Critical Evaluation of the Current Economic System
There are many different countries all around the world with different cultures, values,
societies and structures. One most necessary thing common in every country is economy.
There are many economics around the world. Each has its own characteristics. At the same
time they share some basic features. Economic systems are categorized into 4 types.
Traditional economics, command economics, mixed economics, market economics
World economy on the other hand is the economy of all the countries in the world. It is the
exchange of services and goods across borders and distances. Measurements of world
economy is different than the measurements of individual country economy. The world
economy is judged by monetary terms, even in cases where there is no efficient market to
produce goods or services. Illegal drugs and other black market stuffs which are a part of
world economy but there is by definition no legal market of any kind. Some times lack of
research and government cooperation makes establishing exact figures difficult. But , in
cases where there are a clear and efficient market to establish a monetary value, countries
do not use the current exchange rate to translate the monetary units of this market into a
single unit for the world economy since exchange rates do not closely reflect world
wide value.
So first lets take a look at the current world economic structure. The statistical indicators of
world economy are
GDP(GWP) (gross world product): (purchasing power parity exchange rates) – $59.38
trillion (2005 est.), $51.48 trillion (2004), $23 trillion (2002)
GDP (GWP) (gross world product): (market exchange rates) – $60.69 trillion (2008)
GDP (real growth rate):
o Developed Economics 2.2% (2017), 2.0% (predicted 2018)
o Developing Economics 4.3% (2017), 4.6% (predicted 2018)
o Least Developed Economics 4.8% (2017), 5.4% (predicted 2018)
GDP – per capita: purchasing power parity – $9,300, €7,500 (2005 est.), $8,200,
€6,800 (92) (2003), $7,900, €5,000 (2002)
purchasing power parity $1,041, €950 (1993)
GDP – composition by sector: agriculture: 4%; industry: 32%; services: 64% (2004.)
Inflation rate (consumer prices); national inflation rates vary widely in individual
cases, from declining prices to hyperinflation in Japan and several third world countries
(2003):
o World 2.6% (2017), 2.8% (predicted 2018);
o Developed Economics 1% to 4% typically
o Developing Economics 5% to 60% typically
o Least Developed Economics 11.4% (2017), 8.3% (predicted 2018)
Derivatives OTC outstanding notional amount: $601 trillion (Dec 2010)
Derivatives exchange traded outstanding notional amount: $82 trillion (June 2011)
Global debt issuance: $5.187 trillion, €3 trillion (2004), $4.938 trillion, €3.98 trillion
(2003), $3.938 trillion (2002)
Global equity issuance: $505 billion, €450 billion (2004), $388 billion. €320 billion
(2003), $319 billion, €250 trillion (2002)
Unemployment rate: 8.7% (2009 est.). 30% (2007 est.) combined unemployment and
underemployment rate in many non-industrialized countries; developed countries
typically 4%–12% unemployment.
Industrial production growth rate: 3% (2002 est.)
Yearly Electricity – production: 21,080,878 GWh (2011 est.), 15,850,000 GWh (2003
est.), 14,850,000 GWh (2001 est.)
Yearly electricity – consumption: 14,280,000 GWh (2003 est.), 13,930,000 GWh
(2001 est.)
Oil – production: 79,650,000 bbl/d (12,663,000 m3/d) (2003 est.), 75,460,000 barrels
per day (11,997,000 m3/d) (2001)
Oil – consumption: 80,100,000 bbl/d (12,730,000 m3/d) (2003 est.), 76,210,000
barrels per day (12,116,000 m3/d) (2001)
Oil – proved reserves: 1.025 trillion barrel (163 km3) (2001 est.)
Natural gas – production: 3,366 km3 (2012 est.) 2,569 km3 (2001 est.)
Natural gas – consumption: 2,556 km3 (2001 est.)
Natural gas – proved reserves: 161,200 km3 (1 January 2002)
Yearly exports: $12.4 trillion, €11.05 trillion (2009 est.)
Exports – commodities: the whole range of industrial and agricultural goods and
services
Exports – partners: US 12.7%, Germany 7.1%, China 6.2%, France 4.4%, Japan 4.2%,
UK 4.1% (2008)
Yearly imports: $12.29 trillion, €10.95 trillion (2009 est.)
Imports – commodities: the whole range of industrial and agricultural goods and
services
Imports – partners: China 10.3%, Germany 8.6%, US 8.1%, Japan 5% (2008)
Debt – external: $56.9 trillion, €40 trillion (31 December 2009 est.)
Yearly economic aid – recipient: net Official Development Assistance (ODA) of $135.2
billion (2014)
Telephones – main lines in use: 843,923,500 (2007)
4,263,367,600 (2008)
Telephones – mobile cellular: 3,300,000,000 (Nov. 2007)
Internet Service Providers (ISPs): 10,350 (2000 est.)
Internet users: 3,079,339,857 (December 31, 2014 ), 360,985,492 (December 31,
2000)
World military expenditure in 2018: estimated to $1.822 trillion [21]
Military expenditures – percent of GDP: roughly 2% of gross world product (1999)
