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§ 13. Economic potential of Ukraine (textbook)



§ 13. Economic potential of Ukraine

Components The economic potential. Economic potential of the characterteryzuye opportunities National Economy
produce wealth, provide forservants to meet economic needs of society. These features provide all available resources in the country - manufacturing, material, labor, natural, financial, scientific, technical, Information and others. Respectively economic potential includes components of production, Truedoresursnyy, Finance, scientific and other potentials.

Production potential formed the basic production assetsWe, which includes buildings, pipelines, machinery, enging more. In Ukraine there were over 100 000 businesses, but most of them were old, very worn, and even destroyed ba-nate business assets that need updating or unmount.

Labor resource potential characterized quantity and quality of ro-labor force. Long time increase manpower various skill Ukraine to satisfy the interests of its economy, some workforce was involved in other former Soviet republics. Last decade number of manpower in the country decreases, resulting unfavorable demographics, while the quality of labor byremains high (in particular the growing weight people with higher education). The economic crisis the country had led to unemployment and under- employment, labor emigration in Russia and in country Europe, America and other regions. Among those leaving on earnings, a large number highly skilled specialists in new conditions, not realizing their professional opportunities.

Natural resource potential make all kinds of natural resources available in the territory or under its part World Ocean: mineral, land and soil, agro-KLIMtical, water, hydropower, biological (including forests), nature and recreation. By gross reserves of some of which Ukraine is one of the leading places in Europe (eg, mineral, groundwater, riversreatsiynyh). Instead, feel the overall deficit of water, Hydronerhetychnyh, forest resources.

Financial strength country determined by the aggregate cash assets of enterprises, citizens of the state. Financial options UkraineUkraine is still very modest. Annual State budget of the country less budgets rather than individual cities of developed countries West. Many Ukrainian companies are financial or debtors are on the verge of bankruptcy, and a significant number of citizens receiving incomes lower than the subsistence minimum. Many financial transactions are outside legal framework economy, by law, ie in the "shadow". All is not promotes normal functioning of the national economy.

Scientific potential Ukraine is based on an extensive network of scienceentific institutions, research facilities that exist in the system National Academy Sciences, ministries and agencies. their employees are thousands of experts of the highest category - doctors and candidates Science. In some areas of science Ukraine proved to be one of the world leaders, such as cybernetics, welding metals, cardiac surgery, space technology. However, in many areas of science activities relating to development high-technology and new technologies, the gap significant domestic science. In our time situation is complicated by insufficient funding and unstable activity scientific organizations, travel specialist high Qualificationsalong with basic information on border.

Efficiency in the country's economic potential depends on economic mechanism. Imperfection may last cause unsustainable, ineffective, and even the use of expensive components economic potential.

ECONOMIC INDICATORS. Role every state in the modern world determined, above all, its economic power, which is consequence of economicnomic potential. The most universal indicators of the economic power of the country is its gross internal product (GDP) and gross national income (GNI).

Gross domestic product States - a total value for market-issuer prices the total volume of final goods and services produced in the country within one year (including revenues from their exports). GDP covers the economic performance of enterprisesprises, organizations, institutions and individuals persons, regardless of their nationality and citizenship, engaged business in the territorytrajectories of the country.

Gross national income different from GDP that takes intovuye incomes of firms and citizens of the country received abroad, but excludes income foreign companies and individuals engaged in activitiesing in this country.

GDP and GNI first calculated in local currency. For example, gross domestic product of Ukraine (according to national statistics) was 170 billion USD in 2000 and 345 billion USD in 2004 However, these figures can not be comparedsubject to change as they submitted at current, not comparable prices. The more they give an idea of Ukraine's place in world economy.

For international comparative assessments of the World Bank calculates GDP and GNI countries in the single currency - U.S. dollar and the so-called international dollars. In the first case calculated in local currency indicators are translated into U.S. dollars at the annual exchange rate rates taking into account inflation in the country and leadthese countries (U.S., Japan, UK and countries of the Euro-whom the Union which included in the euro area).

According to World Bank Ukraine's GDP (calculated using the following method) was in 2004 over 65 billion dollars. According to this indicator Our country was occupied 53rd place in the world and 22nd - in Europe, goeschys, including Greece, Portugal, Ireland, Czech Republic, Hungary or Romania (Annex 1). The leaders among the countries with the terms of GDP is U.S. (11,7 trillion. Dollars.), Japan (4.6 trillion. Dollars.), Germany (2.7 trillion. dollars)., Britain and France (2,1 - 2,0 trillion. dollars.), Italy and China (1,7 -1.6 Trillion. dollars)..

In calculating GDP and GNI countries in "international dollars" take intoDock not only exchange rate of U.S. United States, but the purchasing power population in the country and the U.S.. Gross rates in this currency get map and by-ing prices basic goods and services produced in the country, with prices on similar products in the U.S.. As level of commodity prices and services Ukraine in general lower than in the U.S., highly and many European socialist countries, Ukraine's GDP, transferred to the "International dollars", dramatically increases (up to 300 billion.), And Ukraine this indicator rises to 29th place in the world and 10th in Europe leaving behind the above-mentioned neighboring countries.

Another convincing performance level of income - GNI per capitation, which is basic criteria of the classification of national economyMick. In 2004, the figure for Ukraine in 1240 amounted to U.S. $ ie country was on the 133-th place among nearly 200 countries studied the World Bank. It was a group of countries with a level incomes below the world average.

Among the former Soviet Union from Ukraine higher rates amongnodushovoho income were Estonia, Latvia, Lithuania, Russia, Belarus, Kazahstan and Turkmenistan. The highest rates (40 to 56 thousand dollars. U.S. per person) are typical for Luxembourg Norway, Switzerland, United States of Denmark. Instead, the Democratic Republic of Congo Ethiopia Liberia Burundi numbers do not exceed 120 dollars. This - the lowest in world performance.

And other indicators used to characterize the state ofnational economies: GDP growth for the year calculated as a percentage (within 90's gross domestic product of Ukraine steadily, only in 2000 it began to rise - an average of 5 - 9 % Per year); unemployment calculated as the ratio of bezrobitnyh to economically active population (according to official data in Ukraine it is 9—10 %); inflation - impairment process money, with rising prices of goods and services. In Ukraine in 1992 - 1993 took place hyperinflation, when daily prices increased by 2 - 3%. Recent years Inflation averages 8 - 12% per year; budget deficit - Excess public expenditures on their incomeLadies, leading to an increase in public debt. In some years (2000,2002) in the economy of Ukraine the Budget surplus - excess income over expenditures; level of public debt (Size of public debt as% of GDP) balance Foreign operations (Difference between expenditure and eructationtion related of foreign economic activity of the country) and many others.


Questions and Tasks

1. What is the potential of the economy?

2. Name the main components of the economic potential and describe their for of our country.

3. What metrics are used to characterize and compare national economies?

4. What is GDP and GNP?