The Convergence-Divergence Evaluation of the Countries Development under the Globalization

Abstract

The article considers the problem of uneven economic development in terms of processes of globalization and integration. The problem is analyzed retrospectively to estimate simultaneous convergent-divergent processes, which are characterized by the intensification of trade, investment and information flows, on the one hand, and their concentration in the hands of the powerful post-industrial countries, on the other. This causes the need for scientific evidence of uneven economic development of the global economy, what became an urgent issue of international economy. The article aims to evaluate the coefficient of variation, which was counted on the gross national income per capita, and conduct the cluster analysis. It was proven the divergence of the countries and rejected the s-convergence hypothesis, according to which the income dispersion between countries increased during the analyzed period. The cluster analysis shows the intensification of the the global inequality of the economic and social development, stratification, polarization and disproportions of the global economy. Article amplifies that the intensification of the globalization processes with its difficulties, nonlinearity and ambivalence leaded to the technological and social differentiation, in consequence of what many countries remain behind the developed ones. It is emphasized that convergent-divergent processes of the national economic development are expanding what leaded to the idea of the deglobalization. The findings are used to determine the current situation on the global economic arena and answer the question why some countries are rich and others are poor. It considers that the realization of the neoliberal model of the globalization is not effective and is accompanied together with the different destabilization tendencies. In this case institutional approach to the governmental organization of the globalization processes takes on special significance in aim to decrease the gap between rich and poor countries and to overcome present crisis.