Global economy is a curse or way out for the developing countries

Global economy is a curse or way out for the developing countries

In my opinion all developing countries (for example: India, Brazil, China and etc.) depend on developed countries (such as the United States of America, Russian Federation, Japan, France and etc.) as the Global economy is made by all developed countries.

Today in the Global economy developing countries is different from developed countries by backwardness of their economic and social condition. They have agricultural backwardness, due to a low level of production development of economic relations. We can see it in GDP rate per capita, GDP structure, science development level, machine condition, quality and labor capacity.

In fact developing countries is different from developed by industrial and social structure of the whole society. Developing countries have not strong and stable civil society as well as they have not an aim that could maintain principles of community structure.

Today the developing countries have humble conditions of life in World production. And they have only 18% of World GDP and 13.6 % of World industrial production. Many of these countries are rich by human and natural resources.

Nowadays the Global economy is on the verge of downturn and the economic policy of leading world-power countries, making the corner-stone hard budget constraints, nudges the world to the new economic crisis.

As a result the Global economy weakening in 2012 a great number of developed countries came to the “dawnpath curl” due to the high level of joblessness, weakening of aggregate demand, hard budget constraints aggravating, high national debt and financial imbalance. The economic dislocation of developed countries extends to the developing countries and the countries with the transition economy the weakening their export demand, rising the capital flows and prices on primary goods.

However, big developing economics also face inner problems. A great number of countries with a low income have been developing rather successfully up to now, but nowadays they face a growing negative collateral effect of the downturn not only developed countries, but also those with an average income. For example: in the Ukraine some agricultural problems were added to the low productivity of industries that is oriented for export. The Russian economy is the most important source, in the form of migrant remittances, for many countries with low demand. In Kyrgyzstan the problem of gold-mining industry and fall of the production volume, caused social protests and demonstrations that resulted in a hard downturn in the whole economy.

The main risk areas are: Europe, the USA and China. In fact their problems as taken can lead to a new global economical downturn. The Global economy anxiously tells every aspect of developing countries from each side (for example: industry, economy, agriculture and etc.) and any further decrease of external conditions will result in demand reduction in export and fall in primary goods, prices and impede a way to financial resources.

That is why, I recon that the Global economy can be both a curse and a way out for developing countries. It depends on the global economic market situation. Because, If the global economic market situation is positive (all developed countries have a positive market situation), developing countries can continue to develop the economic growth rate. But If the global economic market situation is negative like nowadays, developing countries will have some problems in their industries, economy and social sphere.