Economic growth. Extensive and intensive ways

 
To facilitate structural change, China is developing its own system of education, training of students abroad (especially in the U.S. and Japan), encourages the import of technologies to develop such advanced sectors as software development, new materials, telecommunications industry, biotechnology, and healthcare. In China, more than 384 million Internet users, it also leads the world in the number of users of mobile telephone services (487.3 million users in April 2007). In the region north of Beijing Haidian created the Chinese "Silicon Valley". Intensification of production and brings spin-offs: the level of hidden unemployment in rural areas is about twice the official figures (4.6%). China tacitly encourages emigration.  
¹³ 
China leads the world in coal mining, iron, manganese, lead and zinc, antimony and tungsten ores, and wood is the world's largest producer of coke, pig iron, steel and steel pipes, aluminum, zinc, tin, nickel, televisions, radios and mobile phones, washing machines and sewing machines, bicycles, motorcycles, watches and cameras, fertilizers, cotton and silk textiles, cement, footwear, meat, wheat, rice, sorghum, potato, cotton, apples, tobacco, vegetables, silkworm cocoons, has the world's biggest poultry, pigs, sheep, goats, horses and yaks, as well as the leader in fishing. In addition, China is one of three major world automakers (7,200,000 in 2006) after Japan and the U.S.. In China is oil, gas, rare earth metals (molybdenum, vanadium, antimony), uranium.

Japan ranks second in the world (after U.S.) in economic development, with GDP of about 4.5 trillion dollars and third place in the world after U.S. and Chinese purchasing power parity. GDP growth within one business hours the country held 18 th place in the world according to 2006. ¹⁴ 
 
Banking, insurance, real estate, retail, transportation and telecommunications are the main industries of the Japanese economy. Japan has a large manufacturing capacity and is home to some of the largest and most advanced from a technical point of view of manufacturers of cars, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles and foods. Construction has long been one of the largest branches of Japanese industry, thanks to multibillion-dollar government contracts in the private sector.  
 
In Japan, there is a high economic freedom, working closely with the producers of government for economic growth, the emphasis on science and technology, as well as strong work ethic. All this contributes to the economic development of Japan. The Japanese economy is characterized by the association of manufacturers, suppliers, distribyutorv and banks close group called "keyretsu and relatively weak international competition in domestic markets. Also there are many more social than productive arrangements such as guarantees lifelong employment in large corporations. Not so long ago approved a reform of Japanese politics, allowing companies to depart from certain rules in an attempt to increase profits.  
 
Japan - a country dominated by private enterprise and low taxes. The total amount of taxes is lower than in other major western countries, in 2007 it amounted to 26,4% of GDP. Only a few Japanese employers must pay income taxes, VAT is very low and amounts to 5%, while corporate taxes are high.  
 
Comprehensive growth of the real economy from the 1960 to 1980 called "Japanese economic miracle": an average of 10% per year in 1960, 5% in 1970 and 4% in 1980. Growth slowed significantly in the 90 years, mainly due to the effects of excessive investment in the late 80's and domestic policies aimed at ousting the excess of speculative capital from the stock market and real estate market. Government attempts to revive economic growth met with little success, and in 2000 and 2001 were even more inhibited because of the slowing global economy. Nevertheless, after 2005 the economy showed sure signs of recovery. GDP growth for the year amounted to 2,8%, while for the fourth quarter on an annualized basis - 5.5%, surpassing the growth rates of U.S. and European Union countries over the same period. ¹⁵ 
Since only 15% of Japanese land suitable for agricultural processing system is used terraced cultivation on small areas. The result is one of the world's highest yields per unit area for large agricultural subsidies and protective duties. Japan imports about 50% of grain and forage crops, except rice, and most of the consumption of meat. In fishing, Japan ranked second after China in terms of tonnage of fish caught. Japan has one of the world's largest fishing fleets, fish catch is about 15% of the world. Japan imports from other countries, almost all the oil and food prices.  
 
Transport infrastructure in Japan is extremely well developed. For 2004, it consisted of 1,177,278 km asphalted roads, 173 airports and 23,577 kilometers of railways. Private firms engaged in building toll roads, a lot of competitors, and railroad companies are fighting for popularity on the regional and local markets. Among them stand out 7 major companies: JR («Japan Railview Group»), Kintetsu Corporation («Kintetsu Corporation»), Seibu Railway («Seibu Railview"), and Keio Corporation («Keio Corporation). Among the largest aviation companies include All Nippon Airways (ANA) and Japan Airlines (JAL), and the country's largest ports are Yokohama and Nagoya. Energy in the country is produced from crude oil, natural gas and coal. Nuclear power is one third of electricity production and in the plans of Japanese - double the figures in the coming decades.

¹⁶

In modern economics, the example of China is not quite typical. China's economy is an example of when one state simultaneously coexist in two different two totally different paths of economic development. 
Japan is also an example of the state, which in time changed its course in economics and has found its place in the world, despite the lack of territory and natural resources.

 

 

 

 

 

 

      2.3- Example of economic development of Kazakhstan

Indicators  
 
    For 2003  
          the average annual inflation rate was 6.4%.  
          net international reserves had increased to 4.9 billion dollars.  
    2007  
          GDP - $ 104.3 
          Gross external debt - 74 014 100 000 U.S. $  
    2008  
          Gross external debt - 96 914 300 000 U.S. dollars (01.01.2008)  
    2008  
          Total gross external debt - 96 914 300 000 USD (01/01/2008)  
          Summer 2008 - The peak inflation rate 20.1%  
          GDP - $ 135.0 billion or 133.726 billion dollars 
    2009  
          Total gross external debt - 108 130 400 000 U.S. dollars (31.12.2008)  
          Total gross external debt - 111 326 300 000 USD (1 October 2009) 
          Gross Domestic Product of Kazakhstan $ 133.726 billion, the data gave the International Monetary Fund in April 2008 $ 11,000 per capita, 54 th in the world (2007). GDP in 2009 totaled 17,008 billion tenge, or approximately $ 115 billion ¹⁷

 

The Republic of Kazakhstan is rich in mineral resources, vast agricultural lands, skilled personnel, significant industrial potential. Kazakhstan today has a functioning market economy. 
 
Ten years ago, GDP per capita stood at just over seven hundred dollars, then at the end of 2004 it had reached two thousand seven hundred dollars in 2005 per capita GDP is projected to be about three thousand dollars. 
 
By 2010, Kazakhstan could reach the per capita GDP more than 5800 dollars, that is, the current level of such countries as the Czech Republic, Hungary, Poland, Malaysia, and in 2015 - about 9,000 U.S. dollars.  
Structure of foreign direct investment between countries. Kazakhstan's economy 
 
Today, the main source of economic growth is the exploitation of raw potential. Compared with 1985 the volume of hydrocarbon production increased by 225 percent, while worldwide production rose less than 1.3 times. 
 
In the country's economy to attract about 30 billion U.S. dollars of foreign direct investment. Investors know that today Kazakhstan - a reliable partner which guarantees stability and ensuring cooperation. 
 
Kazakhstan's financial system is recognized as one of the most progressive, and this is confirmed by leading international experts. Kazakhstan was the first among the CIS countries has created a national fund to ensure stable social and economic development, reduce dependence on negative external factors. 
 
Today, the National Endowment accumulated 5 billion 300 million dollars. Foreign exchange reserves of the country in view of the National Fund as a whole exceeded 14 billion U.S. dollars. 
 
Crude oil production. Kazakhstan's economy 
 
Kazakhstan has consistently pursued an open foreign trade policy. For example, in 2004 the volume of foreign trade approached $ 33 billion with a positive balance of over $ 7 billion and grew by more than 3 times compared with 1994. 
 
Significantly diversified geography of foreign trade, which in the early years of independence, mainly comprised of the CIS. 
 
Crude oil production. Kazakhstan's economy 
 
In 2004, the structure of trade turnover of Kazakhstan in the first place came the EU Member States, Russia, Switzerland and China.¹⁸

 
Currently, Kazakhstan, the World Bank classification, belongs to a group of middle-income countries. If you compare the key indicators of quality of life over the past 10 years, the average cash income of Kazakhstan grew by 5 times, almost 6 times the average monthly salary has increased, up to 25 times increased the minimum wage, the average pension increased by 4.6 times, deposits of persons in the banks and the volume of deposits per capita rose in 35 and 37 times respectively. 
¹⁹ 
Government spending on a guaranteed volume of medical assistance this year alone grew by more than 1.7 times compared with 2003. 
 
Sustained economic growth in Kazakhstan will greatly expand the social orientation of public spending, which indicates the strength of stock made the country's economy.

                                   

                                         Conclusion

 

The first topic «Essence of economic growth and ways of its increasing» were open all the advantages and disadvantages of extensive and intensive development path. 
 
In the first part of this topic, we reviewed an extensive way in general, and know what it is, historically, the primary way of development. The same extensive way is most acceptable at the initial stage of economic development, but because this method is strongly depletes natural resources and wealth, then over time all have to move smoothly to a more developed system of economic development. 
 
And such a system is an intense way. In contrast to the extensive way, intense way more productive and less costly, so the limited natural resources. But those are not attention to the disadvantages of Intensive development path is that it does not provide full employment, thereby adversely affecting the social sphere of human activity. 
 
In the third part, the comparative analysis of two development paths, we found that both the development are acceptable to all countries in different time periods.

In the second theme of «Extensive and intensive ways of economic growth in practice», we considered the effectiveness of two different paths of development in practice, the world powers. This analysis helps to understand the real world of coca ways to develop the most justify their use. 
 
Here we have analyzed the economic development of such world powers as the Soviet Union and the United States. Here we followed a fierce battle between them, which is particularly reflected in the Cold War. This war was accompanied not only by the arms race, but also improving the economic system of the Vedas in support of any war should be perfectly fine-tune the system of the economy. 
 
Further, in more recent times we have taken as an example of the economic system of China and Japan. Watching the development of China at the present time, we see that in China there is some stability and extensive way of intensive development path. But Japan totally exceeded all Asian countries in the use of scientific and technical discoveries, that is an integral part of the intensity of the economic system.

 
Finally in the conclusion of the practical part, we gave an example of development of our country of Kazakhstan. Kazakhstan remaining post-Soviet country, is an example of how the country in time of its independence, it is necessary to choose for themselves a new path of development. Then be taken into account the transition from planned to market economies.

Combining all the conclusions of this topic, we can arrive at a conclusion. Any State may choose any path of economic development, but making your selection, it must take into account all trial and error of other countries, the acceptability of a path to the specifics of their state, to calculate all the possible alternatives to development in the future, and finally life is more objective in the final choice of the path its development.

I think it is very important to know the examples of the state. Because, knowing all the aspects, and possible errors in the development of the economy on the example of other countries, we can avoid the negative consequences in shaping their own economic system. That is, we must learn from past experiences and the mistakes of other countries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                    Bibliography

 

Aristakesyan Michael http://www.finam.ru/analysis/newsitem26976/default.asp

Brockhaus F.A. and Efron I.A. «Encyclopedic Dictionary» http://dic.academic.ru/dic.nsf/brokgauz_efron

Brief Dictionary of Economics, Moscow, 1987 http://www.ekoslovar.ru/500.html

Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,

Mankiw, N.G. «Macroeconomics»

Nikolaeva L.A., Black I.P. «Economic theory»

Sharayev U.V. «Theory of Economic Growth»

Tazhutovym A. http://www.inosmikz.org/?p=923

Vvedensky B.A. «Soviet Encyclopedia»

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

http://www.stat.kz/news/Pages/n1_20_04_2010.aspx

http://ru.government.kz/site/news/2004/01/news011

 

 

 

 

 

 

 

Ministry of Education and  science  of the Republic of Kazakhstan

                               University of International Business

                                                                                          Department of Management

 

 

                                      Coursework

 

    Theme: Economic growth. Extensive and intensive ways.

 

 

 

 

 

 

 

 

 

                                                     Prepared by: Azhigozhayev Bauyrzhan, group № 121

                                                     Supervisor: Amanniyazova Bakhtygul Kurbanovna

 

 

 

 

                                  Almaty 2010

¹ Nikolaeva L.A., Black I.P. «Economic theory»

² Sharayev U.V. «Theory of Economic Growth»

³ Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,

⁴ Nikolaeva L.A., Black I.P. «Economic theory»

⁵ Mankiw, N.G. «Macroeconomics»

⁶ Mankiw, N.G. «Macroeconomics»

⁷ Brockhaus F.A. and Efron I.A. «Encyclopedic Dictionary» http://dic.academic.ru/dic.nsf/brokgauz_efron

⁸ Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,

⁹ https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

¹⁰ Brief Dictionary of Economics, Moscow, 1987 http://www.ekoslovar.ru/500.html

¹¹ Vvedensky B.A. «Soviet Encyclopedia»

¹² Brockhaus F.A. and Efron I.A. «Encyclopedic Dictionary» http://dic.academic.ru/dic.nsf/brokgauz_efron

¹³ Mankiw, N.G. «Macroeconomics»

¹⁴ Campbell R. McConnell, Stanley L. Brue, M. "Economics", volume first,

¹⁵ Mankiw, N.G. «Macroeconomics»

¹⁶ Brief Dictionary of Economics, Moscow, 1987 http://www.ekoslovar.ru/500.html

¹⁷ http://ru.government.kz/site/news/2004/01/news011

¹⁸ http://ru.government.kz/site/news/2004/01/news011

¹⁹ http://www.stat.kz/news/Pages/n1_20_04_2010.aspx