Trends of global economy of 2015

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TRENDS OF GLOBAL ECONOMY OF 2015

Volskaya M., Melnyk M.,

Students of 2^nd course of the faculty

of International legal relations,

National university,

«Odessa Law Academy»

global economy pollution health

Every year global economy faces new trends and challenges which have an impact on the development of various world companies. There are some organizations that carry out the investigation of those trends and try to predict possible consequences for world`s biggest companies work for the following year. This year investigation is not an exception. With the help of the Survey on the Global Agenda it is possible not only to determine the trends of global economical development of the current year but also to make some conclusions about the keys of problem solving for the world`s economical, social and political issues.

To begin with, it would be necessary to mention that there is a list of top trends this year. At the top of this year's list is worsening income inequality. Inequality is one of the key challenges of our time. This affects all countries around the world. In developed and developing countries alike, the poorest half of the population often controls less than 10% of its wealth. This is a universal challenge that the whole world must address. Additionally, according to the World Top Income Database there is the big gap of an income in countries like the United States, Australia and Singapore. The second trend on the list is persistent jobless growth. The transformations and job displacements associated with technological progress are happening faster, and may even be more dramatic in their impact than anything that humanity has experienced before. This is a long-term trend and it is observed across the world, even among emerging economies as they use their path of industrialization. Creation of robots and 3D could improve this trend even more and therefore they would increase the number of jobless population. The third point is the lack of leadership which is also considered as the long-term trend. It occurs because of the inability of international communities to deal with problems global economy faces today. It could not deal with global warming which can cause much damage in the future. The fourth point is rising geostrategic competition. After the end of the Cold War the world has moved towards the democratic and liberal consensus, however it does not mean that there is not any tension between states in the economic perspective. Rather than fearing strong, opposing states, international society is worried about state weakness, the breakup of countries, or the global reach of non-state, terrorist networks. The fifth point in the list is the weakening of the representative democracy. In the last two years, citizen protest has dominated the headlines in many countries around the globe. The citizens of countries like Spain, Ukraine and Greece showed that they have the lack of trust in their governmental and political power. Moreover it showed that these people now have more faith in companies than in their own leaders which represents the weakening situation of democracy nowadays.

In our opinion in order to solve some of these problems some actions should be done by the world leaders and international companies. Firstly, in solving income inequality, we believe that it is necessary to improve tax policy, education and redistribution. Secondly, when solving a problem like jobless growth it would be convenient to have job creation, to improve education and to stimulate government investment. When it comes to solving the problem like the lack of leadership we suppose that the best leaders know they must mediate and listen and include the opinions of others before making a decision. Also, solving the problem such as geostrategic competition there are things that need to be done. For example, to improve multilateral organizations and to resolve tensions between states. And finally, the weakening of the representative democracy can be solved in this way - representative democracy needs to modernize itself and actively involve citizens in decision-making processes.

There are also some other trends in global economy which have to be mentioned. These are: rising level of pollution in the world, increasing occurrence of severe weather events, increasing water stress and growing importance of health in the economy.

Rising pollution in the developing world is ranked as the sixth most significant global trend this year. The industrialization is creating unsustainable pollution levels. China is the largest greenhouse gas emitter. According to analysis by the Global Burden of Disease Study, air pollution in China contributed to 1.2 million premature deaths in 2010, representing a loss of 25 million years of healthy life. The developing world has learned a lot about commercial models, infrastructure and technology which are evolving economy, but the world's carbon capacity cannot allow humanity to continue on this path. The seventh trend is increasing occurrence of severe weather events. Extreme weather events are a major result of climate change, and are becoming more frequent, powerful and erratic. Severe weather events have caused huge devastation. The irony and cruelty of climate change is that the costs of extreme weather events are highest for society's poorest. They are those least able to cope and least able to afford insurance. The American Meteorological Society combined research from 92 scientists to examine 16 of the biggest weather events from 2013, concluding that global warming greatly increased the risk of severe heat waves occurring. Despite this, there's a real failure to grasp this problem. A lack of international leadership has definitely affected the development of this trend. The eighth trend of today's global economy is growing importance of health in the economy. Health presents a challenge for all nations. Tobacco, for instance, is one of the greatest evil we face. In many countries tuberculosis and malaria take a huge toll, both in loss of life and reducing the workforce. Such diseases as HIV/AIDS, cancer, hypertension, diabetes and heart disease are widespread as well. They cause severe consequences for people and as a result may cause lack of workforce.The last point on the list of trends of global economy is the increasing water stress. According to statistics, 750 million of people suffer from water crisis. There are the two main components of water crisis: water resource and water access. Even where resources are plentiful, there are millions of people who lack access. Ethiopia, for example, is known as the water tower of Africa, but more than half of its population do not have access to a safe and reliable source. Crises emerge where there is poverty and a lack of financial resources to combat the problem. In India, there are more than 100 million people without access to improved water supplies, and this is primarily due to poverty.

However, there are also solutions we also found to be helpful to these problems, for example the solution of rising pollution in the world requires a technological and an intellectual revolution, elaboration of an alternative route to economic prosperity that saves resources and limits carbon emissions. In our opinion, it is necessary to invest in a power generation network that can replace coal, including renewable, nuclear and gas, and phasing out low-efficiency generators. To solve a problem of increasing occurrence of severe weather events the investments should be directed for disaster preparedness and early warning activities. The solution is to invest in long-term infrastructure and to strengthen resilience before disaster strikes. Talking about solving health problems, the investments should be focused on technologies that make it easier to prevent, detect and treat diseases. Vaccinations and preventative strategies for childhood diseases are also of key importance for nowadays. Improving the health of a nation's citizens can directly result in economic growth, because there will be more people able to conduct effective activities in the workforce. To front the increasing water stress it is necessary for neighbouring governments, such as those of Pakistan and India, to cooperate in order to provide access of population to the water. The investments should be concentrated on microfinance and the ability to connect to the water supply infrastructure.

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