A global economic growth rate is the average annual economic growth rate of a country. Every nation has its own unique historical and developmental factors that contribute to its economic standing and status. A country's gross domestic product (GDP) is a statistical depiction of how productive their economy as a whole is compared to the size of the population. Economic policies are primarily directed towards increasing the value of the currency of an issuing nation while decreasing the national debt. To this end, the national currency is debentures in relation to foreign ones.
The modern world is comprised of many nations. A global perspective allows each nation to view itself in a more realistic light. Each country has a certain “who” and “what” it represents. Some countries excel in technology while some struggle with less advanced means. Nations with stronger currencies stand a better chance of promoting trade, which in turn benefits their national economy.
A major driving force behind economic policies is political stability. When a nation is at the brink of bankruptcy due to a downturn in the global economy, stability is key to keeping that nation afloat. In terms of the global economic growth rate, countries with stable governments enjoy a higher average economic growth rate. On the flip side, when economic chaos is experienced, such stability is not guaranteed.
Many economic thinkers believe the value of a nation lies in its ability to maintain its integrity in times of adversity. A nation that lacks integrity, or fails to uphold its international obligations, risks losing the respect of other countries and the international community. Countries that trade freely with other countries without any regard for the consequences will quickly lose that status and could find themselves ostracized. National institutions like the UN and other international organizations are seen as barriers to economic prosperity. Without the backing of these powerful international organizations, it would be very difficult to achieve and maintain the kind of economic growth that is required. Economic globalization is viewed with suspicion by some nations and they may be unwilling to work with other nations.
No matter what the causes of the economic slowdown are the lack of global economic growth is concerning everyone. Economic disparity is not a new phenomenon. For centuries, individuals from different countries living under different political systems have struggled to understand the meaning and importance of economic growth and freedom. Today, economic freedom is seen as an essential element of peace and prosperity.
Economic disparity is most likely to continue as long as economic freedom remains a challenge. Stagnant economies in emerging markets are causing many concerns. The factors that affect the economic growth rate include: inflation rates, government corruption and the level of entrepreneurial activity; political stability and the level of investor confidence. Many experts believe that the factors that affect the economic growth rate also affect the productivity of workers and the productivity of capital in other nations.
The global economic slowdown is creating a dilemma for global entrepreneurs. Many believe that the best way to promote economic freedom is to address political or fundamental issues that hinder economic freedom. Other entrepreneurs believe that global economic slowdown will only strengthen global governments. Although both groups may be right in their assumption, the . . . . . . failure of global governments to act despite the global economic slowdown will create major problems. If a government fails to promote economic growth, the people and businesses of other nations will take advantage of that government's lack of action and create a more free society.
Governments must work together in order to eliminate corruption in their country and promote economic growth. The failure of a nation to tackle corruption at the government level will undoubtedly harm that nation's economic development rate. Other nations will emulate the successful practices of those that have successfully fought corruption and improve the global economic growth rate. In order for a nation to develop successfully and enjoy a robust economy, it must provide open economic policies. Economic policies that are based on open market practices and free trade are sure to increase the global economic freedom and prosperity.