World economy and stages of its development

The world economy is a rather complex system based on the principles of self-organization. It is in constant development, does not have any rigid ties at its core, changes regularly, but its system continuously strives for equilibrium. The basis of the global economy is the mechanism of maintaining internal balance and an important ability for self-development.

The world economy has a certain principle of functioning, the essence of which is the system of realizing property and using productive forces, as well as the structure of forms and methods of regulation and stimulation of economic processes on a global scale. This concept also includes organizational and legal rules that positively influence the production, exchange, use and consumption of final products, as well as dynamic changes and qualitative characteristics of economic development.

The world economy is the result of the historical development of the economy, as well as the interaction of world economies. Its development is affected by several socio-economic factors, among which:

1. The international division of labor.

2. Development of transport and communications.

3. Migration of financial and human capital.

It is necessary to consider the stages of the development of the world economy in order to fully analyze its system. So, the first began to be pawned after the industrial revolution, which started in England in the sixties of the eighteenth century, when in manufacture for the first time a mechanical spinning wheel began to be used.

As for the second stage in the development of the world economy, it began approximately in 1910-1930, when preparations for the First World War were taking place, which entailed the militarization of the economy. There were new branches of production (petrochemical, power and aluminum).

The third stage started during the Second World War. At this time, there were major contradictions in the economy between Japan, the US and Western European countries.

The fourth stage covers the period from 1970 to 1990, when the crisis began, and then the world socialist system collapsed. During this period, the pace of development of the United States, Japan and the EU countries began to grow, and the integration of economies that united the world economy intensified.

As for the last, the fifth stage of development, it began around 1990 and continues to the present. It is characterized by the fact that the countries of the former USSR have become part of the world economy, in them the transition to a market economy continues. At this time there is a rapid development of information technology. However, the aggravation of global problems, pollution of the environment, and the active development of the shadow economy, drug business are also beginning. A serious problem for society is world terrorism, which all countries and peoples are beginning to unite against.

Currently, the globalization of the world economy is affected by the worsening of problems in society, among which are called economic, demographic and others.

The world economy has always been distinguished by the fact that within its framework it is possible to distinguish between countries based on differences in levels of economic development, the presence of a certain number of production factors, and also on the role in the international division of labor. Analyzing these parameters, countries with a high level of development are given certain advantages. On the other hand, there are many underdeveloped states that depend both economically and technologically on market leaders who dictate their demands for the establishment of a new economic order in the world.