The Role of National Economies in The Creation of World Wealth

Abstract

The purpose of the study is to determine the role countries play in creating world wealth in terms of the modern stage of social development. Methodology of research is based on general scientific and special research methods such as analysis and synthesis, generalization, grouping, and forecasting. Findings. World wealth is defined as the cumulative effect of national wealth created by countries. It is established that the modern role of countries in the creation of world wealth is clearly demonstrated by the dynamics of real GDP indicators, which is analyzed by groups of countries and presented as a comparison of absolute and relative increase / decrease values in the long-term period (1980-2018). It was found that the dynamics of world wealth growth was generally positive over a long time. At the same time, it was not progressively growing, but fluctuating with a remaining upward trend. This is due to the cyclical development of the economy, its crises and other manifestations of instability in the world (in particular, political, environmental, technological, and social). The following is revealed: economies of developing countries are growing faster, but a large share of world wealth in terms of real GDP is created by developed countries, they also provide a greater degree of its increase. Extrapolation of actual data (1980-2018) for the future (2019-2023), indicates a sufficient probability of maintaining the leading economic dynamics of developing countries in comparison with developed countries. However, it is necessary to take into account a number of geopolitical and geo-economic factors that can significantly adjust this forecast. It is necessary to note the following factors: changes in relations (both political and economic) between the United States and China; a slowdown in the economic growth of large-scale national economies in developing countries (China, India), as well as low activity of the world trade, which does not stimulate the recovery of high economic growth rates of more successful countries and does not help prevent the decline of less developed countries (Iran, Venezuela, etc.). It is proved that rapid economic growth in developing countries does not lead to the same intensive accumulation of wealth in these states as well as its effective use for national development and improvement of the standards of living. Practical value is that the main research results contribute to the development of international economic theory; their applied significance is determined by the forecasts of the formation of world wealth and the role countries play in this process (according to the level of their economic development and regions). Keywords: world wealth, national wealth, world economic trends, economic development, economic growth. REFERENCES 1. Acemoglu, D. & Robinson, J. A. (2017). Chomu natsii zanepadaiut: pokhodzhennia vlady, bahatstva ta bidnosti [Why Nations Fail: The Origins of Power, Prosperity, and Poverty]. Kyiv: Nash format [in Ukrainian]. 2. Kolomiiets, H. M. & Didorchuk, I. L. (2015). Reitynhy krain za rivnem IT-sfery yak indykatory rozvytku aktualnykh form suspilnoho bahatstva [Ratings Countries in Terms of IT Sector as Indicators of the Actual Forms of Social Wealth], Biznes inform – Biznes inform, 11, 8–15 [in Ukrainian]. 3. Milanovich, В. (2017). 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