Active expansion into the regions is also due to another factor - the shortage and high rental cost of land in Moscow. Prices for renting retail space ranged from $150 to $4,500 per sq. m. m per year, while the bulk of the supply consisted of areas in the price category from $500 to $1,000. At the same time, an increase in the level of consumer demand and tougher requirements for retail enterprises on the part of retail operators are already stimulating developers to improve the quality and efficiency of the concepts of the objects being built trade.

Today in the West the shopping type - the mall - is actively developing. In Russian practice, some experts consider the mall as a synonym for a hypermarket, while others note the difference between them, which lies in the principle of trade: the basis of the mall, as a rule, is a number of large stores called anchors. They are connected by covered galleries, which house many small shops (boutiques), restaurants, cafes, hairdressers, and dry cleaners. The galleries are closed in a ring through which the buyer passes.

The mall is a huge shopping, cultural and entertainment center designed to be visited by a large number of people at the same time. In Russia, so far there are only projects for the construction of European malls. Today, the closest thing to it is the Mega Mall located in Moscow, which shows good economic results, which gives reason to make forecasts regarding the active development of this format of the future retail enterprise.

However, experts say, it is premature to talk about widespread construction of malls. In the very near future, shopping centers will continue to actively develop. Shopping centers offer the buyer a fairly large assortment of products represented by different brands. Shopping centers serve the middle class, which, although they do not travel outside the Moscow Ring Road once a week to spend half their salary, at the same time do not have time to go shopping every day. The shopping center can be called a kind of compromise between a hypermarket and many separate small shops.

A shopping and entertainment center (SEC) is the same shopping center, only providing a wider range of services to the buyer. This is an opportunity to relax and do some shopping. The choice here is smaller than in a hypermarket or mall, but they are located closer to residential areas. Often, the owners of the shopping center resort to organizing concerts, performances or lotteries on the territory of the complex; all visitors are invited to join the game, which retains customers and stimulates repeated visits to the retail enterprise.

Chains of stores will also not lose their pace of development in the future. They will most likely replace single stores, which will find it increasingly difficult to independently maintain a foothold in the market. The development of networks is evidenced not only by their growing number, but also by the opening by networks of their own production of goods as an important condition for creating a company name and forming an image.

It is possible that single stores will cease to exist as a retail format altogether or will have little weight in trade. In any case, if they are not forced out as a result of competition between chains and shopping centers, then they may be attracted to the franchise market. One way or another, there is no clear future for single stores. An exception may be a store at the factory, but it should rather be positioned as a boutique, because... In any case, the manufacturing enterprise will have the financial means to support its company store.

An example is the Danone store, located two hundred meters from Red Square, which to this day perfectly fulfills its role: it helps strengthen the image of the Danone company, and also serves as a kind of advertising for fresh dairy products.

The store annually sells up to 600 tons of Danone products; it is visited daily by 1,500 to 3,500 people, not only Muscovites, but also residents of other Russian cities who come to Moscow and specially visit this retail enterprise.

Chain stores do not pose a “danger” to company stores, because... psychologically, the buyer considers the products of a company store to be fresher and more complete in range, and at a lower price than in any retail outlet, although this is not always the case.

A relatively new, but actively developing format in Russia is the discounter. In the West, it has long been widespread and enjoys well-deserved favor among the local population. Discount stores have a number of common features, such as: the use of simpler equipment, some of the goods in the store are offered directly in production or transport containers, a minimum number of personnel is used and, as a result of all this, a reduction in distribution costs and lower prices.

The trade markup in discount stores is 16–18%, and for consumer goods the markup is set at a minimum level of 12%, while for cosmetics it is from 25% to 40%, which is higher than that of competitors. For a discounter, the zone of influence is defined as two bus stops (about 500 m). The retail space of a discounter in Russia averages about 1,500 square meters. m, while in the West - only 400 - 800 sq. m.

An example of the widespread use of discounters is Germany. Discounters - food, household goods, household and perfumery goods, shoe stores - are located one after another on the street, where apartment-type buildings predominate. A feature of German discounters is their division into cheap and more respectable (prestigious) ones. But the prices of goods in a store and its appearance may not be related.

For example, Aldi, Schlecker, DR (drogerie merkt), Kaiser’s stores have good finishing, wide aisles between rows of equipment, and the equipment itself is new and of high quality. At the same time, for example, Aldi is a classic discounter with a minimal assortment matrix (800 - 900 items).

There are no specialized discounters in Russia yet. There is no division into expensive and cheaper ones; most likely, such a division will occur in the future, when their number reaches the threshold level of competition in their format. Russian discounters can still boast a wider assortment than Western ones, which ranges from about 800 to 1,400 items.

The discounter is not the only format that is gaining increasing popularity in Europe. Today, stores operating on the principle of a “pocket supermarket” are also promising, in which, unlike large retail enterprises, prices are much higher. Quite interesting is the success of this format, which originated in the USA, and the trend of its spread, which is gaining momentum every year.

The "secret" of this store is its convenient location. It is located in close proximity to consumers' residences, in places where other trading enterprises are difficult to organize or their maintenance will not be economically profitable. Their peculiarity is a limited range and relatively high prices. However, similar shops in the USA and Europe are very popular.

One example is Klein Eiche (Little Country), located in Brandenburg (Germany) and serving an area of ​​2 thousand people.

"Klein Eiche" is a store of the SB chain. Its area is 100 sq. m. The employees (two salespeople and a cashier) strive to ensure that in a small area the buyer can get everything he needs - from the daily newspaper to meat cuttings, from fresh fruit to pet food. Present all product groups within an area of ​​100 square meters. m is impossible, so at Klein Eich you can easily place an order for almost any product. That is, if the product you need is not on sale today, then by leaving an appropriate entry, you can receive it tomorrow or at the agreed time.

The organizers of a “convenient store” strive to ensure that all goods on the sales floor are clearly visible, and the assortment matrix is ​​clearly thought out. Next to the “pocket supermarket” there is usually a parking lot for 10 - 15 cars and flower beds. The area is equipped in such a way that purchases can be brought directly to your car using a shopping cart.

The company, as a rule, has “extended” working hours. The optimal operating hours are from 7 a.m. to 11 p.m. or 24 hours a day. It is important to note that the service in such stores is built on a “family” principle. Customers should feel that they are always welcome. Prices in a "convenient store" are set 5 - 8% higher than average, but this does not deter the European buyer.

Global trade development trends show that Western business leaders achieve savings through a combination of technological process factors such as a reduction in the average annual cost of inventory, a rational number of employees, increased labor productivity, and an increase in “load” per square meter. m of retail space. The centralized model used in the West relies primarily on the advantages of Internet technology and makes it possible to consolidate orders to suppliers and quickly redistribute goods between stores depending on the level of demand. The work of Western networks is organized by region. The regional group includes 50-60 stores, which are connected through one distribution center. The maximum possible number of functions is centralized. There is a unified marketing policy, merchandising system, training center, each workplace is standardized, all procedures are written out. At the same time, nowhere in the world have the largest chains been created from scratch, by building or purchasing stores. Everywhere this happened through the voluntary association of already existing stores or the joining of wholesalers to this association.

Retail trade formats are developing around the world according to the same logic, and the Russian retail market repeats the main stages of development of markets in more developed countries. The evolution occurs against the backdrop of the inevitable displacement of traditional forms of trade by more modern ones.

First, food formats emerge that provide high customer traffic and rapid turnover of goods. At the first stages, formats are being developed that allow maintaining a high level of gross margin - supermarkets, soft discounters. The first supermarkets appeared in Russia in the mid-1990s: Seventh Continent, Perekrestok. Supermarkets attracted consumers with high-quality branded goods and a quality of service previously unseen by post-Soviet customers: 24-hour operation, modern design and a wide range. Low competition allowed supermarkets to maintain a fairly high price level, and low effective demand initially limited growth opportunities. With increasing competition and the emergence of several supermarkets in one region, company management faced the urgent issue of optimizing activities, which led to the development of network business. Savings in this case are achieved through discounts for large volumes of purchases, cost minimization, and centralization of management.

Soft discounters are the next stage of development after supermarkets in the evolution of retail formats. Its emergence was led by increased sensitivity to prices. In a soft discounter, prices are kept at a constantly low level, the assortment is reduced to goods that are sold most quickly, and services are minimized. The first representatives of this format in Russia were Kopeika and Pyaterochka.

Following soft discounters, hypermarkets began to actively develop, implementing the concept of “low prices and high quality in a large space.” This marked a new stage in increasing price aggressiveness and retail efficiency. Foreign players were the first to introduce the hypermarket format in Moscow and St. Petersburg: Ramstore, Auchan. The response to the success of hypermarkets was the emergence of hard discounters, which combined minimal prices with proximity and ease of transportation. This is the global trend in the evolution of formats, but in Russia the hard discounter has not yet developed, since this format places very high demands on the internal organization of the company and the quality of the use of modern management technologies.

Along with hard discounters, cash & carry stores are appearing in many countries. This format is presented in Russia by the German company Metro, as well as the St. Petersburg Lenta. The format is based on a focus on small wholesale trade and professional buyers - representatives of small and medium-sized businesses. The main clients of the Metro company are representatives of the restaurant and hotel business, the so-called HoReCa segment, small retail stores - traders who purchase goods in this network for subsequent resale, and representatives of legal entities and individual entrepreneurs who do not belong to the first two groups, but purchase goods related to their activities.

However, the specificity of Russian cash & carry is that they also work with retail customers. Taking into account the product line and the size of the retail space, as well as the terminology accepted in modern Russian retail, Metro Cash & Carry can be conditionally classified as a hypermarket format.

Simultaneously with hypermarkets, hard discounters and cash&carry centers in Russia, a format was developing that offered a unique assortment in the places most convenient for the buyer - convenience stores.

The next stage in the evolution of retail is the development of non-food formats, specialized formats, the so-called category killers - DYI, BTE, perfume and cosmetic chains, pharmaceutical markets, drogeries, etc. The format of large chain department stores is entering the market; with the development of market infrastructure, distance trading is becoming more widespread.

The cycle of format evolution in Russia is faster than in Western and Eastern Europe. This is explained by the fact that the world has accumulated extensive know-how in retail; there are many examples of successful retail practices that are actively used by leading Russian players. In addition, the entry of major global players into the market also contributes to the active development of retail technologies in Russia.

Features of developed countries

Industrialized countries are countries that are members of the OECD (Organization for Economic Co-operation and Development). These include Australia, Great Britain, Austria, Belgium, Denmark, Germany, Greece, Ireland, Spain, Iceland, Italy, USA, Finland, etc. There are 24 states in total. Developed countries have the following main features: - A high level of such economic indicator as GDP, calculated per capita per year.

Basically, its value should be in the range of 15-30 thousand dollars. Developed countries have an annual GDP per capita that is five times higher than the world average. - Diversified economic structure. It is also necessary to consider the fact that today the volumes of the service sector can provide production of over 60% of GDP. - The structure of society with a social orientation. For states of this type, the main feature is the presence of a small gap in income levels between the poorest and the richest, as well as a powerful middle class that has fairly high living standards. The role of developed countries in the world economy Developed countries play a vital role in the world economy. Basically, their share in the total gross product is over 54%, and in world exports - over 70%. Among the states of this level, those that are part of the seven (Canada, USA, Germany, Great Britain, France, Japan and Italy) are of particular importance for the national economy. The listed developed countries provide about 51% of all exports and 47% of the total gross product in the world. The United States has maintained dominance among them over the past decades. The role of the USA in the world economy.

Thus, the American economy quite consistently occupied the first position in terms of competitiveness. However, recently this economic leadership of this state has weakened significantly. This fact is primarily manifested in a decrease from 30% to 20% in the share of the United States in the total GDP of states with a non-socialist economic orientation.

The main reason for this weakening of America's position in the economy of the whole world is the fact that such developed countries as Japan and the states of Western Europe began to actively develop. And the impetus for this was American aid. According to the US Marshall Plan, certain financial resources were allocated to restore the devastated economy as a result of military operations.

Thanks to these events, profound structural changes were made in the economy, and completely new industries were created. At this stage, both Japanese and Western European economic systems have achieved high competitiveness at the international level (an example is the Japanese and German automobile industry). However, we must not forget that, despite some weakening of the US influence on the world economy, the role of this state has always remained leading.

Group of developed 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.

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.

Developed countries are the main group of countries in the world economy. In this group of countries, the “seven” with the largest GDP are distinguished (USA, Japan, Germany, France, UK, Canada). More than 44% of world GDP comes from these countries, including the USA - 21, Japan - 7, Germany - 5%. Most developed countries are members of integration associations, the most powerful of which are the European Union (EU) and the North American Free Trade Agreement (NAFTA).

Highly developed countries, how are they distinguished from the total number of states? How to determine whether a particular state can be called highly developed?

International statistical services use a special indicator called HDI (Human Development Index) to rank countries. It is this that is the main criterion for determining the level of development of a country. Depending on its indicator, the level of development of the state can be characterized from “low” to “very high”. Most highly developed countries– these are those whose human development index is close to a score of 1.

The value of the HDI depends on several factors. Indicators such as life expectancy, level of education, quality of life, well-being of children, equipment and level of healthcare, economic well-being and simply human happiness of the population are assessed. Calculation formulas use all of these variables as factors. Based on the data obtained, the ten best countries for human life are determined. Critics (especially those from those countries that did not make it into the top ten) consider the HDI assessment to be inaccurate and vague. However, after reading the top list of ten highly developed countries, every sane person will understand that the error, if it exists, is very small.

Highly developed countries Top 10

1.Norway

Score: 0.943

The Kingdom of Norway is a country ruled by monarchs for a long time and boasts an excellent level of education and an impressively low unemployment rate. This country, the first of all states, officially proclaimed the right of succession to the throne in 1163. Much later, already in 1814, a constitutional monarchy was proclaimed in the country.

The average life expectancy of Norwegians is 80.2 years, and there are simply no people living below the poverty line in the state. Norway became one of the main founding countries of NATO, but the country rejected the proposal to join the EU. Despite this fact, Norway still maintains friendly neighborly relations with all European powers. In addition, Norway has become one of the sponsors (in addition to being considered one of the founders) of the UN, it is also a leading member of the OECD and the WTO. The kingdom is rich, it owns the world's largest reserves of oil, gas, timber, various minerals, fresh water, and seafood. Norway has received universal international recognition for the development of global health care, improvement of the advanced foundations of the education system, and improvement of social security systems for citizens. It is thanks to these factors that the Kingdom of Norway deservedly takes an honorable first place in the ranking of highly developed countries compiled by the UN.

2.Australia

Score: 0.929

In terms of economic development, Australia ranks only 13th in the world rankings (its GDP is $918,978,000,000) and in 5th place in per capita income ($40,836). Australia's form of government is a federal parliamentary constitutional monarchy. This country occupies a leading place in the ranking in terms of quality of life: happy people live, there is high-quality healthcare and a good education system (100% literacy and a large percentage of educational institutions per population). It is important for every person that the rights and freedoms of citizens are respected in this country: full protection of human rights, economic and civil freedom.

22.7 million residents of the state are satisfied with a stable government that protects the interests of its citizens, peace and sustainable development of the state, measures to protect the environment, and life expectancy (81.2 years). In addition, Australians are pleased that Australia is a fantastically popular country to visit, with tourists from all over the world flocking here to experience wild, protected nature and beautiful cities such as Sydney.

3. The most highly developed countries: the Netherlands

Score: 0.910

Nominally, the Netherlands (the more popular but officially incorrect name of Holland) is governed by a monarch (King Willem-Alexander), but in essence the state is governed by a democratic parliament. Over the years of development, the Netherlands has been able to achieve high rates of education and literacy, with a virtual absence of poverty and unemployment. The Netherlands plays a leading role in the activities of the WTO, EU, OECD and NATO. The state is often called the “legal capital of the world”, since the main legal authorities of the five international judicial systems are located here. The national GDP is impressive ($832.160 billion), which translates to $49,950 per capita. According to a survey conducted in 2011, there are 16,700,000 people living in the Netherlands who consider themselves happy people. Holland is a country with a stable economy, honest government, low taxes and amazing cities (the capital Amsterdam is an example). People here live full, healthy and happy lives, with an average lifespan of 79.8 years.

4.United States of America

Score: 0.910

America has come a difficult path since 1776, when, after defeating the British in the American Revolution, a new state emerged. Today, having overcome many difficulties (civil war, Great Depression, participation in world wars), the United States has become the most influential state on the planet. The states have the largest GDP ($15 trillion, which equates to $48,147 per population). The United States is one of the world's major commodity importers and exporters. The USA is a very multinational state; for example, in California, out of almost 40 million residents, 50% of the total number are from Asia, Latin America and Africa.

But in terms of human happiness in the United States, everything is not particularly rosy; here the States are losing a lot of points. Of the country's 315 million people, 15% are considered poor, and unemployment averages 9% (and in some states reaches 14%). Experts say that the American education system lags significantly behind similar systems in most developed countries of the world. The US is also losing points in health care because, although life expectancy is relatively high at 79 years, obesity is soaring. This problem affects 33% of the adult population; among children the figures are almost similar. In addition, for many years America has had a huge debt to other countries.

5.New Zealand

Score: 0.908

Geographically, New Zealand is located on a remote small group of islands. Thus, the state can be proud of its stunning landscapes and the peaceful life of animals. Many tourists visit the country every year to admire the amazing flora and fauna of this area. Although New Zealand is governed by Parliament, the country is headed by a monarch, Elizabeth II. The country has excellent indicators in terms of living standards and happiness of citizens. This state is an active supporter of peace, protector of the environment and animals. Zealand's GDP is $157.877 trillion ($35,374 per person). The population of the island state is about 4.3 million people. Experts praise the country's education, literacy and sanitary standards. This may explain the significant life expectancy (on average 80.2 years). In addition to the beauty of nature, New Zealand has a lot to admire. For example, magnificent modern cities such as Wellington.

6.Canada

Score: 0.908

In terms of area, Canada is the second country in the world after Russia. The country's parliamentary democracy gets along well with the constitutional monarchy. This country even has two anthems - “Oh Canada” and “God Save the Queen.” Economically, the country is well developed (per capita GDP is $51,147 with a total GDP of 1,758 billion). Canada's population is considered one of the most educated and intelligent in the world. This is confirmed by the fact that most Canadians speak two or even three languages. Thanks to a developed and streamlined healthcare system, the average life expectancy of Canadians is 80.7 years. Taxes in the country are low, and the country has approximately 34.7 million inhabitants. Many tourists visit the country every year to look at Niagara Falls or visit the capital Ottawa and the ancient city of Quebec.

7.Ireland

Score: 0.908

Ireland, which is governed by a parliamentary democracy, has a population of just 4.5 million. Irish literacy rates are high (99%) and life expectancy is estimated at an average of 78.9 years. GDP – $203.89 trillion ($45,497 per person). The state guards the rights and freedoms of its citizens. Ireland was hit hard by the economic crisis that began in 2008. The country has accumulated huge debts, however, the country successfully cooperates with the leading EU states (France and Germany) and is making good progress in solving this problem.

8.Liechtenstein

Score: 0.905

The small Principality of Liechtenstein provides its citizens with a decent, comfortable and joyful life. This country is one of the least populated countries in the world. Each person in the population of 35,000 has a high GDP ($141,000). At the same time, the country has many zero indicators: zero poverty, zero unemployment and zero public debt. The Principality is famous for its very low taxes. If you ever feel the desire to take an exciting trip to Europe, then go to Liechtenstein. There you can explore the capital of the Grand Duchy of Vaduz and visit the majestic Castle, which has been the home of the princely family for many years, as well as communicate with one of the 5,100 residents of the glorious cozy city.

9.Germany

Score: 0.905

Germany is one of the most economically developed European countries. The high level of education ensured 100% literacy of the German population, and the country is home to 82.2 million people.

German advanced technologies, especially in the automotive industry, have proven themselves throughout the world. German cars of various brands (Volkswagen, Mercedes, BMW) are popular due to their reliable design and build quality, which was made possible by the use of highly qualified labor. The life expectancy of Germans is 79.4 years. The country's GDP is $3.5 trillion, which is $40,631 per capita. Despite the fact that unemployment in the Federal Republic of Germany does exist (it is approximately 7%), the poverty level is extremely low.

10.Sweden

Score: 0.904

The Kingdom of Sweden, with its capital Stockholm and a population of 9.3 million people, is an economically stable European state. The small territory (the country is comparable in size to the American state of California) did not prevent the state from becoming financially strong and independent. Swedes are among the wealthiest ($35,876 GDP per person) and happiest people on the planet. In addition to economic stability, liberal Sweden is characterized by environmental sustainability, significant life expectancy (80.9 years), and high levels of healthcare and education.