World Comparison: Spur Of Economic Development

World Comparison Name: Institution: Course: Date: World Comparison Different countries take up different approaches to spur economic development. Thus, there will always be different rates of economic growth amongst countries because of the underlying framework of how they incentivize and encourage capital accumulation. The growth of economy globally in the 21st century will be driven by technology. Since the inception of the information age a few decades ago, the countries which have cultivated and harnessed the power of technology have positioned themselves strategically to improve their economy. They are gradually becoming the world superpowers, and the economic growth trajectory of their countries is very promising. Some Asian countries like China and South Korea have positioned themselves strategically, and they are experiencing rapid growth which is hinged on technological innovation. The economic growth is a by-product of capital and investment these countries have continually done within their borders to book a space in the global race of economic powerhouses. There has been a slight reduction of oil consumption around the world and the world is shifting to clean and renewable sources of energy. The source of energy and the policies regulating it are important determinants of capital accumulation. Countries like Japan and United States have recorded a reduced dependency on oil because their economic models have shifted to encourage and incentivize clean energy. Energy is an important factor of production and the policies and legislation underlying its consumption have a huge impact on economic development. Therefore, most countries who have environmental awareness legislations have started shifting their economic models to avoid overreliance on fossil fuels. Even the oil producing economies like the UAE have shown a sharp decline in their oil consumption to have a competitive edge in the 21st century. China has not significantly increased its oil consumption in the last five decades, and it still remains to be lower than Brazil and 11 times lower than UAE as at 2015. This is because Chinese economy is not heavily dependent on oil like UAE and their strategy works because it has become a global leader in GDP and technological innovation. Coal has been another important cheap source of energy since the inception of industrial age especially in industrialized economies. China is one of the countries which have heavily invested in industrialization, and she continues to use coal as her primary source of energy. The government has instituted legislation that has encouraged industrialization and foreign investment. This has led to increased capital accumulation within her borders, and lately she gaining the lead in innovation. Chinese economic policies have encouraged the use of coal, and though there has been a slight decline in the recent past, it still remains to be the highest consumer of coal around the world. It is a resource that has been instrumental in Chinese industrialization and has spurred its economic growth. On the other hand, some countries like the United Kingdom and other Scandinavian co...