Participation of developing countries in international trade. The role of developing countries in the modern world economy The place of developed countries in the world economy

A group of developing countries (about 140 states in Asia, Africa, Latin America and Oceania) appeared at the turn of the 50s and 60s as a result of the collapse of the world colonial system.

For the world economy, the importance of this group of countries is determined not only by the size of the population (about 80%), but also by significant reserves of natural resources. About 90% of oil, 70% of natural gas, 45% of iron, 70% of copper, and 90% of tin ore are concentrated in these countries. There are huge reserves of bauxite (~ 70%), phosphates and apatite (~ 74%), about half of the world's hydropower resources.

A number of common characteristics of developing countries are highlighted in the economic literature:

· The diversified nature of the economy - various forms of management: from patriarchal communal and small-scale commodity to state, cooperative and monopolistic. Styles have their own value system and are characterized by a specific way of life of the population;

· The relatively low level of development of productive forces, the technical backwardness of industry, agriculture and social infrastructure is expressed in the qualitative heterogeneity of society. The backwardness of developing countries has general historical and modern aspects, supplemented by the disproportionality of the entire reproduction process;

· Dependent position in the world economy, manifested in foreign economic relations. The backward structure of the economy, a low level of productive forces, agrarian and raw material specialization, and the colonial past determined the foreign economic orientation of developing countries towards the industrial states of the West. Their foreign economic relations are developing mainly along the South - North (developing - developed countries). Dependency manifests itself in the relationship of dominance and subordination, which is realized economically. The economy of most developing countries is peripheral, differing from developed countries not only in the degree of development, but also in the models of production and distribution of material wealth. In developing countries, market relations are built on models of “catch-up development” or “imitation”, based on the attraction of foreign capital, technology and entrepreneurial initiative.

As world practice shows, the level of development of developing countries is influenced by two groups of factors - internal and external.

Internal factors include: economic and geographical location, natural and climatic conditions, demographic and social status. External factors include the degree of participation in the world economy and the use of scientific and technological progress (STP), which at the turn of the XX - XXI centuries. plays a decisive role in the restructuring of national economies.

The degree to which these factors are used affects the differentiation of developing countries. As noted earlier (Chapter 2), the leading countries of the developing world (OPEC, newly industrialized countries), countries with an average level of economic development and the least developed countries stand out here. However, despite the existing differentiation of countries, in general, at the present stage of development of the world economy, the role and importance of a group of developing states is increasing. If in 1950 the share of developing countries accounted for 27.4% of world GDP, in 1980 - 28.7, in 2000 - 39.8, then in 2010 their share was more than 45%. 1990 - 2010 the GDP growth rates of these countries exceeded 5-6% on average, i.e. were twice as high as in developed countries, this trend continues in the current decade of the XXI century.

The economy of developing countries is closely linked with the development of foreign economic relations. They contribute to the expansion and modernization of fixed assets, leveling economic and social imbalances. In 2010, the share of developing countries in world exports of goods was more than 45%, and in world exports of services 35% (Table 28). The share of developing countries in world imports by 2010 increased to 38%. Experts note such an indicative factor as the growth of trade between the developing countries themselves (43% of foreign trade turnover in 2010). The structure of their exports is noticeably improving, where the share of industrial products is growing from 12% in 1960 to 70% in 2010.

Table 28 - Share of developing countries in world exports of goods and services (1970 - 2010)

* Hong Kong, Republic of Korea, Singapore, Taiwan.

** Indonesia, Malaysia, Thailand.

According to experts, in the first decade of the XXI century. the rise of large developing countries has finally become one of the backbone factors in the formation of a new model of world economic development (MMED). And this, in turn, leads to the formation of new rules of the game in the global economic space, which leads to:

1) a gradual change in the territorial distribution of world production;

2) changing its structure;

3) transformation of world trade;

4) evolution of the direction, scale and nature of global financial flows;

5) changing the model of world consumption;

6) changes in the quality and structure of the world labor market.

An important factor contributing to the positive dynamics and qualitative changes in the economies of developing countries is the growth of global foreign direct investment (FDI), the share of which in 2010 amounted to more than 29% (in 2001 - 25.4%, in 2005 - 15, 4 %). According to available forecasts, in the current decade (2011–2020), an increase in FDI is expected, primarily in developing countries. The main spheres of FDI investment will remain the financial and banking sector, biotechnology, the electronics industry, and the information technology sector. In the less developed countries of this group, the oil and gas and agro-industrial complexes remain attractive.

Attraction of FDI depends on the sequence of implementation of economic policy aimed at stimulating the inflow of foreign capital, structural reforms in the economy, liberalization of economic processes, and solving social problems.

On the whole, attracting foreign capital with its purposeful use turned out to be a fairly effective means of accelerating the economic development of developing countries. Thanks to foreign capital, having reached a certain level of development, many of the developing countries began to export their own capital. The creation of foreign companies was a necessary condition for strengthening the positions of not only individual firms, but also industries, increasing their competitiveness in foreign markets. Whereas in 1985 the share of FDI from developing countries did not exceed 6%, in 2009 their share was already 21%. In 1995, only 1.1% of the foreign assets of the 2,500 largest TNCs were in developing countries, and in 2009 this figure reached 9%.

Given the increasing in the XXI century. competition between countries for attracting FDI, it is important to highlight the factors affecting the inflow of foreign investment.

Guarantees of both general economic and political stability in countries that receive foreign capital;

Long-term invariability of general economic and tax legislation;

The possibility of non-simultaneous extraction in excess of profits, and a predictable and guaranteed receipt of albeit lower, but reliable profit, and its free use by the investor.

The active involvement of developing countries in the international movement of capital has a positive effect on labor productivity (due to the use of more advanced technologies), where the gap between the developed and a large number of developing countries, although it remains significant, tends to decrease. A beneficial effect is also exerted on an increase in the well-being of the population and on the volume of its consumption, which, first of all, can be evidenced by the dynamics of growth of GDP per capita (Table 29).

Table 29 - Dynamics of GDP per capita growth

(thousand dollars at PPP 2005)

Introduction

Chapter I. Classification of countries

1Definition of developed countries

1.2 Definition of developing countries

Chapter II. World economy

1 World division of labor

Chapter III. The role of developed and developing countries in the world economy

Conclusion

Introduction

This paper examines such an issue as the role of developed and developing countries in the world economy. This is an interesting and relevant topic that requires detailed consideration.

The aim of the work is to identify the role of developed and developing countries in the world economy.

Assigned tasks:

consideration of the concept the developed countries

consideration of the concept developing countries

consideration of the concept world economy

familiarization with the concept world division of labor

Revealing the role of developed and developing countries in the world economy

The chosen topic is undoubtedly relevant, because the economic situation in the countries of the world is changing, many countries are gaining a rapid pace of development. Often, countries are united in economic groups, cooperation in which allows countries to have greater control and influence in the world market.

The world economy is a global economic mechanism, which is represented by various national economies interconnected by a system of international economic relations (foreign trade, capital export, monetary relations, labor migration).

By the subject world economy advocates the world community . It is a functionally interconnected integral system consisting of many subsystems of various levels and configurations (states, nations, regional communities, international organizations, associations, collectives of enterprises and individuals).

Objects of the world economy - national economies, territorial production complexes, TNCs, firms, etc.

The highest level of the social territorial division of labor between large spheres of production (industry, construction, agriculture, transport) is the world division of labor.

All countries have different degrees of participation in the global division of labor. There are certain criteria for determining a country's participation in MRI. One of them is the indicators of export and import of goods and services. The amount of imported and exported products will depend on the resource availability of the country, its geographic location and other factors.

Chapter I. Classification of countries

There are several main classifications (differentiations) of countries.

All countries in the world can be classified as follows:

1)by area

With an area of more than 1 million km ²

The size of the territory is 0.5 to 1.0 million km ²

An area of 0.1 to 0.5 million km ²

with an area of less than 100 thousand km ²

2)by population

More than 100 million people

from 50 to 99 million people

then 10 to 49 million people

up to 10 million people

3)by type of economic systems

4)by the form of government

)by type of development

developed

developing

The subject of this paper will be economically developed and developing countries.

1.1 Definition of developed countries

Like most concepts, the concept economically developed countrieshas several definitions.

"Developed countries - industrialized or industrially developed."

Economically developed countries - “these are countries with high quality and standard of living, high life expectancy, the prevalence of services and manufacturing in the structure of GDP. The bulk of the world's industrial and agricultural production is produced here; they are leading in terms of foreign trade and investment. "

Another definition states that developed countries are a group of countries that occupy a dominant position in the world economy. These countries are home to 15-16% of the world's population, but they also produce ¾ gross world product and create the bulk of the economic, scientific and technological potential of the world.

Based on the definitions, the main features of developed countries can be distinguished:

industrial development

high quality of life

long life expectancy

high level of education

GDP is dominated by services and manufacturing

produce 75% of VMP

have economic, scientific and technical potential

are leaders in terms of foreign trade

lead in the number of investments

The developed countries of the world include:

Australia, Austria, Andorra, Belgium, Bermuda, Canada, Faroe Islands, Vatican, Hong Kong, Taiwan, Liechtenstein, Monaco, San Marino, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Iceland, Israel, Italy, Japan, South Korea, Luxembourg, Malta, Netherlands, New Zealand, Norway, Portugal, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK, USA.

At the end of the 20th century, these countries began to restructure their farms in order to maintain and, in addition, strengthen their advantage in the world economy. The market economy cannot constantly be in a state of growth if the state does not provide support, therefore it was decided to strengthen the role of the state. This was the key and most important direction in the restructuring of national economies.

To establish government priorities, developed countries borrowed the planning method from the former USSR, but made their own changes to it - indicators of economic plans are not required, i.e. the state continues to stimulate the fulfillment of the given plans, but with the help of market measures, thereby providing itself with constant orders, sales and purchases of products.

Based on the foregoing, we can conclude that developed countries retained their leading places in the world economy thanks to an active state position, which meant stimulating the implementation of the plan without policy measures. This allowed countries to outstrip others in development.

Soon the situation changed - now the trade processes were freed from active government participation. As a result, state ownership declined along with costs.

1.2 Definition of developing countries

The concept developing countriesyou can also give several definitions.

Developing countries - as a rule, former colonies, they are home to the bulk of the world's population; lower indicators of living standards, incomes are characteristic; "Characterized by agrarian and raw material specialization and unequal position in the global economy."

Another source gives the following definition:

Based on the definitions, we highlight the main features of developing countries:

non-industrialized countries

mostly former colonies

is home to the bulk of the world's population

prevalence of pre-industrial farming

low standard of living

low income

Characterized by agrarian and raw materials specialization

unequal position in the global economy

most are in Africa, Asia and Latin America

the value of GDP per capita is 20 times (sometimes even 100) lagging behind

Developing countries include:

Azerbaijan, Albania, Algeria, Angola, Antigua and Barbuda, Argentina, Armenia, Afghanistan, Bangladesh, Bahamas, Barbados, Bahrain, Belize, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei, Burkina Faso, Burundi, Bhutan, Vanuatu, Venezuela, East Timor, Vietnam, Gabon, Guyana, Haiti, Gambia, Ghana, Guatemala, Guinea, Guinea-Bissau, Honduras, Grenada, Georgia, Egypt, India, Colombia, Comoros, Costa Rica, Cote d Ivoire, Kuwait, Laos, Lesotho, Liberia, Lebanon, Libya, Mauritius, Mauritania, Madagascar, Macedonia, Malawi, Malaysia, Mali, Maldives, Morocco, Mexico, Mozambique, Moldova, Mongolia, Myanmar, Namibia, Nepal, Nigeria, Nicaragua Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Republic of the Congo, Russia, Rwanda, El Salvador, Samoa, Sao Tome and Principe, Saudi Arabia, Swaziland, Seychelles, Senegal, Saint Vincent and the Grenadines, Saint Kitts and Nevis, Saint Lucia, Syria, Solomon Islands, Somalia, Sudan, Suriname, Sierra Leone, Tajikistan, Thailand, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkmenistan, Uganda, Uzbekistan, Uruguay, Fiji, Philippines, Chad , Chile, Sri Lanka, Ecuador, Equatorial Guinea, Eritrea, Ethiopia, Jamaica.

In terms of GDP, developing countries can be divided into two groups: poor countries and countries with relatively high incomes.

Relatively high-income countries are oil-exporting countries and newly industrialized ones.

The oil exporting countries include the countries, 50% of the products exported abroad are oil and oil products. These are the countries of the Persian Gulf (Qatar, Bahrain, Kuwait, UAE, Saudi Arabia).

These countries are the most important suppliers of oil and petroleum products. Despite the fact that exports generate large revenues, thereby ensuring a high level of well-being of residents, the level of cultural development and education is still low, and the processing industries are underdeveloped.

Newly industrialized countries differ from oil exporting countries mainly in that the manufacturing industry is the main sector of the economy. These countries are characterized by rapid economic growth. "The country has the right to be classified as a new industrial one, provided that the manufacturing industry reaches 20% of GDP."

The group of poor countries includes countries that are located mainly in Equatorial Africa, South Asia, Central America. Their GDP per capita is less than $ 750. The number of countries in this group is constantly growing. "Of these, the 50 poorest are singled out, in whose territory 2.5% of the world population lives and they produce only 0.1% of the gross domestic product."

One of the reasons for the low economic level is that most of the countries were colonies.

Chapter II. World economy

In the definition of the concept world economythere are several approaches that describe this term. Below are the main characteristics of the world economy.

The world economy is a system of international economic relations, which includes foreign trade, foreign investment, technology transfer, etc.

The disadvantage of this definition is that it does not refer to the business sector.

World economy - sectors of the national economy participating in the international division of labor (but the degree of "world economic openness" is not taken into account)

The world economy is the totality of all national economies.

The lack of this definition is in the "underestimation of the enormous size taken out of the states."

The world economy is "a set of national economies of the countries of the world (connected by political and economic relations), which has developed historically."

The modern world economy is a system that has undergone a long evolution, during which strong economic, cultural and social structures have emerged. The identified structures contributed to the rise in the level and quality of life.

The formation of the system of the world economy began many centuries ago. The Age of Great Geographical Discoveries played a large role, because it was at this time that regular trade and financial relations were established. This made it possible to accelerate socio-economic progress, which was hampered by the fragmentation and isolation of countries.

The center of the formation of the world economy was Europe, which for a long time was the leader.

In the 20th century, a new stage of development began. After the Second World War, many countries that were previously colonies gained independence, therefore, they began to develop their own economies. These countries began to gradually join the world economy.

Processes characteristic of the modern world economy:

globalization is a worldwide process of rapid growth and movement of capital, technology, goods, etc. (is the main trend in the development of the economy)

Integration is the process of convergence of economic systems within a region, country, world

Internationalization is a way to eliminate or reduce negative externalities by transforming them into internal

The relationship of the above processes in time and space

The main mechanism for the development of globalization is the transnationalization of the world economy. The main driving force behind transnationalization is transnational corporations. TNCs are now a collection of 60 thousand parent companies and more than 500 thousand from overseas branches.

The largest TNCs belong to developed countries, which allows them to be at the head of the world economy.

As for the developing countries, the process of globalization has not affected them, because they mainly have a closed type of economy.

2.1 World division of labor

developing country world economy

The international division of labor underlies the world economy as a system.

The essence of the world division of labor is that a certain country produces a certain product. Once manufactured, the goods are sold on the world market, leading to the creation of multilateral ties between countries. This division includes trade in goods of material production, financial intermediation, and trade or exchange of services, including tourism, transport services, etc.

But these are far from all aspects of the economic interaction of countries. "The modern world economy is permeated with the flow of capital and migration flows of people"

The totality of all of the above makes up the concept international division of labor.

Many factors affect MRI:

level of development of production forces

economic and geographical location (for example, proximity or direct location on trade sea routes)

availability of natural resources

socio-economic conditions (demand in the international market for goods such as coffee, sugar allows tropical countries to specialize in their production in MRI)

The indicator of exports and imports of goods and services reflects the degree of a country's participation in MRI.

Economically developed countries of Western Europe, America and Japan conduct trade with each other, the share of which is large in world trade (70%). Trade in products of such industries as mechanical engineering, chemical industry, manufacturing industry, etc.

Developing countries are not lagging behind - their share in international trade is growing. This is due to the fact that raw materials are exported from developing countries, and machinery and food are imported.

But due to the rapid growth of prices for equipment and machinery and not such a rapid rise in prices for raw materials, many developing countries remain only suppliers of raw materials for industrial countries.

The highest stage of the international division of labor is international economic integration ("the process of developing deep and stable relationships between groups of countries, based on their implementation and coordinated interstate economy and policy")

Among such economic groupings, the largest are: the EU (European Union), ASEAN (Association of Southeast Asian Nations), OPEC (Organization of Oil Exporting Countries), ALADI (Latin American Integration Association).

A striking example of the international division of labor is the production of Mercedes-Benz. This company has assembly firms in many countries of the world (mainly Latin America and Southeast Asia).

Full cycle enterprises often appear abroad. For example, in Brazil, cars are supplied to the South American market, from where to the US market. In France, the system is similar - they produce "Mercedes" corresponding to the tastes of Europeans.

To assemble a car in Germany, you need parts produced in other countries of the world. Heating and air conditioning units are supplied from Japan and France, air ducts from Italy, radios from Japan, printed circuit boards from Malaysia and the Philippines. It is also a vivid example of the formation of partner companies, and Mercedes-Benz has more than 4,000 of them all over the world.

Chapter III. The role of developed and developing countries in the world economy

Having considered in detail the features of key concepts (developed countries, developing countries, the world economy, the world division of labor), one can begin to identify the role of developed and developing countries in the world economy.

Each of the groups of countries has its own position in the economy.

Moreover, each country is engaged in the production of one or another product.

In the world economy, three groups can be distinguished: agriculture, industry, and the service sector.

For example, in Japan, which belongs to developed countries, MRI specializes in mechanical engineering, electronics and robotics, while exporting its products to the USA, South Korea, Hong Kong, etc.

Foodstuffs, fossil fuels and raw materials are imported to Japan.

The specialization of this country is in the industrial field.

Consider another area - agriculture.

"Mongolia is the leader in the area of all agricultural land, India is in the lead in the area of irrigated land." (China is slightly behind).

Many countries specialize in the service sector. It includes general household, business, social and personal services. This area is the most dynamically developing one. The share of the service sector in GDP is growing in all countries.

"The leading positions in the world export of services are occupied by the USA, Great Britain, Germany, Japan, France, Spain, Italy."

These are all developed countries.

Based on the above, we can conclude that developing countries specialize mainly in the agricultural sector, because have a large number of suitable territories and conditions; developed countries are leading in the industrial and service sectors.

Developed countries have scientific and technological potential, therefore, cities of science are often created in them (technopolises, for example, Silicon Valley in the United States). Due to scientific and technological progress, developed countries need highly qualified workers. These countries move the initial stages of industrial production to developing countries (countries of the Third World) in order to save money.

In the event that a country has sufficient reserves of certain resources, it can export this product to other countries. An example is developing countries - oil exporting countries (Qatar, Bahrain, Kuwait, United Arab Emirates, Saudi Arabia).

Cooperation between developed and developing countries is beneficial for both parties, because each country specializes in MRI in a particular industry.

The state of affairs in the world will only improve if the developing countries continue to specialize in agriculture, the conditions are conducive to the development of this industry, and the developed countries will occupy a leading position in industry and services.

Conclusion

The main goal was to identify the role of developed and developing countries in the world economy.

The world economy is a complex system that includes a set of national economies of the countries of the world (connected by political and economic relations), which has developed historically. The modern world economy is a complex system that is permeated with capital flows and migration flows of people.

Nowadays, countries occupy a confident leading position in the production of certain products, and the country is engaged in the production of a product that allows it to produce a geographic location (that is, the availability of resources and conditions, and their availability allows you to reduce production costs).

The basis of the world economic system is the world division of labor, participation in which allows you to obtain economic benefits.

The system of the world economy is influenced by such factors as the level of development of production forces, economic and geographical location, availability of natural resources, socio-economic conditions. The degree of participation of a country in MRI reflects the indicator of exports and imports of goods and services.

The system of the world economy has developed historically, and since many countries are former colonies, their economies are of a more closed type and they cannot occupy a leading position in production. Developed countries are the opposite. They are the leaders of world production.

Developed countries provide industrial production and the sale of services in the world economy. Developing countries provide agricultural production because they have more suitable territories and conditions for the development of this sector. Developed countries can use developing countries to build early stage enterprises. Such a move allows developed countries to save a lot of money on production (since less money is required to pay for labor), and provides people in developing countries with the opportunity to earn money.

The specificity of the modern world economy is the high economic interaction between countries, which leads to the creation of economic groupings, within which the exchange or export of goods takes place on more favorable and facilitated conditions. The international division of labor is objective, because it arises and develops in connection with certain factors of production. MRI enables countries to reap economic benefits (reduced unit costs). The countries participating in the world division of labor receive economic benefits in the form of profits, because they use favorable natural and climatic conditions and combine the factors of production. In this regard, developed and developing countries have a chance to acquire scientific, technical, informational and competitive advantages in the process of material and technical development. To maintain a balance in the world, all countries should participate in MRI, since it will be beneficial for everyone and will ensure the development of the economy of both developed and developing countries.

List of used literature

1. The impact of cooperatives on the world economy // # "justify">. What are the benefits of the international division of labor // # "justify">. The geography of the world economy: A textbook for students of higher educational institutions studying in the direction 021000 - M .: Travel Media International, 2012. - 352 p.

A.P. Kuznetsov Geography population and economy of the world. Methodical manual - M .: Bustard, 1999. - 96 p.

World economy and its structure. Lecture // # "justify">. Pisareva M.P. World economy: lecture notes // # "justify">. Rybalkin V.E., Shcherbinin Yu.A. International economic relations, 6th ed. - M .: UNITI, 2006

N. V. Kaledin, V. V. Yatmanova Political and economic geography of the world. Part 2. Geography of the World Economy: Textbook. - SPb., 2006

Developing countries in the world economy // # "justify">. Developing countries in the global economy. Information business portal // # "justify">. Developed countries in the world economy // # "justify">. Kholina V.N., Naumov A.S., Rodionova I.A. Socio-economic geography of the world: a reference manual (maps, diagrams, graphs, tables) - 5th edition - M .: Bustard 2009 .-- 72 p.

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14. International organizations and groups // https://www.cia.gov/library/publications/the-world-factbook/appendix/appendix-b.html

Each of the groups of countries has its own position in the economy.

Moreover, each country is engaged in the production of one or another product.

In the world economy, three groups can be distinguished: agriculture, industry, and the service sector.

For example, in Japan, which belongs to developed countries, MRI specializes in mechanical engineering, electronics and robotics, while exporting its products to the USA, South Korea, Hong Kong, etc.

Foodstuffs, fossil fuels and raw materials are imported to Japan.

The specialization of this country is in the industrial field.

Consider another area - agriculture.

“Mongolia is the leader in terms of the area of all agricultural land, India is the leader in irrigated land” Kholina V.N., Naumov A.S., Rodionova I.A. Socio-economic geography of the world: a reference manual (maps, diagrams, graphs, tables) - 5th edition - M .: Bustard 2009. - 72 s (China lags slightly behind).

Mongolia, India and China are both developing countries. The share of agriculture in their GDP is the largest.

"The leading positions in the world export of services are occupied by the USA, Great Britain, Germany, Japan, France, Spain, Italy." Kholina V.N., Naumov A.S., Rodionova I.A. Socio-economic geography of the world: a reference manual (maps, diagrams, graphs, tables) - 5th edition - M .: Bustard 2009 .-- 72 p.

These are all developed countries.

Cooperation between developed and developing countries is beneficial for both parties, because each country specializes in MRI in a particular industry.

The state of affairs in the world will only improve if the developing countries continue to specialize in agriculture, the conditions in which are conducive to the development of this industry, and the developed countries will occupy a leading position in industry and services.

The group of developing countries (SD) at the beginning of the XXI century includes 125 states that gained political independence in both the XIX and XX centuries. They are home to 77.9% of the world's population. But their share in the production of the world product is only 37%, and in world exports - 20%. "

Previously, there were more such countries. But recently, four countries from the group of developing countries have managed to move to the group of developed countries. We are talking about South Korea, Taiwan, Hong Kong and Singapore.

Among RS there are oil exporters: Saudi Arabia, Kuwait, Oman, OAI, Qatar. They have a relatively high per capita income, over 6 thousand dollars a year, but they are not classified as industrial countries due to the underdevelopment of the domestic market.

The rest of the countries have middle and low per capita incomes (including 58 countries with a per capita income of $ 1200 tons and 39 countries with a per capita income of $ 270 tons). These countries belong to the pre-industrial type of development. The pre-industrial economic system is characterized by the use of the vital forces of humans and animals as the main source of energy, the absence of mass production, the existence of a ruling class due to land ownership, non-economic compulsion to work, and the absence of commodity relations. The preindustrial world is mostly mining, not manufacturing.

The economies of developing countries are characterized by the following economic characteristics:

· The predominance of agricultural production and mining;

· Backward technical base;

· Multi-structured economy;

· Low professionalism of the population;

· Weakness and acute insufficiency of domestic capital;

· Low incomes of the population - hence, low savings and small capacity of the domestic market;

· Low level of investment as a result of a deficit of savings;

· High level of unemployment as a result of weak production development;

· Undeveloped market infrastructure.

Of the non-economic factors, social aspects should be noted that create serious difficulties in launching the mechanism of economic growth:

· High population growth, which absorbs the positive effects of economic growth;

· Lack of market mentality among the population;

· Tribal discord, which prevents the unity of the country, which is necessary for the formation of a single market space;

· A high level of crime, bribery and corruption, which steals an already small amount of the state budget.

The economic mechanism of developing countries can be called a model of the economy of poverty, which is characterized by low incomes and at the same time weak opportunities for economic growth,

Foreign economic relations play an important role in determining the position of developing countries in the world economy. From the development profiles not only the relationship with other subsystems, but also the degree of impact of the latter on the domestic market.

The central place in the segment of foreign economic relations of developing countries belongs to foreign trade. It developed unevenly. In the last decade until the mid-80s. the growth rate of merchandise exports lagged behind the corresponding indicators of industrialized countries. From the second half of the 80s. the rate of export of goods from developing countries increased significantly, which indicated the deepening of the industrialization processes in the NIS and the efforts of the debtor countries to increase foreign exchange earnings to reduce the debt burden.

Expanding the export of manufacturing products from developing countries continues to depend to a large extent on the endowment of labor and natural resources. Capital-intensive products play a relatively small role in export expansion, and are mainly concentrated in NIS. The increase in industrial potential has strengthened the position of the Third World countries in the markets for machine-building products - machine tools, cars, ships, ferrous metals, and also garments. Their progress is especially significant in the export of electronic products. In the late 90s, the share of developing countries in world exports for this item rose to 35%, including consumer electronics up to 38%. The main place in the export of processed goods was taken by four Far Eastern countries and territories.

The most significant change in world imports was the decrease in the share of the considered countries in the purchase of cars and vehicles due to a decrease in the renewal of fixed capital in a number of countries, especially in Latin America and Tropical Africa. Developing countries account for only 13-14% of world imports of instrumentation, industrial equipment and 15.6% of general electronic equipment. The low share of high-tech equipment in world consumption indicates the underdevelopment of industrial automation in this subsystem of the world economy.

The industrial revolution taking place in developing countries coincides in time with the scientific and technological revolution. Due to the backwardness of their own scientific and technical base, this inevitably necessitates their widespread use of the scientific and technical potential of Western countries. There has been a relative decline in technology inflows from 13.3% in the early 1970s to 5.1% in the late 1990s. The overall decline in technology flows to developing countries is partly attributable to declining flows to Africa and Latin America due to the fragile macroeconomic environment, which was exacerbated by declining capital imports, increased capital outflows and declining export earnings. The four NISs in Asia were an exception to the noted trend of reducing the movement of technologies. The inflow of technology continued to large developing countries - Argentina, Brazil, China, Indonesia and Mexico, both through subsidiaries and licensing deals of state associations.

The most important feature of the movement of technologies is the increase in its share attributable to the intra-firm trade of foreign TNCs. The import of technologies, which stimulates economic growth, requires not only the necessary financial resources, but also a trained labor force, the ability to use imported technology. In this regard, the capabilities of most developing countries are limited.

The development of society in economic terms is a complex and multifaceted process that includes serious structural changes in the economic situation of countries and reflects an improvement in the quality of life of people.

It exists in the world economy, according to which developed countries (Sweden, Japan, USA, France, Germany, etc.), developing countries in the world economy (India, Brazil, etc.) and stages (states of Central and Eastern Europe, former republics of the Union , Vietnam, China, Mongolia, etc.). Data in the world economy are characterized by general parameters and patterns of development.

The economic development of individual countries is rather difficult to measure; it does not proceed in a straight line, along one line. It is characterized by unevenness, alternation of periods of recessions and growth, qualitative changes and quantitative shifts, positive and negative trends.

The features of their historical development affect the appearance of different countries. For example, the peculiarity of the development of the countries of Latin America and Africa is their diversity. It is she who explains the slow change due to which there was a stratification of one economic and social structures on others, new on old.

The developing countries in the world economy today differ from the developed ones by the backwardness of their condition in the economic and social aspects. Their underdevelopment reflects the state of the economy, characterized by a low level of industrial development of economic relations.

This is determined by the indicators of the size of the GDP structure itself, the level of development of science, the state of technology, the quality and productivity of labor, etc.

Developing countries in the world economy are characterized by two aspects: general historical (which is manifested in the lag of one type of social development from others) and modern (demonstrates a low level of development of countries at the current stage).

Developing countries in the world economy have common specific problems of the economy and social development, for the solution of which special approaches are needed, different from those used in highly industrialized countries.

Developing countries in the world economy have specific features in foreign economic relations. Due to the low level of production and agrarian and raw material specialization, these countries are oriented towards the industrial states of the West. Hence the relationship of economic subordination in relation to the latter. Such relations are characteristic of all kinds of ties that are established and supported by developing countries with those developed in the economic, political or ideological sphere. The degree of subordination (dependence) changes with changes in the state of the international economy and the characteristics of the socio-economic development of these countries.

Developing countries, in fact, differ from the developed industrial and social structure of their entire society. They, as a rule, have not yet formed a strong and stable civil society and a strong desire to retain the principles of the communal order.

The social structure of these countries was formed in the system of different civilizations and differs in socio-cultural content.

Developing countries today occupy a rather modest place in world production. They account for only about 18% of total world GDP and about 13.6% of world industrial production. Most of these countries are rich in human and natural resources.

According to the level of per capita GNP, developing countries are divided into countries with high (Kuwait, Saudi Arabia, UAE, Hong Kong, Singapore), middle (Africa) and low income.

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