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4GLOBALiZATiON AND THE PROBLEM OF STRUCTURAL CHANGES iN THE
NATiONAL ECONOMY
ANAR FAZiL OGLU ABBASOV
Acting Professor of Azerbaijan University of Cooperation, Doctor of Economics, Associate Professor
Summary At the end of the twentieth century, the world economy formulated its own trends. These trends are primarily due to the fact that the world economy is too internationalized. The system of international economic relations, in essence, has led to the over-tightening of national economies, to the establishment of close interaction with each other and at the same time to the deepening of the interdependence of national economies. This trend has both positive and negative consequences, and these results have significantly penetrated the socio-political and social life of the developed countries of the world, as well as the domestic life of developing countries. It should be added that since the end of the twentieth century, systemic transformations in the world have taken a global trend. So, from the point of view of objective necessity, industrial society was able to transfer its place in the world economy to post-industrial society. It is true that this transfer, in one way or another, did not have visible economic and social consequences, but in a hidden aspect it brought along its own destructive tendencies. The development of global societies has deepened socio-economic inequality in the world. In this regard, the articles presented at the conference reflect the study of the problem of structural changes in national economies in the light of the challenges of globalization processes.
Keywords: globalization, global challenges, global threats, national economy, structural changes, state support, agriculture
The changes taking place in the world economy against the background of the influence of globalization processes affect the socio-political and socio-economic life of each country in its own way, almost depending on the level of development. The peculiar cases of inequality formed during the existence of industrial society are deepening further in post-industrial society. The fact is that in the light of the manifestations of both globalization processes and the emerging new society, that is, post-industrial society, developing countries are almost completely reproducing their economic inequality. The harmful effects of this process, of course, will create relevant trends in the economies of developing countries, and in the light of the challenges of globalization in order to prevent these harmful trends, the implementation of the necessary structural changes in the national economy becomes an objective necessity. The challenges of the globalization process are, in fact, the development of the national economy in accordance with the trends taking place in the world economy, new trends in the world economy. As it is known, the globalization process not only deepened the integration relations between national economies, but also brought together unbalanced development trends in the internal and external directions.
Integration relations taking place in the world economy against the background of globalization have led to radical changes in the development of productive forces and production relations in society. As a result of these changes, we can say that both in developed countries and in developing countries, the images and vectors of the new economic model are drawn. In fact, these vectors are more likely to be influenced by the new information world, as well as digital economic relations. The invisible manifestations of these processes are due to the fact that the basis of the economy in developing countries will be areas based on the use of resources, as well as how high the share of raw material sources of natural resources in the structure of the national economy and in the structure of exports. In such conditions, these countries will maintain their outsider positions in the post-industrial society in terms of the level of development. In fact, new trends were formed in the world economy, and the developed world giants are keeping up with these new trends faster and generally retain their dominant positions in economic development.
It is true that the world's advanced giants are eager for the rapid realization of the globalization process, that the "key" to all problems in the world is nothing but globalization. However, specific progressive changes have also been observed in the development of countries that are beyond the general merits of the globalization process, or rather, do not succumb to this process. From this point of view, it is possible to agree with the opinion of academician Ziyad Samadzade that today, as world experience shows, the undeniable truth is that many countries, especially China, South Korea, Japan, Malaysia, which did not fetishize liberalism and took a radical position in reforms with great skill and restraint, became countries that created miracles in the economy, saved themselves [1, s. 42]. The obvious reality and visible priority in the author's ideas is that the new industrial countries of Asia, which are now called Asian lions, have received a fairly high level of economic development and are further strengthening their position in the world market of science-intensive products. All this shows that it is possible to develop the economy by implementing a policy that is relatively far from the negative tendencies of the idea of globalization, and the positive manifestations of this process are clearly manifested in the example of the above countries, including Singapore, South Korea, Malaysia.
However, along with all this, we should note that the process of globalization is almost such a rapid entry into the socio-political, socio-economic and even domestic life of people. Even the cuisines of Asian countries as a whole, which have had their own characteristic character, are quite globalized. The system of already Western European foods, including magdonuses, has also significantly penetrated into Asian cuisine. If we rely on some pessimistic forecasts, it can be noted that even the non-interference continuation of this process will lead to an almost complete alienation of the images of the national cuisine over the next 30 years.
The impact of the globalization process on the national economy is characterized primarily by the specific signs of this process. The globalization process fundamentally reflects the strengthening of interdependence between countries, which ultimately leads to the dependence of the national economy on other countries, including the world economy and connector fluctuations in global markets. Developed communication systems, information technologies, the internet and social platforms and other infrastructures are some of the tools that affect the strengthening of the dependence of the national economy. It is true that the above-mentioned means serve the interests of consumers to one degree or another due to the rapid transmission of information and the development of digital technologies and digital economics, but in essence the above-mentioned means have an important share in strengthening dependence in the national economy.
Along with the above-mentioned factors, the impact of the globalization process on the national economy is realized through transnational companies, which are the driving force of globalization. At the same time, the impact of globalization on national economies is carried out through international organizations, including the WTO, the World Bank and the International Monetary Fund. Among the above-mentioned international organizations, the International Monetary Fund provides for the issuance of debts on fairly strict terms, and all this serves to keep more developing countries in the sphere of influence. The significant role of transnational corporations in the world economy is characterized by their monopoly activity. Transnational companies establish their branches in almost most countries of the world, and this applies to the geography of developing countries. It should be borne in mind that the establishment of transnational corporations and their branches in the geography of these or other countries is carried out primarily in terms of cheap labor and wealth of natural resources and, finally, the transfer of environmental problems to the socioeconomic and Ecological Life of developing countries. Currently, there are more than 400 thousand transnational corporations in the world, of which the volume of private capital of the 100 largest transnational corporations is 1.5 trillion dollars. The size of transnational corporations and the scale of its activities have a direct relationship with the complexity of its structural composition. From the analysis of the 100 largest transnational corporations in the world, it is possible to conclude that the 100 largest transnational corporations have more than 50 branches in more than 500 countries. Also, there is a 7-level hierarchy in the structure of ownership of these transnational corporations, within which holding companies operate Investment Centers. There are about 70 investment centers within
one transnational corporation[2]. At present, more than 70% of foreign investments are under the control of 500 largest transnational corporations. Under the control of transnational corporations, 95% of the pharmaceutical industry, 80% of the chemical industry, 78% of electronics products, 76% of mechanical engineering products are realized. About 60% of transnational corporations are engaged in production activities. 3% of them specialize in the production of agro-industrial products, and 37% - in the provision of services. From research, we can conclude that the dominant position of transnational corporations on the global economic scene dates back to about the 90s of the last century. Thus, transnational corporations began to play an active role in global markets with the help of state structures to which they belong, which allowed them to become full-fledged participants in international interaction[3]. As the scope of the globalization process in society and the world economy expanded, transnational corporations expanded their geography and were even able to intervene in the policy of the state. Transnational corporations significantly influence not only the foreign policy of the state, but also its domestic policy, in other words, they direct both the domestic and foreign policy of the state. This trend, in particular, allows us to note that techniques are a tool in the implementation of the foreign policy of developed countries. Of the Economist scientists who were engaged in the study of the activities of transnational corporations on a global scale, R. According to Gilpin, the goal of transnational corporations established in the United States was to strengthen the country's position in the global arena to a greater extent[4]. The most obvious parallels of this process can be attributed to the obvious interference of US corporations engaged in agricultural activities in the internal political activities of Guatemala. Guatemala is characterized as a country that was the first to pass a law on the nationalization of Agricultural Land of Central America, or rather, on its transfer to the subordination of the state. However, the adoption of this legislative act caused a lot of discontent among the owners of a transnational corporation specializing in agriculture, representing the United States in that country. As a result, the United States carried out a coup d'etat in Guatemala and removed the then president of the country[5]. It should be noted that later similar events took place in Brazil and Chile. The events that took place in Brazil and Chile were related to the implementation of processes against the policies of the countries that touched the economic interests of the IT Corporation, a well-known telephone and Telegraph Corporation of the United States, during which the resignation of Alyende, the popularly elected president of Chile, was achieved and his assassination under the leadership of the Junta[6]. The most important characteristic of the globalization process is closely related to the rapid growth in the volume of trade in the world, as well as ensuring close interrelated integration relations between markets. It must be admitted that the globalization process has affected the level of socio-economic development of the countries of the world in a rather different way. Thus, in a number of countries of the world, including in Asian countries, the process of literal application of such globalization has not occurred. Thus, the necessary state interventions in the globalization process from the new industrial countries of Asia were carried out, as well as measures aimed at stimulating exports, which led to a significant position in the world market of science-intensive products on the example of the new industrial countries of Asia. As a result of all this, the level of income in the industrialized countries of Asia began to approach the level of income of developed countries. At the same time, it can be said that in a certain part of the developing countries, the level of development not only weakened, but significantly lagged behind the developed countries of the world in terms of income level. This trend is especially evident in African countries. Per capita income in Africa has decreased significantly compared to industrialized countries. However, in general, the conclusion is that Western countries, which have developed in the structure of many countries of the world, will export capital and science-intensive industrial products, as well as specialize in food products. In the structure of exports of developing countries, Natural Resources and industry and food products will occupy a dominant position in the structure of imports. In such conditions, globalization will deepen economic inequality between developed countries and developing countries.
From the research carried out, it can be concluded that the trade aspects of globalization trends occurring in the world economy serve to protect the interests of developed countries in essence. It is true that a number of developing countries, including China, India and others from the developing
countries of the 70s of the last century, as well as industrially developed countries of Asia, are also increasing their share in World Trade. In this regard, the share of developing countries in World Trade increased from 71% in the last century to 19% in 1999 to 29%. In the newly industrialized countries of Asia, the economy grew more, while in Africa, as a whole, weak activity was observed. Radical changes are also noticeable in the structure of exports of countries. Exports of manufactured products are growing significantly. The share of primary products of world exports, such as food and raw materials, is often produced by the poorest countries. In the 90s of the last century, developing countries underwent a sharp increase in the flow of private capital. This growth was manifested in the 80s of the last century almost noticeably due to official assistance.
The most important characteristic feature of the globalization process, which is an advantage for developing countries, is the provision of free movement of Labor, and all this manifests itself more clearly, especially in the light of migration processes. Thus, since the beginning of the 90s, due to the fact that the situation in developing countries was not very good, people began to move to developed countries. All this led to the fact that the migrating workforce sent more normal financial resources to their families. It should also be borne in mind that there are also sharp differences between the level of income in developed countries and developing countries. The analysis shows that positive trends in the development of the economy are manifested in a number of countries implementing measures aimed at stimulating exports, including the countries of the former socialist camp of Eastern Europe, including Poland and Hungary. All this is due to the fact that the processes of economic liberalization are carried out more rapidly in these countries, and the activities of new insional institutions are clearly manifested in the economy, which leads to an increase in GDP, an increase in the number of enterprises with foreign investment and an increase in their position in the world market[7]. From the foregoing, it can be concluded that the deepening of the globalization process has exacerbated the struggle at the world level, as well as in a global competitive environment. From the experience of the countries that draw positive conclusions from this process, or rather, objectively react to the lessons of globalization, it can be concluded that the position of that country in the global competitive environment will be further strengthened so that these countries take measures aimed at increasing competitive advantages in accordance with the global competitive environment. Rather, strengthening the global competitive environment requires increasing efforts to keep each country from being left out of this competitive struggle. In this regard, increasing the production of competitive products and strengthening measures aimed at providing services are one of the important conditions in the development of the national economy and ensuring its global competitiveness. It is precisely taking into account the inherent vectors caused by the globalization process that it is important to implement the necessary structural changes in the national economy. The implementation of its structures in the national economy should be carried out in order to draw conclusions from both the advantages of globalization and the harmful tendencies that the globalization process may entail.
Globalization has its own advantages in terms of accelerating the development of the national economy, as well as ensuring the participation of each country as an equal subject in the world market, which can be classified as follows:
- increase competitiveness by deepening specialization and international division of Labor, increasing the scale of production and increasing economic efficiency, as well as ensuring savings in production costs;
- expansion of free trade based on mutual efficiency;
- strengthening competition due to the rapid development of new technologies;
- aggravation of international competition;
- increase labor productivity through the use of intensive technologies;
- acceleration of the processes of attracting large-scale resources.
Along with all this, globalization has its own shortcomings in the world economy and the ability to influence the development of the national economy, which can be classified as:
- increase in the level of transnational crime as a result of deepening the globalization process;
- rising frequency of successive financial crises and rapid reflection of crises from one region to another;
- as a result of deepening the globalization process, limiting the economic independence of states and reducing the possibility of using potential means of economic regulation;
- replacement of national economic policy, or rather, regulatory systems aimed at state regulation of the economy, with a more liberal system of international regulation;
- in the context of globalization, the deepening of differences in the level of social economic development between the countries of the world and the growing lag of developing countries from the level of developed countries[8].
In our opinion, it is impossible to predict in advance the consequences of the current wave of globalization for national economies. Economists believe that the current stage of globalization is the one that lasted from the first half of the 20th century to the beginning of the 21st century, that is, until the present, and this stage led to the emergence of fundamental changes not only in the economy, but also in the field of Science and Technology, Information Technology[9, p. 15-23]. Despite the rapid changes in the economy, including the socio-political and social life of society, it is possible to recognize that the globalization process is mostly benefited by the developed countries of the world, and at the same time, all this under the guise of globalization serves more markets to seize power over intellectual resources. In general, globalization should be considered as the result of measures aimed at greater availability of resources and further expansion of spheres of influence. The harmful tendencies of the globalization process do not particularly affect the social life of the national economies of developing countries. So, in particular, the specific features of the post-industrial society, or rather, the reduction of labor employment, the restriction of jobs due to the use of intensive technologies and other similar circumstances, have their own devastating effects on national economies. Thus, unemployment is intensifying, traditional ties are severed and other similar situations are observed. One of the points complicating the situation is that transnational companies, which are the main driving force of globalization, as well as international organizations, the WTO, the World Bank, the IMF and others, eliminate the regulatory resources of the state that occupies a dominant position in the national economy and activate international regulatory mechanisms that have secular implications. And this, in essence, negatively affects the sovereignty of the state in its own way. If we talk about this type of harmful tendencies, we can conclude that globalization should be regarded as a logical result of measures aimed at forming a new world order, and at the same time these processes serve to maintain not only economic, but also political sovereignty of states on paper.
The contradictions of the globalization process are manifested in the economic crises occurring in the world, as well as epidemics. Thus, the global financial crisis, which manifested itself in 20072008, as well as the covid-2019 pandemic, which continued its active phase from 2020 to 19, and other similar circumstances, in essence, speak of a significant weakening of the influence of states on socio-economic processes.
It is from this perspective that we can conclude that, in fact, the new challenges of globalization, in essence, characterize the acquisition of power by private capital rather than by national governments. For example, one can only note the fact that in the United States there are more than 2 trillion financial assets transferred every month from one country to another, which, in fact, are managed not by the state, but by private companies, including transnational ones[10, c. 12].
The principles of a new society and a managed society brought along by the globalization process are also accompanied by the formation of a post-industrial society. The fact is that in a number of cases the state no longer assumes the manifestations of the post-industrial society, issues related to the formation of the digital economy and government, and transnational corporations exercise control over most of these processes. The fact is that transnational corporations are also becoming a significant means of influence in the implementation of innovation processes and, one might say, using their resources, have sufficient mechanisms of influence on the markets of individual countries of the world.
One of the interesting points is that while the influence of the state on the socio-political and socio-economic life of society in the developing countries of the world is noticeably limited, the
processes that transnational corporations cannot regulate in the world market, it is the states behind them that manage to solve quite successfully. And all this leads to further aggravation of contradictions in the global world. At one pole of the world there are developing countries in which the state's intervention in socio-political and socio-economic processes is falling to almost zero, while in other countries the state, supporting transnational corporations, is at the forefront of the struggle for markets as a whole.
Experts believe that the contradictions between the layers of the world that are involved in globalization and at the same time benefit sufficiently from this participation, and those that are outside the global economy and are far from the higher level of consumption, are gradually expanding[9, c 20]. It is true that the supporters of globalization, both in the initial period and at the current stage of globalization, argue that globalization is able to eliminate the socio-economic problems observed in the world economy and in the national economy of developing countries, and these processes will be completely eliminated by means of globalization. However, there is no concrete identity in this regard, that is, unambiguous opinions. It is true that although supporters of globalization put forward these ideas, it is impossible to claim that socio-economic problems have been eliminated in the developing countries of the world in the full sense.
It is as a result of all this that at the beginning of the 21st century, more than 20% of the world's population has a personal budget of only less than $ 1, and given all this, it is possible to conclude how limited their consumption capabilities are. According to the forecasts of the World Bank, which is one of the driving forces of the globalization process, it is from the mid-2000s that the average annual growth rate of GDP per capita in the world will not exceed 2%, which will lead to the emergence of certain downward trends in global inequality[11, c. 22]. However, it should be borne in mind that there is a considerable difference between realities and forecasts, and the realities are not at all accompanied by such a correspondence of the intended long-term or even short-term forecasts. For example, only one fact can be noted that not all states are able to use the possibilities of globalization on an equal footing. True, there are specific objective and subjective reasons for the emergence of this process. The level of human capital in the developing countries of the world, including the countries of Southeast Asia and Africa, is not the same as in the developed countries. In addition, the level of education and health care is not the same as in developed countries. It is these level differences that ultimately limit the possibility of equal use by all countries of the world of the opportunities created by globalization.
Summarizing the foregoing, it can be concluded that in the context of the challenges of globalization, there is a need to implement the necessary structural changes in the national economy, which can be achieved by ensuring the security of the national economy against the background of meeting these needs. In general, economicds structural changes are carried out continuously, and the main goal of structural changes is to ensure the adaptation of the national economy to changes in global markets and the global world economy. Thus, taking into account the challenges of globalization in the national economy, structural changes, the implementation of which is of great importance, can be attributed to:
-implementation of necessary changes in the production structure of the national economy, implementation of necessary measures aimed at the development of heavy industry;
- national economy: ensuring the development of heavy, light and food industries in the production structure of the economy;
- attracting foreign investments on preferential terms in order to implement measures aimed at restructuring the production sector in the economy;
- parallel implementation of intensification and modernization measures in the activities carried out in the direction of reconstruction of the production sector;
-in the process of globalization, it is important to draw conclusions from the lessons of changes in the world, including epidemics, the Covid-19 pandemic, which lasted until recently. For this purpose, it can be considered expedient to develop information technologies, to develop the economy in accordance with the requirements of digital technologies;
- measures aimed at increasing the volume of production of agricultural and food industry products should be expanded, increasing the level of productivity and increasing competitiveness through the use of intensive technologies. It is thanks to all this that it is possible to reduce the volume of food products imported into the country, which can prevent the flow of foreign currency from the country;
- strengthening the economic and social policy of the state taking into account strategic national values in order to neutralize the harmful effects of the globalization process;
- acceleration of infrastructure system development and expansion of logistics services;
- Since September 2020, 27, the Azerbaijani army and the Supreme Commander-in-chief, Mr. Ilham Aliyev, effectively use the economic potential of the territories cleared from occupation as a result of the second Patriotic War, and implement their reintegration into the country's economy.
Ключевые слова: глобализация, глобальные вызовы, глобальные угрозы, национальная экономика, структурные изменения, государственная поддержка, сельское хозяйство.
Резюме
В конце ХХ века мировая экономика сформулировала свои тенденции. Эти тенденции обусловлены, прежде всего, тем, что мировая экономика слишком интернационализирована. Система международных экономических отношений, по существу, привела к перенапряжению национальных экономик, к установлению тесного взаимодействия друг с другом и одновременно к углублению взаимозависимости национальных экономик. Эта тенденция имеет как положительные, так и отрицательные последствия, и эти результаты существенно проникли в общественно-политическую и общественную жизнь развитых стран мира, а также во внутреннюю жизнь развивающихся стран. Следует добавить, что с конца ХХ века системные преобразования в мире приняли глобальную тенденцию. Итак, с точки зрения объективной необходимости индустриальное общество смогло передать свое место в мировой экономике обществу постиндустриальному. Правда, этот перенос так или иначе не имел видимых экономических и социальных последствий, но в скрытом аспекте он повлек за собой свои разрушительные тенденции. Развитие глобальных обществ усугубило социально-экономическое неравенство в мире. В связи с этим представленные на конференции статьи отражают исследование проблемы структурных изменений в национальных экономиках в свете вызовов глобализационных процессов.
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