Gordana Bilbilovska – Faculty of Economics, University of “St.Cyril and Methodius”-Skopje, Bul.”Goce Delcev” no. 9B 1000
Skopje, Republic of North Macedonia
Ivana Bilbilovska – Ministry of Finance, Bul.”Dame Gruev” no.12, 1000 Skopje, Republic of North Macedonia

DOI: https://doi.org/10.31410/ERAZ.2019.385

5th International Conference – ERAZ 2019 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, Budapest – Hungary, May 23, 2019, CONFERENCE PROCEEDINGS

Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia;

ISBN 978-86-80194-20-2, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.2019


Globalization is current and inevitable process, which brings good things (like capital flow, technology
transfer, export) and some side effects (like pressure on domestic production, interfierence in economic
policy and economic dependence of countries). Accumulation of wealth is one of globalization triggers.
Half of world capital is owned by developed countries, while others are fighting to gain better position.
Asia has the fastest accumulation of wealth and development. In 2017, China was ranked first economy
in the world (considering inovations). It was projected that China’s GDP will double by 2020. Qatar is
the ritchest country in the world with the highest living standard and third by resources of natural gas.
In the second half of 20th century, Luxemburg is considered financial center. Singapour is also among
the ritchest countries and lider in technological inovation.
Globalization led to coorporations controling economies, finances and technology, using developing
and postsocialistic countries in accumulation of even bigger wealth. They are big enough to negotiate
rules and taxes with smaller countries, and often they build monopol position in these economies. The
big corporations come from the developed countries and that is why globalization contributes to wealth
accumulation. This triggers the global distribution of industry as well – labour intensive industries in
poorer countries, eco-unfriedly technology in less developed countries.
In addition, while people in less developed countries are struggling to survive, globalization imposes
change of cultural and hystorical values. Smaller economies spend their resources without any benefit,
built bigger public debt; lose jobs, bassicaly they struggle. So intervention is needed by institutions,
better management, fight with coruption and criminal. These economiess have limited opportunitites
for increasment of production, productivuty, and competitivnes and by that economic growth. So they
need to work on the export structure with know how transfer and help of the FDI.
This paper uses methods as analyses, deduction, induction, syntezis and comparative analyses.
In further period, it is expected that the globalization will induce changes in economy and politics and
progress. The question how to decrease the gap between poor and rich countries remain.

Key words

Developing Countries, Developed Countries, Globalization, Growth.


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