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Камила Слукова
Инженер департамента социальных наук,
факультет гражданского строительства,
Чешский технический университет, Прага

Глобализация и ее влияние на экономику центров в Чешской республике

Аннотация Это сообщение обращает внимание на вопросы глобализации и ее влияние на регионы и области Чехии. С одной стороны, налицо растущая миграция населения, с другой – наличие определенных регионов, переживающих скопление людей в отдельных областях. Оба эти противоположные эффекта формируют отдельные области и влияют на их процветание и функционирование экономики области. Дальнейшим последствием этого явления является формирование регионов в глобальном мире и их перелокализацию, что означает переход на другой тип производства.

Kamila Slukova
Ing., Department of social studies, Faculty of the civil engineering,
Czech Technical University in Prague
Street Thakur 7, 166 29 Prague 6
Tel.: +420 224 354 451

Globalization and its effect to the economy of centres in Czech republic

Abstract

This report pays attention to the questions of globalization and its effects to the regions and districts. On one side there is the growing migration of inhabitants, on the other one in certain districts outlasting agglomeration of the people to the explicit region. Both of these counterworking effects are forming the shape of the individual regions and influencing their prosperity and economic performance. Further phenomenon, forming the shape of regions in the globalized world is the re-location, what means transfer of different types of production.

Introduction

The globalization represents one of the most interesting and most discussed contemporary themes. A lot has been told till now, nevertheless we can continually hear about strangest conceptions about subject of globalization, what the reasons for it are and how the effects are brought by it.

This report is directed specifically to the effects of globalization to the forming and development of the economic centres in the country. At first we explain, what the globalization really is and what are its accompanying effects. This will be followed by that, what is probably mostly interesting for anyone, what the effects of globalization are. In the latest part I will refer about changing economic power in the big city centres and how does it work towards rural regions.

Globalization

The term „globalization“ means the fact, that we can observe creation of an all-world level of organization and integration, what covers recent national, regional and local systems.

Driving force of this process is the globalization of economic activities, what especially in last thirty years connects through the markets of different countries, contributes to migration of inhabitants and concentration the capital to big city centres.

From the state authorities? point of view there are free basic features characteristic for globalization. The state inducement towards own economy fades away, it is possible to allocate the capital all-over the world not depending on time and as well the importance of inter-state borders comes down. The state is so losing its function, because of which it was established like an institution – to protect the area specified by state border, to control the economics and to ensure the order. So the globalization opens the state economic system wide towards the world.

Economic globalization denominates overruling of borders, when state frontiers don?t play the role of barriers any more, within which the production process is enclaved. So has started step by step establishing of supra-national firms. The first companies like that begun to constitute even in 19th century, but the globalization started to develop more significantly after the WW II, when the European countries destroyed by war started to enter the international system of production, distribution and division of labour. The firms discovered additionally that it is more favourable for them to lower the production cost by transferring some parts of the production process to areas with sufficiency of cheap labour force. All this has lead to the origination of so called new international division of labour.

Besides the supra-national producing organization was during last decades created the new international financial system based on uninterrupted 24 hours a day trading with currencies, stocks and other financial products. The global economy contributed in this way to create so called virtual economy, where the speculants with exchange rates, stock and other financial products transfer in scope of global economy giant sums of money. The average daily turnover in the world stock markets increased within last 20 year more than hundred times. Recent financial transactions surpass the volume of trading with goods multi-fold.

Localization versus migration of people

Besides the fact, that globalization interconnects the world in spheres of economics, politics and information; at the same time it „divides“ the world because of localization process. Both these actions hand in hand are forming living conditions of the population. The effect on the individual member of society can however be completely different.

For the individuals who accepted the globalization process and started to use it for development of their economic activities, for developments of their enterprising, for travelling etc., the globalization seemed to be positive as an opening of new possibilities. Of course together with this it is necessary a higher mobility, what is nevertheless not available for everyone. Some individuals can prosper from a chance of a better working offer and move towards the job to another city, even to other country. On the other hand, some individuals feel to be „bound“ to their location and up to present days reject the working mobility.

All this leads to a situation, that because of the transferring the people towards jobs, the regional structure of the state gets to change and the economic power starts to concentrate to selected locations, especially to the regions of big cities. These regions are developing and getting rich. On the other hand there are regions, from where some people move out and where only people rejecting the job-mobility are staying. Such regions are getting weak. The systems of healthy functioning of the society are broken and the unemployment starts going up.

Regional structure of the Czech Republic

The regional structure of the Czech Republic is characteristic by a big number of rural villages and high numbers of small and medium cities. The countryside communities represent 89,8 % of all settlements but there live only 26,3 % of inhabitants. Therefore it is evident that the concentration of the population including the economic activities is headed to the big cities and metropolises. Here it is especially Prague, Brno and Ostrava, followed by Pilsen and Olomouc. This trend in rural displacing brings expressive declination of the agriculture share in economy and lowering the number of workmen in agricultural sector. The following chart illustrates the number of finished flats, spread out according to the size of the community. It confirms as well that the biggest portion of the flats goes to the big cities with 100 000 people and more.



Since 1997 till 2008 have been registered all-over the Czech Republic 300 273 finished flats made by all build-up types. The biggest portion of construction goes to the big cities with 100 000 people and over, where the 74 934 finished flats represent a quarter of the all-state volume. The communities with 2 – 5000 people follow with a big gap, where the new 39 135 flat were built up in the mentioned period (13,0 % of the republic summary). More than 30 000 flat have been finished furthermore in communities with 1 – 2000 and 5 – 10 000 people. The smallest portion (21 151 flats) was in contrary built up in 16 cities with 50 – 100 000 people, even if in this size group do live the third biggest number of inhabitants. The essential share of this size group present the structurally afflicted cities of Northern Bohemia and Ostrava region.

The Prague region is creating about 20% of the all-state GDP and in its territory is realized about 20% of all investment of Czech Republic.

Whilst the era after WW II is characteristic by fluent growth of the regional metropolises, nowadays is a threat of efflux of inhabitants to the capital and strengthening its influence of the accord of the regions and rural areas. This effect is unfavourably multiplied by law quality of traffic, especially of the road network. Insufficient connection of the regional centres and the recent transport network contributes to the disproportional strengthening of Prague region. The solution of this situation lies in development of the integrated transport, reconstruction of the high-speed railroads, completing the highway system and renovation of the 1st class roads.



Concentration and converging of the inhabitants to selected areas mainly in regions of big cities has a result in significant deepening of the economic efficiency of the regions. The picture 1 shows the aggregate comparison of competitive strength of the regions in Czech Republic. From the economic point of view, the most favourable shows itself the situation of Prague, Central Bohemia, Pilsen region, South Bohemia and Liberec region. These areas show a high level both of economic and innovative efficiency. The economic efficiency is evaluated as per GDP per capita and level of unemployment, innovative efficiency as per research and development expenses per capita.



Direct foreign investment inflow to the Czech Republic in general is for the time being rather high. As the motivation of the foreign subjects we can name especially qualitatively less demanding production factors, available here for their exploitation. The education of the workmen is up to date positively evaluated; even if there is very often that the Czech labour power is short of sufficient language knowledge. In the field of science and research is held generally that the Czech firms - in contrary to the foreign ones - are still not innovating enough and the same situation persists regarding research expenses.

Re-location

Together with globalization we use very often another word frequent in last days – a re-location. This is a trendy term meaning the transfer of the production to other regions. The international concerns are so closing their production plants because of highly competitive background and relocating them to reasons, where is possible to produce with lower cost of production. Many people and many regions can be impacted by high unemployment within a short time.

The basic problem of re-location is yet the idea itself to regard this as a negative effect. Anyhow it is not any turn of mind of a company?s owner, but this is a decision forced by hard competition and so the owners are pressed to make steps to lowering the costs of production. And in this point shows the re-location as a way out, because it enables the producer to lower the costs and consequently the price, too.

In the decision of transferring the production to another area it is necessary to look especially for the economic reasons – inputs price, more favourable taxation regimes, access to new markets, lower price of labour etc. In many cases is the re-location fundamental for the company?s survival. The tendency for limitation of the free movement of the companies is therefore apparently senseless and it contravenes the basic idea of the free market in EU.

It is not necessary to go too far for finding a practical example in Czech Republic; well we can follow up, how the car factory Skoda removes some parts of the production, at first to India, nowadays to Ukraine

Summary

The re-location of the companies is simply a fact, what is hardly to change. Well these companies use only the chance, offered to them by a globalized world: to move the capital, to use new possibilities and place of production etc. It is necessary to accept it. Regarding the state, its role should be only in reducing the negative effects coming from the re-location.

Literature – Sources

1. www.csu.cz
2. Globalisation Opportunities and Challenges - World Economic Outlook, IMF, 1997
3. Evropske perspektivy uzemniho rozvoje. Praha: MMR, 2000.
4. Ministerstvo pro mistni rozvoj. Dostupne z URL: www.mmr.cz
5. Ustav uzemniho rozvoje. Dostupne z URL:

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