Internetization and Global Institutionalization of Economic Systems

  • О. V. Zhurauliou National Academy of Statistics, Accounting and Audit
  • O. A. Simachev National Academy of Statistics, Accounting and Audit
Keywords: institutionalization, transformation, technological change, Industry 4.0, mainstream development.

Abstract

The article is devoted to the vital problem of the extension of the concept of globalization to Internetization in the context of the global institutionalization of economic systems.

Historically, the globalization process took various forms, and its meaning changed. This term was used for the first time in English language publications in 1930s. Its meaning was rethought at the end of 20th century in view of the radical structural change and technological achievements that had occurred in 1980s. The concept “globalization”, therefore, started to be used as a reference to “modern” economies and social processes of 20th century, including the exchange of money by use of Internet technologies. However, due to the diversified historic applications, this term can hardly reflect the capacities of electronic and digital technologies related with the information revolution.

Information and communication technologies have the key role in the new economy, especially in changing the structure of international production. The revolution in information and communication opens up immense capabilities for the inclusive development. The significance of time and geographic location has been gradually declining. The time required for connection has shortened to nanoseconds, and the communications are becoming even more extensive and dense. The geographic borders have been increasingly transparent in social, economic and political terms. The new economy, built on the innovation culture, puts emphasis on the creativity; the signs of the new global economy are new ideas, new technologies, new products, new areas and new initiatives.

Transformation in the contemporary global world is continual and related with global processes and challenges faced by the humanity in 21th century. It is demonstrated that industry 4.0 is penetrating into the economic world, and everything gives evidence of the convergence to the smart environment, with all the entities constantly connected to the network. It is proposed to extend the concept of globalization to Internetization.

It is demonstrated that technological transformations, if not supported institutionally, will widen inequality instead of resulting in effective transformations.

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References

1. Internet Users. Internet Live Stats, (n.d.) internetlwestats.com. Retrieved from http://www. internetlivestats.com/internet-users/ [in English].

2. Statistical Yearbook of the United Nations (2017). unstats.un.org. Retrieved from https://unstats. un.org/unsd/publications/statistical-yearbook/ [in English].

3. Statistical Database. Eurostat. European Commission (n.d.) ec.europa.eu. Retrieved from http:// ec.europa.eu/eurostat/data/database [in English].

4. Online shopping (n.d.) statista.com. Retrieved from https://www.statista.com/topics/871/online- shopping/ [in English].

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PDF Downloads: 74
Published
2017-12-20
How to Cite
ZhurauliouО. V., & Simachev, O. A. (2017). Internetization and Global Institutionalization of Economic Systems. Statistics of Ukraine, (4(79), 39-46. https://doi.org/10.31767/su.4(79).2017.04.05