7. Ukraine and globalization processes

Author points out that globalization, which has enclosed the overwhelming majority of states in the modern world including also Ukraine, is one of the most important causes of civilization development. It is especially accentuated that under the influence of global and local factors new geopolitical economic and civilization situation is being formed, dependence of people and world countries increases, which creates challenges and traps for the national state.

Globalization processes are causing adjustments in the development of countries around the world. Passivity in the face of globalization, uncertainty and indecision among its political elite could deprive Ukraine, once and for all, of the chance to find itself a respectable place in the pantheon of nations.

Globalization also has the determinative technologies - computerization, miniaturization, digital technologies, satellite communication, optical fibers and Internet - which enhance the significant integration perspective. The technologies development is a necessary base for Ukraine’s leap to the world system of globalization. It is necessary here to reject any doubts that, after all, the lag in technologies is inadmissible for the state, which tries to play on equal terms in the world community. The implementation of the country’s industrial electronics, its Internet throughput rate are the powerful factors of globalization itself and at the same time the powerful factors of introduction of the current market relations in the country’s economic system. The influence of global processes on the forming of economic policy of the state has been considered. The economics of Ukraine is developing in new international conditions that lead to the necessity to take into consideration the factors of interdependent development of economics in the world. The search of ways to get the best results, to improve the level of development, to raise the effectiveness of cooperation with other countries are the main tasks for Ukraine on a global scale.

The instability of the world society attracts attention of the scientists to the necessity of finding some operation factors on local scale as well as on global one. Ukraine situates on the crossroads and realizes crisis both internal and external positions. We define the stabilization of the position of Ukraine in the world community with the help of creating the concept of a general plan of the Ukrainian development and «the strategy of run».

13. Great Britain’s economy

Little more than a century ago, Britain was 'the workshop of the world'. It had as many merchant ships as the rest of the world put together and it led the world in most manufacturing industries.

From 1981 to 1989 the British economy experienced eight years of sustained growth at the annual average rate over 3%. However, subsequently Britain and other major industrialized nations were severely affected by recession. In Britain growth slowed to 0.6% in 1990, and in 1991 gross domestic product (GDP) fell by 2.3%. GDP fell in 1992 as a whole by 0.4%, but it rose slightly in the second half of the year. The recovery strengthened during the first part of 1993; with GDP in the second quarter being 2% higher than a year earlier; the European Commission expected Britain to be the fastest growing of all major European economies in 1993 and1994.

Recent indications that the recovery is under may include:

• an increase in manufacturing output;

• a steady upward trend in retail sales;

• increases in new car registrations;

• record levels of exports;

• increased business and consumer confidence;

• signs of greater activity in the housing market.

The Government’s policy is to ensure sustainable economic growth through low inflation and sound public finances. The Gov­ernment’s economic policy is set in the context of a medium-term financial strategy, which is revived each year. Within this strat­egy, monetary and fiscal policies are designed to defeat inflation. Short-term interest rates remain the essential instrument of monetary policy.

Macroeconomic policy is directed towards keeping down the rate of inflation as the basis for sustainable growth, while micro-economic policies seek to improve the working of markets and encourage enterprise, efficiency and flexibility through measures such as privatization, deregulation and tax reforms.

The economy is now benefiting from substantially lower in­terest rates. In September 1993 base interest rates were at 6%. They had been cut by 9 percentage points since October 1990, and were at their lowest since 1977.