What does nis export? Economy of NIS and their role in the global economy. Formation and development of new industrial countries

Federal Education Agency Russian Federation

East Siberian State Technological University

Department " Economic theory, national and world economy"

COURSE WORK

by discipline

WORLD ECONOMY

Economics of NIS and their role in the global economy

Completed by: Mironova E.A.

Checked by: Dambueva M.M.

Ulan-Ude

INTRODUCTION………………………………………………………………………………..…3

Chapter 1. New industrial countries and the new industrial revolution .....6

1.1. Formation and development of NIS…...……..………..………………………6

1.2. Comparative characteristics of NIS of Southeast Asia and Latin America…………………………………………………………..………….…..13

Chapter 2. Current state of NIS……………………………………….…19

2.1. Socio-economic problems of NIS……………………...…19

2.2. Prospects for the development of NIS………………………………...…..…..22

CONCLUSION…………………………………………………………….25

LIST OF REFERENCES…………………………….….27

INTRODUCTION

Since Peter I began to open a window to Europe - in the sense not so much of access to the sea, but of enriching itself with its achievements - methods and means of “catching up” with the economic and social development of countries equal to the advanced Western models, as well as the results of this “race for leader”, changed several times.

After the Second World War, the most successful model of “catch-up” development was the generally accepted Japanese “ industrial policy", which in a quarter of a century transformed from a defeated, devastated country into the second economic power in the world. This model has become a model for all of East Asia - from South Korea and Singapore to Thailand, China and Vietnam. The long-term stable high rates achieved by the newly industrialized countries economic growth and increases in living standards became a record in the entire history of “catching up” developing countries.

The model of “catching up” development of East Asian countries has received the figurative name of “flying geese”. Unlike the Soviet Union, which threw all its energy into heavy industry, the first “goose” that paved the East Asian path “flew” along almost the entire historical route of classical industrialization that began at the end of the 18th century. This was Japan, which, focusing primarily on exports, first intensively developed light industry, especially textiles, then shipbuilding, automotive and other branches of heavy engineering, as well as petrochemicals, at the next stage - instrument making and electronics, and, finally, high-tech products - computers, boards, etc. (problems arose only in the early 90s, when the country began to lag behind the United States and the European Union in the development and production of the most advanced high technologies). Four Asian “dragons” - South Korea, Taiwan, Singapore and Hong Kong - have followed or are following the same stages of industrialization, followed by the “tigers” - Thailand, Malaysia, Indonesia, the Philippines - and, finally, China and joining the “geese wedge” » Vietnam.

The stagnation of the Japanese economy, which has continued for more than ten years, and the Asian financial crisis 1997-1998 shook the economic, social and political foundations of the newly industrialized countries and made significant adjustments to the assessment of the results and prospects of their development.

However, the speed with which most East Asian countries, with the exception of Indonesia, overcame the worst consequences of the crisis and resumed high economic growth, dashed the most pessimistic scenarios about the complete failure of their “catch-up” development model. Thus, South Korea, which has been the most successful in overcoming the shortcomings of this model and deep structural reforms, achieved 10.2 percent in 1999, 4.8 percent in 2000, and 3.5 percent in GDP growth in 2001.

This paper examines the main features of the socio-economic situation of NIS in the Asia-Pacific region.

Based on information from periodicals and educational literature, as well as statistical data, the problems that these states have faced and are facing along the path of their socio-economic development, as well as the main trends of this development, were identified and analyzed.

The NIS topic seemed interesting to me in its content, but it was the NIS of Southeast Asia that was of particular interest to me in this category of countries, since it was in this region that the 4 Asian miracles of the “tiger” countries appeared to the world (Hong Kong, Singapore, Taiwan and South Korea ), and then the miracle of the “dragon” countries. These states were able to achieve enormous progress in the social and especially economic spheres in a relatively short period of time.

In the 1950s, in the Asia-Pacific countries only backward goods were available Agriculture. By now, the countries of Southeast Asia have turned into one of the fastest growing countries in the world, which clothes and supplies consumer electronics and food to the USA, Japan, and Western Europe, thereby increasing their weight in the world economy.

The recent monetary and financial crisis at NIS has attracted even more industrial attention developed countries to the processes occurring in developing countries of the Asia-Pacific region. Therefore, work that reveals the features and patterns of social economic development, analyzing positive and negative aspects economic policies new industrial countries, seemed to me very interesting and relevant at the present time.

The purpose of this work is to answer the question: are the countries of the “East Asian miracle” zone able to fit into the new high-tech globalized world economy?

Let's take a closer look comparative analysis development of the newly industrialized countries of East Asia and Latin America, and also analyze their role and place in the modern international economy.

Chapter 1. New industrial countries and the new industrial revolution

1.1. Formation and development of new industrial countries

As a result of the collapse of the world colonial system in the post-war years, many independent states appeared on the political map. Many of them chose a socialist model following the example of the USSR as the basis for their development, but most of these countries continued their formational development within the framework of the capitalist system, which received an additional socio-economic base.
The growing process of differentiation of developing countries, determined by the law of uneven economic development, has led to the identification of a special group of countries and territories - “new industrial countries” (NIC), or “new industrial economies” (NIE). These countries include primarily South Korea, Taiwan, Hong Kong (Hong Kong), Singapore - the four “Asian tigers”, as well as Malaysia, Thailand, Indonesia, the Philippines, Mexico, Brazil, and Argentina.

In the 70s, a historical turning point occurred in the dynamics of the gap between industrialized and developing countries. Internal economic reforms and streamlining legislative framework, which accelerated the development of free private enterprise and contributed to attracting foreign capital. For developing countries as a whole, since 1986 there has been a turning point in the dynamics of the net inflow of foreign direct investment.

To create the most complete picture of the development of this group of countries, it is necessary to analyze some of the most important aspects of the socio-economic development of the NIS.

The socio-economic development of the NIS Asia-Pacific region has many common features, although there are states in the region that fall under the classification of developed countries (Singapore, Hong Kong). In recent decades, this group of NIS, as a result of rapid economic growth, has achieved noticeable success in overcoming economic backwardness. At the same time, the model of socio-economic development typical for the region gradually changed its content. The industrialization of NIS can be divided into 3 stages:

(50s - mid-60s) - development of import-substituting industries: creation of light industries, which were called upon in conditions of shortage foreign currency saturate the domestic market with textiles, knitwear, and footwear.

(mid-60s – 90s) – creation of export potential: creation and development of industries oriented to the foreign market.

(turn of the 20th-21st centuries) – development of knowledge-intensive industries: chemical, metalworking, electronics, electrical engineering. Increased public and private spending on R&D.

Thus, in the 60s, priority was given to the growth of traditional raw materials sectors of the economy, focused primarily on exports, as well as the implementation of a policy of import substitution. This policy involved the development of local manufacturing industries under the protection of high tariffs. This model (import substitution model) made it possible to strengthen the young national industry. However, this strategy has not always contributed to achieving constant and stable growth and overcoming economic backwardness. First, markets for the products of import-substituting industries are limited due to the underdeveloped manufacturing capabilities of developing countries. Hence the extremely narrow market capacity. Secondly, the elimination of competition from cheap foreign goods has led to a lack of incentives for producers in developing countries to lower production costs and improve the quality of goods. Third, penetration of foreign markets by goods from developing countries poses obstacles because Western countries blocked their access to their markets through all sorts of barriers.

At the first stage of industrialization, aimed at import substitution, one can note the creation of enterprises in textile, clothing, leather and footwear, woodworking, furniture and other industries producing consumer goods for short- and medium-term use. These industries, in terms of technical and economic parameters, generally corresponded to the capabilities and needs of underdeveloped economies. They used relatively simple labor-intensive technologies that practically did not require a complex system of related industries for the production of starting and auxiliary materials. However, attempts to create industrial production of durable goods and intermediate products necessary for their production in the NIS ended in failure. Industries such as petrochemicals, metallurgy, and the pulp and paper industry, where the bulk of initial construction materials are produced, are capital-intensive, designed for a large volume of production and, therefore, for a large market.

Therefore, by the mid-60s, negative socio-economic processes intensified in the Asia-Pacific countries, caused by the fact that world prices for raw materials remained at a low level, and the narrowness of the domestic market prevented the establishment of efficient, competitive import-substituting industries. As a result, slow growth or even an absolute decline in population incomes, increased unemployment, and material stratification of society forced these countries to prefer a different development model.

Another development model is focused on exporting national industrial products and gaining positions in the foreign market. Hence its name – export-oriented industrialization. This model is based on the openness of economies, active participation in the international division of labor, the use of world trade to increase the country's financial resources and modernize the economic structure.

It was this strategy that had a strong influence on the development path of NIS, and especially on Hong Kong, Singapore, Taiwan and South Korea (NIS of the “first wave”), which, not having rich natural resources, relied on the export of finished products using cheap, disciplined labor . As a result, along with the fuel and raw materials industry, the leading place in the economic complex of the Asia-Pacific countries was occupied by labor-intensive branches of the manufacturing industry. In this regard, a number of countries in this region (Malaysia, Thailand, the Philippines and Indonesia) in the early 80s joined the group of “second wave” NIS.

It should also be noted that the economic recovery was greatly facilitated by close economic ties with Japan, which, through its investments, as well as new technologies, management and marketing experience, introduced developing countries to modern production, expanding export opportunities.

Table 1 presents data characterizing the main economic indicator of the NIS group (GNP) and its dynamics over the last decade of the twentieth century.

Table 1

Dynamics of economic development of NIS

This table shows that GNP per capita of the presented group of countries varies greatly (from $29,000 in Singapore to $3,500 in Indonesia and the Philippines), which indicates a fairly significant differentiation of states in the NIS group by level of economic development.

Particular attention is drawn to the data on the growth rate of GNP in the countries presented, which are simply colossal in comparison with the value of this indicator in developed countries (Diagram 1).

Having achieved impressive economic progress in the 70-90s, some Asia-Pacific countries, however, still lag significantly behind developed countries in per capita gross domestic product, agricultural and industrial production.

A modern feature of the countries of the region is that their previous development model, which was based on the export orientation of the economy, has largely become obsolete. The growth of a skilled labor force requires an increase in the level of wages, which makes NIS products less and less competitive on world markets. The openness of the economy has resulted in the problem of paying off external debts with foreign creditors in the face of declining export potential. Crony capitalism has resulted in corruption and inefficiency in decision-making at the state level. The limits of extensive growth based on the involvement of new resources have been passed.

The way out of this situation may be the modernization of the economy and the transition to a new level of development, which should be based on new technologies, knowledge-intensive, non-material production. Most likely, NIS will now turn to niche specialization in the global market based on high technologies, and will also become more active in their domestic market.

Problems can only arise from the ongoing globalization of the world economy, which is still developing according to the American scenario. The countries of Southeast Asia, hit hardest by the monetary and financial crisis and receiving loans and advice from the IMF and the World Bank, will have the most difficulty resisting the economic ideology of the United States. Having become financially dependent on the United States after the crisis, they will have to abandon economic development according to their own scenario.

However, we cannot discount the Asian development model, which only needs good modernization and correction of its most obvious mistakes. Although various sources call the development of all countries in the region the Asian model of development, in fact this model has various variants characteristic of each of the countries of the Asia-Pacific region. Despite some commonality in the development of NIS, there are also differences in the content of the economic policies of the “Asian tigers”: Korea gives preference to large firms, vigorously using mechanisms of government influence; in Hong Kong the government is trying to intervene more moderately in business affairs; in Singapore, the state intervenes deeply on a comprehensive basis.

The dynamic development of the Asia-Pacific countries slowed down in mid-1997, when a currency crisis in the monetary and financial system broke out in the countries of Southeast Asia. Starting in Thailand, it quickly spread to neighboring countries. In July 1997, the exchange rate of national currencies in the region fell sharply against the US dollar.

The financial crisis in NIS Southeast Asia was caused by a number of factors. Firstly , huge trade deficit, which exceeded the safe level of 2% and reached 8.2% in Thailand, 6% in Malaysia, 4% in Indonesia and 4.5 in South Korea. This put pressure on the national currency, which was overvalued. Secondly , - increase in capital inflows from abroad. Massive injections of foreign capital covered the trade balance deficit, but at the same time they “fueled” inflationary processes, increasing the number of money supply in circulation.

As a result, production declines were recorded in 1998 in Thailand, Indonesia, Malaysia, Hong Kong, South Korea, and Singapore. And only the Philippine economy suffered less as a result of the non-convertibility of the local currency.

The crisis hit Indonesia particularly hard. In 1998, the economic decline was 10%. 79.4 million people out of a population of 209 million found themselves below the poverty line. For comparison, in 1996, 22.5 million people were considered poor. Inflation was 46.6%.

According to the official assessment of the Organization for Economic Co-operation and Development (OECD), some of the NIEs of Asia and Latin America can be classified as industrialized countries, in which they occupy very respectable positions on the most important economic indicators.

According to Russian experts, a fairly high level of labor productivity in the NIS of East Asia was predetermined by such factors as the use of relatively advanced equipment and technology, a fairly high level of production automation, the presence of highly qualified personnel, the use of modern production management methods, and the ability of the modernized economy to effectively apply scientific technological advances, and to perceive and adapt a variety of innovations.

1.2 Comparative characteristics of NIS in Southeast Asia

and LatinAmerica

The phenomenon of the new industrial revolution in the once economically backward countries of the developing world has attracted attention over the past four decades. Within the framework of this model, two competing versions of “catch-up” development have emerged at the global level: “Asian” and “Latin American”.

Given that some NIEs are more appropriately classified as territories rather than “countries,” the term “new industrial economies” (NIEs) has gained international recognition.

The unfolding of processes in socio-economic differentiation in the developing world contributed to the accelerated separation of new industrial economies from its environment, and as their circle expanded, to the strengthening of differences between these states.

In terms of economic potential, Latin American NICs have surpassed and are still surpassing East Asian NICs. In terms of the volume of GDP produced, only South Korea can partially compete with Brazil, and the rest of the RIEs in the Asian region are 5-6 times inferior to it. On the other hand, in terms of GDP per capita production, Singapore is almost 9 times larger than Brazil, and 50 times inferior to it in population.

But the trajectories of movement along the path of economic evolution in the two main newly industrialized regions of the world turned out to be different due to the regional specificity of the starting conditions and the implementation of the concept of “catch-up” development. The results of the development of the forced economic “breakthrough” of Asian and Latin American research and development projects also differ.

Back in the 70s and 80s of the 20th century, East Asian NIEs were characterized by relatively higher growth rates, which were significantly, sometimes many times, higher than those of the vast majority of developed and developing countries.

These phenomenal results were achieved despite a noticeable increase in prices for oil and other raw materials in 1997-1998 (and the pioneers of new industrial development in Asia did not have their own resources of raw materials and energy) and global economic downturns. Until the major financial turmoil in Southeast Asia in 1997-1998, and later in other regions, Asian NIEs demonstrated the highest rates of economic development in the world.

According to the most accepted estimate, during 1960-1990 the average annual rate of economic development of the Asian region as a whole was over 5%, while in Europe it was approximately 2%. But even in the NIS of Latin America, the average annual growth rate of GDP in 1950-1995 was lower than in East Asia: 5.2% in Brazil, 4.8 in Mexico, 2.6% in Argentina.

According to optimistic forecasts, if economic growth rates continue until the crisis, by 2010 East Asia could surpass Western Europe in terms of GDP, and by 2020 - North America.

Unprecedented economic progress in this region of Asia over the past decades has ensured an increase in the aggregate economic indicators of the developing world as a whole, which contributed to a decrease in the share of developed countries in the production of global gross product from approximately 72% in 1953, to 59% in 1990 and 52 8 in 1997, as well as a corresponding increase in the share of developing countries, including China and India, in the 1990s from 32.6 to 43.2%. In 1996-1997, on the eve of the Asian crisis, Japan, the Republic of Korea, China and Indonesia were among the first 12, and a number of East Asian countries, along with Brazil and Mexico, were among the first 20 largest economies in the world.

According to calculations by the London Economist magazine, between 1965 and 2000, Singapore's GDP per capita increased to $27,870, which practically means an eightfold increase in the living standards of its residents.

In terms of this indicator, Singapore is noticeably superior to its former metropolis, the United Kingdom, where, according to World Bank estimates, per capita GDP production in 2000 was $21,410.

In a World Bank study called the “East Asian Miracle”, published in 1993, which attracted the attention of experts and the public, this region was called the “fourth pole of growth”, along with the United States, Japan and Western Europe. In the fall of 1996, South Korea was admitted to the OECD, and Singapore was given the status of an “industrialized state.”

Over the past decades, developing countries have been increasing the volume of industrial output at a fairly high rate, and in 1997 for the first time surpassed the developed part of the world economy in terms of their total output. At the same time, in the total volume of industrial production of developing countries at the end of the 1990s, the share of NIE accounted for about 30%, including the share of East Asian countries amounting to 18%, and Latin American countries - 12%.

If we compare the scale of industrial production in the NIS and in the world as a whole, the share of NIE in East Asia increased from 6.5% in 1990 to 8.5% in 1997, and the share of Latin American countries changed little, amounting to approximately 5 .7-6.2% and even showing a downward trend.

In a number of countries in the Asian region, wages grew at a faster pace than labor productivity. Thus, in 1970-1985 there was a noticeable increase in the nominal wage index - by 8.8-14.6% per year. In terms of the rate of increase in this indicator, East Asian NIS often found themselves ahead of the countries in the developed zone of the world economy.

The situation in which the rapid growth of wages against the backdrop of saturation of the domestic market with consumer goods largely determines and even stimulates an increase in labor productivity has turned out to be quite widespread in the NIS of Asia. In 1985-1995, similar dynamics were observed, in particular, in Indonesia and South Korea. At the same time, this to a certain extent contributed to a decrease in the competitiveness of their export products.

Accelerated economic development allowed the first-generation East Asian research and development enterprises to achieve other achievements in the socio-economic sphere. For a number of years, it has maintained one of the world's lowest unemployment rates and relatively low inflation rates.

During the period of accelerated modernization, quite noticeable changes occurred in the commodity structure of NIS exports.

Over the period 1970-1995, the share of exports of mechanical engineering products in the export of new products from Hong Kong increased by 2.3 times, Taiwan by 2.9 times, Singapore by 5.7 times, and South Korea by 7.2 times. However, this figure increased most noticeably in the NIS of the “second Asian wave”: in Indonesia - by 22.7 times, Malaysia - by 31.3 times and Thailand - by 31.5 times.

The share of high-tech products has increased, which now includes products from such industries as pharmaceuticals, computer production, scientific instrumentation, electrical engineering, and aerospace. Thus, their share of the total cost of export of manufacturing products from Hong Kong in 1997-1998 was 21%, the Republic of Korea - 27%, Thailand - 31%, Singapore - 59%.

In the countries of the Latin American region, this figure was lower: in Brazil - 7-9, in Mexico - 18-19 percent, and in the USA it was 33%, in the UK - 28%.

Over the decades of modernization, very noticeable changes have also occurred in the position of East Asian research and development institutes as suppliers to the world market of finished industrial products. In the modern world economy, they have occupied the niche of the largest manufacturers and exporters of automotive and household appliances, electronics, shipbuilding products and the chemical industry. Thus, the share of NIS Asia in global exports of finished industrial products in 1970-1998 increased by 6.5 times. Latin American NIS, despite their high results, are still inferior to the East Asian “tigers”. Mexico's share of these goods increased from 0.44 to 2.17 percent, i.e. almost five times. The situation in the export of machinery and equipment developed in a similar way. The gap between Latin American NIS and East Asian ones in terms of share in global exports of these goods was very noticeable.

The share of NIS in the world economy is inferior to their role in international trade. Thus, the share of both newly industrialized regions in 1997 accounted for approximately 16.3% of the world's gross product and 14.2% of the world's industrial output. At the same time, their total share in international trade reached 17.6% of world exports and 18.7% of imports.

Somewhat behind Latin American NIEs in terms of GDP, that is, their share of global production, East Asian NIEs play a more prominent role in modern world trade and, partly, international capital flows. For NIS Latin American countries, which occupy a very solid position in global GDP production and a somewhat more modest position in the production of industrial products, the situation is exactly the opposite: the share of their GDP and industry in the world economy is higher than their share in international trade by 1.96 and 1, respectively. 27 times.

All this confirms the conclusion about the relative success of those who have chosen the strategy of balanced export-oriented development of research and development enterprises in East Asia, as well as the broader prospects for their participation in modern world economic relations and the further evolution of the world economic community as a whole.

Chapter 2. Current state of NIS

Socio-economic problems of NIS

Among the complex of serious problems that NIS needs to solve on the path of its socio-economic development, economic problems have come to the fore.

Today, NIS faces, first of all, the problems of strengthening and growing the economy, finally overcoming backwardness, raising the living standards of the population and changing its position in the world economy.

The main reason hindering the socio-economic development of NIS is undoubtedly scientific and technological backwardness. As a result of the lack of a sufficiently developed scientific and technical infrastructure and qualified personnel in these countries, a relationship of scientific and technological dependence of the NIS on the leading countries of scientific and technical progress has developed. According to the Dutch economist Tinbergen, in no other area is inequality between developed and developing countries more pronounced than in the field of scientific research and the level of technology.

Mastering the achievements of scientific and technical progress, industrialization and renewal of spheres of public life in the Asia-Pacific countries was impossible without the active participation of the state in the economy.

Underdevelopment, lack of investment resources, one-sided dependence on the world economy, and the need to attract foreign capital to modernize the economy objectively strengthened the role of the state as an economic owner. During industrialization, the strategy of economic and social development, priority sectors of the national economy - all this was determined by the state. But even despite the full-scale intervention of the state in the economy, all key decisions were made depending on the needs and state of the market, on the basis of market laws.

Having examined the main positive and negative aspects of the economic development of the NIS, I propose to pay attention to the processes occurring in the social sphere of this group of states.

Despite significant economic successes, social problems in NIS remain very acute. Social problems are largely aggravated due to the fact that the population growth rate here is very high: 1.9% per year versus 0.7% in developed countries.

At the same time, inconsistent agrarian reforms and the associated partial use of modern technology accelerated the release of labor from agriculture and urbanization, a massive influx of able-bodied people into cities, increasing pressure on the labor market in them. However, manufacturing enterprises in cities, which in the early stages of industrialization were considered the main source of new jobs, cannot absorb more than 10-12% of the workforce, and with modernization this figure will decline. As a result, unemployment in the NIS Asia-Pacific region grew at a high rate. According to expert estimates, the unemployed and underemployed in these countries make up 25-30% of the economically active population.

As before, the majority of the NIS population is poor. Most of them live in rural areas. For example, in Thailand, over 80% of the rural population is poor. According to the World Bank criteria, those living in poverty are those whose daily income does not exceed $1. Overpopulation should be noted as the main cause of poverty. With an average annual population growth rate of 3%, food production, for example, grows only 2% per year.

NIS, like all developing countries, are characterized by sharp unevenness in income distribution compared to developed countries. Moreover, during economic growth, the share of the rich in income increases. For example, in Indonesia and the Philippines, the incomes of the richest 20% of the population grew the fastest. This is largely explained by the growing concentration of property and capital among the local elite and its closeness to power. As a result, despite the growth in per capita income in developing Asia-Pacific countries over the past 20 years by an average of 1.4% per year, the share of the poorest population accounts for no more than 3-7% of income.

Mass unemployment, poverty and poverty, aggravated by inequality in income distribution, limit domestic effective demand and create a barrier to production growth and further development.

However, one cannot fail to note certain positive changes in the social sphere. In the NIS, the average life expectancy has increased from 30-35 years in the 50s to 58-65 in the 90s.

Rising unemployment, widespread poverty, and lack of capital investment have led to the special interest of national NIS governments in small businesses. This sector is supported by its ability to use local resources (both raw materials and labor), orientation towards limited domestic markets, and knowledge of their specifics. Small enterprises traditionally satisfy the demand of the population with low incomes, and since they constitute the majority in almost all NIS of the Asia-Pacific region, this has caused the widespread and growth of small forms of business. Thus, the share of small-scale industries in non-agricultural sectors was in the mid-90s from Indonesia - 79%, South Korea - 78%, Thailand - 74%. In the course of development, some small-scale industries are being modernized, primarily on the basis of cooperation with local medium and large enterprises. The constant presence of surplus labor makes it possible to combine modern production methods with sweatshop labor and low pay (usually 1.5-2 times lower than for similar work in a large enterprise).

Most NIS have developed an extensive system of state support for small businesses, which play a stabilizing economic and social role, supplying cheap goods to the domestic market, and most importantly, providing employment and income to millions of people.

One of the aspects of the social backwardness of the NIS can be considered the low educational level of the population. The consequences of low levels of education and training affect the level of scientific and technological progress and the limited participation of these developing countries in the creation and use of global scientific and technological potential. Expenditures on R&D here amount to only 0.2-0.3% of GDP, while in economically developed countries this figure is 2-3%. In the early 90s, in the Asia-Pacific countries there were 160 engineers per 10 thousand inhabitants. The same figure for developed countries was 295 people.

However, one cannot fail to note some of the successes of NIS in the field of education. A significant positive feature of the policies of Southeast Asian countries in education was its accessibility. In terms of the degree of youth involvement in secondary and higher education, Asian NIS were superior to the industrial countries of Latin America. True, at the same time, in the countries under consideration, achievements in the field higher education were not as impressionable as in the field of school and secondary vocational education. For example, in Singapore, the share of people with higher education among the economically active population in the mid-90s was only 7%, in Hong Kong and Taiwan - 6%. According to this indicator, the “tigers” are significantly inferior to the developed countries of the West and Japan: in 1990-1993, 19% of the active population in Japan had higher education, and in the USA - 26%.

NIS development prospects

In the 21st century, as many experts note, the Asia-Pacific region will show its strength. In 1989, 18 states formed the Asia-Pacific Cooperation Forum (APEC): the USA, Canada, China, Japan, Australia, New Zealand, the Republic of Korea, etc. The goals of this integral group were the abolition of trade barriers in mutual trade and capital movement. However, due to the fact that the countries included in APEC are different, deadlines were set for achieving these goals: until 2010 for developed countries, until 2020 for developing countries. APEC is not a closed bloc. In November 1998, at the next conference in the capital of Malaysia, Kuala Lumpur, three more countries were accepted into the organization: Vietnam, Peru, and Russia. Most forecasts now boil down to the fact that the 21st century will be precisely the period of Asian-Pacific power. This region will take a dominant position in the world economy. These forecasts are based on the fact that every year the share of the countries of this region in the world economy is steadily increasing, which is due to the use of high technologies and low production costs. A vast “technological space” is emerging in Asia from Japan, South Korea, Taiwan, Hong Kong, Singapore to Malaysia, Thailand, the Philippines and Indonesia. NIS Asia-Pacific is currently undergoing a gradual transition to the development of knowledge-intensive industries. State governments plan to significantly increase allocations for R&D: up to 2.5% of GDP.

Speaking about the trends in the socio-economic development of the NIS Asia-Pacific region, it should be noted that having achieved impressive economic progress in the 70-90s, the countries of Southeast Asia are faced with new problems on the threshold of the new millennium, a significant part of which are generated by the negative consequences of the previous forced growth, accompanied by the spread of corruption, the emergence of oligarchic structures, as well as the negative impact of fluctuations in world market conditions and the chaotic movement of speculative short-term capital. The aggravation of economic problems strengthened nationalist sentiments, but above all led to a serious adjustment of the economic model.

The crisis that hit the newly industrialized countries not only gave rise to numerous problems and difficulties, but at the same time cleared away the accumulated rubble, adjusted the situation, and created ways to overcome the problems that had emerged. Thus, the devaluation of the national currency creates favorable conditions for the growth of the competitiveness of countries affected by the crisis. The crisis reduction in real wages and the slowdown in price growth for capital goods are acting in the same direction. A fall in stock prices below their “fundamental characteristics” opens up prospects for a new stock market rally. Closing unreliable financial institutions ultimately contributes to the overall health of the banking system.

As for the general prospects of the NIS, they are largely related to plans to further deepen integration ties within the ASEAN grouping, which currently unites 10 states in the region. Over time, the forms of economic integration of ASEAN countries have become more complex. In general terms, they decided to follow the path of the European Union: from common market to a customs union and then to a single economic and monetary space. Many relevant resolutions have already been adopted at the annual summits of the ASEAN member states. However, the task of creating a free trade zone is still being largely solved. Another important policy direction of these countries is the further expansion of economic cooperation with China, Japan and, more broadly, with all the Asia-Pacific Economic Cooperation (APEC) groupings, which includes Russia.

Thus, Asian NIEs have good prospects for the further successful development of their economies.

CONCLUSION

In conclusion of this work, I would like to draw general conclusions on the features of the socio-economic development of NIS. NIS Southeast Asia is currently on the path of transition from extensive to intensive development, from achieving economies of scale in continuous, simple production to niche specialization in high-tech products. The “tiger” countries, which once led the process, have almost reached the level of developed economies, while the “dragon” countries are still in the middle (Malaysia and Thailand) and even at the beginning (Philippines and Indonesia) of the path. I would like to note that the Asian development model, which until recently was considered almost a standard model, actually has numerous side effects. Firstly, it leads to the emergence of clan-oligarchic capitalism, which is extremely ineffective in modern conditions

when you need to make quick decisions. Secondly, the export orientation of the economy can lead to a dead end in the absence of demand on the foreign market and the narrowness of the domestic market, with massive borrowing of foreign capital without proper return. National economic and political stability in this case becomes too dependent on the actions of external factors. Most likely, the Asian development model is effective only for a limited number of countries, at certain stages of development. The mass implementation of this model will not bring the desired results. The Asian model turned out to be unable to adequately respond to the monetary and financial crises that it itself provoked. The useful lessons of the Asian model can be considered a clear strategy of the state, a course towards economic growth and increasing the well-being of citizens by increasing GDP per capita, the gradual development of industries, hard work and perseverance in obtaining positive results. In fact, the real miracle is that in just 50 years, the “dragon” countries have transformed from backward agricultural economies into one of the leaders of the world economy. NIS has prospects, they are quite real. To do this, they need to seriously think about structural restructuring of the economy, not forget about the principles of sustainable development, and, following the example of the countries of North America and Europe, integrate in order to jointly solve the complex problems of the region.

LIST OF REFERENCES USED

Gladkov I.S. Features of the economic evolution of newly industrialized countries (using the example of East Asian countries). - M., 2001.

Avdokushin E.F. International economic relations. - M., 1999.

Khalevinskaya, Crozet “World Economy” pp. 233-234 – M.: “Infa-M” 1998

Khasbulatov “World Economy” p.281 – M.: “Astra Seven” 1994

Bulatov “World Economy” p.514-515 – M.: “Yurist” 2000

Pogorletsky “Economy of foreign countries” pp. 330-331 – M.: “Higher School” 1999

Kudrov “World Economy” p.182 - M.: “TsentrKom” 1998

Maksakovsky V.P. New industrial countries of Asia // Geography at school, 2002, No. 4.

Pakhomova L. Southeast Asia.

Ambiguous approaches to globalization // Asia and Africa today, 2002, No. 9

Petrunin O.V. Economic recession of 1998 in the countries of East and South-East Asia // World Economy and International Relations, 2002, No. 10.

Vasiliev V.F., Levtonova Yu.O.

(Ed.). Statehood and modernization in the countries of Southeast Asia. M., 1997.

Lawrence T.E. Changes in the East // Foreign literature, 1999, No. 3

Mikheev V. "The Asian financial crisis and its consequences" // International Affairs, 1999, No. 3

Chufrin G.I. (Ed.). Economic reforms in Asia in transition. M., 1996.

Baryshnikova O.G., Popov A.V., Shabalina G.S. Southeast Asia: people and work. M.: Institute of Oriental Studies RAS, 1999.

Which country belongs to the NIS: Canada, Sweden, Kazakhstan or Thailand? To answer such a question, you need to understand the peculiarities of economic development in the countries of this group. But our information article will help you with this.

NIS is...

What is NIS? And how to correctly decipher this abbreviation?

NIS are the so-called new ones. In the original (in English) it sounds like this: newly industrialized country, or NIC for short. By the way, very often in Russian you can find the abbreviation NIK.

NIS is a group of states that differ in common features of socio-economic development. The main feature that unites them is the rapidity that occurred (or is occurring) in a fairly short time frame.

NIS include countries that are located on different continents of the Earth. Which ones exactly? This will be discussed further.

• Main features of NIS countries
• Among the key features of the group of NIS countries are the following:
• high and rapid rates of economic growth; dynamic changes in macroeconomics;;
• structural changes in
• active participation in international trade;
• widespread attraction of foreign capital and investment;
• high share of the manufacturing industry in the structure of GDP (over 20%).

Scientists and economists classify a particular state as a member of the NIS group according to several basic parameters (indicators). This:

• GDP size (per capita);
• its growth rate (average annual);
• share of manufacturing industry in the structure of GDP;
• total volume of goods exported;
• volume of foreign direct investment.

NIS countries (list)

The NIS states became a separate group from developing countries. This process began around the mid-1960s. Today, the NIS includes the states of Asia, America and Africa. In the formation of this group of countries, four stages (or waves) can be distinguished.

So, all NIS countries (list):

• first wave: these are the so-called “East Asian tigers” (Taiwan, Singapore, Hong Kong and South Korea), as well as three American states - Brazil, Argentina and Mexico;
• second wave: India, Malaysia, Thailand;
• third wave includes Cyprus, Indonesia, Turkey and Tunisia;
• fourth wave: China and the Philippines.

The map below shows the location of all these countries on the planet.

Thus, today 16 different states can be included in the NIS group. At the end of the twentieth century, geographers and economists could safely say that entire regions with sustainable and rapid economic growth had formed on Earth.

NIS: history and patterns of development

As a result of the influence of certain factors in economically developed countries in the 60s of the twentieth century (such as the USA, Japan or Germany), the production of certain goods ceased to be profitable. We are talking about textiles, electronics, and chemical products. Ultimately, their production moved to developing countries, which could boast of cheap labor and low land prices.

• Asian model;
• Latin American model.

The first is characterized by a small share of state ownership in the national economy. However, the influence of government institutions on the economies of these countries remains high. In the countries of the Asian NIS sector, there is a certain “cult of loyalty” to “their” companies. The national economies of these countries are developing, focusing primarily on the foreign market.

The second model, Latin American, is typical for the countries of South America, as well as Mexico. Here, on the contrary, there is a clear tendency towards the development of national economies with a focus on import substitution.

"East Asian Tigers" - the first among NIS

They are called differently: “East Asian tigers”, “small Asian dragons”, “four” All of these are unofficial names for a group of the same countries. We are talking about South Korea, Singapore, Taiwan and Hong Kong. All of them showed very high rates in last third of the twentieth century.

In the mid-1950s, South Korea was, by all indicators, one of the most backward countries in the world. In a short 30-year period, she was able to make a tremendous leap from poverty to high development. Country's GDP per capita during this time increased 385 times! Modern South Korea is the most important center of shipbuilding and the automotive industry in Asia.

However, Singapore had the highest rates of economic growth of these four at the end of the last century (about 14% per year). This tiny state is one of the world's largest oil refining centers. In addition, knowledge-intensive industries are actively developing in Singapore. There are quite a lot of foreign tourists here (over 8 million annually).

Other NIS countries - Hong Kong and Taiwan - are more or less dependent on the PRC government. Tourism is significant to the economies of both of these countries. Taiwan is also a major center for advanced technology and nuclear power throughout Asia. And the country also holds the world championship in the production of sea yachts!

Finally

After reading our article, you will definitely be able to answer the question: “which country belongs to the NIS?” This group today includes at least 16 states located in Asia, America and Africa.

NIS is a group of countries that differ in a number of characteristic features. This is, first of all, the rapid pace of economic growth, high percent in the structure of GDP, active participation in the international distribution of labor, as well as widespread attraction of foreign investment in the development of its economy.

Newly industrialized countries (NICs) are a group of developing countries in which over the past decades there has been a qualitative leap in socio-economic indicators. The economies of these countries short term made the transition from a backward economy, typical of developing countries, to a highly developed one. Research vessels of the “first wave”: Republic of Korea, Singapore, Taiwan, Hong Kong (Hong Kong), Research vessels of the “second wave”: Argentina, Brazil, Mexico, Chile, Uruguay, Research vessels of the “third wave”: Malaysia, Thailand, India, Cyprus, Tunisia, Turkey, Indonesia, “fourth wave” NIS: Philippines, China. Common features of newly industrialized countries:

They demonstrate the highest rates of economic development (8% per year for NIS 1st wave);

The leading industry is manufacturing;

Export-oriented economy (Asian model);

Active integration (LAI, APEC, MERCOSUR);

Formation of own TNCs, not inferior to TNCs of the leading countries of the world;

Much attention is paid to education;

Use of high technologies;

Attractive to TNCs due to the low cost of labor, the possession of significant raw material resources, and the development of the banking and insurance sectors;

The main business card is the production of household appliances and computers, clothing and shoes.

The United Nations identifies the criteria by which certain states belong to the NIS: 1) the size of GDP per capita;

2) average annual growth rate

3) the share of the manufacturing industry in GDP (it should be more than 20%);

4) the volume of exports of industrial products and their share in total exports;

5) the volume of direct investment abroad.

For all these indicators, NIS not only stand out from other developing countries, but also often exceed similar indicators of a number of industrialized countries.

The main reasons for separating NIS from other countries:

1) for a number of reasons, some NIS found themselves in the sphere of special political and economic interests of industrialized countries;

2) for development modern structure The NIS economy was greatly influenced by direct investment. Direct investments in the NIS economy account for 42% of direct capitalist investments in developing countries. The main investor is the USA, and then Japan.

16. International economic integration. Concept, essence, stages, forms. Main integration associations.

17. Concept, essence and prerequisites for the export of capital. Long-term trends in international capital flows.

18.European Union: history of education, structure, politics, impact on the world economy. Contemporary issues functioning of the EU.

19. The concept of the world market and its main macroeconomic indicators. The mechanism of functioning of the world market. Equilibrium in the world market, the main factors influencing it.

20. .Concept, general characteristics, prerequisites and stages of development of the world economy.

21.International monopolies, essence, basic forms. The largest TNCs and MNCs in the world.

22.International credit. The concept of the global debt crisis and ways to solve it. Russia as a debtor and creditor.

23. Concept and types of strategies of TNCs in the global market. Interaction between the state and TNCs. Methods for realizing the dominance of TNCs.

24. Foreign trade policy of the state. Essence and forms. Instruments of protectionism.

25.The essence of international trade and its importance for the formation and functioning of the world economy. Structure, geography and dynamics of modern international trade. International trade regulation.

26. State regulation of the process of export - import of capital. The concept of the country's investment climate. Investment risks. Russia on the world capital market.

27.International monetary system: essence and evolution. Problems of Russia's integration into the MFR.

28.Exchange rate and currency parity. The essence and relationship of categories.

29. Current state and directions of development of Russian foreign trade. 30.Structure of the foreign trade balance of Russia.

31. Formation factors exchange rates.

32.The impact of exchange rate dynamics national currency on the state of the country's balance of payments.

33.Direct and portfolio investments: concept, mechanism and role in international capital movement.

34. Pros and cons of free trade. Discussion about Russia's accession to the WTO.

35. Objective conditions for the formation of the world labor market. Russia on the global labor market.

36. The influence of exchange rate dynamics on the state national economy. 37. Dynamics of the ruble exchange rate and the economic situation in Russia.

38.Currency convertibility. Convertibility regimes and currency restrictions. The problem of achieving ruble convertibility.

39.Transnationalization of the world economy. TNCs as an organizational form of capital export.

40.European monetary system and the role of the Euro in the global economy

41. International trade in services. Essence, structure and forms.

42.Types of exchange rates, their characteristics. The essence of fixed and floating exchange rates.

43.International exchange of scientific and technical products, knowledge and technologies. Essence, goals and forms. Russia in the global technology market.

44.International labor migration: essence, main directions of flows.

45. The cyclical nature of the development of the world economy. World business cycle and global economic crises.

46.International currency relations. Essence and main categories.

47. Main forms of intercountry capital movement.

48.International foreign exchange market, main categories, organization and principles of operation.

49.Basic methods government regulation foreign exchange market. Currency interventions, devaluation and revaluation.

50. Balance of payments of the country. Structure and indicators. Methods for regulating the balance of payments.

Related information.

They occupy an important place in the world economy, although until recently their economy was typical of developing ones.

Characteristics of NIS countries

They are distinguished by a relatively high level of GDP, the spread of industrial forms of production, a relatively developed industrial economic structure, export of manufactured products, cheapness Market relations in these countries have risen to a higher level of maturity than at the previous level.

Newly industrialized countries are, first of all, some Latin American states: Mexico, Brazil, Argentina, which in many respects have already approached economically highly developed countries. They have significantly increased the volume of industrial production and the share of industry in the state national income. The position of the entrepreneurial class has strengthened significantly.

NIS also include Singapore, Hong Kong (part of China), Taiwan and South Korea. Foreign capital occupies an important position here, which has a beneficial effect on the manufacturing industry. For export of products to modern world These countries are leaders among a number of developing countries.

The most developed newly industrialized countries in the world are the Republic of Korea, Mexico, Argentina, and Singapore. They have come so close economically that they are already approximately on the same level as European countries such as Spain, Greece, and Portugal.

Other Asian countries are not far behind these countries. These include Indonesia, Malaysia, the Philippines, and Thailand. There is an increase in industrial production here, although a significant part of the local population is still employed in agriculture. Product exports are steadily growing, and representatives of national capital are confidently strengthening their positions. The newly industrialized countries of Asia, together with the countries of Latin America (Colombia, Venezuela, Peru, Chile, Uruguay) are sometimes called the second generation of NIS countries.

Newly industrialized countries in the world economy, reasons for the rapid growth rate of economic development

The essence of the NIS phenomenon is that many of the developing countries are overcoming the agrarian and raw materials specialization of the economy, forming an industrial complex, debugging an open-type economy model that can adapt to international economic markets. Newly industrialized countries such as Singapore, Hong Kong, Taiwan and the state of South Korea are the core of the NIS. An example of such a successful effect of perestroika in these states is the development of new electronic technologies. To carry out this activity, there was a need for engineering personnel, a qualified workforce capable of constant retraining, and a well-functioning competitive mechanism in the modern economic sector. By the end of 1980, the Four Dragons were already international exporters of electronic goods.

The fundamental condition for the success of NIS in the economy was the dynamic balance of demand for skilled workers, therefore institutions were created that were able to implement this task and identify priority areas for training specialists. The availability of highly qualified personnel is an important factor in high labor productivity in these countries. The newly industrialized countries of Asia are practically deprived of economic sectors where foreign capital is not involved. Capital exports to NIS Asia are carried out in different ways: in the form of loans, direct investment or transfer of new technologies. NIS of Asia have shown through their experience that the preservation of the ethnocultural, philosophical, historical roots of society plays an important role in creating conditions favorable for carrying out real structural changes and social restructuring.

Federal Agency of Education of the Russian Federation

East Siberian State Technological University

Department of Economic Theory, National and World Economy

COURSE WORK

by discipline

WORLD ECONOMY

Economics of NIS and their role in the global economy

Completed by: Mironova E.A.

Checked by: Dambueva M.M.

Ulan-Ude

INTRODUCTION………………………………………………………………………………..…3

Chapter 1. New industrial countries and the new industrial revolution .....6

1.1. Formation and development of NIS…...……..………..………………………6

1.2. Comparative characteristics of NIS of Southeast Asia and Latin America…………………………………………………………..………….…..13

Chapter 2. Current state of NIS……………………………………….…19

2.1. Socio-economic problems of NIS……………………...…19

2.2. Prospects for the development of NIS………………………………...…..…..22

CONCLUSION…………………………………………………………….25

LIST OF REFERENCES…………………………….….27

INTRODUCTION

Since Peter I began to open a window to Europe - in the sense not so much of access to the sea, but of enriching itself with its achievements - methods and means of “catching up” with the economic and social development of countries equal to the advanced Western models, as well as the results of this “race for leader”, changed several times.

After the Second World War, the most successful model of “catch-up” development was the generally accepted Japanese “industrial policy”, which in a quarter of a century transformed from a defeated, devastated country into the second economic power in the world. This model has become a model for all of East Asia - from South Korea and Singapore to Thailand, China and Vietnam. The long-term stable high rates of economic growth and improvement in living standards achieved by the newly industrialized countries have become a record in the entire history of “catching up” developing countries.

The model of “catching up” development of East Asian countries has received the figurative name of “flying geese”. Unlike the Soviet Union, which threw all its energy into heavy industry, the first “goose” that paved the East Asian path “flew” along almost the entire historical route of classical industrialization that began at the end of the 18th century. This was Japan, which, focusing primarily on exports, first intensively developed light industry, especially textiles, then shipbuilding, automotive and other branches of heavy engineering, as well as petrochemicals, at the next stage - instrument making and electronics, and, finally, high-tech products - computers, boards, etc. (problems arose only in the early 90s, when the country began to lag behind the United States and the European Union in the development and production of the most advanced high technologies). Four Asian “dragons” - South Korea, Taiwan, Singapore and Hong Kong - have followed or are following the same stages of industrialization, followed by the “tigers” - Thailand, Malaysia, Indonesia, the Philippines - and, finally, China and joining the “geese wedge” » Vietnam.

The stagnation of the Japanese economy, which lasted more than ten years, and the Asian financial crisis of 1997-1998, shook the economic, social and political foundations of the newly industrialized countries and made significant adjustments to the assessment of the results and prospects of their development.

However, the speed with which most East Asian countries, with the exception of Indonesia, overcame the worst consequences of the crisis and resumed high economic growth, dashed the most pessimistic scenarios about the complete failure of their “catch-up” development model. Thus, South Korea, which has been the most successful in overcoming the shortcomings of this model and deep structural reforms, achieved 10.2 percent in 1999, 4.8 percent in 2000, and 3.5 percent in GDP growth in 2001.

This paper examines the main features of the socio-economic situation of NIS in the Asia-Pacific region.

Based on information from periodicals and educational literature, as well as statistical data, the problems that these states have faced and are facing along the path of their socio-economic development, as well as the main trends of this development, were identified and analyzed.

The NIS topic seemed interesting to me in its content, but it was the NIS of Southeast Asia that was of particular interest to me in this category of countries, since it was in this region that the 4 Asian miracles of the “tiger” countries appeared to the world (Hong Kong, Singapore, Taiwan and South Korea ), and then the miracle of the “dragon” countries. These states were able to achieve enormous progress in the social and especially economic spheres in a relatively short period of time.

In the 1950s, the Asia-Pacific countries had only backward agriculture. By now, the countries of Southeast Asia have become one of the fastest-growing countries in the world, which clothes and supplies consumer electronics and food to the United States, Japan, and Western Europe, thereby increasing their weight in the world economy.

The recent monetary and financial crisis in the NIS has further attracted the attention of industrialized countries to the processes occurring in the developing countries of the Asia-Pacific region. Therefore, work that reveals the features and patterns of socio-economic development, analyzing the positive and negative aspects of the economic policies of newly industrialized countries, seemed to me very interesting and relevant at the present time.

The purpose of this work is to answer the question: are the countries of the “East Asian miracle” zone able to fit into the new high-tech globalized world economy?

Let us consider in more detail a comparative analysis of the development of the newly industrialized countries of East Asia and Latin America, and also analyze their role and place in the modern international economy.

Chapter 1. New industrial countries and the new industrial revolution

1.1. Formation and development of new industrial countries

As a result of the collapse of the world colonial system in the post-war years, many independent states appeared on the political map. Many of them chose a socialist model following the example of the USSR as the basis for their development, but most of these countries continued their formational development within the framework of the capitalist system, which received an additional socio-economic base.
The growing process of differentiation of developing countries, determined by the law of uneven economic development, has led to the identification of a special group of countries and territories - “new industrial countries” (NIC), or “new industrial economies” (NIE). These countries include primarily South Korea, Taiwan, Hong Kong (Hong Kong), Singapore - the four “Asian tigers”, as well as Malaysia, Thailand, Indonesia, the Philippines, Mexico, Brazil, and Argentina.

In the 70s, a historical turning point occurred in the dynamics of the gap between industrialized and developing countries. Internal economic reforms and streamlining of the legislative framework, which accelerated the development of free private entrepreneurship, contributed to attracting foreign capital. For developing countries as a whole, since 1986 there has been a turning point in the dynamics of the net inflow of foreign direct investment.

To create the most complete picture of the development of this group of countries, it is necessary to analyze some of the most important aspects of the socio-economic development of the NIS.

The socio-economic development of the NIS Asia-Pacific region has many common features, although there are states in the region that fall under the classification of developed countries (Singapore, Hong Kong). In recent decades, this group of NIS, as a result of rapid economic growth, has achieved noticeable success in overcoming economic backwardness. At the same time, the model of socio-economic development typical for the region gradually changed its content. The industrialization of NIS can be divided into 3 stages:

- (50s - mid-60s) - development of import-substituting industries: the creation of light industries, which were called upon, in conditions of a shortage of foreign currency, to saturate the domestic market with textiles, knitwear, and footwear.

- (mid-60s – 90s) – creation of export potential: creation and development of industries oriented to the foreign market.

- (turn of the 20th-21st centuries) – development of knowledge-intensive industries: chemical, metalworking, electronic, electrical. Increased public and private spending on R&D.

Thus, in the 60s, priority was given to the growth of traditional raw materials sectors of the economy, focused primarily on exports, as well as the implementation of a policy of import substitution. This policy involved the development of local manufacturing industries under the protection of high tariffs. This model (import substitution model) made it possible to strengthen the young national industry. However, this strategy has not always contributed to achieving constant and stable growth and overcoming economic backwardness. First, markets for the products of import-substituting industries are limited due to the underdeveloped manufacturing capabilities of developing countries. Hence the extremely narrow market capacity. Secondly, the elimination of competition from cheap foreign goods has led to a lack of incentives for producers in developing countries to lower production costs and improve the quality of goods. Thirdly, the penetration of goods from developing countries into foreign markets is hampered because Western countries have blocked their access to their markets through various barriers.

At the first stage of industrialization, aimed at import substitution, one can note the creation of enterprises in textile, clothing, leather and footwear, woodworking, furniture and other industries producing consumer goods for short- and medium-term use. These industries, in terms of technical and economic parameters, generally corresponded to the capabilities and needs of underdeveloped economies. They used relatively simple labor-intensive technologies that practically did not require a complex system of related industries for the production of starting and auxiliary materials. However, attempts to create industrial production of durable goods and intermediate products necessary for their production in the NIS ended in failure. Industries such as petrochemicals, metallurgy, and the pulp and paper industry, where the bulk of initial construction materials are produced, are capital-intensive, designed for a large volume of production and, therefore, for a large market.