Economic power

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As economic power means those states whose economy particularly true impact on the development of the world economy and the international economy has.

Characteristic for an economic power are a large share of the world gross national income , export or import as well as the importance of its own currency in the world. The largest economic powers are currently organized in the G7 ( industrialized nations and Russia ).

Historical development

Before the industrial revolution

In ancient times, the Roman Empire, China, India and West African states were major economic powers. Up until modern times, China was economically and technically superior to European countries. After the discovery of America, Spain and Portugal were world economic powers.

From the industrial revolution to the end of the 20th century

The British Empire is considered to be the first major economic power in modern history , as industrialization began there and it ruled global resources as a colonial power . This was expressed not least in the importance of the British pound as the most important currency in the world at the time .

In the 20th century , Great Britain was overtaken by the USA as the world's largest economic power , and in the wake of the two world wars , the US dollar took over the role of the British pound as the world reserve currency . At the beginning of the 21st century , the US as an economic power is in turn challenged by the ever-expanding European Union and the rising star China .

Forecasts

In the 21st century, many economists believe that other former emerging economies - the BRICS: Brazil, Russia, India and South Africa - will become world economic powers alongside China.

Significance of the world economic powers in world economic policy

Sometimes it is demanded that the world's economic powers should serve as “economic engines” for the rest of the world, especially when the global economy is weakening.

Multinational corporations as an economic power

In addition to state economic power, individual companies can also represent considerable regional, national or multinational economic power. The annual turnover of large multinationals exceeds the GDP of many small and medium-sized countries. In addition to economic stimulation and welfare gains that such economic power generates, it also raises critical questions about social control. The actions of private, internationally operating corporations are much less subject to constitutional framework conditions than government action. The globalization of the economy thus poses new challenges for social control and the normative framework that is intended to legitimize the guard rails of entrepreneurial activity.

Individual evidence

  1. ↑ David Landes , Prosperity and Poverty of Nations. Why some are rich and others poor, Siedler Verlag Berlin 1999
  2. ↑ Hans-Heinrich Bass and Margot Schüller (eds.): World economic power China , Institute for Asian Studies, Hamburg 1995
  3. ↑ Robert Kappel , The Rise of the BRICS and Europe's Future in the World Economy, Wirtschaftspolitische Blätter 2/2013 [1]

See also