Economic growth. Extensive and intensive ways
Economic growth. Extensive and intensive ways.
Plan:
Introduction………………………………………………
Main body
1 Chapter: Essence of economic growth and ways of its increasing
1.1-Extensive development. Advantages and Disadvantages………………….………...4
1.2-Intensive development. Advantages and Disadvantages……………………………..7
1.3- Comparative analysis of two countries’ economies…………………………………..10
2 Chapter: Extensive and intensive ways of economic growth in practice
2.1- Historical implications for the US and USSR choices of development way…12
2.2- Examples of the resembling economic systems on the basis of Japan
and China…………………………………………………………………
2.3- Example of economic development of Kazakhstan……………………………………17
Conclusion……………………………………………………
Bibliography………………………………………………
In its theme of "Growth. Extensive and intensive way "I want to review the following.
First, theoretically, an examination of ways of economic
development. We know that there are a number of ways, but must distinguish
two main ones. This extensive and intensive development path. These
paths of development can show how well-developed economy of any country.
But nevertheless, it is necessary to parse each of the paths individually.
We need to take, for example, intensive development,
and thoroughly consider the advantages and disadvantages of this way,
its appearance, the reasons for its use and then how this path is applicable
to practice.
The same should be done with the extensive way of
development. Just highlight the main advantages and disadvantages, the
cause of, use, and so on.
Through analysis of the two countries with two different
paths of development, we can show how effectively, extensive and intensive
way to economic development. It should be noted that one country will
be purely theoretical, but will not be taken from living examples.
Secondly, in practice, consider how much the effective
extensive and intensive path of development in the economy of the world
powers that are keeping, tech or other ways, were able to achieve some
success. That is, thereby proving in practice, the existence of the
advantages and disadvantages of intensive and extensive.
And the most prominent and typical examples of ways
in practice, is to develop the economy in the U.S. and the Soviet Union.
These two countries, with absolutely retailers ideologies and economies,
are indicative of the tool as an extensive way by the Soviet Union leads
the competition with an intense way by the United States. The result
is one of the ways shown the effectiveness of himself, in a given period
of time, while the other has passed the position and lost the race developments.
Or you can take as an example of the modern economy
of Asian countries such as China and Japan.
In Japan, I want to show how this country is due
to major reforms and changes in the economy, has become one of the leading
powers in the world of high technology.
But in China it may be noted that, as a socialist
country that tends to communism, a balanced combination of different
paths of economic development, and achieves some success in this.
And finally, most important, I think, should be followed
up with the pace of economic development of modern Kazakhstan. Since
Kazakhstan is one of the post-Soviet states, here the main issues for
analysis, it will transition economy of Kazakhstan with a planned to
a market economy, and the use of a market economy, intensive and extensive
ways.
1 Chapter: Essence of economic growth and ways of its increasing
1.1-Extensive development. Advantages and Disadvantages
Extensive growth is due to the simple building used factors: the means of production and labor. Extensive economic growth is historically the original way of expanded reproduction. Therefore, it has some negative characteristics that are a consequence of the imperfections of this type.
Figure 1. The rate of change in economic indicators in the extensive growth
It’s known that the production function shows the quantitative relationship (F) output (Y) from the capital (C), labor (L) and "land" (natural, material resources - N).1
It is very important to consider the problems associated with the
extensive economic growth since Being the first model of expanded reproduction
of this type, there is also a basis for further economic development.
Therefore it is necessary to highlight these issues in order to avoid
mistakes in the future.
Extensive way, by engaging in the production of more labor, helps to
reduce unemployment, provide the greatest employment workforce. Program
to restore and maintain a reasonable scale of full employment is an
undisputed means of accelerating growth.
Considering such factors as labor, it should be noted that education and worker training to increase workforce productivity, and hence accelerate the pace of economic growth. Investment in human capital - an important means of improving productivity. Estimated Denison, improving the quality of the labor force has identified 14% growth in real national income in the U.S.A.
Another problem with extensive type that should be considered - a stagnation in which the quantitative increase in output is not accompanied by technical and economic progress. But technological progress is an important engine of economic growth, it determines the 28% growth in real national income in the period 1929 -1982 years. in the U.S.A. By definition, technical progress involves not only completely new methods of production, but also new forms of management and organization of production.2
In extensive economic growth of output increases to the same extent that increases the value of fixed assets used in production, material resources and the number of employees, therefore, remain unchanged at the value of such economic indicators as return on assets ratio, and others, in other words, the overall efficiency of production remains at best unchanged. Consequently, not enough money to upgrade fixed assets (buildings, equipment)
Extensive type of growth can quickly develop natural resources. But because the use of these resources under extensive type is irrational, there is a rapid depletion of the mines, the arable layer of earth and minerals. In extensive economic growth such as material consumption rate remains virtually unchanged, as well as production grows, it inevitably runs out an irreplaceable resource base. Consequently, we have to expend more labor and capital goods for production of each ton of fuel and raw materials. The problem of natural resource development merges with the problem of improvement of technology for more efficient use of resources, reduce consumption of materials and products with the problem of providing equipment and tools for use and detection of these resources.3
In reality, in its pure form extensive way of development
is rare.
He, as a rule, more or less intertwined with the
intensification of production. In the initial period of socialist development
of production in the USSR has developed largely on an extensive basis,
focused on levels of involvement in the production of additional human
and material resources. The scope and quality to decide today the society
of economic, social, scientific and industrial problems are such that
dictate the need to make fuller use of the accumulated potential, all
kinds of resources to rely on new techniques and technology, develop-conscious
economic mechanism. This dictates the transition to intensive way.
However, it must take into account the fact that
in modern conditions drastically reduce the chances of extensive development
by slowing the flow of labor resources in social production, cost of
raw materials and fuel, increased spending on environmental protection
and other reasons.
From the foregoing, the following conclusions:
1) Economic growth can be defined as real GDP growth
or growth
real GNP per capita. It provides a gain in production
that is used for.
decisions of domestic and international socio-economic
problems.
2) Economic growth is determined by the following
factors: natural resources, human resources, capital and technology.
3) The extensive economic growth reaches the reduction
unemployment, full employment, which can increase
growth rates. But this is a temporary phenomenon, because state of full
employment can not be replenished annually, and inherits year growth
rate is the same.
4) In extensive type of development, many workers
are not
qualified.
5) The extensive path of development is stagnant,
there is virtually no
technological progress, morally and physically worn
out industrial fixed assets, reduced capital-labor ratio of workers.
6) The State can play a significant role in economic
growth in
good tax policy and investment policies.
1.2-Intensive development. Advantages and Disadvantages
Intensive economic growth - economic growth through more efficient use of the same resources. It is believed that intensive economic growth requires economic development. In contrast, consuming extensive production capacity provides comprehensive intensification of anti-costly path of economic growth.
Figure. 2. Qualitative features of the all-round intensification
We see that the most rapidly growing volume of national income (NI), slightly slower increases production of means of production (MP) and the labor force (L). As a result, reduces the cost per unit (CU), gets an expanded reproduction of a qualitatively new features.4
A new quality of economic
development is expressed primarily in the increasing cost of
public production: reduced labor costs and the means of production per
unit of national income. Significantly improving all the economic development,
steadily increasing scientific and technological level and product quality.
This is a direct consequence of the transition to higher technology
production method
New evident in the modern structure of the national economy. In the
total production increased proportion of high-tech industries. These
include instrumentation, production of computers, electrical industry,
nuclear energy, the production of synthetic resins, plastics, advanced
structural materials, and other industries that use to achieve scientific
and technological revolution.
The progress we see that the fraction of the intermediate product and
a corresponding increase in the proportion of the final product going
into consumption. This structural change - the result of economical
expenditure of raw materials and energy in creating each item.
Improving of expanded reproduction is achieved when the composition
of national income increases the share of food consumption compared
with the means of production going to accumulate. As a result, increases
the level and quality of life, increases the efficiency of social economic
development.
Under the new quality of economic development vary significantly proportion
of the reproduction process. Relatively slow growing means of production
and, conversely, a tendency to accelerate the production of consumer
goods.
As you know, the industrial and postindustrial stages
of the production economy is progressing at a revolutionary technical
changing basis. As science and technology are developing unevenly, it
affects a significant difference in growth rates of national economies.
In the second half of XX century. First were the
leaders of the country, first to implement the achievements of scientific-technical
revolution (USA, Britain, France and others). Then, ahead of steel developing
countries that most rapidly used in the production of already mastered
new technologies. These include, for example Japan and the so-called
"newly industrialized countries' first generation (Republic of
Korea, Taiwan, Singapore, Hong Kong).
5
In the 1990's began a new stage in economic growth
in many countries. This stage has the following distinctive features.
1. For the main part of the world economy characterized
by uninterrupted economic growth. The average growth rate of all countries
increased from about 1% to steady 3% per year.
The main contribution to this growth have made the
developed countries, which account for 1 / 2 of the world gross product,
and 2 / 3 of world trade. However, these countries have relatively lower
growth rates (2.5%) compared to the global total.
2. Greatly increased the rate of increase of production
in developing countries, with 2,4% in 1980 to 5-6% in 1990. An increasing
number of developing countries, whose GDP per capita tends to rise. 6
Particularly highlighted the newly industrialized
countries "second generation": Indonesia, Philippines, Malaysia
and Thailand. They compete with developed countries, not only for the
production of traditional textiles, other relatively simple consumer
products, but also in the market complex products, including the means
of production.
3. As a result of marked differences in the pace
of economic development has been a trend of slow and steady decline
in relative economic power of Western countries. Do not accidentally
share of the European Community in world trade from 1991 to 1997 declined
from 43-44% to 36-40%, while the share of Asia-Pacific region increased
from 38-39% to 42-44%. The share of Asia (excluding Japan) in world
trade surpassed that of North America and continues to grow.
4. According to forecasts, in the long run especially
prominent in world trade will be part of such rapidly developing countries
such as. China, India, Republic of Korea, the countries of southern
Africa, Poland, Turkey, Mexico, Brazil, Argentina and Russia. These
countries are united in the notion of "big emerging markets, have
considerable territory, population and economic potential.7
And at the conclusion of this part, I would say, intensive economy, it is the same way that the most acceptable in our modern world. This suggests that new technologies and new methods of work organization, will form the basis for the future development of the economy.
1.3- Comparative analysis of two countries’ economies
In contrast, intensive - characterized by a relatively low cost of labor and capital per unit area, the value of the natural factors of production (nature) appears in them is especially prominent. The notion of extensiveness of: form of farming, which in some circumstances may be considered extensive, in others already recognized as intense. Extensive forms of economy is dominated by countries with sparse populations, distant from markets, where land is cheap, and the capitals of the road. In countries with predominantly intensive farming is often conducted extensive facilities at sites other than the natural properties of the adverse and costly to reclaim (radical improvement). Since in the extensive forms of farming people is widely enjoyed by the gifts of nature, labor and capital in these economies are well paid. It is generally accepted that increased application of labor and capital on the same plot of land does not cause a proportional increase in the product (law of diminishing returns). This explains the inhibitory effect of extensive American and Russian agriculture to intensive agriculture in Western Europe. In general in the history of mankind seen the transition from Extensive. to intensive forms of agriculture posed by the gradual thickening of the world population. Increasing population less can be contented with what he is given the natural forces, and compelled to make this area more and more labor and capital in order to extract from it a number of products it needs. This is a general movement from Extensive. to intensive forms of farming may be delayed or even getting the opposite direction due to a variety of reasons. These are historic disasters, reducing the population or reduction of its culture, the expropriation of the peasantry and the development of large-scale farming at the expense of the flock. In Western Europe, noticed the delay in the development of intensive agriculture and even reverse the movement because of improved transportation technology and the emergence of markets for its cheap products of Extensive. economy, as well as due care of the rural population to urban areas, to serve the developing industry. In general, however, the retarding moments have only a temporary and local significance and can not completely stop the transfer from Extensive. to intensive forms of farming, with iron necessity caused by the multiplication of human race on a constant area of the globe. Since the population density and position relative to the market in different countries is very different, and we currently find on Earth all the transitional stages of most Extensive. to the most intensive forms of farming. Pastoral farming is the most Extensive form of economy, previous farming. The population is satisfied with all the natural productivity of the land, exploiting it with cattle. Thickening of the population already requires the transition to agriculture, which gives an opportunity to significantly increase the productivity of land. Arable land initially much lower than pasture.8 Since the lifting area of virgin land - a difficult task, it plows up until give any tolerable harvests, and then he starts, and a culture takes a fresh plot. On the old site back only when his natural fertility was restored. This is called a shifting economy and to the north, where farmland has to convert forest areas - Slash (firing, lyadnym). With further increase in the intensity of the sown area is increasing at the expense of pasture and meadow. Arable land is less resting under deposit, and to restore its fertility impact of natural factors is no longer sufficient. Have to resort to artificial methods to steam treatment, to fertilizer.
But an intensive form of farming helps to avoid all the disadvantages that accompany an extensive way. That would avoid a lot of economic problems as a consequence of lack of resources, because this way helps to save more natural resources.
2 Chapter: Extensive and intensive ways of economic growth in practice
2.1- Historical implications for the US and USSR choices of development way
The U.S. economy - world's largest economy by GDP at PPP (in 2009).
The structure of the U.S. economy differs pronounced
post-industrial. Most of the U.S. GDP (79,4% - 2004) created in the
service industries, which include, above all, education, health, science,
finance, trade, and various professional and personal services, transport
and communications, service to government agencies.
The share of material production (agriculture, forestry
and fishing industry, mining and quarrying, construction), so it remains
20.6% of GDP. In agriculture creates about 0,9% of GDP, while industry
provides less than 20% of GDP.
Among developed countries the United States have
virtually no competitors in its industrial development. The share of
services in the production structure of U.S. GDP overtook the Netherlands
and Israel, which, because of certain existing competitive advantages
specialize in services, second only to Hong Kong (the share of services
- 86%). However, Hong Kong is not an independent state, remaining only
a special economic area of China where the share of services is less
than 40%. Thus, the United States are currently the most post-industrial
state. 9
The overall pattern of sectoral shifts occurring is a marked decline in the economy share of primary industries and agriculture. Among the industries of material sphere of industry remains important, it still provides a high level of technological development in other areas of the economy. It is in it today is primarily
accumulated the latest achievements of scientific and technological revolution. The U.S. has one of the most highly efficient farms in the world. A distinctive feature of their economies is to focus on STR and advanced technology. She is a leader in application of scientific and technological revolution in the production of export licenses for their discoveries, inventions and know-how. All this often leads to addiction of other countries on the United States in science and technology.
Economy of the USSR - 2nd in terms of GDP in the world (after the U.S. economy) economy in the former Union of Soviet Socialist Republics, as of 1 / 5 of world industrial output.
After the Civil War:
First, after the Civil War, the main project of the
state is (1920) electrification plan. Soon, to overcome the effects
politki War Communism, the Soviet government adopted and began to pursue
a so-called. New Economic Policy (NEP, from 1921), allowing for private
initiative and the existence of the market. But, after several years
of success and development, it began phasing out the government of the
USSR, and by the early 30-ies of its action was effectively terminated.10
In what follows the basic method of planning the
country's economy began to Five-Year Plans Unfold the national economy
(so-called. "Five")
The postwar years
The greatest efforts of the people to the Soviet
Union failed in less than 10 years after a devastating war to recover
its position in the global economy and subsequently take a leadership
position in many respects. Already by 1960, the year the economy of
the USSR occupied a place in the world: coal, iron ore, coke and cement
manufacturing locomotives, lumber, woolen textiles, sugar and butter,
etc. and 2-nd place in the world in terms of production of all industrial
products, electricity, oil and gas, manufacturing of steel and iron,
chemical products, fertilizers, engineering products, cotton textiles,
etc.
Later the Soviet Union has overtaken its global competitors
in the manufacture of steel, cast iron, oil, fertilizer, concrete products,
shoes, etc. In the 70's, that is, 25 years after the war, Soviet standard
of living (HDI ) is in the top ten most developed countries.
60-70-ies
After coming to power of the new leadership headed
by Leonid Brezhnev, attempts were made to give the economy a second
wind. Since 1965 she has introduced reforms to transfer companies and
organizations in the new business environment, expand economic impact
tools, instead of administrative methods. However, further progress
of the reform was impossible for political reasons (because of the events
in Czechoslovakia and Poland), so that from the late 60's there has
been a clear trend toward conservatism.11
All of the above suggests that, in the 20th century in the struggle between the efficiency of the two economic systems, intensive development has shown its advantage over the extensive way only in the 90th years. This suggests that both ways were best, but won only the best.
2.2- Examples of the resembling economic systems on the basis of Japan and China
The economy of China - 2-th economy in the world in terms of GDP at PPP (in 2009).
The economy of China in the past 30 years, growing
steadily and in 2009 took place 3 in the world in terms of nominal GDP
(after USA and Japan). GDP in 2009 was $ 5.02 trillion. According to
the 2010 April-June, China surpassed Japan for this indicator. GDP,
taking into account the parity China on the 2 nd place in the world
(according to IMF 10100000000000 international dollars in 2010, the
forecast for 2011 -11.2 trillion), trailing only the United States.
China at the beginning of the XXI century is the
space and nuclear power. Building a market economy in China is carried
out under the leadership of the Communist Party's five-year plans. The
economy maintained its stratification. With a high proportion of foreign
investment, almost 80% of all foreign investors in China's economy -
are ethnic Chinese (huaqiaos) living abroad. In 2020, China has to catch
up on plans PDAs U.S. aggregate income of GDP.
Trends in GDP per capita in the BRIC countries in
the years 1998-2009, in U.S. dollars 12
To facilitate structural change, China is developing
its own system of education, training of students abroad (especially
in the U.S. and Japan), encourages the import of technologies to develop
such advanced sectors as software development, new materials, telecommunications
industry, biotechnology, and healthcare. In China, more than 384 million
Internet users, it also leads the world in the number of users of mobile
telephone services (487.3 million users in April 2007). In the region
north of Beijing Haidian created the Chinese "Silicon Valley".
Intensification of production and brings spin-offs: the level of hidden
unemployment in rural areas is about twice the official figures (4.6%).
China tacitly encourages emigration.
13
China leads the world in coal mining, iron, manganese,
lead and zinc, antimony and tungsten ores, and wood is the world's largest
producer of coke, pig iron, steel and steel pipes, aluminum, zinc, tin,
nickel, televisions, radios and mobile phones, washing machines and
sewing machines, bicycles, motorcycles, watches and cameras, fertilizers,
cotton and silk textiles, cement, footwear, meat, wheat, rice, sorghum,
potato, cotton, apples, tobacco, vegetables, silkworm cocoons, has the
world's biggest poultry, pigs, sheep, goats, horses and yaks, as well
as the leader in fishing. In addition, China is one of three major world
automakers (7,200,000 in 2006) after Japan and the U.S.. In China is
oil, gas, rare earth metals (molybdenum, vanadium, antimony), uranium.
Japan ranks second in the world (after U.S.) in economic
development, with GDP of about 4.5 trillion dollars and third place
in the world after U.S. and Chinese purchasing power parity. GDP growth
within one business hours the country held 18 th place in the world
according to 2006. 14
Banking, insurance, real estate, retail, transportation
and telecommunications are the main industries of the Japanese economy.
Japan has a large manufacturing capacity and is home to some of the
largest and most advanced from a technical point of view of manufacturers
of cars, electronic equipment, machine tools, steel and nonferrous metals,
ships, chemicals, textiles and foods. Construction has long been one
of the largest branches of Japanese industry, thanks to multibillion-dollar
government contracts in the private sector.
In Japan, there is a high economic freedom, working
closely with the producers of government for economic growth, the emphasis
on science and technology, as well as strong work ethic. All this contributes
to the economic development of Japan. The Japanese economy is characterized
by the association of manufacturers, suppliers, distribyutorv and banks
close group called "keyretsu and relatively weak international
competition in domestic markets. Also there are many more social than
productive arrangements such as guarantees lifelong employment in large
corporations. Not so long ago approved a reform of Japanese politics,
allowing companies to depart from certain rules in an attempt to increase
profits.
Japan - a country dominated by private enterprise
and low taxes. The total amount of taxes is lower than in other major
western countries, in 2007 it amounted to 26,4% of GDP. Only a few Japanese
employers must pay income taxes, VAT is very low and amounts to 5%,
while corporate taxes are high.
Comprehensive growth of the real economy from the
1960 to 1980 called "Japanese economic miracle": an average
of 10% per year in 1960, 5% in 1970 and 4% in 1980. Growth slowed significantly
in the 90 years, mainly due to the effects of excessive investment in
the late 80's and domestic policies aimed at ousting the excess of speculative
capital from the stock market and real estate market. Government attempts
to revive economic growth met with little success, and in 2000 and 2001
were even more inhibited because of the slowing global economy. Nevertheless,
after 2005 the economy showed sure signs of recovery. GDP growth for
the year amounted to 2,8%, while for the fourth quarter on an annualized
basis - 5.5%, surpassing the growth rates of U.S. and European Union
countries over the same period. 15
Since only 15% of Japanese land suitable for agricultural
processing system is used terraced cultivation on small areas. The result
is one of the world's highest yields per unit area for large agricultural
subsidies and protective duties. Japan imports about 50% of grain and
forage crops, except rice, and most of the consumption of meat. In fishing,
Japan ranked second after China in terms of tonnage of fish caught.
Japan has one of the world's largest fishing fleets, fish catch is about
15% of the world. Japan imports from other countries, almost all the
oil and food prices.
Transport infrastructure in Japan is extremely well
developed. For 2004, it consisted of 1,177,278 km asphalted roads, 173
airports and 23,577 kilometers of railways. Private firms engaged in
building toll roads, a lot of competitors, and railroad companies are
fighting for popularity on the regional and local markets. Among them
stand out 7 major companies: JR («Japan Railview Group»), Kintetsu
Corporation («Kintetsu Corporation»), Seibu Railway («Seibu Railview"),
and Keio Corporation («Keio Corporation). Among the largest aviation
companies include All Nippon Airways (ANA) and Japan Airlines (JAL),
and the country's largest ports are Yokohama and Nagoya. Energy in the
country is produced from crude oil, natural gas and coal. Nuclear power
is one third of electricity production and in the plans of Japanese
- double the figures in the coming decades.
16
In modern economics, the example of China is not
quite typical. China's economy is an example of when one state simultaneously
coexist in two different two totally different paths of economic development.
Japan is also an example of the state, which in time
changed its course in economics and has found its place in the world,
despite the lack of territory and natural resources.
2.3- Example of economic development of Kazakhstan
Indicators
For 2003
the average annual inflation rate was 6.4%.
net international reserves had increased to 4.9 billion dollars.
2007
GDP - $ 104.3
Gross external debt - 74 014 100 000 U.S. $
2008
Gross external debt - 96 914 300 000 U.S. dollars (01.01.2008)
2008
Total gross external debt - 96 914 300 000 USD (01/01/2008)
Summer 2008 - The peak inflation rate 20.1%
GDP - $ 135.0 billion or 133.726 billion dollars
2009
Total gross external debt - 108 130 400 000 U.S. dollars (31.12.2008)
Total gross external debt - 111 326 300 000 USD (1 October 2009)
Gross Domestic Product of Kazakhstan $ 133.726 billion, the data gave
the International Monetary Fund in April 2008 $ 11,000 per capita, 54
th in the world (2007). GDP in 2009 totaled 17,008 billion tenge, or
approximately $ 115 billion 17
The Republic of Kazakhstan
is rich in mineral resources, vast agricultural lands, skilled personnel,
significant industrial potential. Kazakhstan today has a functioning market
economy.
Ten years ago, GDP per capita stood at just over seven hundred dollars,
then at the end of 2004 it had reached two thousand seven hundred dollars
in 2005 per capita GDP is projected to be about three thousand dollars.
By 2010, Kazakhstan could reach the per capita GDP more than 5800 dollars,
that is, the current level of such countries as the Czech Republic,
Hungary, Poland, Malaysia, and in 2015 - about 9,000 U.S. dollars.
Structure of foreign direct investment between countries. Kazakhstan's
economy
Today, the main source of economic growth is the exploitation of raw
potential. Compared with 1985 the volume of hydrocarbon production increased
by 225 percent, while worldwide production rose less than 1.3 times.
In the country's economy to attract about 30 billion U.S. dollars of
foreign direct investment. Investors know that today Kazakhstan - a
reliable partner which guarantees stability and ensuring cooperation.
Kazakhstan's financial system is recognized as one of the most progressive,
and this is confirmed by leading international experts. Kazakhstan was
the first among the CIS countries has created a national fund to ensure
stable social and economic development, reduce dependence on negative
external factors.
Today, the National Endowment accumulated 5 billion 300 million dollars.
Foreign exchange reserves of the country in view of the National Fund
as a whole exceeded 14 billion U.S. dollars.
Crude oil production. Kazakhstan's economy
Kazakhstan has consistently pursued an open foreign trade policy. For
example, in 2004 the volume of foreign trade approached $ 33 billion
with a positive balance of over $ 7 billion and grew by more than 3
times compared with 1994.
Significantly diversified geography of foreign trade, which in the early
years of independence, mainly comprised of the CIS.
Crude oil production. Kazakhstan's economy
In 2004, the structure of trade turnover of Kazakhstan in the first
place came the EU Member States, Russia, Switzerland and China.18
Currently, Kazakhstan, the World Bank classification, belongs to a group
of middle-income countries. If you compare the key indicators of quality
of life over the past 10 years, the average cash income of Kazakhstan
grew by 5 times, almost 6 times the average monthly salary has
increased, up to 25 times increased the minimum wage, the average pension
increased by 4.6 times, deposits of persons in the banks and the volume
of deposits per capita rose in 35 and 37 times respectively.
19
Government spending on a guaranteed volume of medical assistance this
year alone grew by more than 1.7 times compared with 2003.
Sustained economic growth in Kazakhstan will greatly expand the social
orientation of public spending, which indicates the strength of stock
made the country's economy.
The first topic «Essence of economic growth and
ways of its increasing» were open all the advantages and disadvantages
of extensive and intensive development path.
In the first part of this topic, we reviewed an extensive
way in general, and know what it is, historically, the primary way of
development. The same extensive way is most acceptable at the initial
stage of economic development, but because this method is strongly depletes
natural resources and wealth, then over time all have to move smoothly
to a more developed system of economic development.
And such a system is an intense way. In contrast
to the extensive way, intense way more productive and less costly, so
the limited natural resources. But those are not attention to the disadvantages
of Intensive development path is that it does not provide full employment,
thereby adversely affecting the social sphere of human activity.
In the third part, the comparative analysis of two
development paths, we found that both the development are acceptable
to all countries in different time periods.
In the second theme of «Extensive and intensive
ways of economic growth in practice», we considered the effectiveness
of two different paths of development in practice, the world powers.
This analysis helps to understand the real world of coca ways to develop
the most justify their use.
Here we have analyzed the economic development of
such world powers as the Soviet Union and the United States. Here we
followed a fierce battle between them, which is particularly reflected
in the Cold War. This war was accompanied not only by the arms race,
but also improving the economic system of the Vedas in support of any
war should be perfectly fine-tune the system of the economy.
Further, in more recent times we have taken as an
example of the economic system of China and Japan. Watching the development
of China at the present time, we see that in China there is some stability
and extensive way of intensive development path. But Japan totally exceeded
all Asian countries in the use of scientific and technical discoveries,
that is an integral part of the intensity of the economic system.
Finally in the conclusion of the practical part,
we gave an example of development of our country of Kazakhstan. Kazakhstan
remaining post-Soviet country, is an example of how the country in time
of its independence, it is necessary to choose for themselves a new
path of development. Then be taken into account the transition from
planned to market economies.
Combining all the conclusions of this topic, we can arrive at a conclusion. Any State may choose any path of economic development, but making your selection, it must take into account all trial and error of other countries, the acceptability of a path to the specifics of their state, to calculate all the possible alternatives to development in the future, and finally life is more objective in the final choice of the path its development.
I think it is very important to know the examples of the state. Because, knowing all the aspects, and possible errors in the development of the economy on the example of other countries, we can avoid the negative consequences in shaping their own economic system. That is, we must learn from past experiences and the mistakes of other countries.
Aristakesyan Michael http://www.finam.ru/analysis/
Brockhaus F.A. and Efron I.A. «Encyclopedic Dictionary» http://dic.academic.ru/dic.
Brief Dictionary of Economics, Moscow, 1987 http://www.ekoslovar.ru/500.
Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,
Mankiw, N.G. «Macroeconomics»
Nikolaeva L.A., Black I.P. «Economic theory»
Sharayev U.V. «Theory of Economic Growth»
Tazhutovym A. http://www.inosmikz.org/?p=923
Vvedensky B.A. «Soviet Encyclopedia»
https://www.cia.gov/library/
http://www.stat.kz/news/Pages/
http://ru.government.kz/site/
Ministry of Education and science of the Republic of Kazakhstan
University of International Business
Theme: Economic growth. Extensive and intensive ways.
Almaty 2010
1 Nikolaeva L.A., Black I.P. «Economic theory»
2 Sharayev U.V. «Theory of Economic Growth»
3 Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,
4 Nikolaeva L.A., Black I.P. «Economic theory»
5 Mankiw, N.G. «Macroeconomics»
6 Mankiw, N.G. «Macroeconomics»
7 Brockhaus F.A.
and Efron I.A. «Encyclopedic Dictionary» http://dic.academic.ru/dic.
8 Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,
9 https://www.cia.gov/library/
10 Brief Dictionary
of Economics, Moscow, 1987 http://www.ekoslovar.ru/500.
11 Vvedensky B.A. «Soviet Encyclopedia»
12 Brockhaus F.A.
and Efron I.A. «Encyclopedic Dictionary» http://dic.academic.ru/dic.
13 Mankiw, N.G. «Macroeconomics»
14 Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,
15 Mankiw, N.G. «Macroeconomics»
16 Brief Dictionary
of Economics, Moscow, 1987 http://www.ekoslovar.ru/500.
17 http://ru.government.kz/site/
18 http://ru.government.kz/site/
19 http://www.stat.kz/news/Pages/
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