Type: Economics
Pages: 20 | Words: 5824
Reading Time: 25 Minutes

We live in a world that never stands still and develops under the influence of many factors: new technologies, political and economical phenomena, different kinds of events such as wars, elections, economic crises and so on, and so forth. Some factors are positive for the development of the country (employment, international trade, etc.) and there are ones that have negative impacts (economic crisis, unemployment, etc.).

However, one can not say that all countries are the same in the economic meaning; for example, there are the countries that have a powerful economy and stable international relations; that is why they are successful and rich (Great Britain, the USA, Germany, France, etc.) and there are the countries that have poor economics, corruption and the problems in educational and medical spheres; that is why they live in poverty (Zimbabwe, Mali, Niger, etc.). Nobody denies the fact that the collaboration of rich countries with the poor ones would help to raise the economic and social situation of the last ones; that is why at present time we deal with such a phenomenon as globalization. 

Globalization is the process that breaks down all barriers between countries: economical, political and cultural ones. Historically the establishment of agreements and treaties between nations is the oldest way of international relations. The status of any country in the world should be one of the directions of its politics. And it is globalization that can help them to occupy their places at the international scene. Moreover, globalization is a step forward as it advances the position of the country.

This function of international relations is relevant today, at time of globalization. Globalization significantly impacts on all economies of the world and these impacts are various, i.e.: on production of goods and services, labor market, physical and human capital, technology, efficiency, competitiveness and productivity. Globalization is multifunctional process. Their functions are to develop, advance, stimulate, motivate and help.

Positive international relations provide effective collaboration in trade policies between nations and positively influence on import & export. Not less important role international relations play in border control policies and, without doubt, in economic policy. Economic policy is the basement for the relations between any countries. At international scene every country should be an assertive player in international discussions on economy, politics, peace, security, culture and development.

At present time every country has the aim to integrate into global economic system. The integration into the global economic system is an enormous opportunity for work on international issues and finding the common solution to these issues. If the country is looking for  new ways for cooperation, collaboration and exchange, it will reap the rewards of increased growth and prosperity.

Nowadays, there is a tendency to neglect economic ideas in international relations as a result that it causes the underdevelopment of the world’s poorest countries. That is why our task is to reveal how the global economic system impacts on the development of countries, the positive effects of globalization, and the reasons of poverty of the African countries. Our task is also to underline how the lack of integration into the global economic system influences on poor countries, to show that globalization has a positive role.

The Notion of International Political Economy

International Political Economy is the developing study that tries to understand global and international problems of all the countries. The world is impossible without International Political Economy because the mutual collaboration of countries has a great and positive impact on economics, politics and on its international relations. International Political Economy is the global economy; it means that it includes international relations, help and collaboration. It investigates economics and politics in the global environment and helps to understand the complex interactions of countries at local, national and international levels.

As we see, International Political Economy is multicultural phenomenon that explores how international and national political factors are interrelated with economic factors. It is necessary to mention that the models for following are mature capitalist countries whose economy is powerful and developed. These rich and economically developed countries occupy the leading place among all other countries and very often influence on other countries’ economy and policy.

In today’s world one can not analyze international politics and relations without economic factors as they define whether the country is rich or poor, developed or undeveloped, etc. Development in the poorest countries of Africa and Asia depends on political reforms that have the economic aim to create the supportive international trade. International political cooperation includes also combating environmental threats such as natural disasters, climate changes as they also influence on the socio-economic basis of any country.

One can not discuss economic and politic state of any country in isolation and besides it is necessary to include the place of every country in the global economic system. The development of new technologies and global commerce has brought all countries closer together. Business and trade are conducted across the globe.  Without doubt, we deal with globalization of international political economy that gives opportunity to economic, political and cultural exchange between countries. The way in which the country is acting in a globalized world defines its successes and failures.

Having analyzed all factors that influences directly or indirectly on the development of any country we came to the conclusion that International Political Economy plays the essential role as this discipline explores the global economic integration focusing its attention on the international relations, political and economic state of a country, its perspectives on future and its place in the world.

It is reasonable to look back at the history of International Political Economy. In the 1970s, when the process of globalization was beginning, there were only such notions as foreign policy and international policy, international economics and international relations but they existed in isolation, separately.  However, at present time all these notions are interrelated and are analyzed in complex.

One can distinguish five key dimensions of International Political Economy:

  1. International Political Economy shows influence and power of economic mechanisms and tools in international policy. It is impossible to make political policy without foreign economic relations. Only politics, economy and foreign relations in complex can create global economy.
  2. International Political Economy proves that political and economic problems should be analyzed in the complex. It is necessary to take into consideration all sides of one medal.  I mean that political and economic problems are interrelated; that is why they should be seen as one mechanism with two different functions.
  3. International Political Economy reveals the complex interdependence among domestic politics, domestic economics, international politics and international economics. The level of domestic economy and politics will define soon the place of the country in the global economy.
  4. International Political Economy proves that multinational corporations play the important role in international economics and politics. Multicultural corporations are registered in some countries and as a result, they are like the bridge between countries.
  5. International Political Economy reveals that economic and political problems should be seen globally.

Recently the global economy has dramatically increased in trade across boundaries. It means that the integration of financial markets helped to tie the different national economics closely. Moreover, the industrial revolution and communication technologies allow people of one country to contact with people of other country. With the help of internet, mobiles and other electronic media, it is possible to be in touch constantly.

In conclusion, it is necessary to underline the importance of International Political Economy that has many tasks interrelated with economics and politics. The policy of every country should orient on the dimensions of International Political Economy: interrelation and interdependence of economical, political and international relations, analysis of political and economical problems in complex, globalization of economics, etc. Nobody denies that fact that the stimulation to development of International Political Economy as a study was the influence of new technologies, economical revolution and new ways of collaboration between countries.

Global Economic System

The global economic system unites the world’s economies at one global marketplace. One can distinguish such types of economic systems as the traditional system, the market, the command and the mixed one. They deal with such questions as using of resources, the way of production of the goods, distribution of them and for whom these goods are appointed. All these systems differ one from each other by some variations. Let us reveal them.

Traditional economy is the economic system that deals with the social customs, using of resources, production of goods and services. It also compares the past and present economic problems in order to avoid them in future. A traditional economy is not the same in all countries. Tradition economy is the old type of economic system that is typical for the African countries, South America and Asia. Tradition economy is supposed to be primitive and undeveloped system that does not bring benefit. It is based on agriculture.  

Market economy is the economy that is characteristic for the United States. This economy is based on the interaction of buyers and sellers. This economy concentrates its attention on the popularity of the trend and then chooses the products to produce. They always choose the production that would be sold well and would bring  profit. The way of producing always depends on the producer’s choice.

Market economy motivates workers to work harder because their payment depends on what they do. The income or profit can be increased by a hard work. A minor role here belongs to state and national governments. Market economies have aim to reduce a financial aid for some industry.  This economic system is characterized by the absence of planning; it is spontaneous and acts due to the situation. The government does not play here the leading role; it only controls its stability.

Command economy or planned one is the economy when all questions are regulated by the government. The government makes decisions about production, distribution, service prices and commodity. The individual has no choice to decide what he/she wants and needs; government decides everything without taking into consideration the interests and needs of people. However, the government does not know exactly what is best for every citizen.

Moreover, command economies do not motivate the workers as in spite of the production every worker gets the same amount of money and the same standard of living. A hard-working citizen has no chance to get additional payment for the extra work. As we see, this type of economy does not provide higher standard of living.  Command economic system is not flexible; it is planned and does not take into consideration the needs and demands of consumers.

Mixed economy is the economy that is oriented on the marketplace and the government.

Mixed economy usually provides the close collaboration of producers and the government. A mixed economic system has the features of the command and market economies. This economic system is typical for those countries where government and business entities have the same rights in controlling this economy. Mixed economy is flexible and exists in those countries where political and economic views are balanced.

The economic system of any country is aimed to benefit it. There are different view points about economic systems. One supposes that market economy is the best for a country. However, others may not think so. The main aim of an economic system is to establish production and distribution of goods. The economy of every country depends on its citizens and their desire to work.

One can distinguish many factors that affect international economy as well as national one and the most influential factors are the following: international trade dealing with goods, services, knowledge, etc.; the level of development of medicine, environment (climate change, global warming, greenhouse effect, etc) and finance. Without doubt, national policy can not solve all these problems immediately as they are global ones and that of large scope.

The modern global economy was founded in July 1944 in Bretton Woods at meeting of delegates of 44 nations. This was the conference that discussed the questions concerning reorganization of the world economy.  Before founding the International Monetary Fund, the General Agreement on Tariffs and Trade, the World Bank there was the task to solve the global economic problems. The members of that meeting came to the conclusion that fascism collapses international trade and isolate economic policies. 

At this conference it was decided that dollar would be the international currency and it was provided the free movements of capital and goods. This conference was the first step to rebuilding of economies and putting them on their feet after war as the state of international economy was lamentable and devastated by the war actions. Without doubt, it needs renovation and rebuilding.

Global Economic System is the system based on creative destruction; it means that it creates new forms of economic and social relations and destroys old ones. It allows countries to engage in exchanging goods and services, international trade. This system gives the possibility to move labor and capital freely around the world. Global Economic System is the economy of global society.

It is worth saying that the international relations play the leading role in the development of economy and politics. For example, the international trade and exchange of services, goods or resources help to solve national political questions, especially questions concerning the country’s economic and military security. The international relations are appointed for being in touch with neighboring countries, share challenges of underdevelopment, promote social justice and global equality, develop effective partnership, etc.

In conclusion, I would like to say that global economic system is the unity of all economic systems of the world (traditional economy, the market, the command and mixed economy). Traditional economy is the economic system that deals with the social customs, using  resources, production of goods and services. It also compares the past and  present economic problems in order to avoid them in future. A market economic system is characterized by the absence of planning; it is spontaneous and acts due to the situation. The government does not play here the leading role; it only controls its stability. Command economy or planned one is the economy when all questions are regulated by the government. The government makes decisions about production, distribution, service prices and commodity. Mixed economy is the economy that is oriented on the marketplace and the government.  Mixed economy usually provides the close collaboration of producers and the government. A mixed economic system has the features of the command and market economies. In spite of that all these economic systems differ one from other; they have the common aims to develop a country and to provide welfare its citizens. Without doubt, it is difficult to say what economic system is the best as each of them has its disadvantages and advantages.

The Role of International Relations

During the last years there were three important events in the international relations: the restructuring of world economy, economies openness of China and the Soviet Union and demise of Bretton Woods Agreements. These events changed cardinally international economic relations making them opener and more loyal (Behrman, 1989). As we understand from these events, the consolidation of international relations had started. Without doubt, one can not say that before these events there was not any international collaboration between countries. This collaboration existed but mainly in the form of trade.

All population of the world is divided into independent states or separate political, territorial parts that affect the way people live. All those states create an international economic system that is world global one. In spite of that all countries are separated and connected with their relations: economical, commercial or cultural ones. They are present at the international market that affects their policy, economics, culture and welfare. That is why there is nothing strange that all countries should enter into relations with each other.

Isolation of one country from another will not benefit its politics and economy.

State system is the system of social relations; that is why these relations are so important for any country. Without doubt international relations can have advantages and disadvantages for the participants. Most of the countries are friendly, non-threatening and peace-loving. However, there are such countries that are hostile and aggressive, and nobody can force them to collaboration.

International relations are the unity of economical, political, ideological, juristic and diplomatic relations between the states and the systems of these states. They are formed under the influence of the foreign politics of the countries of the world. The entity of the international relations is relations among countries. International relations create the image of a country and its status in the world. It is necessary to be in touch with the successful and economically developed countries.

There are the different points of view about the leading role in the international relations. Ones suppose that the state play the leading role in international relations. Others suppose that political forces are essential here. However, to my mind both a state and the political forces should take part in international relations and work under the image in the world.

The most important values of international relations are the following:

  1. security;
  2. freedom;
  3. order and justice;
  4. wealth and welfare

Most states have armed forces. Military power is necessity in order to defend the boundaries of a country. There are not any unarmed states at all. To increase their national security many states enter into alliances with other states. As we see, security is one of the most fundamental values of international relations. Not less important value for every country is freedom, both personal and national one. One can not be free unless one’s country is free too. Wars can destroy freedom; that is why freedom and security are interrelated notions.

Peace is also fundamental value of international relation. Nobody denies that fact that order and justice are necessary for every country. International law, diplomatic relations and international organizations can only exist and operate successfully if there are order, justice, peace and freedom. Wealth and welfare benefit any country and its population; that is why for wealthy countries it is easier to integrate into the global economy.

International relations are essential in the process of globalization. As at present time world becomes completely full of rapid air transportation and modern communication technology then the task of every country should be friendly and diplomatic relations with other countries.

Concluding one should say that the main values of international relations are security, freedom, order, justice, wealth and welfare. International relations are the unity of economical, political, ideological, juristic and diplomatic relations between the states and the systems of these states. They are formed under the influence of the foreign politics of the countries of the world. The entity of the international relations is relations between countries.

Positive and Negative Effects of Globalization

Globalization belongs to one of the most discussed subjects at present time. However, there are proponents and opponents of this process. Proponents suppose globalization as the best thing for the world whereas opponents name it neo-imperialism. Despite all these discussions, indeed globalization changed the lives of millions people in the world; that is why it deserves commendation and support. Globalization is increased cultural, social and economic interdependence that produced the positive results: increasing in global economic prosperity, democracy, entrepreneurship, the free flow of capital and ideas around the world, increased competition.

Nowadays, the question of globalization is very debatable one as there are different view points on this phenomenon. Hyperglobalists state that global marketplace is the subject of globalization. It is first of all economic process that improves international trade and imposes neo-liberal economic structures. Sceptics suppose that globalization is not new; it began in the nineteenth century with the development of international trade. Transformationalists think that globalization is the changing of shape of the world providing new economic and political patterns.

The opponents of globalization state that globalization only accentuates the numerous issues such as environmental degradation, economic mismanagement, unemployment, economic inequality, widening disparities, uneven wealth distribution, a tendency to civil wars, economic collapse, uneven trade relations, imposing of political and economic institutions by the developed countries on the developing ones, damaging the economic, political and even cultural conditions in the developing countries. These issues are simply discussed at the different global conferences but discussion is not solution.

However, the advantages of globalization are more persuasive as disadvantages.  A lot of developing countries have benefited with help of globalization.

The first positive effect of globalization is the improving quality of products. It means that all countries compete with each other for its products at the world market and it stimulates them  better to make quality of their production and services in order to sell them and increase demand on them. The domestic companies should fight for the place at the global market in order to survive as the concurrence is enormous. 

Globalization is once more way to increasing of employment. The companies foray into the developing countries and provide employment for them. It gives an opportunity to invest in markets and take the talented specialists there. In developing countries, there is often problem with capital; that is why the citizens of this country move to another country that proposes employment them. Because of global business citizens of developing countries have opportunity to earn but their countries lose their best and talented people. The companies that are developed attract foreign investment and that is why they will be soon present at the global market.

When it comes to globalization it is necessary to mention that it has a great impact on foreign trade and economy. Without doubt, trade can not develop without globalization. Even at old times there was the international trade and it argues that the process of globalization is not a new one. The modern process of globalization is presented in all spheres of our life and at old times globalization was present only in trade.

Due to globalization, the innovations in inventions and medicine begin to come not only in the developed countries but also in the developing ones. Globalization stimulates spreading  languages, traditions, customs, art forms and cooking styles. They move from country to country and every nation has possibility to adopt something new. Globalization has also a great impact on education. At present time a student can move in any country for studying without any hindrance. It is good experience for the students to study abroad. Due to globalization, the security agencies and the police of several countries can collaborate and struggle together against global terrorism.

One can conclude that globalization has many advantages that can benefit developed and developing countries. It provides economic cooperation and trade, improves quality of product, increases employment, develops economy, trade, medicine, education and invention, spreads languages, traditions, customs, art forms and cooking styles, provides collaboration against terrorism.

However, every medal has a reverse side. It means that there are some minuses in globalization. In the process of globalization developed countries have  upper hand over developing ones. Globalization only accentuates the numerous issues such as environmental degradation, unemployment and economic inequality. These issues are simply discussed at the different global conferences but discussion is not solution.

The World’s Poorest Countries

The wealth of countries and richness or poverty of its people is measured with the number of Gross Domestic Product that reveals the size of  country’s economy. Poverty is an economic state of lacking money and everything needed for life: water, food, healthcare, shelter and education. Poverty can be supposed the lacking of means for satisfying the basic life needs.

The poorest countries in the world are: Niger, Sierra Leone, Malawi, Togo, Madagascar, Afghanistan, Guinea, Mozambique, Ethiopia, Mali, Guinea-Bissau, Comoros, Congo, Liberia, Zimbabwe, Haiti, Burundi, Eritrea, Central African Republic, Uganda, etc.

As we see, the list is not small; that is why it will be reasonable to analyze the causes of poverty of these countries. They are the following: devastation and destruction because of wars, especially civil wars (Congo, Burundi, Afghanistan), colonization (Liberia), economic problems, for example, lack of economic freedom, corruption, lack of foreign investment (Zimbabwe, Burundi, Eritrea, Niger, Malawi, Togo, Afghanistan, Mozambique, Ethiopia, Mali, Haiti), health problems such as HIV, AIDS (Zimbabwe, Burundi, Ethiopia), lack of access to education (Burundi), lack of food and, as a result, chronic malnutrition (Burundi), political instability (Niger), political situation, for example, autocratic rulers (Guinea), etc.

As we see, one can add a lot of points to this list but nothing has changed the situation. The main causes of poverty of these countries are economic problems that are provoked by wars, political instability and colonization. It is not difficult to notice that economic problems do not occur in isolation; they are influenced by many factors.

If to speak about the poverty of African countries, it is worth mentioning that their poverty is paradoxal phenomena as Africa is the richest in natural resources.  Indeed, it is absurd that it is poor and stagnant in development. Let us analyze the situation on this continent. There are many reasons for poverty on this continent. First of all, it is corruption and inequality as there are a lot of rich and poor people.

The government does not use money responsibly; that is why the simple people suffer from lack food and the most necessary things. Africa is rich in natural resources but it does not change its status as the world’s poorest continent. The next factors that define the situation on this continent are limited employment opportunities, poor governance, poor resource usage, poor infrastructure, wars, etc

In order to overcome the poverty in Africa it is necessary to stabilize economics, change corrupt government and integrate into global economic system. However, in Africa all programs appointed for fighting poverty are run by corrupt individuals. They create  imbalance in society and lead to more poverty because the powerful individuals oppress the poor ones.

African people own land but what they get from their land is enough only for survival. They have no possibility to grow something for sale. Poor land utilization does not bring the development of trade within Africa and abroad.

Africa is also popular for its wars with the neighboring countries or within Africa (civil wars). These wars made Africa weak in economical plan and scared away investments that would help people get out poverty and live of full life. Besides, Africa’s poor infrastructure (bad roads, railways and water systems) retards economic development.  The situation on this continent is also worsened by poor health facilities. Without doubt, African countries collaborate with other countries; however, this is not enough for their development.

Concluding, it is necessary to underline the main reasons of poverty that are devastation and destruction because of wars, long-lasting colonization, economic problems, lack of economic freedom, corruption, lack of foreign investment and health problems such as HIV, AIDS, , lack of food, lack of access to education, and, as a result, chronic malnutrition, political instability, autocratic rulers, etc.  

The Lack of Integration into the Global Economic System is the Reason of Underdevelopment of the World’s Poorest Countries

We have already mentioned the main causes of poverty of the countries. However, it is necessary to say not less important reason that is the lack of integration into the global economic system.  The world is still being in economic revolution. For the development countries this revolution is the process of correcting some mistakes, but for the poorest countries it is the process of rejuvenation and complete rebuilding.  To my mind, it is paradoxical situation for the developing countries to integrate into the global economic system with their poverty, the traditional economic system that is primitive and was used in early society.

With the process of globalization the ability of the poorest countries of the world to compete begins to increase. For those countries globalization is the possibility for future economic prosperity and reduction of poverty. However, at present time one can not say that these countries integrate into global economic system. I am convinced that integration would help these countries to improve their economy. When it comes to the integration, first of all the developing countries should change completely their way of life, economy, policy, etc.

First of all, to transfer to improving their economy, it is worth remembering that their poverty is not the result of the bad economics. There are other problems that need the immediate solutions such as: wars, health problems, education problems and politic instability. One can think that these problems are that of national character but, to my mind, other countries could help the poor countries to solve them.

There are not so much countries that play a substantial role in the global economy. It means that the integration in the global economy is not open for all countries. The ways of looking for the window in the global economy will create the real possibilities to lift countries out of poverty. On the contrary, the integration in the global economy can lead also to the marginalization of those countries and make them impossible to struggle effectively for the place in the world economy. There are not any fair and global rules for competition in the world economy; that is why the strong countries can advance their interests and detriment to the weak ones in trade, finance and technology.

Every year a lot of conferences take place that discussed the problems of poverty of developing countries but there are not any visible results from their discussions. Wealthy nations increase aid programs for developing countries but these programs do not bring success.  The developing countries need increasing international aid in order to come out such a bad state. Once more solution of this problem is to open the markets for exports as it would stabilize the economical state.

Wealthy countries can take part in the development of the poor world giving them material aids, resources and providing them opportunity for exports. Development is something that seems impossible for poor nations but only they can change the situation as material aid is not the only what they need.

The inability of the poor countries to feel the process of globalization is a result of obstacles to development and growth in all spheres of life. At the same time it is impossible because of the failures of political and economic leadership in many poor countries.

It is necessary to say not less important reason that is the lack of integration into the global economic system.  The world is still being in economic revolution. For the development countries this revolution is the process of correcting some mistakes, but for the poorest countries it is the process of rejuvenation and complete rebuilding.  It is not easy for the developing African and Asian countries to integrate into the global economic system as they have no possibility to compete with the developed countries. Indeed, the underdevelopment of the world’s poorest countries can be explained by the impossibility of integration into the global economic system.

Conclusion

Having analyzed the tasks of International Political Economy we came to the conclusion that globalization, international relations and integration in the global economy are impact on the way of life of every country. International Political Economy is the global economy; it means that it includes international relations, help and collaboration. It investigates economics and politics in the global environment and helps to understand the complex interactions of countries at local, national and international levels.

The policy of every country should orient on the dimensions of International Political Economy: interrelation and interdependence of economical, political and international relations, analysis of political and economical problems in complex, globalization of economics, etc. Nobody denies that fact that the stimulation to development of International Political Economy as a study was the influence of new technologies, economical revolution and new ways of collaboration among countries.  There are many factors that affect international economy as well as national one and the most influential factors are the following: international trade dealing with goods, services, knowledge, etc., the level of development of medicine, environment (climate change, global warming, greenhouse effect, etc) and finance.

Global economic system is the unity of all economic systems of the world (the traditional, the market, the command (planned) and the mixed economy). Analysis of the economic systems helped us to understand its advantages and disadvantages. Traditional economy is the economic system that deals with the social customs, using of resources, production of goods and services. It also compares the past and  present economic problems in order to avoid them in future. It is primitive economic system.

As to a market economic system it is characterized by the absence of planning; it is spontaneous and acts due to the situation. The government does not play here the leading role; it only controls its stability.

A command economy or planned one is the economy when all questions are regulated by the government. The government makes decisions about production, distribution, service prices and commodity.

Mixed economy is the economy that is oriented on the marketplace and the government.  Mixed economy usually provides the close collaboration of producers and the government. A mixed economic system has the features of the command and market economies. In spite of that all these economic systems differ one from other; they have the common aims to develop a country and to provide welfare its citizens. Without doubt, it is difficult to say what economic system is the best as all of them have their benefits.  

International relations are essential in the process of globalization. The main values of international relations are security, freedom, order, justice, wealth and welfare. International relations are the unity of economical, political, ideological, juristic and diplomatic relations between the states and the systems of these states. They are formed under the influence of the foreign politics of the countries of the world. The entity of the international relations is relations between countries.

Globalization has many advantages that can benefit developed and developing countries. It provides economic cooperation and trade, improves quality of product, increases employment, develops economy, trade, medicine, education and invention, spreads languages, traditions, customs, art forms and cooking styles, provides collaboration against terrorism.

However, every medal has a reverse side. It means that there are some minuses in globalization. In the process of globalization developed countries have  upper hand over developing ones. Globalization only accentuates the numerous issues such as environmental degradation, unemployment and economic inequality. These issues are simply discussed at the different global conferences but discussion is not solution.

The main reasons of poverty that are devastation and destruction because of wars, long-lasting colonization, economic problems, lack of economic freedom, corruption, lack of foreign investment, health problems such as HIV, AIDS, lack of access to education, lack of food and as a result chronic malnutrition, political instability, autocratic rulers, etc.  

It is necessary to say not less important reason than is the lack of integration into the global economic system.  The world is still being in economic revolution. For the development countries this revolution is the process of correcting some mistakes, but for the poorest countries it is the process of rejuvenation and complete rebuilding. 

Having analyzed the critical state of poor countries, we came to the conclusion that it is hard enough for the developing African and Asian countries to integrate into the global economic system as they have no possibility to compete with the developed countries. Indeed, the underdevelopment of the world’s poorest countries can be explained by the impossibility of integration into the global economic system.

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