Countries’ Economic Growth Strategies in the Context of Global Challenges of World Economy Development
Doctor of Economic Sciences
Donetsk National University named after Vasily Stus, Vinnitsa
Taranych А. V. (2020). Countries’ Economic Growth Strategies in the Context of Global Challenges of World Economy Development. Visnyk ekonomichnoi nauky Ukrainy, 1 (38), рр. 52-57. doi: https://doi.org/10.37405/1729-7206.2020.1(38).52-57
The prerequisites for the development of the world economy were considered, taking into account the global problems of our time, which create obstacles to the development of countries. The economic obstacles are the need for simultaneous financing of public debt and innovative development. A review of the neoclassical, Keynesian, innovative and institutionalist theories of economic growth of countries are carried out, a comparative description of the concepts of zero, sustainable, noosphere, innovative and inclusive economic growth are provided.
It was determined that the application of various approaches to the results of economic growth of countries is important in the context of political and economic shifts, when government policy forms the expected results in the main directions: economic, innovative, social, environmental. It should ensure the transition for all countries to the industrial and post-industrial stages of development, with the formation of a post-industrial society without gap between the rich and poor.
The aim of the work is to review the theoretical and methodological provisions on the development of economic growth strategies of countries with transitive and developed economies and their application, considering global challenges for the development of the world economy.
It was determined that the development of countries’ economic growth strategies requires a balanced approach in terms of expected results and available resources. Countries with different levels of economic development require different strategies, but with an increase in the level of development of countries, the intensity of strategies decreases, the emphasis shifts from the development of industry to increasing the level of employment and the quality of life of the population, the development of civil society, social and environmental responsibility.
The search for and construction of effective methods for the interaction of government structures with the corporate sector of the economy should be an urgent challenge to a market economy in order to direct the efforts of big business to address issues of the countries’ socio-environmental development through dialogue and public-private partnership.
The evolution of countries’ growth strategies was based on economic, environmental, social, innovative and technological components that created a positive effect on the development of countries. The practice of their application by different countries has shown that at different stages of development, each component creates the desired effect, when countries choose different options as transitional, and proceed to the development of an inclusive growth strategy. For the developed countries, the strategy of inclusive growth is complementary, resulting in nature strengthening of the basic strategy (for the EU member-countries) of sustainable or innovative growth (for the USA, India, China).
The national inclusive growth strategy should be based on the basic principles of parity of economic opportunities for market entities to access resources and markets; equality in political, legislative, antitrust, tax policy; on the implementation of targeted government policies on the labor market (decent work, productive employment, quality of life of the population) and the interaction between business, government, trade unions, employees and the society regarding the uniform distribution of national income and narrowing the gaps between the rich and poor.
It was determined that an inclusive economy can be compared with the concept of public-private partnership, with the difference that the second is aimed at conducting dialogue and collaboration in social projects of the corporate sectors of the economy, and the first provides direct involvement of wide population categories in social initiatives.
For the transitive economy countries, such as Ukraine, the formation of inclusive-type economic growth strategies should occur after solving the tasks of building a self-sufficient industrial-agricultural economy that will have the character of post-industrial development.
countries’ economic growth strategies, world economy global challenges, zero growth, sustainable growth, noosphere growth, innovative growth, inclusive growth, government policy.
- Klark Dzh.B. (1992). Raspredeleniye bogatstva [Distribution of wealth]. Moscow, Ekonomika [in Russian].
- Marshall A. (1993). Printsipy ekonomicheskoy nauki [Principles of economic science]. Moscow, Progress. Retrieved from http://www.library.fa.ru/files/Marshall.pdf (accessed 25 March 2020) [in Russian]
- Fridman M. (2017). Kapitalizm i svoboda [Capitalism and freedom]. Moscow, Nash Format [in Russian].
- Leont’yev V., Cheneri V., Klark G. (1958). Issledovaniye struktury amerikanskoy eko5.Keyns Dzh. M. (2007). Obshchaya teoriya zanyatosti, protsenta i deneg. Izbrannoye [General theory of employment, interest and money. Favorites]. Moscow, Eksmo [in Russian].
- Veblen T. (1984). Teoriya prazdno klassa [The Theory of Leisure Class]. Moscow: Progress. Retrieved from https://drive.google.com/file/d/0B94jiYiyxxDHUW9QeWxDVk9LMDA/view (accessed 25 March 2020) [in Russian].
- Kommons Dzh. R. (2007). Institutsional’naya ekonomika [Institutional Economics]. Economic Bulletin of the RSU, vol. 5, no. 4, pp. 59-70.
- Shumpeter J. (2008). Teoriya ekonomicheskogo razvitiya [The Theory of Economic Development]. Moscow, Eksmo [in Russian].
- European Commission. (2010), Stratehiya rozvytku Yevropy do 2020 roku «Stratehiya rozumnoho, stiykoho ta vsebichnoho zrostannya» [COMMUNICATION FROM THE COMMISSION EUROPE 2020 A strategy for smart, sustainable and inclusive growth]. Retrieved from http://aei.pitt.edu/42633/1/com2010_2020en01_straetry.pdf (accessed 25 March 2020).
Full Text .pdf