Economic growth and social imbalances in developed countries
- Strategic diagnosis
- Panorama of the industry of beer
- The world leader in the beer industry is the group AB Inbev
- The 2nd group is the world leader SABMiller
- The third group is the world leader Heineken
- The fourth group is the world leader Carlsberg
- The fifth group is the world leader Karlsberg
- The five leaders in the beer industry in France
- Evolution of the sector
- PEST analysis and study of the macro environment
- Analysis of macro environment
- Strengths and Weaknesses of competition
Since August 2007, the economy has to face a real turmoil caused by the financial crisis. In fact, the global economy entered a major turning point, and global growth slowed significantly in 2008. In July 2008, the IMF still prognosticated 3.9% global growth for 2009 and 1.4% in developed countries. Now it no longer expects only 3% growth, and that of developed countries should not exceed 0.5%. The euro area is hit by "major shocks".
The soaring oil prices and a surge in inflation have cut the purchasing power, and added "extraordinary financial stress", with the consequent beginning of a recession. The only positive note, is that the global slowdown will impact on inflation, which "is expected to moderate," although it will remain high", warns the IMF. France planned hard to achieve 1% growth for 2008. Despite an increased willingness of governments to ensure growth and increase development, can we say that all economic policies are implemented effectively? To what extent can we reconcile growth and balance on the markets?
According to Kuznets, economic growth is often limited to only quantitative criteria. Growth was made possible by the factors of production (labor and capital). But, increasingly, governments are implementing economic policies to support growth. We will therefore address all the theories that highlight the role of economic policies and their influence on growth.
For Adam Smith and David Ricardo, economic growth depends on capital accumulation and investment is financed by savings. However, long-term growth brings national economies at the stage of a steady state.
According to the neoclassical model of Solow, technological progress occurs in conjunction with the population increase to keep pace with the economic growth. Growth is necessarily balanced because the price flexibility of factors of production can ensure full employment.
For Romer and Lucas, economists of the "new growth theory', their model is based on a phenomenon of accumulation of four main factors: physical capital, technology, human capital and public capital. The intervention of the state that invests in infrastructure thus leads to improve the productivity of private firms.
Barro's analysis noted that the infrastructure facilitates helps in the flow of information, people and goods. Tax plays a positive role on growth disincentive to the private sector. Public infrastructure is a growth factor that generates increasing returns in the long term because they allow domestic savings for private producers.
Tags: financial crisis, global economy, inflation, purchasing power, economic policies, human capital, private sector, public infrastructure