The developed countries are included in the Big Seven. "big seven"
, Germany, Italy, Canada, USA, France and Japan.
The unofficial forum of the leaders of these states (with the participation of the European Commission), within the framework of which approaches to current international problems are coordinated, also bears the same name. According to an unspoken rule, the group's summits are held annually in rotation in each of the member states.
Concept "Big Seven" arose in Russian journalism due to the erroneous decoding of the English abbreviation G7 as Great Seven in the early 1990s, although in reality it stands for Group of Seven.
The G7 is not an international organization, it is not based on an international treaty, and does not have a charter or secretariat. The decisions of the G7 are not binding. As a rule, we are talking about fixing the intention of the parties to adhere to an agreed line or about recommendations to other participants in international life to use certain approaches in resolving certain issues. Since the G7 does not have a charter, it is impossible to officially become a member of this institution.
The term "Big Seven", a continuation of which became the term "Big Eight", arose in Russian journalism from the erroneous decoding of the English abbreviation G7 as "Great Seven", although in fact it stands for "Group of Seven" ( "Group of Seven") The first use of the term “Big Seven” was recorded in the article “The Baltics cost Gorbachev $16 billion” in the Kommersant-Vlast magazine dated January 21, 1991.
The idea of holding meetings of leaders of the most industrialized countries in the world arose in the early 1970s in connection with the economic crisis and the deterioration of relations between the United States, Western Europe and Japan on economic and financial issues.
At the first meeting on November 15-17, 1975, at the Rambouillet Palace, on the initiative of the then French President Valéry Giscard d'Estaing, heads of state and government of six countries gathered (since the early 70s, similar meetings were held at the level of finance ministers): France, USA, Great Britain , Germany, Italy and Japan. At the G6 meeting, a Joint Declaration on Economic Issues was adopted, which called for non-aggression in the trade area and refusal to establish new discriminatory barriers.
In 1976, the “six” turned into a “seven”, accepting Canada into its membership, and during 1991-2002 it was gradually transformed (according to the “7+1” scheme) into the “eight” with the participation of Russia. Since 2014, it has again functioned in the G7 format - after the annexation of Crimea to the Russian Federation, Western countries refused to participate in the work of the G8 and began to hold meetings in the G7 format.
The chairman of the “seven” is, during each calendar year, the head of one of the member countries in the following rotation order: France, USA, Great Britain, Germany, Japan, Italy, Canada (since 1981).
In addition to the summer meetings of heads of state, ministerial level meetings are often held:
GDP dynamics in the G8 countries in 1992-2009, as a percentage of the 1992 level.
Meetings of the heads of state and government of the G7 countries are held annually (usually in the summer) on the territory of the chairing state. In addition to the heads of state and government of the member countries, the meetings are attended by two representatives of the European Union, namely the President of the European Commission and the head of the country currently presiding over the EU.
The agenda of the summit is formed by Sherpas - trusted representatives of the leaders of the G7 countries.
The heads of the G20 countries: India, China, South Africa, Mexico, Brazil, in addition, the G20 included South Korea, Saudi Arabia, Turkey, Indonesia, Argentina, Spain, and the heads of international and regional unions (EU, CIS) came.
Since 1996, after a meeting in Moscow, Russia began to take an increasingly active part in the work of the association, and since 1997 it has participated in its work on an equal basis with other participants in the association, which then became the Group of Eight (“G8”).
Russia was the chairing country of the G8 during 2006, at the same time the only summit of this organization on the territory of the Russian Federation took place in St. Petersburg (the meeting that took place in Moscow in 1996 was not recognized as a summit).
The Russian Federation was represented at the summits
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G7 countries
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The Big Seven (G7) is a group of seven industrialized countries: Japan, France, the United States, Canada, Italy, Germany and the United Kingdom (see Figure 1). The G7 was created during the oil crisis of the 1970s of the last century - as an informal club
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Main goals of creation:
coordination of financial and economic relations; acceleration of integration processes; development and effective implementation of anti-crisis policy; searching for all possible ways to overcome contradictions that arise both between the G7 member countries and with other states; identifying priorities in the economic and political spheres.
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The decision on the need to hold meetings of the leaders of the above countries was made in connection with the deterioration of relations between Japan, Western Europe and the United States on a number of financial and economic issues. The first meeting was organized by Valéry Giscard d'Estaing (then President of France) in Rambouillet on November 15-17, 1975. It brought together the heads of six countries: Japan, France, Germany, the USA, Italy and Great Britain. Canada joined the club in 1976 at a meeting in Puerto Rico. Since that time, meetings of participating countries began to be called G7 “summits” and take place on a regular basis. In 1977, the leaders of the European Union arrived as observers at the summit, which was hosted by London. Since then, their participation in these meetings has become a tradition. Since 1982, the scope of the G7's activities has also included political issues.
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Russia's first participation in the G7 occurred in 1991, when Mikhail Gorbachev, the President of the USSR, was invited to the summit. But it was only in June 1997, at a meeting in Denver, that a decision was made to join the “club of seven” of Russia. However, Russia still does not take part in the discussion of some issues.
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Participating countries:
The United States of America (USA), often used as the United States, or simply America, is a state in North America. Area - 9.5 million km². Population - 325 million people.
The capital is the city of Washington
As of 2014, the US economy was the first economy in the world by nominal GDP and the second largest by GDP (PPP). The United States has a powerful military, including the world's largest navy; have a permanent seat on the UN Security Council; are a founding state of the North Atlantic Alliance (NATO's military-political bloc). The country also has the second (after Russia) nuclear potential on the planet (in terms of the total number of deployed warheads). With the greatest economic, political, cultural and military influence in the world, the United States is currently considered the only superpower on the planet.
USA
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Japan is one of the most developed countries in the world with a thousand-year history, distinctive culture and traditions. Capital - Tokyo
Japan
Japan is located in East Asia, on 6852 islands. The largest: Honshu, Hokkaido, Kyushu and Shikoku, accounting for 97% of the entire territory.
Despite its relatively small area - 377,944 km², the country is densely populated. According to 2015 data, 126 million 958 thousand people live here
Japan today is the only state on the planet against which nuclear weapons have been used.
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France
The French Republic is a state in Western Europe. It is washed by the Atlantic Ocean and the Mediterranean Sea.
Republic with a presidential form of government. The head of state is the president. The head of government is the prime minister. The highest legislative power belongs to the bicameral parliament (Senate and National Assembly).
Area 674,685 km² Population 66,627,602 people Capital Paris Largest cities Nice, Marseille, Lyon, Toulouse Language French
The French Republic is considered the most interesting European country. More than seventy-five million tourists come here every year. Of course, Paris is considered the cultural capital of France. This city alone has many unique monuments of world culture, not to mention the entire country.
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Canada
Canada is an independent federal state that is part of the British Commonwealth of Nations. The form of government is a constitutional monarchy. The head of state is the British Queen, on whose behalf all legislative acts and government decisions are published.
Area 9,984,670 km² Population 36,048,521 people Capital Ottawa (since 1867) Largest cities Toronto, Vancouver, Montreal, Ottawa, Calgary, Edmonton Languages English, French
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Italy
A state in Southern Europe, in the center of the Mediterranean. Member of the European Union and NATO since their creation, it is the third largest economy in the eurozone
Italy is an amazing country in which history and modernity, different eras and a rich cultural heritage, traditions and identity are intertwined.
Italy is inhabited by wonderful people, known for their hot southern temperament, openness, cordiality, amazing sociability, ease and hospitality.
Area 301,338 km² Population 60,674,003 people Capital Rome (since 1946) Largest cities Rome, Venice, Milan, Florence, Naples, Genoa, Turin, Bologna, Bari, Palermo Language Italian
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Germany
Germany is an amazing country with a thousand-year history and centuries-old traditions, whose chronicle includes victories and defeats, periods of prosperity and truly tragic pages.
Today, the Federal Republic of Germany (this is the official name of the state) is one of the most developed economies in the world, and its internal political structure is an example of parliamentary democracy and the effective distribution of powers between the center and the constituent entities of the federation.
Area 357,021 km² Population 81,292,400 people Capital Berlin (since 1990) Largest cities Munich, Berlin, Cologne, Frankfurt am Main, Hamburg, Düsseldorf, Stuttgart, Leipzig, Bremen, Heads Angela Merkel (Chancellor), Joachim Gauck (President)
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Great Britain
Great Britain is a small state in northwestern Europe. The full name of the country is the United Kingdom of Great Britain and Northern Ireland. In just 24 hours you can travel 1,440 km, separating Land's End on the southwest coast of Cornwall from the town of John o' Groats in northeast Scotland.
The state consists of four “historical provinces” (in English - “countries”, that is, “countries”): England, Scotland, Wales and Northern Ireland. The form of administrative-territorial structure is a unitary state, although three of the four historical provinces (except England) have a significant degree of autonomy.
Area 242,495 km² Population 65,102,385 people Capital London Largest cities London, Edinburgh, Manchester, Glasgow, Belfast, Birmingham, Leeds Heads Elizabeth II (monarch), Theresa May (Prime Minister)
The Great Eight (G8) or Group of Eight is the forum for the governments of the world's eight largest national economies by both nominal GDP and the highest human development index; it does not include India, which is in 9th place in terms of GDP, Brazil - in seventh place and China - in second place. The forum arose from the 1975 summit, which was held in France and brought together representatives of six governments: France, Germany, Italy, Japan, Great Britain, and the United States, which led to the appearance of the abbreviation “Big Six” or G6. The summit became known as the G7 or G7 the following year due to the addition of Canada.
The Group of Seven (G7) consists of 7 of the most developed and wealthy countries on Earth and remains active despite the creation of the Group of Eight or G8 in 1998. In 1998, Russia was added to the group of most developed countries, which then became known as the Big Eight (G8). The European Union is represented in the G8, but cannot host or chair summits.
The term "Great Eight" (G8) may refer to the member states collectively or to the annual summit of heads of government of the G8. The first term, G6, is now often applied to the six most populous countries within the European Union. G8 ministers also meet throughout the year, for example G7/G8 finance ministers meet four times a year, and G8 foreign ministers or G8 environment ministers also meet.
Collectively, the G8 countries produce 50.1% of global nominal GDP (2012 data) and 40.9% of global GDP (PPP). Each calendar year, responsibility for organizing the G8 summit and chairmanship is transferred among member states in the following order: France, USA, UK, Russia, Germany, Japan, Italy and Canada. The country chair sets the agenda, hosts the current year's summit, and determines which ministerial meetings will take place. Recently, France and the UK have expressed a desire to expand the group to include five developing countries, referred to as the Outreach Five (O5) or plus five: Brazil (the 7th country in the world by nominal GDP), the People's Republic of China or China (2nd country in the world by GDP), India (9th country in the world by GDP), Mexico and South Africa (SA). These countries have attended as guests at previous summits, sometimes called the G8+5.
With the emergence of the G20, a group of twenty of the world's largest economies, in 2008 at a summit in Washington, G8 leaders announced that at their next summit on September 25, 2009 in Pittsburgh, the G20 would replace the G8 as the main economic council of the wealthy countries
One of the main areas of activity in the G8 on a global scale since 2009 has been the world food supply. At the L'Aquila summit in 2009, G8 members pledged to contribute $20 billion in food aid to poor countries over three years. However, since then only 22% of the promised funds have been allocated. At the 2012 summit, US President Barack Obama asked G8 leaders to adopt policies that would privatize global investment in food production and supply.
History of the Big Eight (G8)
The concept of a forum for the world's leading industrialized democracies emerged before the 1973 oil crisis. On Sunday 25 March 1973, Treasury Secretary George Shultz convened an informal meeting of the finance ministers from West Germany (West Germany Helmut Schmidt), France Valéry Giscard d'Estaing) and Great Britain (Anthony Barber) ahead of the upcoming meeting in Washington.
When launching former President Nixon's idea, he noted that it would be better to do it out of town and suggested using the White House; the meeting was subsequently held in the library on the first floor. Taking their name from the area, this original group of four became known as the "Library Group". In mid-1973, at meetings of the World Bank and IMF, Shultz proposed adding Japan to the original four nations, and everyone agreed. An informal gathering of senior financial officials from the US, UK, West Germany, Japan and France became known as "The Five".
The year following the formation of the Five was one of the most turbulent of the post-World War II era, and heads of state and government in a dozen industrialized countries lost their posts due to illness or scandal. Elections were held twice in the UK, three German Chancellors, three French Presidents, three Japanese and Italian Prime Ministers, two US Presidents and Canadian Prime Minister Trudeau were replaced and forced to go to early elections. Of the members of the “five,” all were new to further work, with the exception of Prime Minister Trudeau.
When 1975 began, Schmidt and Giscard were now heads of state in West Germany and France respectively, and since they both spoke fluent English, they, British Prime Minister Harold Wilson and US President Gerald Ford could meet in an informal retreat and discuss the election results. In the late spring of 1975, President Giscard invited the heads of government of West Germany, Italy, Japan, Great Britain and the United States to a summit at the Château de Rambouillet; an annual meeting of the six leaders was organized under his chairmanship and the Group of Six (G6) was formed. The following year, with Wilson as British Prime Minister, Schmidt and Ford, it was felt that a native English speaker with more experience was needed, so Canadian Prime Minister Pierre Trudeau was invited to join the group, and the group became known as the G7. (G7). The European Union was represented by the President of the European Commission and the leader of the country that holds the presidency of the Council of the European Union. The President of the European Commission has attended every meeting since he was first invited by the UK in 1977 and the President of the Council now also regularly attends meetings.
After the 1994 G7 summit in Naples, Russian officials held separate meetings with G7 leaders after the group's summit meetings. This informal arrangement was called the "Political Eight" (P8) - or, colloquially, the G7+1. At the invitation of British Prime Minister Tony Blair and US President Bill Clinton, President Boris Yeltsin was invited first as a guest and observer, and then as a full participant. The invitation was seen as a way to reward Yeltsin for his capitalist reforms. Russia officially joined the group in 1998, creating the Group of Eight, or G8.
Structure and activities of the Big Eight (G8)
According to the draft, the G8 deliberately does not have an administrative structure like international organizations such as the UN or the World Bank. The group does not have a permanent secretariat or offices for its members.
The chairmanship of the group rotates annually among member countries, with each new chairman taking office on 1 January. The Presidency is responsible for planning and holds a series of ministerial meetings leading to a mid-year summit with heads of government. The President of the European Commission participates on equal terms in all events at the highest level.
Ministerial Meetings bring together ministers responsible for various portfolios to discuss issues of mutual interest or concern on a global scale. Issues discussed include healthcare, law enforcement, labor market prospects, economic and social development, energy, environmental protection, foreign affairs, justice and home affairs, terrorism and trade. There is also a separate set of meetings known as the G8+5, created at the 2005 summit at Gleneagles in Scotland, which brings together finance ministers and energy ministers from all eight member countries in addition to the five countries that are also known as the P5 - Brazil, People's Republic of China, India, Mexico and South Africa.
In June 2005, the justice and interior ministers of the G8 countries agreed to create an international database of pedophiles. G8 officials also agreed to merge terrorism databases, subject to privacy restrictions and security laws in individual countries.
Characteristics of G8 countries (as of 2014)
Countries | Population, million people | Size of real GDP, billion US dollars | GDP per capita, thousand US dollars | Inflation, % | Unemployment rate, % | Trade balance, billion US dollars |
Great Britain | 63.7 | 2848.0 | 44.7 | 1.5 | 6.2 | -199.6 |
Germany | 81.0 | 3820.0 | 47.2 | 0.8 | 5.0 | 304.0 |
Global Energy and the Big Eight (G8)At Heiligendamm in 2007, the G8 accepted the EU proposal as a worldwide initiative for energy efficiency. They agreed to study, together with the International Energy Agency, the most effective means to improve energy efficiency at the international level. A year later, on June 8, 2008, in Aomori, Japan, at a meeting of energy ministers organized by the then Japanese Presidency, the G8 countries, along with China, India, South Korea and the European Community, created the International Partnership for Cooperation in Energy Efficiency. The G8 Finance Ministers, in preparation for the 34th G8 Heads of State and Government Meeting in Toyako, Hokkaido, met on 13 and 14 June 2008 in Osaka, Japan. They agreed on the G8 Climate Action Plan to enhance the participation of private and public financial institutions. Finally, ministers supported the formation of the World Bank's new Climate Investment Fund (CIFS), which will assist existing efforts until the new UN Framework Convention on Climate Change (UNFCCC) framework is fully implemented after 2012. |
Big Seven (G7) is a group of seven industrialized countries: Japan, France, USA, Canada, Italy, Germany and Great Britain (see Fig. 1). The G7 was created during the oil crisis of the 1970s of the last century as an informal club. Main goals of creation:
- coordination of financial and economic relations;
- acceleration of integration processes;
- development and effective implementation of anti-crisis policy;
- searching for all possible ways to overcome contradictions that arise both between the G7 member countries and with other states;
- identifying priorities in the economic and political spheres.
(Fig. 1 - Flags of the G7 member countries)
According to the provisions of the G7, decisions made at meetings should be implemented not only through the system of major international economic organizations (such as the World Trade Organization, the International Monetary Fund, the Organization for Economic Cooperation and Development), but also through the G7 government institutions.
The decision on the need to hold meetings of the leaders of the above countries was made in connection with the deterioration of relations between Japan, Western Europe and the United States on a number of financial and economic issues. The first meeting was organized by Valéry Giscard d'Estaing (then President of France) in Rambouillet on November 15-17, 1975. It brought together the heads of six countries: Japan, France, Germany, the USA, Italy and Great Britain. Canada joined the club in 1976 at a meeting in Puerto Rico. Since that time, meetings of participating countries began to be called G7 “summits” and take place on a regular basis.
In 1977, the leaders of the European Union arrived as observers at the summit, which was hosted by London. Since then, their participation in these meetings has become a tradition. Since 1982, the scope of the G7's activities has also included political issues.
Russia's first participation in the G7 occurred in 1991, when Mikhail Gorbachev, the President of the USSR, was invited to the summit. But it was only in June 1997, at a meeting in Denver, that a decision was made to join the “club of seven” of Russia. However, Russia still does not take part in the discussion of some issues.
State University of Management
Economy of the G7
Completed:
Information Management III-1
Moscow - 2002
"BIG SEVEN" - the most economically developed countries: USA, Japan, Great Britain, Germany, France, Italy, Canada. In the early 1990s. they accounted for over 50% of world GNP and industrial production, over 25% of agricultural products. Since 1975, at regular meetings at the top, coordinated interstate economic, financial, and monetary policies have been developed. Based on a general analysis of the world economy, the G7 countries determine ways to influence the pace and proportions of its development.
The G7 includes economically developed countries, and Russia joined these countries in the mid-90s.
The modern world economy appears heterogeneous. The role of individual national economies in it differs significantly. The UN statistics given in the table below clearly demonstrate that among the leaders of the world economy are the countries of North America (USA and Canada), countries of Western Europe (Great Britain, Germany, Italy, France) and Japan. But Russia's economy is in decline, although it is part of the G8 (see Russia section)
Over the past decades, the United States of America has remained the leader in the world economy.
At the present stage, the leadership of the United States in the world economy is ensured mainly by its superiority in other countries in terms of the scale and wealth of the market, the degree of development of market structures, the level of scientific and technical potential, a powerful and extensive system of world economic relations with other countries through trade, investment and banking. capital.
The unusually high capacity of the domestic market provides the United States with a unique place in the world economy. Having the highest GNP in the world means the US spends more than any other country on current consumption and investment. At the same time, the factor characterizing consumer demand in the United States is the general high level of income relative to other countries and a large middle class oriented towards high standards of consumption. In the United States, an average of 1.5 million new homes are built annually, more than 10 million new passenger cars and many other durable goods are sold.
Modern US industry consumes about one third of all raw materials produced in the world. Sarana has the largest market for machinery and equipment in the world. It accounts for over 40% of mechanical engineering products sold in developed countries. Having the most developed mechanical engineering, the United States has simultaneously become the largest importer of mechanical products. The United States now receives over one quarter of the world's exports of machinery and equipment, making purchases for almost all types of equipment.
By the beginning of the 90s. In the United States, a stable progressive economic structure has developed, in which the predominant share belongs to the production of services. In GDP they account for over 60%, for material production - 37% and approximately 2.5% - for agricultural products. The role of the service sector in employment is even more significant: in the first half of the 90s, more than 73% of the self-employed population was employed here.
At the present stage, the United States has the world's largest scientific and technical potential, which is now a decisive factor in the dynamic development of the economy and competitiveness in the world economy. Annual R&D expenditures in the US exceed those of the UK, Germany, France and Japan combined (in 1992, total US R&D expenditures exceeded US$160 billion). Still more than half of government R&D spending goes to military-related projects, putting the United States in a much worse position than competitors such as Japan and the EU, which spend the majority of their funds on civilian projects. But the United States is still significantly ahead of European countries and Japan in terms of the overall potential and scope of R&D, which allows them to conduct scientific work on a broad front and achieve the rapid transformation of the results of fundamental research into applied developments and technical innovations.
US corporations firmly hold the lead in the world in such areas of scientific and technical progress as the production of aircraft and spacecraft, high-power computers and their software, the production of semiconductors and the latest high-power integrated circuits, the production of laser technology, communications equipment, and biotechnology. The United States accounts for over 50% of major innovations generated in developed countries.
Today the United States is the largest producer of high-tech products, or, as they are commonly called, science-intensive products: their share in the world production of these products was in the early 90s. 36%, in Japan - 29%, Germany - 9.4%, Great Britain, Italy, France, Russia - about 20%.
The United States also holds a strong position in processing accumulated amounts of knowledge and providing information services. This factor plays a very significant role, since fast and high-quality information support increasingly determines the efficiency of the entire production apparatus. Currently, 75% of the data banks available in developed countries are concentrated in the United States. Since Japan, like Western Europe, does not have an equivalent system of data banks, for a long time their scientists, engineers and entrepreneurs will continue to draw knowledge mainly from American sources. This increases their dependence on the United States and affects the commercial and production strategy of the information consumer.
It is extremely important that the basis of the scientific and technological potential of the United States is a cadre of highly qualified scientists and engineers engaged in scientific research and development. So, in the early 90s. the total number of scientific workers in the United States exceeded 3 million people. The United States leads in the share of scientists and engineers in the workforce. The entire workforce in the United States is characterized by a high educational level. In the early 90s. 38.7% of Americans aged 25 years and older had completed high school education, 21.1% had completed college education, and 17.3% had completed college education. Only 11.6% of American adults have less than a high school education, which is 8 years or less of schooling. The country's powerful scientific and technological potential and the overall high level of education and professional training of Americans serve as a factor of strength for American corporations in their competition with rivals in the domestic and world markets.
The continued leadership of the United States in modern world economic relations is a natural result of their previous development and represents the next step in the process of integration of the United States into the world economy. The United States plays a special role in the formation of the global economic complex, especially in the second half of the 20th century. The relations of leadership and partnership in the field of global trade, investment and finance that are developing between the United States, Western Europe, Japan and the newly industrialized countries that are catching up with them reveal a certain pattern. At first there was absolute dominance of the United States, but as the economies of other participants strengthened, these relations turned into a competitive partnership in which the United States was forced to partially cede its share of influence to its rivals, while moving the leadership function to a higher level.
The United States consistently dominated world trade, exports of loan capital, and direct and portfolio foreign investment. Nowadays, this predominance is realized mainly in the scale of economic potential and the dynamism of its development, scientific and technological progress, foreign investments and influence on the global financial market.
At the present stage, the United States is the world's largest investor and at the same time the main target for foreign investment. The most significant investments in the United States were made by Great Britain ($12 billion). In total, the United States received over $560 billion in direct investment from abroad. American firms still remain the world's largest investors; the total amount of their direct capital investments abroad exceeds all global investments and amounted to approximately $706 billion. . USA.
In addition, American corporations have entered into a capital investment boom in recent years due to the strengthening of the dollar. Corporate profits as a percentage of national income are much higher than they were in the 1980s. Unit labor costs did not rise in 1995 compared with the 4.1% average annual growth rate in the 1980s, a clear sign of improved economic efficiency.
Such successes are due to the powerful growth in productivity, which in the 90s. in the non-farm sector increased by 2.2% annually, which is double the rate of the previous two decades. If the current rate of 2% is maintained, national productivity will increase by almost 10% over the next decade.
In the post-war period, the internationalization of economic life occurred gradually. At the same time, in the world economy there was a transition of the US economy from superiority over weak partners to competitive partnership and increasing interdependence of strong partners, among which the US retains a leading position.
Another richest country on the North American continent, with more than a century-old history, is Canada.
But real incomes of the Canadian population fell by 2% in L991. A slight expansion of employment and insignificant increases in wages in the public and private sectors of the economy slowed down the growth of labor incomes, which account for 3/5 of the total income of the population. Investment income fell three times in a row, first due to cuts in dividend payments and, in 1993, mainly due to falling interest rates. As a result, real consumer spending in 1993 increased by only 1.6% compared to 1.3% in 1992.
Statistics show that the reduction in production scale in the early 90s. was not significant, but it occurred in the context of the most serious structural restructuring in the last three decades, affecting the industry of the two provinces with the most developed industrial potential - Ontario and Quebec.
Economic growth and the revival of the Canadian economy have been occurring since 1992, when the GDP growth rate was 0.6%; in 1993 they increased to 2.2%. In 1994, in terms of economic growth rates (4.2%), the maple leaf country became the leader in the G7 for the first time since 1988 and retained this position in 1995, increasing real GDP in 1995. by 3.8%.
There was also a sharp jump in the growth of private investment - from 0.7% in 1993 to 9% in 1994 and 8.0% in the first quarter of 1995. Consumer spending began to grow approximately twice as fast - by 3% compared to from 1.6% in 1993
Manufacturing growth in Canada is driven by rising household and corporate incomes. If during the recession of 1990-1991. real incomes of the population (after taxes, taking into account rising prices) were declining, then in 1994 they increased by 2.9%, and in 1995 - by 4.0%. At the same time, Canadian corporate profits increased by 35% in 1994 and by 27% in 1995. This growth is supported by expanding domestic demand, an increasing flow of exports and rising commodity prices on the world market. We are talking about high prices for energy, chemical raw materials, metals, paper, and wood.
An important role in the growth of corporate incomes is played by structural restructuring in Canadian industry, measures to reduce costs and technical re-equipment, which led to an increase in labor productivity, which in manufacturing industries exceeds 5%.
The new federal government, trying to solve the most pressing problems of the internal economic situation, proposed a reform plan in February 1995, indicating a radical revision of the role of the state in the socio-economic life of the country. Thus, it is provided:
reducing spending by federal ministries by 19% over the next three years, reducing subsidies to entrepreneurs by 50%;
support for small businesses (but the forms of assistance to small businesses will be less preferential and more consistent with the regime of brutal budget austerity);
commercialization of the activities of government institutions and privatization.
This means that the functions of government agencies and corporations will be transferred to a commercial basis or transferred to private hands in all cases where this seems practical and effective. The program also includes the possibility of full or partial privatization of state-owned enterprises.
Canada, whose exports and imports account for 2/3 of its GNP, is very significantly dependent on the situation on the world market. Over the past three years, its exports have grown by 31.6%, and imports by 31.3%. Such positive changes are due to the low exchange rate of the Canadian dollar relative to the American dollar, the structural restructuring of the economy and the associated increasing competitiveness of Canadian products, as well as economic revival in the USA, the market of which, in fact, is oriented to the products of the country of maple leaves.
Today, Canada seriously needs to export widely to the United States to achieve even modest economic growth. Any sudden "cooling" in the economy south of the Canadian border causes a strong flow of "cold air" northward. Currently, Canada is tightly tied to the United States, with weak consumer growth and similar personal income growth. The only thing that will move its economy forward is , is an expansion of exports, and most of it comes from the United States.
Canada's generally slow economic growth masks serious problems facing Canadians. Among them: high unemployment (about 9.5%), record consumer debt, low savings rates and dire consequences caused by tens of billions of dollars in cuts to the federal and provincial governments.
As you know, many European countries have stabilized their currencies by pegging them to the German mark. In Canada, the freely floating exchange rate of the national currency was maintained. The central bank of the Maple Leaf country intervenes only occasionally to smooth out fluctuations in the exchange rate of the Canadian dollar, but does not maintain it at any particular level. Thus, no active steps were taken to prevent the fall of the national currency at the beginning of 1994, since it is rightly expected that this fall, on the one hand, will stimulate exports, and on the other, will shift the demand for Canadian-made consumer goods.
The change of government in Canada (in 1993) did not create any significant obstacles to the implementation of the agreement on the formation of a North American free trade area, which included three North American countries. Therefore, the prospects for its economic growth and increasing Canada’s role in the modern world economy seem very definite.
The European countries of the G7 occupy a special place in the world economy.
Based on the level of economic development, the nature of the economic structure, and the scale of economic activity, Western European countries are divided into several groups. The main economic power of the region comes from four large, highly industrialized countries - Germany, France, Italy, and Great Britain, which account for 50% of the population and 70% of the gross domestic product.
At the present stage in Western Europe the potential for scientific and technical research is very great. The G8 European countries are spending heavily on new research. But the overall effect is reduced by duplication of studies, so the real value of this indicator will be lower than the nominal value. However, the European part of the G8 allocates 16% less to civilian research than the United States, but twice as much as Japan. At the same time, spending in Western European countries is largely focused on basic research. These countries lag behind in key industries such as integrated circuits and semiconductors, microprocessors, supercomputers, and biomaterials. This is not surprising, since so far they have allocated almost the same amount for research in the field of microelectronics as one large company, IBM, allocates in the United States.
Among the factors negatively affecting the course of economic development of Western Europe, mass unemployment stands out - up to 20 million people. More than 80% of the unemployed are concentrated in EU countries. Their unemployment rate in 1996 was 11.4% of the labor force, compared with 5.5% in the United States and 3.3% in Japan.
The modern economic development of Western European countries is taking place under the sign of structural changes. These changes reflected the general trends in the development of production and the social division of labor in the conditions of the new stage of scientific and technical progress, and were also a consequence of structural crises and crises of overproduction in the 70s and early 90s.
At the present stage, shipbuilding, ferrous metallurgy, textile and coal industries have experienced a structural crisis. Industries that were growth stimulants not so long ago, such as the automotive industry, chemicals, and electrical engineering, are faced with a reduction in domestic demand and changes in the international division of labor. The most dynamic industries include the electronics industry, in which the production of industrial and special-purpose equipment, primarily computers, has gained priority. New industries and productions have emerged related to the production of robots, CNC machines, nuclear reactors, aerospace technology, and new communications equipment. However, they were not only unable to ensure high rates of economic growth, but also lagged behind the United States and Japan in their development. Domestic companies provide only 35% of regional consumption of semiconductors, 40% of electronic components, and even less integrated circuits. The Western European information technology industry provides 10% of the needs of the global and 40% of the regional markets.
The past decade has been characterized by Western Europe lagging somewhat behind its main competitors in the progressiveness of its industry structure. High-demand products account for 25% of European G8 manufacturing output, about 30% in the US and almost 40% in Japan. Recently, in the Western European economy, a large place has been occupied by the modernization of a profitably functioning production apparatus, rather than its radical renewal based on the latest technology.
As data from country comparisons on the structure of the manufacturing industry show, mechanical engineering and heavy industry have developed in the leading countries of the region. The share of chemistry is also significant. Many Western European countries are large producers of consumer products. The share of the light industry sector in Italy is 18-24%.
Most countries in the region are characterized by an increase or stabilization of the role of the food industry, both in production and in employment.
The most significant differences are in the structural indicators for the share of agriculture in the formation of GDP - from 1.5 to 8%. Highly developed countries have reached almost the limit for this indicator (2-3% of GDP). With a decrease in employment to 7% of the working population (I960 -17%), there was an increase in production volumes. Western Europe accounts for about 20% of world agricultural production. Today, the leading producers of agricultural goods in the EU are France (14.5%), Germany (13%), Italy (10%), Great Britain (8%). The relatively high growth rates of this industry contributed to an increase in the self-sufficiency of Western European countries in agricultural products and supplies to foreign markets were the main way to sell the “excess” products of the region.
Over the past years, serious changes have occurred in the fuel and energy balance of Western European countries. As a result of the implementation of comprehensive energy programs aimed at maximizing savings and increasing energy efficiency, there was a relative reduction in energy consumption, and oil consumption decreased absolutely. The reduction in energy consumption occurred in the region with varying intensity and the tendency towards its increase continued. Shifts in the structure of the energy balance are associated with a drop in the share of oil (from 52 to 45%), a significant increase in the share of nuclear energy, and an increasing role of natural gas. Natural gas is used most widely in the Netherlands, where it accounts for half of energy consumption, and in the UK. Nuclear energy is produced and consumed in 10 countries. In a number of countries it accounts for a significant portion of energy consumption, in France - over 75%.
The shifts that have taken place in recent years in the economies of Western European countries have gone in one direction - a reduction in the share of material production sectors in their GDP and an increase in the share of services. This sector currently largely determines the growth of national production and the dynamics of investment. It accounts for 1/3 of the economically active population.
This increases the importance of Western European countries as a financial center and a center for providing other types of services.
The structural restructuring of large capital led to a significant strengthening of the positions of Western European companies in the world economy. For the 70-80s. Among the 50 largest companies in the world, the number of Western European ones increased from 9 to 24. All the largest companies are international in nature. There have been changes in the balance of power between the Western European giants. Corporations from Germany and, to a lesser extent, corporations from France and Italy took the lead.
The position of British companies has weakened. Leading Western European banks retained their positions, 23 of them are among the largest 50 banks in the world (German and 6 French).
Modern processes of monopolization in Western Europe differ from similar processes in North America. The largest Western European companies occupy the strongest positions in traditional industries, significantly lagging behind in the newest knowledge-intensive ones. The industry specialization of the largest associations in Western Europe is less flexible than that of US corporations. And this, in turn, slows down the structural restructuring of the economy.
As forecasts show, the future market will have less demand for mass-produced products with the lowest possible cost level. Therefore, the role of companies that rely on a wide production program with frequent changes in manufactured models and effective adaptation to changing market conditions is increasing. The “economy of scale” is being replaced by the “economy of opportunity.” The process of decentralization of production management is gaining momentum, and the intra-company division of labor is growing. The progressive fragmentation of markets as the specialization of consumer demand deepens, the development of the service sector contributes to the growth of small businesses, which account for up to 30-45% of GDP. The growth of small business increases the flexibility of economic structures in relation to market needs.
East Asia has been considered the most dynamically developing region in the world economy in recent decades.
It is no coincidence that Japan was the first among the countries in the region to make the transition to modern economic growth. The expansionist influence of the West gave Japan in the post-war period the impetus to transition to a model of modern economic growth, which was carried out much faster and more painlessly than, say, in China.
At the end of the 19th century, starting with the Meiji reform, the Japanese government created conditions for free enterprise and initiated economic modernization. A feature of Japanese modernization of economic activity was that foreign capital occupied a small share in the creation of the modern economy, as well as the fact that the patriotic movement initiated by the state played a significant role in modernization.
As a result, in the post-war period (over the course of one generation), Japan raised its economy from ruins to a position of equality with the richest countries in the world. It did this under conditions of democratic rule and with the distribution of economic benefits among a wide range of people.
The thriftiness and enterprise of the Japanese played a significant role in this. Since the 50s The rate of savings in Japan was the highest in the world, often twice or more than the savings of other large industrial countries. In 1970-1972 Savings by Japanese families and unincorporated businesses amounted to 16.8% of GNP, or 13.5% after depreciation; the corresponding figures for American households were 8.5% and 5.3%. The net savings of Japanese corporations amounted to 5.8% of GNP, and of American corporations - 1.5%. The Japanese government's net savings are 7.3% of GNP, the American government's are 0.6%. Japan's total net savings amounted to 25.4% of GNP, the United States - 7.1%. This exceptionally high rate of saving continued for many years and supported a very high rate of investment during this time.
Over the past 40 years, Japan has grown rich at a phenomenal rate. From 1950 to 1990, real per capita income increased (in 1990 prices) from $1,230 to $23,970, i.e., a growth rate of 7.7% per year. Over the same period, the United States was able to achieve income growth of just 1.9% per year. Japan's post-war economic achievements were unsurpassed in world history.
Japan's modern economy relies to a surprising degree on small entrepreneurs. Almost one third of the workforce is made up of self-employed workers and unpaid members of their families (compared with less than 10% in the UK and US). In the early 80s. There were 9.5 million enterprises in Japan with fewer than 30 workers, of which 2.4 million were firms and 6 million were unincorporated business enterprises not related to agriculture. These firms employed more than half the workforce. In industry, almost half of the workforce works in enterprises with fewer than 50 workers. This proportion is repeated in Italy, but in Britain and the US the figure is around 15%.
The government encourages savings and growth of small businesses through tax breaks, financial assistance and other assistance. From small businesses, huge networks of suppliers and subcontractors of large monopolies of the “first”, “second” and “third” levels are formed. Their hands create, for example, half the cost of cars manufactured by Toyota.
Japan became the first country whose economy implemented a balanced growth model. In 1952, Japan completed the stage of modern economic growth with annual GNP growth rates of up to 5%. From 1952 to 1972, Japan went through a stage of ultra-fast growth with an annual growth rate of GNP of up to 10%. From 1973 to 1990 - the next stage - the stage of gradual attenuation of ultra-fast growth of GNP (up to 5%). Since 1990, this country is also the first and so far the only one to enter the last stage in the implementation of the same economic model of balanced growth. This is the stage of moderate GNP growth in a mature market economy. This means that “the high growth rates of the Japanese economy will be replaced by an annual increase in GNP of an average of 2-3%. The beginning of this stage coincided with a four-year depression in the world economy, which, after seven years of prosperity, entered a serious economic crisis in 1990, from which Japan is still being chosen. This is confirmed by statistics, and in the mid-90s the Japanese economy continued to decline for the fourth year.
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