Uman NUH | today: 12/21/2024
| Author(s) | Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture | ||
|---|---|---|---|
| Category | Economics | ||
| year | 2024 | issue | Issue 105 part 2 |
| pages | 27-40 | index UDK | 330.368:330.34-027.511 | DOI | 10.32782/2415-8240-2024-105-2-27-40 (Link) |
| Abstract | The main drawback of economic globalization is the injustice of economic exchange in economic relations between developed countries, on the one hand, and poor and developing countries, on the other. Between 1967 and 2023 (57 years), GDP per capita in the richest countries tripled, while in the poorest countries it grew by only 11 %. The income of 1 % of the population of the richest countries is 57.2 times higher than the income of 1 % of the population of the poorest countries in the world. Sufficient capital is a key condition for sustainable economic growth. Given the current scenario of globalization, the lagging behind of poor countries on the periphery of the world system is perpetual - poverty is the cause of meager national savings, which in turn leads to an acute shortage of investment and an unsatisfactory level of capital endowment. The lack of national investment is the reason for the technological lag of poor countries due to insufficient funding for education, science, research and development. The core countries, possessing advanced technologies and producing capital-intensive knowledge-intensive products with the highest share of added value, occupy a competitive position unattainable for the periphery countries. Peripheral countries, using outdated resource-intensive technologies, are positioned on the global market as sellers of raw materials - natural resources and agricultural products. And their ability to compete is based solely on the trade of economic goods at low prices. The Ukraine is a peripheral country. The first step toward raising its status within the current global system is to reindustrialize the economy. This implies the deployment of an active industrial policy aimed primarily at revitalizing investment demand in industrial production. In terms of the use of basic technology (waves of innovation), by the standards of the change of technology generations in the twentieth century, the Ukrainian economy lags behind the US economy by at least 80–100 years - in Ukraine, the basic technology is III, in the US – V generation. A nation that aspires to a higher status within the world system must find internal resources to ensure qualitative changes in technology and technology. Such resources should be used to ensure the development of effective national education and science, research and development. There are sources of such resources in Ukraine: savings of Ukrainian households in the form of non-earning assets (cash); capital repatriation; reducing funding for some social programs in order to allocate the released budget funds for the development of education and science. | ||
| Key words | global economy, disproportionality, core, periphery, semi-periphery, value added, capital, technology, reindustrialization, education and science | ||