economic system, traditional economy, centralized economy, market economy, mixed economy
So, as we have already found out, humanity constantly has to bring its unlimited desires and limited possibilities into line.
Moreover, if in the conditions of a natural economy people can live independently of each other, then with the division of labor and specialization, an exchange of products is necessary. No one would specialize in, say, making costumes or writing books if he did not hope to trade his costumes and books for food, clothing, and other goods and services to satisfy his needs. The more developed the division of labor, the greater the dependence between producers and the greater the need to coordinate their activities. Such coordination should be carried out by the economic system - a certain way of organizing economic life.
What questions does the economic system solve?
Every economic system must address the following questions:
- WHAT TO PRODUCE? What needs are considered the most important and how to distribute scarce resources between the production of various goods and services?
- HOW TO PRODUCE? Having solved the first question, it is necessary to choose the technology of production - to determine in what combination the factors of production will be used. If technology in a given society is not sufficiently developed, technologies are chosen that require a relatively large contribution of labor. (labor intensity) and a small capital investment (capital intensity). In the course of technological progress, the labor intensity of production decreases, and capital intensity, as a rule, increases. The economic system must choose a mode of production that allows you to get the greatest return possible from the available resources.
- FOR WHOM TO PRODUCE? Let's assume that in the economic system the necessary products are determined, production resources are distributed, the best technologies are selected and finished products are produced. How to distribute them? In what proportion to exchange?
One way or another, all these issues must be resolved. However, different economic systems solve them differently. The main types of economic systems are traditional, centralized (command) And market economy.
Traditional economy
For most of the history of mankind, the questions of WHAT, HOW and FOR WHOM to produce were decided in accordance with traditions and customs (“as before”). At present, such an economic system has been preserved in its pure form among some tribes of Central Africa, South and Southeast Asia, and the Amazon Valley.
In a traditional economy, customs fix not only the set of goods produced, but also the distribution of occupations. In India, for example, people were divided into castes of priests, warriors, artisans, and servants. No one could choose a profession according to his desire, a person necessarily inherited his father's craft. Thus, the distribution of the most important resources at that time - labor - was dictated by indestructible centuries-old traditions.
The same can be said about the choice of produced goods and technologies. The same products were produced from generation to generation, while the production methods remained the same as they were hundreds of years ago. On the one hand, this allowed hereditary artisans to achieve the highest level of skill, on the other hand, nothing new was invented or produced. Technological progress and the growth of production efficiency were impossible, because each artisan copied the methods of work of his teachers. It was strictly forbidden to make any improvements, every little thing in the production process was enshrined in special rules, which means that labor productivity remained at the same level for centuries.
The issues of distribution and exchange of products (FOR WHOM to produce?) in the traditional economy were also decided according to customs. It was determined what part of the crop should be given to the feudal lord, king, church. Otherwise, agriculture, in which the vast majority of people worked in the traditional economy, as a rule, remained subsistence, which means that there were no problems with the distribution of the product - it was consumed by the producers themselves. As for artisans, they most often produced their products to order and knew their buyer in advance. A small part of the products went to the market, but even there the time-honored rules of trade were in effect, and prices did not change often.
In general, the traditional economy has some attractive features - it ensures the stability of society and its complete predictability, good quality and sometimes even high quality of the goods produced, the variety of which, however, is very limited.
On the other hand, the traditional economy is defenseless against any external changes, such as climate change, attack from outside. The old traditions do not correspond to the new conditions, and the formation of new ones takes centuries. A striking example: the traditional pastoralism of the inhabitants of North Africa led to the disappearance of vegetation and the formation of the Sahara Desert. Apparently, with a more flexible economic system, this process could be, if not completely prevented, then at least significantly slowed down.
And, of course, a huge drawback of the traditional economy is its inability to self-improve and progress. The population in such an economy should satisfy only a minimum of permanent basic needs and not strive for more.
Centralized (command) economy
In this economic system, decisions about WHAT, HOW and FOR WHOM to produce are made from a single center, which is usually the head of state. The command economy in a relatively pure form existed, for example, in the state of the ancient Incas. Many centuries later, a similar economic system developed in the Soviet Union and other countries that, under the influence of the USSR, took the “socialist path”. Currently, the command economy can only be found in Cuba and North Korea.
In a centralized economy, all material resources and products of production usually belong to the state. As for the workers, they are subordinate to a government official, who is a more important official, and so on up the administrative ladder up to the supreme ruler, no matter how he is called: pharaoh, emperor, or general secretary of the ruling party.
The coordination of economic activity in a centralized economy occurs with the help of plans, therefore such an economy is also called a planned economy. The planning process goes something like this. At the very top of the government pyramid, it is determined how much of a given product, say cars, should be produced nationwide in a year. Then a special planning body (in the USSR it was Gosplan) calculates how much steel, plastics, rubber and other resources will be needed to produce all the planned cars. The next stage is the calculation of the needs for electricity, coal, oil and other raw materials for the production of these resources.
This procedure is repeated for each type of product. Then it is calculated how much, say, steel must be produced for the production of all products, and this figure is brought to the Ministry of Ferrous Metallurgy. The same happens with all other resources. Further, the planning process descends from the State Planning Commission to the sectoral ministries. Suppose the Ministry of Ferrous Metallurgy is given the task of producing a certain amount of cast iron, steel, and various types of rolled products in a year. The Ministry, in turn, lists the production tasks for all factories subordinate to it, indicating how much of what products each plant should deliver in each quarter of the next year. The director of the plant distributes his plan to the shops, the shop - to sections, and so on up to the steelworker himself.
The advantage of a planned economy is the ability to quickly concentrate all the resources of society on the "direction of the main blow." This is very important during wars, major natural disasters, and also allows you to move forward in the selected area.
Therefore, for example, the Soviet Union was able to quickly implement the program of space exploration. However, at the same time, other branches of the economy always fall into disrepair (in the USSR, light industry and agriculture), from which funds are taken for the development of the main branches.
To operate the complex mechanism of a centralized economy, a huge number of managers, planning, calculating and checking officials are required. In order to induce subordinates to carry out plans-orders, the chief must have real power over them, provided by the power of the entire state. All this is very expensive. But the main difficulty in central planning of production lies in determining how many units of each product a society needs. In the modern economy, the number of manufactured types of products is measured in hundreds of thousands. Even the most powerful supercomputer will not be able to calculate the required volume of their production - after all, for this you need to know the tastes and needs of many millions of people. Therefore, in real life, the calculation of the plan under such an economic system proceeds as follows: all industrial and agricultural enterprises existing in the country report to the top how much they could produce next year (for this, a little more is added to last year's output, let's say 2%). These figures are summed up and, with minor amendments, a plan is drawn up, which is then returned to the same enterprises. It is clear that the accuracy and validity of such a plan leave much to be desired.
The technology of production is also determined by the state, because it owns all the buildings, structures, machines, resources, etc. in the centralized system. Since the official managing the economy is not personally interested in the results of its work, he is unlikely to make great efforts to the most efficient.
All products produced in the centralized economic system become the property of the state and are redistributed by it in accordance with the plan. The approximate nature of plans can create considerable difficulties in distribution for both enterprises and ordinary consumers. In a centralized economy, even in the most prosperous period, there is always a shortage of some goods and an excess of others. In an effort to improve things, the state changes plans, but since it is not clear by what exact amount it is necessary to make adjustments, then where there was a deficit, there is an excess, and vice versa.
Another important disadvantage of a centralized economy is the lack of sufficient incentives for production. The fact is that the income of the producer in this economic system does not directly depend on how much and what kind of product he produced. The amount of income received is primarily determined by the place that a person occupies in the pyramid of management: the least goes to a simple worker, the most to the chief boss. Under these conditions, it is possible to induce people to work with greater productivity only in non-economic ways: either by threatening punishment, or by inspiring enthusiasm, for example, based on faith in a brighter future. Both methods were used in the Soviet Union.
The strengths of the centralized economy are reflected in its small size, when the center has the ability to directly control everything that happens in the economy. In fact, any firm is a small centralized economic system. If the economy becomes too large, accurate information and control becomes more difficult, a large administrative bureaucracy is needed, and the disadvantages of central planning begin to outweigh the advantages.
market system
In a market economic system, there are people who are free from the power of traditions and not subordinate to a single center. Each of them decides for himself what to produce, how and in what quantity, based on one single goal - personal interest, increasing their own wealth and well-being.
Under conditions of division of labor and personal freedom, producers are connected with each other through the exchange of products − goods. Only by exchanging his goods, the manufacturer can get everything necessary to satisfy his needs. The interdependence of people in a market economy is very high. But unlike a craftsman who works to order, a manufacturer in a market economy often produces his goods for a buyer unknown to him in advance. Unlike a centralized one, a market economy does not guarantee everyone that he will always be able to exchange his product for others. The flip side of freedom of choice is risk and full personal responsibility.
Thus, the exchange of goods plays a key role in a market economy. But it is not so easy to exchange goods for goods. This requires the consent of both commodity owners. It is quite probable that, say, the shoemaker is ready to exchange boots for pies, but the pie-maker would like to receive something else for his goods. In order to satisfy everyone, a long chain of exchanges would have to be started.
The only way out is to agree that any one product will be accepted by all sellers without exception. Such a product is called money. A market economy cannot function successfully without money.
Sale commodity is its exchange for money, and purchase- exchange of money for goods.
An economic system that unites free people who are interconnected by a relationship of purchase and sale is called market. The word "market" in all languages originally meant the place where they trade. Such markets began to arise from time immemorial, because even in those times when subsistence farming dominated, some goods - salt, iron, spices, jewelry - were brought from other places and sold in the markets by merchants. However, in those days, the life of most residents was not constantly connected with the market.
At the end of the 18th - the middle of the 19th centuries. in Western European countries, an industrial revolution took place, as a result of which most goods were no longer produced by hand, but with the help of machines. The number of goods increased dramatically, and they began to be sold in the markets. Moreover, buying and selling covered not only products, but also factors of production. Machines and equipment, as well as land plots that previously belonged to feudal lords and could only be inherited, became the subject of trade. The labor of workers who could freely dispose of it, in contrast to serfs, guild artisans and their apprentices, began to be sold and bought. So arose capital markets, land And labor. The social system, in which the market system dominates the economy, is called "capitalism".
In a market economy, the factors of production and its result - the product - do not belong to the community, as in a traditional economy, and not to the state, as in a centralized one, but to private individuals. Therefore, the problem of incentives for production in a market economy is not worth it. Each manufacturer chooses the most profitable product for himself and produces as much of it as possible in order to get as much money as possible in the end. The production technology is also chosen, if possible, the most efficient, in which the ratio of result to cost is the largest. Therefore, the market economy favors technological progress, as a result of which new, more productive technologies are created.
Perhaps the most difficult question is about the distribution of products. How does the market economic system manage to bring order to this company of egoists doing whatever they please? After all, here the provision of the population with the necessary goods, as well as the justice of distribution and exchange, are not guaranteed either by custom or by a plan supported by the power of the state.
This question was answered by the famous English economist and philosopher Adam Smith in his book An Inquiry into the Nature and Causes of the Wealth of Nations (1776), which, for brevity, begins simply with The Wealth of Nations.
Historical experience has shown the advantage of a market economy over the other two economic systems. It solves the problem of incentives for economic activity in the simplest way, has the ability to adapt relatively quickly to unexpected changes, and favors technical progress. Of course, a market economy is not ideal. It may be characterized by strong income inequality, since the state does not intervene in their distribution (in a traditional and centralized economy, the income gap between "bosses" and ordinary workers is very large, but the workers themselves are approximately equal), periodic economic downturns, unemployment and other problems. But we can call the market economy the least bad of the existing economic systems.
In later chapters, we will take a closer look at how these problems are solved and how the market economy system works.
mixed economy
So far, we have been talking about economic systems in their purest form. However, as a rule, the real economy of any country is not purely market, purely centralized or purely traditional. Elements of different economic systems are combined in a special way in each country. In the developing countries of Asia, Africa and Latin America, elements of all three types of economic systems can be found. In developed countries, we are faced with a combination of market and centralized economies, with the former dominating. This combination is called a mixed economy. A mixed economy is designed to capitalize on the strengths and overcome the weaknesses of market and centralized economies. For example, even in one of the most market economies in the world - the American one - the state actively intervenes in the process of product distribution and centrally issues food stamps to the poor. At the same time, in a centralized economy like the Soviet one, even during the years of Stalinism, elements of a market economy were allowed, such as food and clothing markets, where citizens could try to buy what they did not receive from the state. However, the difference between an economy dominated by central planning and an economy dominated by the market is enormous. It was felt by the population of our country, where there is a long and painful transition from a planned to a market economy.
Summary
The economic system brings the unlimited needs and limited possibilities of the members of society into line. Every economic system solves three major questions: WHAT, HOW and FOR WHOM to produce.
There are the following main types of economic systems: traditional, centralized (command) and market. In a traditional economy, the problems of WHAT, HOW and FOR WHOM to produce are solved on the basis of customs and traditions, in a centralized economy - with the help of a plan established by the state, and in a market economy - on the basis of the goals and interests of free producers who produce the most profitable products for themselves.
In the real economy of each specific country, the main types of economic systems are combined, forming a mixed economy with the predominance of one or another system.
From the history of economic thought
Adam Smith (1723-1790)
Adam Smith was born in the Scottish town of Kirkcaldy, studied at the universities of Glasgow and Oxford. Smith then moved to Edinburgh, where he lectured on English literature and rhetoric. The success of these lectures made him a name in scientific circles, so already at the age of 28 he was invited to the University of Glasgow as a professor, and then headed the department of moral philosophy there (today we would drink it the department of social sciences). Smith's first book, The Theory of Moral Sentiments (1759), is devoted to the problems of ethics - the science of morality, the rules of human behavior. Already in this book, Smith tried to solve the problem of reconciling the interests of various people. He noted that this coordination can be carried out through a feeling of sympathy inherent in a person. Smith understood by this the fact that, evaluating his actions, a person can take the point of view of another person.
It seemed that after the publication of the book, the life of its author would be limited to university science, especially since Smith had a very calm and reserved character. However, in 1764 everything changed: Smith left the chair and went to France as tutor and tutor to the young English Duke of Buccleuch. In Europe, he traveled a lot and met with the most famous scientists of his time - Voltaire, Quesnay, Turgot and others. There he began writing his most famous work, The Wealth of Nations. Smith's later life was uneventful: he held the honorary position of Scottish Customs Commissioner, engaged in research and journalism with great energy.
In The Wealth of Nations, Smith discovered another way of coordinating personal interests, based no longer on sympathy, but on a market economy under the condition of free competition (competition) of market participants.
The main conclusion of Smith's book is that a market economy based on free competition can exist on its own. Government intervention harms rather than helps. Smith argued that in a market system, each person, pursuing personal gain, chooses for himself the occupation that is best paid, produces the product that has the highest price. Thanks to this, each person individually (and hence the whole society as a whole) achieves the best result for himself, and the society's resources are distributed most efficiently. In addition, since many people start producing the most profitable products at once, competition arises between them and the price of the goods eventually decreases, which is also beneficial to society. As Smith put it, the "invisible hand" pushes selfish people towards the public good.
But for this it is necessary that each person be free to engage in the business that he considers the most profitable. No one should (as in a traditional or centralized economy) limit his choices, tell him what he should and should not do.
Direct government intervention harms rather than helps the market economy—this conclusion Smith made the greatest impression on his contemporaries. The fact is that at that time the so-called "mercantilists" dominated economic thought - supporters of active state regulation of all aspects of economic life, and especially foreign trade.
With "The Wealth of Nations" Smith begins an independent economic science - previously, economic knowledge belonged to the subject of moral philosophy.
Read the information .
economic system- a way of organizing the economic life of society, which is a set of ordered relationships between producers and consumers of material goods and services.
In the textbook “Social Science. The Complete Reference Book, edited by P.A. Baranov, gives the following definition:
« economic system- an established and operating set of principles, rules, laws that determine the form and content of the main economic relations that arise in the process of production, distribution, exchange and consumption of an economic product.
To date, economists distinguish 4 types of economic systems, using such basic criteria as the form of ownership of the main factors of production and the distribution of resources:
1.Traditional economic system
- land and capital (the main factors of production) belong to the community, tribe or in common use,
- resources are distributed according to long-standing traditions.
2.Command (centralized or administrative) economic system. type of economic organization in which
- land and capital (the main means of production) are owned by the state,
- resources are also distributed by the state.
3.Market (capitalist) economic system. type of economic organization in which
- land and capital are privately owned,
- Resources are distributed through the supply and demand market.
4.Mixed economic system. type of economic organization in which
- land and capital (the main factors of production) are privately owned,
- resources are distributed by the state and the market. See note below...
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Types of economic systems |
Key features |
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Traditional |
1. collective property (land and capital - the main factors of production belong to the community, tribe or in common use) 2. the main motive for production is the satisfaction of one's own needs (not for sale), i.e. prevails (farming, farming, etc.) 3. economic order - economic problems are solved in accordance with customs 4. the principle of distribution of resources and material wealth - the additional product goes to the leaders or owners of the land, the rest of it is distributed according to customs. 5.development of the economy - the use of extensive technologies in production, which use the simplest tools and manual labor. |
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Command (centralized) |
1. state ownership of all material resources and enterprises. 2. the main motive for production is the implementation of the plan. 3.Manufacturer's authority. 4. the principle of collectivism in public relations. 5.centralized planning, total control of the state. 6.equalizing principle of distribution of resources and wealth. 7. economic order - the introduction of strict administrative and criminal law measures. 8. Strictly fixed and unified prices and wages. |
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Market (capitalist) |
1.Different types of property (including private property). 2. the main motive for production is profit. 3.user power. 4. the principle of individualism in public relations. 5. freedom of enterprise, the power of the state is limited. 6. Entrepreneurial independence in matters of supply, production and marketing. 7.personal interest - the main motive of economic behavior. 8. prices and wages are determined on the basis of market competition. |
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mixed |
1.private ownership of the vast majority of economic resources. 2.participation of the state in the economy is limited (consists in the distribution of centralized economic resources to compensate for some of the weaknesses of market mechanisms). 3. stake on personal freedom of entrepreneurship, the guarantee of the state for social support. 4. economic order - the main economic issues are decided by the markets. 5. market principle of distribution of resources and wealth. 6. The main motive for production is personal interest and profit. 7. The most efficient use of limited resources is achieved. 8. susceptibility to scientific and technological progress. |
Consider examples .
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Type of economic system | |
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Traditional (patriarchal) |
In the past, it was characteristic of primitive society. At present, the features of the traditional economy prevail in the backward countries of South America, Asia and Africa and. Asia: Azerbaijan, Armenia, Bangladesh, Vietnam, Indonesia, Jordan, Cambodia, Kyrgyzstan, Laos, Mongolia, Syria, Saudi Arabia, Philippines, etc. Wikipedia. List of countries by nominal (absolute) value of gross domestic product in dollar terms, calculated using the market or the exchange rate established by the authorities. Wikipedia. economic system Types and models of economic systems. Wikipedia. List of states and dependent territories of Oceania http://en.wikipedia.org/wiki/%D0%A1%D0%BF%D0%B8%D1%81%D0%BE%D0%BA_%D0%B3%D0%BE%D1%81%D1 %83%D0%B4%D0%B0%D1%80%D1%81%D1%82%D0%B2_%D0%B8_%D0%B7%D0%B0%D0%B2%D0%B8%D1%81 %D0%B8%D0%BC%D1%8B%D1%85_%D1%82%D0%B5%D1%80%D1%80%D0%B8%D1%82%D0%BE%D1%80%D0 %B8%D0%B9_%D0%9E%D0%BA%D0%B5%D0%B0%D0%BD%D0%B8%D0%B8 |
Different schools of economic thought have classified socioeconomic systems in different ways. Today, the leading criteria are the form of ownership of the means of production and the method of coordinating economic activity. Property relations have a decisive influence on the structure of any economic system. economic system- the totality of all socio-economic processes taking place in society on the basis of the organizational forms of ownership operating in it. Since the advent of human society, there have been a variety of economic systems. However, they can be divided into two groups: market (market economy of free competition, or pure capitalism, and modern market economy, or mixed economy) and non-market economic systems (traditional economy and administrative-command economy). Consider their characteristic features.
In developing countries there is traditional economic system, some of its elements have been preserved in a number of states. It is obvious that over time there are fewer and fewer such economic systems. The traditional economy is the primary type of economic system in which economic activity is not perceived as the main one. Its main features:
Socio-economic relations in society are determined by traditions and customs, illuminated by time. They determine what goods, how and for whom to produce. They also determine the mode of production;
The economic roles of individuals are determined by heredity and caste. The society of developing countries includes various formations, both class and non-class communities (ethnic, religious, caste, etc.);
Technological progress penetrates into such an economic system with difficulty, as it threatens the established traditions and customs of the social structure;
Steady excess of population growth rates over industrial production rates. Average rates of natural population growth in developing countries are approximately 2% per year, and in the least developed countries up to 3%, against 0.7% in developed countries;
The multistructural nature of the economy, when various forms of production coexist - from patriarchal-communal and small-scale commodity to cooperative and monopoly;
The active role of the state. Redistributing a significant part of the national income through the budget, the state allocates funds for the development of the economy, providing social support to the poorest segments of the population. A significant role in the life of society is played by law enforcement agencies, which spend more money than health care. In such countries, there are few doctors, but many soldiers, the ratio often reaches 1:20.
Administrative command economy existed in the USSR, countries of Eastern Europe. A command economy is effective in extreme conditions and in the presence of reserves for extensive growth, i.e., the possibility of using additional resources. Characteristic features of the administrative-command economy:
State ownership of economic resources. Economic resources are public or state property and do not belong to anyone in particular;
Lack of competition and, as a result, monopolization of the economy. Enterprises are the property of the state and carry out production on the basis of state plans. The plan provides for the production of a quantity of products sufficient to meet the needs. In such circumstances, there is a monopoly of the producer;
Collective decision making. The collectivism of decision-making is realized through centralized economic planning, which is the basis of the economic mechanism. It covers all levels of this mechanism - from the household to the state;
The state apparatus manages economic activity with the help of predominantly administrative methods. These methods are not associated with the creation of additional material incentives and are based on the strength of state power. Administrative means of regulation undermine the material interest in efficient production.
The economic system of pure capitalism (capitalism free competition) formed in the 18th century. and ceased to exist in most countries at the end of the 19th century. It is believed that this economic system contributes to the efficient use of resources, the stability of production and employment, and economic growth. The main features of pure capitalism:
Private ownership of the means of production. It is dominant in the ownership structure. Material resources are the property of individuals and private institutions:
Market mechanism of economic management. The main coordinating mechanism of the capitalist economy is the market, or market pricing system. The system of markets and prices plays the role of the main organizing force. Through the market mechanism, society decides how to allocate its resources and the products made from them;
Personal interest as a stimulus for economic development. Each economic unit strives to do what is more profitable for itself. Entrepreneurs aim to maximize the profits of their firms. Owners of economic resources, for the sake of personal interest, seek to obtain the highest possible prices when they are sold. Consumers, when buying goods or services, tend to get them at the lowest price:
Freedom of enterprise and freedom of choice. The owners of material resources and money capital, both producers and consumers, can use these resources at their own discretion. There are no forbidden industries and applications;
The presence of many independently acting buyers and sellers of each product and service. Individual producers or consumers have no power over the market, since economic power is widely dispersed;
limited role of the state. It is believed that the capitalist economy is a self-regulating system, so there is no need for government intervention in the functioning of such an economy. The role of the state is limited to the protection of private property and the establishment of a legal structure that facilitates the functioning of free markets.
The modern economic systems of most countries represent a wide variety of mixed forms. We can talk about a mixed economy in the case of the connection and interweaving of various forms of economy. mixed economy involves the interaction of the market and state regulation. In some countries, in a mixed economy, certain features of the traditional economy are preserved. The economic systems of almost all states today are mixed, although some tend to be more administrative-command, while others are more market-oriented. Different countries are developing different models of a mixed economy. The formation of a certain model of a mixed economy is determined by a number of factors: the mentality of the nation, the course of historical development, geopolitical position, the level of development and the nature of the material and technical base, etc. Let's consider some models of a mixed economy.
Main features American model mixed economy:
Low state ownership and little direct government intervention in the production process. Today, the US government budget receives about 19% of the national product;
All-round encouragement of entrepreneurial activity. The main principles of economic policy are to support the freedom of economic activity, encourage entrepreneurial activity, protect competition, limit monopolies;
High level of social differentiation. American social classes are markedly different. The task of social equality is not set at all. An acceptable standard of living is being created for the low-income strata of the population.
Main features European model mixed economy:
The active influence of the state on the functioning of the national market economy. Today, the state budget of the countries of the European Community receives from 29% (Spain) to 44% (Belgium) of the national product;
Protection of competition, encouragement of small and medium-sized businesses;
Strong social security system. In Western Europe, the social orientation of socio-economic systems is the highest in the modern world. The share of all spending on social needs in federal budget expenditures in most Western European countries is 60% or more, and in France and Austria - even 73% and 78%, respectively. For comparison, these costs amount to 55% in the USA.
Peculiarities Japanese model mixed economy:
Coordination between the government and the private sector. Clear and effective interaction of labor, capital and the state (trade unions, industrialists and financiers, government) in the interests of achieving national goals;
The special role of the state in the economy. Japan is a country with a strong state policy, carried out without the direct participation of the state in economic activity. Today, the state budget of Japan receives only 17% of the national product;
Particular emphasis on the role of the human factor. The share of all social spending in Japan is 45%. The low level of unemployment in the country is explained by the traditions of social partnership, well-established on-the-job training, and the widespread use of temporary contracts (or part-time work). The achievement of the Japanese economy is to reduce the proportion of the poor. If in the US and EU countries this figure reaches about 15% of the total population, then in Japan it fluctuates around 1%.
The Russian economy is at a complex and controversial stage of development, designated as a transitional one - from an administrative-command system to a mixed one. Russian model A mixed economy is just being formed, and in the future it is expected that it will combine national features and all the most promising of other models. The Russian model of a mixed economy should be based on:
On the variety of forms of ownership. A feature of the Russian mentality, on the one hand, is the craving for individualism, which has developed under the influence of Europe. On the other hand, sobornost, collectivism, state thinking. Historically, the Russian state has played a significant role in the life of society. The peculiarities of the Russian ethnic group should also be taken into account. According to the majority of specialists in Russia, a public-private economic system is needed, in which state property should occupy approximately the same share as private property;
Variety of forms of entrepreneurial activity. The variety of forms of ownership implies a variety of forms of entrepreneurial activity. And for Russia, the combination of private and state entrepreneurship is especially important;
Mixed economic mechanism for regulating the economy. At the first stages of economic reforms, the reformers believed that when building a market economy, a prerequisite is to reduce the role of the state in the socio-economic life of society. The consequence of this was the deepening of the economic crisis, the disorganization of reproduction processes, and the undermining of Russia's economic security. Today it can be argued that the withdrawal of the Russian economy from the systemic crisis and ensuring sustainable economic growth is impossible without the active role of the state in regulating reproduction processes;
Variety of forms of distribution of the national product.
The distribution system should be based on two fundamentally different, but in many respects similar distribution mechanisms. One of them is based on market methods, the second - on the principle of distribution according to work. The distribution mechanism is also a system of social protection that guarantees equal starting opportunities and the stability of a person's position. In other words, the distribution mechanism must combine distribution according to labor, property, and through public consumption funds.
An economic system is a set of interrelated elements that form a common economic structure. It is customary to distinguish 4 types of economic structures: traditional economy, command economy, market economy and mixed economy.
Traditional economy
Traditional economy based on natural production. As a rule, it has a strong agricultural bias. The traditional economy is characterized by clan system, legalized division into estates, castes, closeness from the outside world. Traditions and unspoken laws are strong in the traditional economy. The development of the individual in the traditional economy is severely limited, and the transition from one social group to another, which is higher in the social pyramid, is practically impossible. The traditional economy often uses barter instead of money.
The development of technology in such a society is very slow. Now there are practically no countries left that could be classified as countries with a traditional economy. Although in some countries it is possible to single out isolated communities leading a traditional way of life, for example, tribes in Africa, leading a way of life that differs little from that of their distant ancestors. Nevertheless, in any modern society, the remnants of the traditions of the ancestors are still preserved. For example, this may refer to the celebration of religious holidays such as Christmas. In addition, there is still a division of professions into male and female. All of these customs affect the economy in one way or another: think of the Christmas sales and the resulting surge in demand.
command economy
command economy. A command or planned economy is characterized by the fact that it centrally decides what, how, for whom and when to produce. Demand for goods and services is established on the basis of statistical data and plans of the country's leadership. A command economy is characterized by a high concentration of production and monopoly. Private ownership of factors of production is practically excluded or there are significant barriers to the development of private business.
A crisis of overproduction in a planned economy is unlikely. The shortage of quality goods and services becomes more likely. Indeed, why build two stores side by side when you can get by with one, or why develop more advanced equipment when you can produce low-quality equipment - there is still no alternative. Of the positive aspects of the planned economy, it is worth highlighting the saving of resources, primarily human resources. In addition, a planned economy is characterized by a quick reaction to unexpected threats - both economic and military (remember how quickly the Soviet Union was able to quickly evacuate its factories to the east of the country, it is unlikely that this could be repeated in a market economy).
Market economy
Market economy. The market economic system, unlike the command one, is based on the predominance of private property and free pricing based on supply and demand. The state does not play a significant role in the economy, its role is limited to regulating the situation in the economy through laws. The state only ensures that these laws are observed, and any distortions in the economy are quickly corrected by the "invisible hand of the market."
For a long time, economists considered government intervention in the economy harmful and argued that the market could regulate itself without external intervention. however, the Great Depression disproved this claim. The fact is that it would be possible to get out of the crisis only if there was a demand for goods and services. And since no group of economic entities could generate this demand, demand could only come from the state. That is why, during crises, states begin to re-equip their armies - in this way they form the primary demand, which revives the entire economy and allows it to get out of the vicious circle.
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mixed economy
mixed economy. Now there are practically no countries left with only market or command or traditional economies. Any modern economy has elements of both market and planned economy and, of course, in every country there are remnants of the traditional economy.
In the most important industries there are elements of a planned economy, for example, the production of nuclear weapons - who would entrust the production of such a terrible weapon to a private company? The consumer sector is almost entirely owned by private companies, because they are better able to determine the demand for their products, as well as to see new trends in time. But some goods can only be produced in a traditional economy - folk costumes, some foodstuffs, and so on, so elements of the traditional economy are also preserved.
Every adult must be fully developed in order to be able to fully assess the state of the country. Still, it is quite difficult to be able to evaluate the actions of the government or understand the ideology without having an idea of \u200b\u200bthe economic component. We propose to start small - let's talk about the main types of economic systems, their differences among themselves, their characteristic features and examples of implementation in the past or now.
What is an economic system
An economic system is understood as a set of certain economic elements that together form a certain integrity, are the economic structure of society, create a unity of relations that affects the production, distribution, and exchange of other goods and their use. There are the following main types of economic systems:
- Traditional.
- Market.
- Command and administrative.
- Mixed.
So, when it is clear what an economic system is, we begin to give the main classifications of types of economic systems and their features.
The traditional economic system is the first form of organization of economic relations that appeared among mankind. Mainly characterized and based on social work. It is based on the collective ownership of the means of work, as well as the places where the work takes place: collective cultivation of the field, harvesting and distribution, collective hunting, etc.
It can also be characterized by conservatism, the predominance of manual labor, the transfer of information about the production of certain goods from generation to generation. The traditional economic system operated without changes until the High Middle Ages, when the first manufactories appeared. In our time, it can only be found among people who still live by tradition in the depths of unexplored lands: in the north of the Russian Federation, where people are still engaged in reindeer herding without raising the question of profit, or in the jungles and savannas of Asia and Africa.
Market economic system
The market economic system is based on freedom of production, freedom of consumption and free market relations. Such a market system provides for the removal of any restrictions on the production and distribution of goods on the ground. The states of the planet were closest to the market system in the 19th and early 20th centuries, but after the crisis of 1929 there are no economic systems in the world that would be full-fledged market ones.
Administrative-command economic system
This economic system provides for a plan, the implementation of which is tightly controlled. Contractors are constantly receiving instructions regarding production parameters, from whom to buy, to whom to sell. Often the controlling and managing bodies are less competent than the managers of the enterprise, which leads to undesirable consequences from their intervention. Produced, ready-to-eat products are also distributed by higher authorities. An example of such an economic system is the Soviet Union under Brezhnev and Khrushchev. This type of management is used in our time in large American corporations, as well as transnational corporations.
Mixed economic system
The most popular economic system, which combines elements of both market and command-administrative systems. The main types of economic systems are precisely various modifications of mixed ones. This allows you to avoid negative aspects or significantly reduce their impact on the economic condition of the state. In one way or another, it operates in all states of the world. Relying on market mechanisms makes it possible to ensure a more or less stable development of the economy, while state mechanisms of influence help to survive crises, which are indispensable elements of a market economy. It is because of this universality that the main types of socio-economic systems are mixed. Each mixed system is distinguished by its own characteristics, the proportions of borrowings from the market and command-administrative systems, as well as its own special, unique touches.
planned economic system
The planned economic system as a potential system of the future deserves separate and more detailed attention. As a small digression, we can say that plans as a component of the economy are used in France, Japan and were used in the Soviet Union under Stalin (which ensured, despite the Second World War, economic growth by 20.5 times).
A feature of this economic system is that a certain plan is set before the performer, which is desirable (very desirable) to be fulfilled. Certain resources are allocated, which are transferred to the performer, and it is believed that he is quite competent, so that with his mind and himself (if necessary, with a little help) he could achieve the target. At the same time, it is necessary that the planned indicator is not just invented, but economically justified. Also, the resources that are allocated for the implementation of the plan must be economically justified.
Judging by the implementation of the planned economy by the three countries mentioned above (USSR, France and Japan), it should be noted that there are very strong differences within their mechanisms. So, for the USSR of the Stalin era, the main stake was placed on heavy industry and the public sector, which complemented the private cooperative sector, creating an economic symbiosis. Japan is characterized by economic planning both at the state level and at the corporate level, interaction between the public and private sectors on parity terms. In France, a planned economy is expressed by the creation of 5 plans for the development of the country and the allocation of a certain amount of money to help state enterprises and orders for the private sector. This information may seem strange to some both in its content and presentation, but we believe that the characterization of the main types of economic systems without this information would be incomplete and could give readers misconceptions about the organization of the economy and relations within it.
Conclusion
Mankind is gradually developing, improving its economic system, and the main types of economic systems replace each other. It can be said with confidence that the economies of the states of the world will have time to radically change more than once. We can only hope that it will be painless and for the better. And after reading this article, the concept and main types of economic systems have become closer to you.
