Liberalization of the economy. Liberalization of the world economy

Economic growth is an important aspect of the development of each country, it is a factor in improving the quality of life of its citizens. That is why liberalization of the economy is relevant for dynamic evolution and is obvious for all countries, because in today's conditions it is extremely necessary to increase GDP. Since private economic entities are the main engine of economic development, it is obvious that the obstacles in the implementation of their activities will have a negative impact on growth rates.

Private investment is the main strength of the economy

It is well known that private investment is the main driver of GDP growth. It is thanks to them that liberalization of the world economy takes place in most countries. And this means that the more investment, the higher the rate of economic growth. In Russia, since 1997, there has been an increase in investment in fixed assets, and economic growth since 2000 (except for the crisis year 2009). Growing in the non-crisis period is not just the actual investment, but also their share in relation to GDP. It is important to note that a significant aspect in the investment process is its sources. Liberalization of the economy provides more than half of the capital investments that make up the funds of enterprises and organizations. At the same time, it may be promising to create conditions for increasing the use of such sources as state budget funds and foreign investors, bank loans and other loans. Thus, the greatest investment costs are borne by enterprises, while the resources of the state, financial institutions and foreign entities are not fully utilized.

New Economy

The analysis theory shows that at the moment the growth rate of the economy has slowed down. This circumstance leads to aggravation of a number of socio-economic problems, especially those related to the redistribution of the national product, for example, the sphere of social payments and pensions. Redistributing a relatively small amount of GDP, it is impossible to achieve large pensions or social payments for a large number of citizens. Attempts to do this at the expense of others can lead to unsatisfactory results in terms of tax collection and social tension. Although economic liberalization does not lead to an immediate solution to problems, it can help in the long term without causing other adverse consequences. That is why it is worth using the opportunities arising at the beginning of the third millennium, when thanks to the achievements of economic thought and modern global challenges, the country has good prospects for economic growth.

Attracting private foreign investment

In attracting private foreign investment lies the successful liberalization of the Russian economy, but the difficult conditions for doing business do not allow the development of this direction. This is the main reason for the low volume of investment in the economy from abroad, and it is the improvement of these conditions, and not the numerous intergovernmental meetings and commercials abroad that are the main reason for the increase in the inflow of foreign investment. In addition, apart from external ones, internal investments are important, which, in turn, are divided into private and public. To date, private investment opportunities have not been used to a large extent because citizens do not trust their savings to financial institutions or use their funds in various investment projects. This means that some of the funds earned by citizens are actually withdrawn from circulation, and this negatively affects the economy as a whole. The search for the necessary public funds should be carried out through activities of both fiscal and monetary policies. Expenditures from the state budget for investment can be increased, because, firstly, the state does not always invest its funds in promising projects, and secondly, more importantly, a significant part of the state budget expenditures are directed at objects that will not yield profit ( Such as the cost of repair of housing or public authorities). In addition, it may be advisable to use insignificant funds as a source of investment expenditures of the state.

Economy: growth theory

In the last decades of the last century, when scientific and technological progress came to the aid of production, a breakthrough in many spheres gave a new wave of growth in many respects. It turned out that the phrase "economic liberalization" no longer frightens off potential investors, the return on investment has become larger, and it was private injections that occurred at a higher rate. Scientific discoveries entail new ways of production. They not only expand the range of products, but also open the way to new technologies, through which it is possible to effectively implement work processes and use raw materials. In addition to increasing productivity and increasing the volume of knowledge, economic liberalization gives monopoly rents to the owner of the invention by obtaining a patent, and also stimulates new discoveries. At the same time, it is important to note that the results of research and development in the field of fundamental science are a public good that is not withdrawn, and therefore is accessible to all interested persons. Thus, technological changes are an important factor of economic growth. So, we can conclude that the nature of private investment is very important - whether they go to high-tech production, or to update obsolete equipment.

Investment as a factor of economic growth

In the first case, the result of investment will be production, in which a qualitatively new product with innovative features is created, because it was not created before. The cost of such a product will be an order of magnitude higher than that of goods from old industries. In addition, given the novelty, new markets are emerging, further production of this name is stimulated. In the second case, the usual continuation of the creation of old products will occur, the price of which is likely to be slightly different from that of earlier samples. The growth in the cost of production in this case is limited both quantitatively (through the relative saturation of the markets) and qualitatively. In addition, it is worth noting that in the first case, investments stimulate the production of mainly final products, in the second case - and finished, and raw materials and semi-finished products. Thus, we have two qualitatively different aspects of investing, the former stimulating economic growth to a greater extent than the latter. Obviously, investments in innovation and high-tech production are now inferior to investments in capital formation in conventional production, but trends indicate that economic liberalization in Russia has increased in the last decade, primarily thanks to private enterprises, and this gives the country significant Prospects, especially when increasing the use of other sources of funds.

Development of economic liberalization

It is also worth considering as a development factor not only capital, but also labor. In this case, we need to recall the theory of human capital, according to which people spend time on obtaining qualifications and experience. It should be noted that this theory is inextricably linked with the theory of innovation, after all, only qualified employees can effectively create and work with new technologies and products. Another important factor of economic development are, as mentioned above, the conditions for business development.

So, we have identified those aspects that shape the prospects for sustained and sustained economic growth. It is important to understand that liberalization of the economy will allow solving a number of socially significant problems, and therefore minimization of negative factors and promotion of economic growth should become one of the highest priorities.