The extensive path of economic development is characterized by an increase in the social product due to an increase in quantity. For this, additional capital is attracted. At the same time, the technological basis of production does not undergo changes. For example, cultivating to produce more or employing more workers to build power plants are considered extensive development paths.
Achieving an increase in production volume is achieved through a quantitative increase in the number and qualifications of employees. Of no small importance is also given to increasing the capacity of the enterprise by increasing the amount of equipment.
An extensive development path is inherent in organizations that expand production through the construction of new enterprises. Thus, the geographical factor is used. A typical enterprise that has an extensive development path is a fast food chain. In this case, the market is conquered through geographic expansion and the production of large quantities of cheap products.
The extensive path of development is characterized by a relatively uniform increase in the ratio of its factors. The production maximum depends primarily on the availability and condition of resources, especially capital and labor inputs. When has a minor effect on the process. Under these conditions, the enterprise becomes dependent on the situation that develops in the market of production factors.
With the extensive path, some side effect is considered to be a reduction in unemployment. This is mainly achieved by hiring a significant number of employees. However, the reduction in unemployment is a temporary phenomenon in this case. This is largely due to the inability to maintain full annual employment. An important factor is that employees mostly do not have the necessary qualifications.
Thus, the extensive path is characterized by stagnation, which is associated with the lack of influence of technical progress; wear and tear (both physical and moral) of production assets occurs.
At the same time, as experts note, enterprises developing along an extensive path mostly depend on external factors. For example, such an enterprise is significantly influenced by government policy, in particular in the field of investment and tax collections.
Thus, development along an extensive path is completely unacceptable for enterprises in modern market conditions. However, at the same time, the use of certain factors allows one to obtain good results in certain situations. An example is oil-rich states that have achieved high income levels solely thanks to their reserves of this raw material.
It should be noted that the extensive path was the basis for subsequent economic development and became the basis for the emergence of a new intensive type. At the same time, in the conditions of modern market relations it is difficult to distinguish one or another type. As practice shows, it is most beneficial to use their complex.
Development along the extensive path is characteristic of various In particular, its use in a certain period was also noted in the pedagogical sector. It should be noted, however, that the extensive path of development of education today is changing to intensive. In other words, previously the emphasis was more on awareness and increasing the knowledge of students. Today, the main focus is the formation of abilities and skills, development
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Good night everybody. Every time you look in your pocket and find emptiness or a lack of the amount you were counting on, remember this article and re-read it. There are 2 types of development. Extensive and intensive. The first implies development by increasing the physical volume of activity. This can happen due to land, scale of production, etc. That is, if additional income and indicators are needed, you simply increase the volume. Low efficiency is compensated by significant scale. With this approach, a country can occupy the top positions only nominally, and even then mostly in the form of exceptions. The problem is that due to extensive development, sooner or later you begin to incur enormous costs.
For example, laid underground heating mains in winter heat the ground, melt snow, the consumption of electricity and energy resources is many times higher than necessary. Absent and/or inoperative storm drains, drains and slopes on the streets lead to the rapid removal of housing stock, cars, clothing and shoes. Due to them, dirt accumulates, which affects the stopping distance of the vehicle, and therefore the level of mortality and injury. In winter, costs can be multiplied due to the appearance of excess ice. It needs to be fought, and cities are grinding out huge amounts of money and even human lives.
Added to this are the problems of excessive amounts of reagents (violation of the eco-balance), a huge number of personnel are involved instead of doing work useful for the economy. And all simply because they are costs of the extensive development path, where only volume indicators are important. Quality, design, calculations, modern technologies and high-tech are not considered. The staff is deteriorating because they do not receive further education and improve their working skills. It's simply not required. As a result, having received equipment that has gone through several generations, he is not able to properly maintain and operate it. An excellent example is the most shameful, for the capital of the largest country in the world, .
Intensive development path provides for a high-quality understanding of the necessary work, their rationalism and endless improvement until the technology has completely exhausted itself. After this, the technology changes fundamentally for further development. An example is the change from film to digital media, the development of the automotive industry, electronics, building materials, public transport, railways, construction, etc.
Without this, you have to be among the forever lagging behind. It is not possible to produce modern and complex mass-produced products, for example, gearboxes, gearboxes, engines, fundamentally different bodies of transport systems, and various electrical components. Even a regular elevator. Having mastered the production of equipment that does not require machine rooms, you are not able to produce a completely modern elevator system for an ordinary home at the proper level. You will have a marriage and be completely inadequate. A good example is the “Ekomax” line, which is a complete failure in the quality of mechanics and electronics.
In fact, in order to stay afloat at the extensive level of development in the modern world, you have to borrow technologies, since you are not able to produce your own. I don't want to discuss whether this is good or bad right now.
We need to take this for granted. In various systems, this is done in a closed or open form, depending on the purpose in relation to the information/population link.
The extensive development path does not provide for high labor productivity as such, and therefore economic efficiency, the highest positions in the well-being and comfort of citizens, or the widespread development of comfortable infrastructure, especially with low population density.
As a result, one way or another, segmentation of the civil sphere occurs. Medicine, housing and communal services, etc. Regardless of the closed or market system, these areas are divided into groups according to the level of services in one country.
The United States, while providing enormous opportunities to people, is not actually an example of a completely intensive type of country. Having become involved in a long arms race, they, in turn, are in many ways an example of a semi-extensive type of development. In fact, having serious economic power, they are losing to Germany and Japan in many aspects. Again, I don’t want to discuss this now, take it for granted. Over the past 20 years, foreign factories have appeared there that do their job better than the “local” ones. However, unlike us, no one created obstacles for localization.
Australia and Canada are even greater examples of semi-extensive countries. And they clearly cannot be an ideal example, with rare exceptions in certain areas.
The countries that have chosen an intensive development path are of greatest interest. These are Germany and Japan. In turn, I would not link economic development with the refusal to develop the military-industrial complex, since history knows various examples. Defending your land and producing weapons plays a vital role in the life of any country. But there shouldn’t be a military-industrial complex an end in itself and the meaning of life for the entire country, as well as its main (or one of the main) source of income.
What is important is that the ultimate goal was the qualitative development of the country and lands, the welfare and comfort of citizens, highly profitable non-subsidized civilian exports, longevity, medicine, technology, labor efficiency and productivity, education and applied science.
In this regard, Switzerland is certainly of greatest interest as an example of an ideal system of intensive development. Surely you have all seen an excellent report from one of the Swiss maternity hospitals. In turn, the author of this article has repeatedly shown the achievements of the Confederation in other areas. One of my favorite reports is where I showed how the Swiss are taught to love their land, honor history and respect people. You probably noticed an unusual building in the title photo. In terms of its architecture, technology, equipment and materials, it will put the majority of mediocre, essentially remakes with apartments at any price in their belts. For example, with a price of approximately 2-2.4 million dollars per apartment. But in fact, the building that is shown in the title photo is an ordinary secondary public school in the Zurich Metropolis. On the left you can see part of the platform where silent trains stop. Or these mini-TPU systems, which the respected Ilya Varlamov modestly calls stops. If you are interested, I can show you how they were built.
This level of maternity hospitals, schools, factories, public transport stops, tram and trolleybus depots is the result of such a system. Thanks to the intensive development of all lands in Switzerland, 4 peoples speaking different languages coexist peacefully and amicably. Many of them do not know another state language other than their native one. They watch television in their own language and it does not evoke any emotions in other people. They simply live and work for themselves and society. For many it will be a discovery that military service is by conscription, and men serve virtually their entire lives until old age. And I don't know that anyone wants to join another country. I heard that other states want to join Switzerland, but not on the contrary. The key to iron stability lies in development.
www.stadt-zuerich.ch A new type of contact network (including a trolleybus) is a symbol of development and the emerald of any investment project of the Confederation.
ÖV-Foto-Zürich Perhaps this photograph reflects the prerequisites for the success of this country. Green NOT, serious cleaning of industrial emissions, construction cranes. Control and standards.
The whole system is designed in such a way that they can and produce everything themselves. This does not cover all demand. But they make their products at the highest level, from underwear, reusable plastic tableware, household appliances to complex electrical devices for professional use, machine tools, equipment, engine production, aviation, large land transport, railway equipment, infrastructure, building materials and etc. The highest category includes applied science and education, which allow it to take first place in Europe in innovation. Therefore, in terms of priority, Switzerland, in my opinion, takes first place.
Best regards, Alexander Mostovoy for token support
Extensive development path
There are two types of economic growth: extensive and intensive
With an extensive type of development, economic growth is achieved through a quantitative increase in production factors, and with an intensive type, through their qualitative improvement and better use. Moreover, in this case, economic growth is possible even with a decreasing rate of capital investment, and even with a decrease in their physical volume.
The extensive path of economic growth is historically the original path of expanded reproduction. And naturally, due to its primacy, it has many problems relating to many areas of the economy. It is very important to highlight these problems in order to eliminate them in the further development of economic relations. In conditions of extensive growth, the change in the relationship between its factors occurs relatively evenly and the achievement of maximum production becomes dependent mainly on the state of economic resources, especially on the combination of labor and capital inputs, and only to a certain extent on scientific and technological progress
In the first case, the increase in social product occurs due to a quantitative increase in production factors: the involvement in production of additional resources of labor, capital (means of production), and land. At the same time, the technological base of production remains unchanged. Thus, plowing virgin lands to produce large quantities of grain crops, employing more and more workers to build power plants, and producing more and more grain harvesters are all examples of the extensive way of increasing the social product. Extensive expansion has its merits. This is the easiest way to increase the pace of economic development. With its help, natural resources are rapidly developed, and it is also possible to relatively quickly reduce or eliminate unemployment and ensure full employment of the workforce. With this type of economic growth, the increase in production is achieved through a quantitative increase in the number and qualifications of workers and through an increase in the capacity of the enterprise, i.e. increase in installed equipment. As a result, output per worker remains the same. However, this way of increasing production also has serious disadvantages. It assumes technical stagnation, in which a quantitative increase in output is not accompanied by technical and economic progress. At the same time, production growth becomes costly. At best, the rate of economic growth is directly proportional to the quantitative increase in the means of production and the number of workers
Extensive expanded reproduction presupposes the presence in the country of a sufficient amount of labor and natural resources, due to which the scale of production can increase. However, it itself inevitably leads to a deterioration in production. However, it itself leads to a worsening of the conditions for its repetition. Thus, during this process, equipment at existing enterprises ages. Due to the depletion of natural resources, it is necessary to expend more and more labor and means of production to extract each ton of raw materials and fuel. As a result, economic growth is increasingly costly.
The extensive path of economic growth has exhausted itself in our country. In the current conditions, it only leads to a dead end, giving no chance for economic revival. Therefore, there is an urgent need to change the type of economic growth and transfer the national economy to a new path - the path of intensive development.
Intensive development path
Intensive expanded reproduction is a qualitatively new type of economic growth, which is based on the widespread use of more efficient and qualitatively improved factors of production. The most important factor in intensive economic growth is increasing labor productivity. The intensive type of economic growth is characterized by an increase in the scale of production, which is based on the widespread use of more efficient and qualitatively improved factors of production. An increase in the scale of production, as a rule, is achieved through the use of more advanced equipment, advanced technologies, scientific achievements, more economical resources, and improved skills of workers. Due to these factors, an increase in product quality, an increase in labor productivity, resource conservation, and the most effective methods of state regulation of the economy are achieved. The undoubted advantage of the intensive expansion of production is that it removes the seemingly insurmountable barriers to economic growth generated by the known limitations of natural resources. Economic development is being transferred to a new track - on the basis of continuous scientific, technical and economic progress, one of the indicators of which is an increase in the knowledge intensity of production. The most beneficial expansion factor is resource conservation. However, intensifying economic growth is difficult. It is associated with a deep progressive restructuring of the structure of the national economy, extensive training of proactive and highly professionally trained workers.
With the development and assimilation of the achievements of scientific and technical progress, intensive growth factors become predominant. However, in real life, extensive and intensive types of economic growth do not exist in their pure form.
In the history of the formation of economic reproduction, there were two types: intensive and extensive development. They are both integral components of increasing the economic potential of individual enterprises and entire states. The first is based on technology, the second - on increasing the factors of production involved.
Paths of economic development in the modern world
The well-being of the people of each country is calculated depending on the economic development of that state. Some have huge mineral deposits and fertile lands, while others do not. As a result of the difference in the amount of natural and human resources, countries choose an intensive, extensive or mixed path of development.
Developed countries have long chosen to intensify their economies and place emphasis on the development of technologies and their application in the economy. Those countries that do not do this become more dependent on external factors, including the prices of raw materials; the cost of oil, gas and other export products is of great importance.
More successful economic development is observed in those countries that combine both types of reproduction, i.e. their economy has a mixed type of development. Such countries include Germany, USA, China. Recently, technologies have begun to penetrate into various sectors of the Russian economy.
Extensive farming
The very first and easiest way to build economic potential is the extensive development path. Its distinctive feature was an increase in production due to an increase in the factors involved. Those. to increase the quantity of finished products, either the working day will be increased, or the number of workers, or both.
A typical example of extensive farming is the “virgin land epic.” In the second half of the 20th century, the USSR plowed up and sown millions of untouched lands in Kazakhstan and Siberia in a short time to quickly increase agricultural production. This allowed for more production to be produced, but no technical development actually occurred. In addition, great damage was caused to nature.
Factors of extensive development
It was said above that extensive development is characterized by an increase in efforts, etc. From here we can determine the factors influencing this type of reproduction:
Work. To increase profits, the number of workers must constantly grow, otherwise development will stop and regression will begin. Thus, the amount of labor performed increases due to new labor, and not due to an increase in productivity.
Capital. As in the first factor, there is an increase in the amount of capital involved. Those. enterprises increase production capacity, the amount of equipment increases without improving quality.
Natural resources. An extensive development path to obtain more product in agriculture increases the area under cultivation or the number of livestock, while in industry new quarries or mines are developed. All this happens without introducing new technologies and increasing productivity.
Advantages and disadvantages
The extensive path of economic development has both positive and negative sides. The first includes a rapid increase in the amount of product produced, new areas are being developed. By increasing production capacity, new workers are attracted, which leads to a reduction in unemployment.
At the same time, with the long-term development of extensive farming, stagnation in the economy occurs. New technologies are not being introduced, labor productivity is not increasing, which leads to either higher prices for products or lower wages for workers. In market conditions and competition, raising the price of a product is a suicidal undertaking for the manufacturer, so most often ordinary people suffer from this in the event of a decrease in salary or simply its unchanged, which in conditions of constant inflation is equivalent to its periodic decrease.
Thus, the extensive path of development did a lot for humanity and its evolution: it was it that forced man to develop new lands, involve all members of society in work, and use everything that was at people’s disposal. But after several thousand years of its existence, civilization begins to move away from it, moving towards the intensification of production.
EXTENSIVE DEVELOPMENT PATH
EXTENSIVE DEVELOPMENT PATH
a way to increase production volumes due to quantitative factors of economic growth: additional attraction of labor, expansion of acreage, increased production of raw materials, construction of new facilities. The possibilities of an extensive development path are always limited by the availability of natural and labor resources.
Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. - 2nd ed., rev. M.: INFRA-M. 479 pp.. 1999 .
Economic dictionary. 2000 .
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