Modernization is a transition from an agricultural to an industrial society, which is accompanied by the following processes:
Stages of Russian modernization
Pre-industrial modernization. Occurs in Russia during the reign of Peter 1 and is marked by the creation and gradual transition to manufacturing production.
Early industrial modernization. Occurs during the reign of Alexander 2 and is marked by the transition from manufactory to factory type of production. The transition was facilitated by the reforms of S. Yu. Witte and P. A. Stolypin.
Late industrial modernization. Occurs under I.V. Stalin, marked by the creation and gradual transition to flow-conveyor production.
Post-industrial modernization. (1960-70s). The era of scientific and technological revolution (transition to knowledge-intensive production)
Features of Russian modernization:
“Catch-up nature of development”, i.e. modernization in Russia is only catching up with highly developed Western countries.
Exaggerated role of the state. At almost all stages of Russian history, the state plays a decisive role, controls all spheres of social life, which results in the dependence of industry and the economy as a whole on the state, which in turn interferes with modernization processes.
The impulsive nature of the development of Russian reforms. Reforms aimed at deeply reforming society were often carried out without prior preparation of a clear development of a plan for these reforms. As a result, they led to economic crises, increased social discontent, stagnation, etc. This, in turn, also slowed down the process of modernization.
Forced "Europeanization". Reforms in Russia were often carried out similar to Western ones. At the same time, the ruling elite did not take into account the characteristics of Russia, such as territory (it is quite difficult to carry out a reform leading to success in such a large state, since everyone has their own interests, the interests of residents of the south of Russia and, for example, Siberia are extremely different), characteristics mentality, the state of the economy and the political situation. The reforms were not focused on Russia and its needs and specifics.
Ideological, political and cultural splits in Russian society. Throughout history, starting from the 18th century, the ruling elite and the opposition (Decembrists, Bolsheviks and Mensheviks, liberals and conservatives) are clearly visible. In Russia there is no consensus on the path of its development.
Heterogeneity of interests of society and the state. This was clearly visible especially during the tsarist rule and the USSR. When carrying out reforms, it was necessary to find a certain consensus between the state and society, which ultimately led to dissatisfaction among some and ineffective management of others.
The original nature of the development of Russian modernization (perhaps we are talking about reforms and counter-reforms).
Sooner or later, any enterprise requires production modernization. Most often this occurs due to expansion or the need to improve overall efficiency. However, outdated or end-of-life equipment is also a compelling argument for starting this process.
Modernization of production represents a comprehensive (replacement of outdated units), partial (replacement of a sector) or complete update of systems or equipment at the enterprise. This process entails a number of activities, most of which involve careful analysis and collection of information. This applies both to the state of production itself and to the study of proposals from suppliers of equipment and services. In general, depending on the size of the enterprise, its financial capabilities and modernization plans, the implementation of these measures can take from several months to a year and a half.
Modernization stages and their brief description
Like any process, production modernization has its stages. The first three stages are directly related to the analysis of all available information and statistics. The decision to modernize occurs provided that all the necessary prerequisites exist for this, such as:
- the need to increase productivity;
- a large percentage of equipment that is damaged and cannot be repaired;
- lack of effectiveness;
- a large percentage of outdated equipment;
- planned expansion of production.
Selection of equipment and suppliers
Selecting equipment and suppliers also requires consideration. This is due to the fact that the further efficiency and payback of the enterprise depends on the quality and characteristics of the equipment. The reliability of suppliers affects the speed of the modernization process and its cost. It is important to note that the stage of searching for equipment and suppliers should begin simultaneously with the consideration of the need for modernization. This will allow you to compare the current situation with the prospects that the new equipment will provide.
Forming a business plan will help streamline the entire process and calculate the costs and payback time of the measures taken.
Modernization of production will require attracting credit resources. It is rare that an enterprise can afford such events at its own expense. However, an agreement with suppliers can be concluded without waiting for the loan to be opened - it is enough to obtain confirmation of approval of the request from the lender.
The longest stage is the delivery of equipment. It may take several months. As a rule, it is supplied from different manufacturers, which may be located far from the customer enterprise, even to another country and even continent.
Installation takes place quickly (if we talk about large enterprises - up to a month), since by the time the equipment arrives, the enterprise has already either improved the qualifications of its staff or hired specialists.
Trial operation is needed to identify problems and final installation.
The last three stages are the final stages, during which the equipment undergoes final tests and begins to operate normally. Typically, final commissioning takes up to three months.
Search for suppliers and equipment
Expocentre Fairgrounds regularly holds industry exhibitions where suppliers present their best products. Events of this kind are an excellent way to get acquainted with the entire range and select several options for suppliers and equipment models that could be used during production modernization.
Social modernization. Primary and secondary modernization.
Modernization concept. Literally this means modernization, ᴛ.ᴇ. implementation of changes in the direction and towards modern objective requirements of social development.
According to S. Eisenstadt, modernization is a kind of “challenge” to which each society gives a “response” in accordance with the principles, structures and symbols inherent in its heritage as a result of long-term development. Modernization
In sociology, under the term “ modernization ” implies a transition from a traditional agrarian society to a secular, urban and industrial society.
The evolution of human civilization, starting from its prehistory, can be divided into three general stages. The first stage saw the emergence of primitive societies and communities. In the second stage, primitive societies began to unite and transform into civilizations. The third stage begins in the 18th century. with the advent of the industrial revolution and continues to this day. It is important to note that the modern stage is characterized by the spread of industrial culture throughout the world.
Modernization and industrialization
As is known, the transition from a traditional society to an industrial one is usually called modernization. Modernization means the emergence of an industrial society with a dynamic, highly differentiated organization and a complex, multi-layered culture. Modernization covers broader processes than industrialization or even the emergence of capitalism. The main point of modernizing traditional societies is to increase the independence of the individual, ᴛ.ᴇ. in the liberation of the individual.
Modern society is an industrial society. Modernization of society primarily presupposes its industrialization. Historically, the emergence of modern society is closely connected with the emergence of industry. All characteristics associated with the concept of modernity are correlated with the series of changes that two centuries ago brought to life the industrial type of society. This makes it possible to assume that the terms “industrialization” and “industrial society” have not only economic and technological meaning. Industrialization is a lifestyle that embraces profound economic, social, political and cultural changes. Societies become modern precisely in the process of comprehensive industrial transformation.
Modernization – continuous and endless process. Historically, the period of modernization should be calculated in centuries, although examples of accelerated modernization can also be cited. In any case, modernization is not a once and forever achieved state. Obviously, a dynamic principle is woven into the fabric of modern societies that prevents societies from achieving equilibrium. The development of societies is always irregular and uneven. Whatever the level of development, there are always “lagging” regions and “peripheral” groups in society. Οʜᴎ constitute a source of constant tension and contradictions. This phenomenon is associated not only with the internal development of individual states. It is happening on a worldwide scale as modernization moves beyond the original boundaries of Western countries and begins to move across the globe. The presence of countries with heterogeneous and unequal development introduces a significant element of instability into the world state system.
Modernization has two main phases.
Up to a certain point in its development, the process of modernization preserves the institutions and values of society and involves them in what is usually perceived as a progressive movement towards improvement. Initial resistance to the modernization process must be sharp and long-lasting, but it is usually doomed to failure. After reaching a certain point in its development, modernization begins to cause increasing dissatisfaction. This is partly due to the high expectations of the population, which were provoked by the rapid initial successes and dynamism of modern society. Groups tend to make higher demands on society that become more and more difficult to meet.
Having reached an accelerated level and global scale, modernization causes new social and material problems; they can become a threat to the principles of growth and expansion on which modern society is based. During this second phase, modern societies find themselves face to face with a number of new problems that traditional nation-states are often unable to solve. But the world is dominated by a system of just such sovereign nation-states with unequal development and conflicting interests.
At the same time, the essence of modern society is the challenge and the response to it. When considering the nature and development of modern society, what comes first is not the difficulties and dangers, but the success with which modern society managed to carry out the most radical and far-reaching revolution in the history of mankind.
Primary and secondary modernization
Primary modernization includes the era of the first industrial revolution and the proclamation of equal civil rights. It takes place in those countries that are surrounded by feudal states. In fact, primary modernization solves the classical problems of the formation of capitalism, accompanied by socio-cultural evolution. Secondary modernization concerns mainly countries that are lagging behind in their development, and occurs in the presence of socio-economic and cultural models in the form of developed industrial societies. In this case, the problem of modernizing traditional society is solved under the direct influence of industrial society. Since the 70s. XX century For modernization theorists, it becomes clear that secondary modernization under conditions of domination of the world market by industrialized powers is impossible through primitive accumulation and gradual capitalist development. The main organizer of secondary modernization is the state, which brings to the fore the problems of state power and political elites that form “dictatorships of development.” In this case, the state forcibly imposes on the masses a certain model of transforming a traditional society into an industrial one.
Literature
Social modernization. Primary and secondary modernization. - concept and types. Classification and features of the category "Social modernization. Primary and secondary modernization." 2017, 2018.
Pulatova G.E.
intern-researcher-applicant at the University of World Economy and Diplomacy
MAIN STAGES IN TAIWAN ECONOMY MODERNIZATION: PROBLEMS AND ACHIEVEMENTS
After the global financial and economic crisis of 2008, the world entered an active phase of a new stage of searching for promising ways to reform and modernize the economies of countries. Modernization is considered a condition for the successful development of the country, and this is confirmed by both history and modern practice.
In many languages, the terms "modern" and "contemporary" are often used interchangeably, although there are certain differences between them. Thus, the “New Explanatory Dictionary of the Russian Language” explains the concept of “modern” as referring to one era; happening now, today, present; meeting the requirements of its time, caused by its requirements, the concept of “modern” as newfangled, modern, newest. In the modern concept, “modernization” is used to denote the complex development of society or its individual sphere, the transformation of traditional values, structures and relationships into “modernized” ones.
In the economic field, modernization, according to experts S. Eisenstadt and A. Desai, is accompanied by: 1) replacement of human or animal power with inanimate energy sources, such as steam, electricity or nuclear energy, which are used in production, distribution, transport and communication ; 2) separation of economic activity from the traditionalist environment; 3) the expanding replacement of tools with machines and complex technologies; 4) growth in quantitative and qualitative terms of the secondary (industry and trade) and tertiary (service) sectors of the economy;
miki while simultaneously reducing the primary (production); 5) growing specialization of economic roles and clusters of economic activity - production, consumption and distribution; 6) ensuring self-sustaining growth in the economy; at a minimum, ensuring growth sufficient to simultaneously expand production and consumption on a regular basis; 7) growing industrialization1.
The experience of Taiwan is noteworthy, as it successfully modernized its economy while being an agricultural country poor in mineral resources and fuel. Consideration of the main directions of its creation of modern production and transformation of society from traditional to modern should help determine a strategy for further development acceptable for our republic.
Taiwan is part of the first wave of newly industrialized countries. Its development began at the turn of the fifties and sixties of the last century, and by the mid-1960s it was the leader in the world
1 Ermakhanova S. A. Theory of modernization: history and modernity // Current problems of socio-economic development: the view of young scientists: Collection. scientific tr. / Ed. V.E. Seliverstova, V.M. Markova, E.S. Gvozdeva. Novosibirsk: IEOPP SB RAS, 2005. Sec. 2. pp. 233-247
according to the rate of economic growth. By the end of the 1980s, Taiwan reached the level of moderately developed countries, thanks to political reforms, this country turned into a political democracy.
As world and Taiwanese practice shows, the process of economic modernization of the country depends on several international and internal factors, which can be divided into 3 periods:
The first period is 1952-1980, when initially the state actively stimulated agriculture, which was least affected during the Second World War. Land reforms were carried out, infrastructure was restored and the government achieved an average annual economic growth of 9.21%, which at the time was the highest in the world. Since 1962, agriculture lost its key position as a driving force of the economy - the industrial sector began to develop rapidly. With the exception of two energy crises, in 1973-1974. and 1979-1980, Taiwan's industrial sector maintained an average annual growth rate of approximately 14%.
Beginning in 1950, the government adopted a series of economic development plans that promoted economic growth and industrialization. The first four-year economic development plan (195356) outlined reconstruction, which allowed for increased production of rice, fertilizer, and hydroelectric power. This led to an increase in GNP to 37%. The Second Four-Year Plan (1957-60) encouraged import substitution industries, with GNP increasing by 31% and national income per capita by 13%. The Third Four-Year Plan (1961-64) stimulated the development of labor-intensive export industries, basic services, energy development, industries that contributed to agricultural growth, scientific research, and the development of the island's limited natural resources. The results were a 42% increase
reduction in GNP and a 31% increase in per capita income. These early stages of development were financed by only US$2.2 billion in foreign investment.
Following the reduction in foreign aid in 1965, a fourth four-year plan (1965-68) was adopted and was followed by a fifth four-year plan (1969-72). The increase in GNP during these periods was 46% and 55%, respectively. By 1971, exports of manufactured goods increased, and the government began to redirect its priorities away from labor-intensive industries toward the development of capital-intensive sectors such as shipbuilding, chemicals, and petrochemicals. The Sixth Four-Year Plan (1973-76), which was negatively affected by the international crisis, was completed with only a 19% increase in GNP. It was replaced by a six-year plan (1976-81), which focused on expanding key industries and completing 10 major infrastructure projects, including the construction of a steel mill in Kaohsiung and a new Tajikistan port.
Second period - 1981-1999. - economic conditions throughout the world and within Taiwan itself have undergone great changes. The economic growth rate fell to 7.15%, and the country's economic focus slowly shifted from the industrial sector to the service sector.
The four-year plan (1986-89) achieved an average annual increase in GNP of 6.5%. Among the main priorities of this period, his goals were price stability, growth in the service sector (7.5%), trade liberalization, support for regional development, and growth in high technology industries such as computer manufacturing, robotics, and bioengineering. In response to weakening export growth and slowing private investment in the stock market in 1990, the government developed a six-year plan (1991-97) aimed at economic recovery. This plan is intended
was intended for investment, mainly in transport, telecommunications, electricity generation, and pollution control. Private investment in the research and high technology sectors was stimulated. In the 1990s, the privatization of government enterprises continued, and the Taiwan market was opened to foreigners to attract investment in the technology sector.
Although the average level of economic growth decreased between the two stages of economic development, the average level of economic growth from 1952 to 2001 was 8.13%.
Since 1997, high technology began to provide almost half of all Taiwanese exports, according to this indicator the island took 18th place in the world. The technology parks of Hsinchu, Taichung and Tainan have become the main bases of activity not only for large enterprises, but also for numerous small and medium-sized enterprises that form the basis of the island economy.
The third period - starting in 2000 - Taiwan's economy resumed its path of steady growth.
Taiwan's six-year national development plan (2002-08) was called "Challenges 2008", which was estimated at US$75 billion, and had seven goals: 1) expand the number of products and technologies of the highest global standards; 2) double the number of foreign tourists; 3) increase spending on scientific research to 3% of GDP; 4) reduce unemployment to 4%; 5) increase the average growth rate to more than 5%; 6) increase the number of broadband Internet users to 6 million; 7) create approximately 700,000 jobs1.
At the same time, the program for creating a “Green Silicon Island” was adopted, which was considered as a set of government measures aimed at finding optimal methods for managing the economy based on
1 http://www.gio.gov.tw/info/taiwan-story/economy/edown/3-5.htm
on the economy on knowledge - which replaced information technology.
The program included five priority areas:
"Green Taiwan" - support for all types of activities aimed at restoring, preserving and maintaining the environment;
"Dynamic Taiwan" - the formation of basic and scientific and technical infrastructures necessary to accelerate economic growth;
"Effective Taiwan" - implementation of a program to create an integrated transport network on the island;
"Quality Taiwan" - creating conditions for the development of personal qualities of citizens;
"Attractive Taiwan" - making the island a pleasant place to live.
From 2002 to 2007, Taiwan's economic growth ranged from 3.5% to 6.2% annually. In 2008 GDP grew by 0.7%, however, in 2009 GDP growth rate decreased to -1.91% due to the global economic crisis. Thanks to the implementation of government measures and an increase in exports to the level of previous years, in 2010. the GDP growth rate was 10.5%. In 2010, Taiwan was ranked as the 20th largest economy in the world with a GDP of US$427.0 billion2
The industrial sector is a key driver of Taiwan's economic development. Over the past years, the government has stimulated the private sector, which has allowed it to increase industrial competitiveness and achieve sustainable economic growth. The industrial sector's contribution to GDP peaked in 1986 at 44.8% and has declined steadily since then. In 2010, the contribution of the industrial sector to GDP decreased to 31.1%, while the service sector increased to 67.5%. With the advent of the knowledge-based economy, the contribution of the service sector to GDP continues to rise; whereas, the contribution of the agricultural sector
2 http://www.gio.gov.tw/info/taiwan-story/economy/edown/3-5.htm
Table 1
Macroeconomic indicators of Taiwan in 2010
GDP (billions of US dollars) 427.0
GDP, per capita (US dollars) 35,800
Economic growth rate (%) 10.5
Unemployment rate (%) 5.2
Export (billion US dollars) 274.6
Imports (billion US dollars) 251.4
Trade balance (billion US dollars) 23.2
Gold and foreign exchange reserves (billion US dollars) 387.2
Exchange rate (TWD:USD) 31.642
Source: Department of Statistics, Ministry of Economic Affairs of Taiwan1
torah in GDP has been falling for decades and fell to 1.4% in 2010.2
In 2009, manufacturing output, with a total value of US$320,202 million, accounted for 91.48% of the total output of the industrial sector in Taiwan. Within the manufacturing industry, information and communication technology products accounted for 34.2%, chemical industry 30.5%, metalworking and mechanical engineering 24.2%, consumer goods industries 11.1%3.
The modernization and economic development of the country was carried out thanks to a combination of three forces: small and medium-sized businesses, large corporations and state support, which allowed the following:
About 8 million of the country's population work in 70 thousand small and medium-sized enterprises, which have created a very flexible economic structure;
Over the past decades, 100 largest corporations have been formed in the country, actively participating in certain industries, in foreign trade and in operations on the stock market;
The state regulates the most important processes in the economy, stimulates
1 http://www.moeaidb.gov.tw/2010/view/en/index.html
2 http://www.moeaidb.gov.tw/2010/view/en/index.html
3 http://www.moeaidb.gov.tw/2010/view/en/
export, creating special economic zones and scientific and production zones, of which there are more than 100 in the country, and their activities contribute to the further growth of scientific and technological progress.
Along with its successes, Taiwan faces many economic challenges like other developed economies. Dependence on exports makes the country's economy vulnerable to ups and downs in the global economy. If in 2009 Taiwan's GDP fell to 1.9% due to a 20% decrease in exports, then in 2010. GDP rose 10.5% as exports returned to previous years' levels. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are Taiwan's main long-term economic problems. Free trade agreements have proliferated in East Asia over the past few years, but until now Taiwan has been excluded from greater economic integration in large part because of its diplomatic status. Taiwan's fertility rate (1.0 children per woman) is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. The country's population is aging rapidly, with the number of people over the age of 65 accounting for 10.7% of the island's total population in 20104.
4 http://www.moeaidb.gov.tw/2010/view/en/index.html
IKTISOD VA MOLIYA / ECONOMICS AND FINANCE No. 3, 2012
Diagram 1:
Dynamics of Taiwan's GDP composition by economic sectors
Dynamics of GDP structure
80 70 60 50 ^ 40 30 20 10 0
1980 1985 1990 1995 2000 2005 2010
□ agriculture ■ industry □ services