Countries as actors of World economy

6.1. Classification of the countries

Well known classifications are classifications of the World Bank (WB classification system), United Nations (UN classification system), International Monetary Fund (IMF classification system) [20, p. 34–42] (table 14).

Table 14

Classifications of the countries

WB classification system	UN classification system	IMF classificatation system
GDP per capita approach	Social-economic level approach	Economic progressive approach
The groups are[3]: 1. Low income, $1,005 or less (35 countries [4]). 2. Middle-income economies, including: 2.1 Lower middle income, $1,006 – $3,975 (56 countries[5]); 2.2 Upper middle income, $3,976 – $12,275 (54 countries[6]). 3. High income, $12,276 or more (70 countries[7]).	The groups are: 1. Developed countries (40 countries[8])[9]. 2. Transition countries (18 countries[10]). 3. Developing countries (the rest of the countries).	The groups are: 1. Advanced economies [11] (33, including EU, New Industrial Countries) 2. Emerging and developing economies (139 countries).

6.2. Country competitiveness rankings

Country competitiveness is usually ranked by two organizations (table 15):

· International Institute for Management Development (IMD, Lausanne, Switzerland) [51].

· World Economic Forum (WEF, Geneva, Switzerland) [47].

Table 15

Competitiveness ranking comparison

	IMD [51]	WEF [47]
Publication	The World Competitiveness Yearbook (WCY)	The Global Competitiveness Report (GCR)
Definition	The competitiveness of the nation is its ability to create and maintain an environment that ensures the growth of value-added enterprises in the country and welfare of its citizens	Competitiveness is the set of institutions, policies, and factors that determine the level of productivity of a country
Number of countries
Information base	331 criteria	110 criteria

Example is in Table 16.

Table 16

Country competitiveness rankings

IMD[12]	WEF[13] 2009–2010
Country	Score	Place	Country	Score	Place
USA Hong-Kong Singapore Switzerland Denmark …. Venezuela	100.000 98.146 95.740 94.163 91.741 … 39.060	…	Switzerland USA Singapore Denmark … Burundi	5.6 5.59 5.55 5.51 5.46 … 2.58	…

6.3. Scientific and technical potential of the world economy

On the modern stage of the world economy development the place of a country in international division of labor is determined by its capability to generate and introduce innovational ideas into production and to put into practice the achievements of scientific and technological advance, which in its turn depends on volume of research and development (R & D) spending (fragment is in Table 17, the full one is in appendix 20).

Table 17

World countries and their groups expenditure for R&D (fragment)

№	Country	Research and development (R&D) expenditures (% of GDP)
	Israel	4.5
	Sweden	3.7
	Finland	3.5
	Japan	3.1
	Iceland	3.0

Data source: Human Development Report [30]

A successive stage in the world technological development is closely connected with nanotechnologies emergence and development (Table 18).

Table 18

Government investments in nanotechnologies estimates (2008)[20, p. 145]

Country	Government financing of nanotechnologies, mln $
European Union states (EU–25)
United States
Japan
Russia
Germany
China
South Korea
Great Britain
Taiwan
India
Other countries

One of the rates of countries’ scientific and technical potential is the amount of patents granted per million people of the country population. The record is kept by World International Property Organization (WIPO). The average world amount accounts for 90.7 patents per million people (Appendix 21).

Countries’ scientific-technical potential development results in licenses trade. Under the license contract one party – a grantor of a license (a holder of prerogative right for the intellectual activity result) provides or undertakes a commitment to provide another party (a grantee of a license) with the right to use such a result in the framework specified in the contract. The advantages of the strategy oriented towards license purchasing include the possibility to meet new engineering and technology needs, time and cost saving in terms of carrying out their own research and development.

In table 19 you can see the license exporting countries rating (the whole version is in Appendix 21). Ranking has been conducted on the basis of the amount of royalty and license fees received by a country.

Table 19

Leading countries royalty and license fees, received by a country (fragment)

Rank	Country	Value (USD, bln.)
	United States	57 410 000
	Japan	17 655 250
	United Kingdom	13 302 890
	Germany	6 827 509

Data source: Royalty and license fees, receipts by country // http://www.nationmaster.com/

Table 20 shows license importing countries rating (the whole version is in Appendix 22). Ranking has been conducted on the basis of the amount of royalty and license fees paid by a country.

Table 20

Leading countries royalty and license fees, paid by a country(fragment)

Rank	Country	Value (USD, bln.)
	United States	24 501 000
	Ireland	19 426 120
	Japan	14 653 470
	United Kingdom	9 068 751

Data source: Royalty and license fees, receipts by country // http://www.nationmaster.com/

Innovational development is directly linked to «high-technology» concept. High-tech products comprise the following industries products: aerospace, pharmaceutical, radio-, television and communication equipment, computers, precision, medical and optical instruments and devices. High-tech products markets are traditionally dominated by leading economically developed countries such as the USA, Japan, the UK, Germany and France. They can be faced with the competition in some global market segments from companies of South-East Asia new industrial countries – Hong-Kong, Malaysia, Taiwan, Singapore and South Korea. China (supplying electronic and radio-engineering devices) and India (selling software and pharmaceuticals) are strengthening their positions. Russia’s share in high-tech production is small and accounts for just 0,3 %. Currently Russia can adequately compete only in space engineering and services, military aircrafts, nuclear technologies and some kinds of electronic industry goods markets.

Competitive manufacturing development on the innovational basis is favored by applying advanced manufacturing sciences and by modernizing enterprise manufacturing capabilities. In this context it is necessary to point out the significance of «new economy» industries that is information and communications technology (ICT). In conditions of ICT dynamic development and rising country economy productivity dependence on introduction and reliance on given technologies there has arisen a necessity of measuring different economies readiness to use advantages provided by ICT.

World Economic Forum publishes the yearly «Global Information Technology Report», assessing Network Readiness Index (NRI). Network Readiness Index measures the propensity for countries or societies to exploit the opportunities offered by information and communications technology. Network Readiness Index is a combination of some 67 variables, which are grouped into 9 subindices. From those 9 subindices, 3 major component indices are built (environment, readiness and usage), which are then aggregated into a single index, the NRI.

1) The ‘environment’ component includes items such as a country’s regulatory regime or legal framework for ICT, or the availability and quality of IT infrastructure.

2) The second pillar (readiness) looks at actual levels of networked readiness of the three main subsets of stakeholders in the economy: individuals, businesses, and governments.

3) Finally, the actual levels of usage of ICT by those same three groups constitute the ingredients of the third pillar of the NRI (usage).

The 67 data used for NRI computations include hard data (typically statistics collected by the ITU(International Telecommunications Union) or the World Bank for example – mobile phones users number, Internet users number, ICT services import) and soft data, mostly derived from the World Economic Forum’s Annual Executive Opinion Survey.

Maximum NRI value is 6. In 2008–2009 ranking includes 134 countries in accordance with their propensity to exploit information and communications technology (table 21). The whole version is in Appendix 23.

Table 21

The Networked Readiness Index 2008–2009 rankings (fragment)

2008–2009 rank	Country/Economy	Score	2008–2009 rank	Country/Economy	Score
	Denmark	5.85		Switzerland	5.58
	Sweden	5.84		Finland	5.53
	United States	5.68	…	….	…
	Singapore	5.67		Chad	2.44

Source of data: Global Information Technology Report 2008-2009. World Economic Forum // http: //www.weforum.org

World practice has worked out 2 polar models of the country’s economic development: A raw materials sources model and an innovation model.

In economy realizing a raw materials sources model means that the GDP structure is dominated by primary sector and mining industry. An innovation model of economic development implies that the GDP structure is dominated by processing industries, producing advanced technology products (1) and sector of services, rendering which is associated with high technology (2).

The comparative degree of economy innovativeness is identified with the help of International Innovation Index, which evaluates country’s economic systems capacity to develop and use the newest technology, raise personnel potential, and also it gives clear idea of system advantages and disadvantages in terms of innovation policy and practice (table 22) [20, p. 155]. Ranking countries by the value of the innovation index is performed by Boston Consulting Group, National Association of Manufacturers and Manufacturing Institute (USA) (the whole version is in Appendix 24).

Table 22

International Innovation Index for leading countries (fragment)

Overall ranking	The top 20 countries in the world by GDP ranking
Ranking	Country/Economy	Score	Ranking	Country/Economy	Score
	Singapore	2.45		South Korea	2.26
	South Korea	2.26		United States	1.8
…	…	…	…	...	…
	France	1.12		Brazil	–0.59

In computing International Innovation Index both input factors (for example, R&D government spending, educational, immigration, intellectual property protection policies, workforce quality and others) and output factors (for example, R&D investments, registered patents number, technology transfer, innovation commercialization level, high-tech export, labour productivity, employment growth and others). International Innovation Index value is varied from –2 to 3. Ranking includes 110 countries, Russia having been ranked 49 in overall 2009 ranking (54 – in 2007), and in the top countries in the world by GDP ranking – 16.

6.4. Russia in the World Economy System

In the context of the international division of labor in Russia the mineral complex is dominated. But the contours of a new paradigm are traced: ICC stands the basis of renewal and is the transitional bridge for the entire Russian economy for the sixth technological system. Russia is aimed at maintaining the interests of compromise along the whole chain of interactions from extraction to consumption of mineral resources [13, p. 228, 236], as well as the creation of high-tech economy. Qualitative changes should be revealed in advance of the growth of the final product, compared with an intermediate, in the preferential growth of industries that determine the acceleration of the scientific and technological progress.

The collapse of the Soviet Union and the economic disintegration in the post-Soviet states had a significant impact on weakening Russia's position in the global economy. During the second half of XX century the Soviet Union on many economic indicators including the growth rate and volume of production in many industries was not just among the world leaders and often took 1–2 place in the roster. The total economic crisis and vast industrial decline, the collapse of the socialist camp which influenced on the main part of machinery export of the Soviet Union (75,7 % in 1986) largely predetermined the position of Russia’s foreign trade structure. If in 1990 the share of energy products in Soviet exports was 40,5 %, machinery and equipment were 18,3 %, in 1998 these figures were 42,8 % and 11,4 % respectively. In 1992 (in a year after the disintegration of the USSR) the share of raw materials and semi-products reached 95% (Russian Statistic Yearbook 2002: 619; Ibid 2010: 726) [35].

In 1990s the importance of Russia in the global industry decreased significantly. By 1997 Russia's GDP, calculated according to the new concept of national accounts, declined by more than half compared with 1990. Russia's share in the world industrial production changed from 10.3 % in 1990 to 4.5 % in 2000. In the period of 2000–2008 Russia accounted for only 2–3% of global GDP in terms of the purchasing power parity (up to 2007 is 2,08 trillion dollars, compared to the U.S. – to $ 13,86 trillion, in 2008, respectively 2.27 and 14,26 trillion dollars respectively). Russia's share in the world production of high-tech products was only 0,3 % in 2005–2008 [20].

Nevertheless, actual data of Goskomstat of Russia [35, 36] show the steady growth of the foreign trade turnover (table 23 – on balance of payments methodology). At the same time, despite fluctuations in exports and imports, the balance has always remained positive since 1992. In conditions of external debt and capital flight it contributes to the accumulation of foreign currency and foreign debt servicing.

Table 23

The dynamics of Russian foreign trade ($ billion)

Годы
Export	105,03	103,20	107,30	135,93	183,21	243,80	303,55	354,40	471,60	303,39
Import	44,86	53,70	60,97	76,07	97,38	125,43	163,28	223,49	291,86	191,80
External trade turnover	149,89	156,90	168,27	212,00	280,59	369,23	466,83	577,89	763,46	495,19
Balance	60,17	49,50	46,33	59,86	85,83	118,37	140,27	130,91	179,74	111,59

Source and calculated on the base of: RSY (2002: 614): Table 24.2; Ibid (2006: 724): Table 24.2; Ibid (2010: 722): Table 25.2. [35]

Unfortunately, at present of all Russian exports of goods there are exclusively raw materials and products of shallow processing. In the overall structure of Russian export the share of raw materials and products of the initial stages of processing is more than 70 %. Despite the fact that Russia can produce up to 60% of telecommunication equipment, currently available in the world, it lags well behind the developed countries in terms of the development of communication and telecommunication services to share in the global computer park. Unfortunately, in the international division of labor Russia plays a role of a supplier of mineral raw materials, exchanging them for the equipment, consumer goods and foodstuffs (appendix 25). It would be desirable to believe that this distribution of roles is not final. The structure of foreign investments received by the Russian Federation consists of the following relation (table 24).

Unfortunately, there is an increased share of «others», i.e. credits, loans, etc. (investments on the return basis). The problem of the development of the investment cooperation is one of the most topical for Russia. In the industry structure of foreign direct investments their explicit resource-orientation is concerned.

Table 24

The structure of the foreign investments in Russia, mln dollars

Years
Total -Bln dollars - %		….
Direct (%)	40.4	27.9	20.2	22.8	23.3	24.4	26.0	19.4
Portfolio(%)	1.3	3.2	2.4	1.4	0.8	0.8	1.4	1.1
Others (%)	58.3	68.9	77.4	75.8	75.9	74.8	72.6	79.5

Sources: Russia in figures (2010): Table 24.8; Ibid (2005): Table 23.12 [36]

In conclusion, we’ll show Russia's place in the world economy (Table 25).

Table 25

Russia in the world's largest economies, 2010

Country	GDP to PPP Bln dollars	Share in world GDP, %	GDP per capita, dollars	Structure of GDP, %
agriculture	industry	services
Russia		3.0		4.2	33.8	62.0
World total		100.0		5.8	30.8	63.4

According to: The World Factbook http://www.cia.gov

Дата добавления: 2014-01-05