The stable state of the state depends on its economic development. This process is multifaceted and covers many systems. Each country creates its own model of the economy, which is based on the improvement of the financial system. Despite their own development, these models are similar and have common patterns.
The concept
Economic development is a positive sign of the level of the economy in the context of expanded production and the gradual improvement of quality, productive forces and various spheres of society.
In addition, economic development is the formation of relations in society. It occurs in the well-established conditions of the system of economy and the process in which material goods are distributed.
For the first time, they started talking about economic development in 1911. Schumpeter wrote the book "Theory of Economic Development", where in addition to the main provisions and classifications, he pointed out the discrepancy between the concepts of "development" and "economic growth". Economic growth is aimed at raising quantitative indicators, but development indicates a positive movement in the change in quality, innovation and production.
Russia is developing
The economic development of Russia should be considered separately from the whole world. It so happened that this model remained from the time of the USSR, and the economy is developing in the post-communist direction. Despite the similarity of problems with other countries, Russia has not left socialism, and therefore it is solving crises in a different direction.
The economic development of Russia began in 1999. This happened for several reasons:
- Overcoming the 1998 crisis and improving the oil market.
- Effective reforms of the Russian government.
Also, the development of the financial sector was greatly influenced by globalization. This is a process in which world economic relations occur with the economic dependence of countries. Globalization is now affecting the economies of many other countries. The growth in trade volumes and financial flows is far ahead of material production.
In the economic development of Russia, one can easily find similarities with the systems of other countries: nature, purpose and content. The Soviet financial system, which the Russian government uses, is now considered the most powerful mechanism that accumulates capital and separates labor from property.
Among other things, innovation, a high level of manufacturability of production, creation of competitive products, as well as effective cooperation in the world market play a decisive role.
Social component
Socio-economic development implies a certain system, which includes the dynamic development of production processes, exchanges, distributions and consumption of material and other goods.
Due to the fact that the socio-economic system is a complex and multifunctional scheme, it contains many properties, considering which, you can characterize and model it. Social and economic development includes:
- changes in public consciousness;
- change of traditions and habits;
- development of production and income;
- changing the structure of society from the point of view of institutions, society and administrations.
The process of this development has the following tasks:
- Improving income indicators, caring for public health, as well as quality education.
- The formation of conditions under which the level of self-esteem of people increases due to the creation of certain systems (social, economic, political, etc.).
- Protection of economic freedom of citizens.
Ministry
The Ministry of Economic Development is a state body that is responsible for the development, implementation and monitoring of economic policies in the country, and also ensures the stability of trade with other powers through representative offices.
In Russia, the Ministry of Economic Development is the federal department that is responsible for carrying out state policy and the creation of relevant legislation. In addition, he is engaged in the forecasting of socio-economic development, the functioning of entrepreneurial activity, small business, as well as legal entities and entrepreneurs.
Features of the European world
Each state in the world is developing its own characteristics of economic development. The countries of the European Union have similar economic systems, and therefore they are referred to the group of states with the same financial system. Each of the powers of Europe has a high indicator of economic development.
The most powerful countries in this area are Germany, France, Italy and the United Kingdom. In the European region, it is these countries that play the main role in shaping the direction of economic, social and political development.
The remaining states belong to a small group. But they also have a fairly stable and strong economy. They are responsible for narrow typification of production and the generation of high-quality products.
Developed society
Specialists-economists and political scientists every hour closely monitor the dynamics of economic progress in countries. The quality of life in them is also affected by constructive changes in national money circulation systems.
The economic development of society is a process that has many details and covers all areas of the economy. Various figures can be indicators of this process, the main ones are GDP / ND.
Due to the fact that the process of economic development of society is complex and multifaceted, the level of the economy is measured through economic growth and its data, and more specifically through changes in production volumes.
The development of the economy of society is not stable. Moreover, this phenomenon not only indicates a rise in indicators, but also sometimes has an underestimated degree. In the 90s. in the CIS countries there was a sharp decline in economic development, associated with a low level of production, degradation of the structure of the economy, as well as an underestimated standard of living.
Country Level
As mentioned earlier, due to the fact that progress has expanded indicators, it is difficult to determine the level of economic development with just one name. This is also due to the fact that the geographical and historical criteria of each state are different, and immediately there is no similarity in the combination of material and financial resources.
So, in addition to indicators of GDP / ND, attention should be paid to the structure of the economy and the level of quality of life. We will consider each of them in more detail.
GDP / ND - these are the very leading values in determining the level of economic development. For example, ND in terms of purchasing power in a small European country, Luxembourg is more than 51 thousand dollars. For comparison, in the US this figure is 36 thousand. Although it is obvious that the economic potential of the first and second countries is incomparable. In Russia, ND is almost 8 thousand dollars, and this indicates that the country does not reach the developed, but it can take an honorable place in the developing group.
It should be noted that even if the GDP / ND indicators in one country are higher than in another, this does not prove that the first power is more developed. Therefore, other meanings of economic development are also taken for definition.Some states have not yet been able to acquire an economic structure that meets modern requirements. According to these indicators, Russia could be attributed to developed countries rather than developing countries.
But the quality of life has a multi-valued definition. This includes life expectancy, educational features, immunity to diseases, health care functions, personal protection, the environment, etc. Some values can be combined using the human development index.
Development systems
The development of economic systems has gone through three stages. Before we consider them, we should pay attention to the concept itself. Economic systems are synonymous with the economic structure of society. In its own way, it is a combination of some elements that are interconnected and represent a certain integrity.
So, all existing economic systems, one way or another, have gone through three stages of development. The first is a pre-industrial society. At this time, the main income was subsistence production based on agriculture. Due to the low indicators of the evolution of society, a person had to relate himself to the biological cycle of nature and completely depend on it.
This stage is characterized by the fact that the form of economy did not have a social division of labor, was closed. Pre-industrial society was content with its own resources and their use. At that time, we could not talk about technical equipment, since the development of this system was at a low level.
The second step was industrial society. After the industrial revolution, production structures led to the replacement of productive forces with social forces. Factory production was formed, and the nature of labor was changing. The city’s priority over the village is immediately turned over. The general nature of commodity-money processes.
As a result of the scientific and technological revolution, changes in the economic system took place, and it entered the third stage - post-industrial society. Science is becoming a productive force, and in the wake of the general revolution, a post-industrial economy is emerging. The main tool for development is knowledge and information. Thus ended the stages of economic development.
Strategy
The strategy of economic development is the scheme by which the long-term management of socio-economic processes in the economy system takes place. The economic strategy is developed by the state for several years (up to 15).
It defines the development goals of the financial sector in the context of the national economy, improving the performance of individual industries and regions. At the same time, the relevant authorities find the most effective ways to achieve their goals using certain methods and means.
Region
The economic development of the region is a process in which the regional authorities fulfill the intended economic goals in a crisis and other changes. The main goal of this process is to improve the quality of life of the population. At the same time, the tasks set by the authority are similar to those that shape the economic development of the state in a crisis situation. First of all, this is an increase in average income indicators, quality of education nutrition and protecting the health and life of a citizen.
In this concept, the term sustainable development of the region exists. In this case, one can observe stable positive indicators indicating changes, but leaving the system balanced.
Regional Economic Development Management
The main tool for managing the economic development of the region is strategic planning. This term means strategic management and the method of modern management.In some situations, this option is not only desirable and effective, but also a necessary control method.
Strategic management can be used in industry, agriculture, construction and other industries. This method will solve the main question: how to overcome the crisis and improve the quality of life.
