Signs of a market and mixed economy. Command and traditional economics. Economic system and types of economic systems
Economic systems- is a set of interrelated economic elements that form a certain integrity, the economic structure of society; the unity of the relations that develop about the production, distribution, exchange and consumption of economic goods.
These relationships can be carried out in different ways, and it is these differences that distinguish one economic system from another.
The use of resources to meet needs is subordinated to the economic goals that they pursue in their economic activities.
The economic consumer's goal is to maximize the satisfaction of all.
The economic the purpose of the firm is maximization or minimization.
The main economic goals modern society are:, increased production efficiency, complete and socio-economic stability.
Modern economic systems
In the capitalist system, material resources belong to individuals. The right to enter into binding legal contracts allows individuals to dispose of their material resources at their own discretion.
The manufacturer seeks to produce ( WHAT?) those products that satisfy and bring him the greatest profit. The consumer decides for himself what product to buy and how much money to pay for it.
Since in conditions of free competition the setting of prices does not depend on the manufacturer, then the question " AS?"to produce, the economic subject of the economy is responsible for the desire to produce products with lower than its competitor, in order to sell more due to more low prices... The solution of this problem is facilitated by the use of technical progress and various management methods.
Question " FOR WHOM?"is decided in favor of the consumers with the highest income.
In such an economic system, the government does not interfere with the economy. Its role is reduced to protection private property, establishing laws to facilitate the functioning of free markets.
Command economic system
The command or centralized economy is the opposite. It is based on state ownership of all material resources. From here all economic decisions are made government bodies through centralized (directive planning).
For every enterprise production plan stipulates what and in what volume to produce, certain resources are allocated, thereby the state decides how to produce, not only suppliers, but also buyers are indicated, that is, the question is decided for whom to produce.
The means of production are allocated between sectors on the basis of long-term priorities determined by the planning authority.
Mixed economic system
Today, one cannot speak of the presence in a particular state in its pure form of one of the three models. Most modern developed countries have mixed economy combining elements of all three types.
A mixed economy involves the use of the regulatory role of the state and the economic freedom of producers. Entrepreneurs and workers move from industry to industry by own decision rather than government directives. The state, in turn, implements social, fiscal (tax) and other types economic policy, which to one degree or another contributes to economic growth country and raising the living standards of the population.
The essence and types of the economic system
Definition 1
The economic system is an ordered system of socio-economic and organizational ties between producers and consumers of goods (services).
Economic systems differ from each other:
- The system of socio-economic relations;
- Organizational and legal forms of management;
- Economic mechanism;
- A system of incentives and motivation for participants;
- Economic ties of enterprises and organizations.
The most common is separation economic systems on:
- Traditional,
- Command,
- Market,
- Mixed.
Signs of a traditional economic system
Definition 2
Traditional economy is an economic system that does not use achievements scientific and technological progress because there is a conflict with tradition.
The traditional system is characterized by:
- backward technologies,
- widespread manual labor,
- diversified economy.
Remark 1
Economic problems of a given society are resolved through customs and traditions.
The main features of the traditional economy are:
- private ownership of the means of production, personal labor of owners;
- extremely primitive technology related to the primary processing of natural resources;
- community farming, natural exchange;
- the predominance of manual labor.
The states that operate within the framework of the traditional economy are characterized by a multi-structure, which is the presence of various forms of management, which are based on various forms of ownership:
- Communal form of ownership (natural-communal economy),
- Small private property (peasant and handicraft small commodity production).
Command economy: essence and main features
Definition 3
The command economy is an economic system in which material resources mainly belong to the state, with all economic activity directed and coordinated through centralized management, planning and control.
When the command (planned) economy functions, the main economic decisions in the form of a plan for socio-economic development are made by a centralized body.
Remark 2
The balance of the economy in this system is achieved through the execution of plans.
The command planned economy existed as a rigid model. This pattern was typical for the former Soviet Union, as well as for many states in Asia and Eastern Europe.
This type of economic system is based on state ownership of all types economic resources, while the system of private property is almost completely excluded.
All areas of the economy are subject to planning, while the execution of plans is mandatory for all subjects economic activity... When the command economy functions, all enterprises from a single center... For this reason, direct producers cannot make economic decisions themselves; they lose the opportunity to independently choose suppliers of raw materials (equipment), and to sell products.
In turn, society as a consumer is limited in the choice of offered products.
The results of the functioning of this system:
- Lack of competition,
- Decrease in the growth of product quality,
- Decline in labor productivity,
- Slowing down the introduction of innovations.
The domination of command methods in the states of the former socialist republics leads to an established shortage of goods and services. According to the Hungarian economist J. Kornai, this economy is called deficit economies.
Every adult must be comprehensively developed in order to be able to fully assess the state of the country. Still, it is quite difficult to be able to assess the actions of the government or to understand the ideology without having an idea of the economic component. We propose to start small - let's talk about the main types of economic systems, their differences among themselves, characteristic features and examples of implementation in the past or now.
What is an economic system
An economic system means a set of certain economic elements, which together form a certain integrity, are the economic structure of society, create a unity of relations, which affects production, distribution, as well as exchange for other goods and their use. There are such main types of economic systems:
- Traditional.
- Market.
- Command and control.
- 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 in humanity. Mainly characterized and based on community service. 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 transmission of information about the production of certain goods from generation to generation. The traditional economic system operated unchanged until the high Middle Ages, when the first manufactories appeared. Nowadays, it can only be found in people who still live according to traditions in the depths of unexplored lands: in the north Russian Federation, where people are still engaged in reindeer herding, without raising the question of benefits, or in the jungles and savannahs 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 market system provides for the removal of any restrictions on the production and distribution of goods on earth. The states of the planet stood 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 and command economic system
This economic system provides for a plan, the implementation of which is tightly controlled. Performers constantly receive 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. Manufactured ready-to-eat products are also distributed by higher authorities. An example of such an economic system is Soviet Union times of 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 the various modifications of the mixed ones. This allows you to avoid negative aspects or significantly reduce their impact on the economic state of the state. In one way or another, it operates in all states of the world. Relying on market mechanisms allows for more or less stable development of the economy, while government mechanisms influences help to survive the crisis moments, 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, 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 special 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 during the Stalin era (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 put in front of the executor, 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, then with a little help) he could reach the target. In this case, it is necessary that target indicator was 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 above-mentioned countries (USSR, France and Japan), it should be noted that there are very strong differences within their mechanisms. So, for the USSR during Stalin's time, the main stake was placed on heavy industry and the public sector, which supplemented 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. France has a planned economy expressed by the creation of 5 plans for the development of the country and the allocation of a certain amount of money for aid state enterprises and for orders to the private sector. This information may seem strange to someone both in its content and in its presentation, but we believe that the characteristics of the main types of economic systems without this information would be incomplete and could create incorrect ideas among readers about the organization of the economy and connections within it.
Conclusion
Humanity is gradually developing, improving its economic system, and the main types of economic systems replace each other. It is safe to say that the economies of the countries 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 became closer to you.
What is an economic system?
Economic system - 1) a method of organizing the economic activity of a society, in accordance with which the problem of distribution of limited resources is solved;
2) 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 economic product;
3) organization economic life.
Types of economic systems.
The type of economic system is characterized by: 1) forms of ownership; 2) ways of allocating limited resources; 3) ways of regulating the economy.
Classification No. 1: 1) traditional; 2) command (centralized); 3) market; 4) mixed.
1) Traditional economic system- a way of organizing economic life, in which land and capital are in the common possession of the tribe, and limited resources are distributed in accordance with long-standing traditions.
The questions of what goods and services for whom and how to produce are decided on the basis of traditions passed down from generation to generation.
Advantages: 1) stability of society; 2) a sufficiently high quality of the goods produced.
Disadvantages: 1) lack of technical progress; 2) poor adaptability to changes in external conditions; 3) the limited number of goods produced.
2) Command (centralized, directive, planned) economic system- a way of organizing economic life, in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with plans.
Advantages: 1) the ability to concentrate all the forces and means of society to solve any problem (mobilization opportunities); 2) guarantees people the necessary minimum of life benefits, providing confidence in the future; 3) avoids unemployment, although universal employment is achieved, as a rule, by artificially curbing the growth of labor productivity.
Disadvantages: 1) the impossibility of accurately planning all the needs of society and accordingly allocating resources, which leads to an overproduction of some goods and a shortage of others; 2) lack of incentive to produce quality goods; 3) lack of economic freedom among citizens.
3) Market economic system- a way of organizing economic life in which capital and land are owned by individuals, and limited resources are allocated through markets.
A market economy is an economy dominated by a private form of ownership, economic activity is carried out by economic entities at their own expense, all major decisions are made by them at their own peril and risk.
The fundamentals of the market system: 1) the right to private property; 2) economic freedom; 3) competition.
Private property is the publicly recognized right of individual citizens and their associations to own, use and dispose of a certain volume (part) of any types of economic resources.
Advantages: 1) flexibility, ability to adapt to changed conditions; 2) the presence of incentives for technical progress; 3) rational (???) use of resources.
Disadvantages: 1) inability to ensure equality of income, a consistently high standard of living; 2) weak interest in fundamental scientific research; 3) instability of development (crises, inflation); 4) ineffective use of irreplaceable resources; 5) lack of full employment and price stability.
Each economic system answers three questions differently: 1) what to produce ?; 2) how to produce?; 3) for whom to produce?
What to produce? 1) traditional: products of agriculture, hunting, fishing, few products and services are produced, and what to produce is determined by customs and traditions; 2) centralized: determined by groups of professionals: engineers, economists, industry representatives - "planners"; 3) market: consumers themselves determine, producers produce what can be bought.
How to produce? 1) traditional: they are produced in the same way as the ancestors produced; 2) centralized: determined by the plan; 3) market: determined by the producers themselves.
For whom to produce? 1) traditional: most people exist on the brink of survival, the additional product goes to the leaders or landowners, the rest is distributed according to customs; 2) centralized: "planners" directed political leaders, determine who and how much will receive goods and services; 3) market: consumers get as much as they want, producers profit.
4) In many countries there is mixed economy, which combines the features of market and command economic systems, economic freedom of producers and the regulatory role of the state.
A mixed economy is a way of organizing economic life in which land and capital are privately owned, and the distribution of limited resources is carried out both by markets and with significant government participation.
Classification No. 2: 1) market; 2) non-market (traditional and centralized); 3) mixed.
Classification No. 3: 1) commodity economy ( centralized system, market system, mixed system); 2) subsistence farming.
Natural economy- 1) an economy in which people produce products only to satisfy their own needs, without resorting to exchange, to the market; 2) a farm that satisfies its needs at the expense of own production.
Commodity economy- 1) an economy in which products are produced for sale, and the connection between producers and consumers is carried out through the market; 2) a farm in which production is market-oriented.
The term "property"
used in three ways:
1. As a synonym for the word "thing" (everyday, everyday meaning).
2. Legal ownership includes three powers (powers), which can only be owned by the owner: 1) ownership (actual possession of this property, legally secured); 2) use (the process of extracting useful properties from a given property); 3) disposition (determining the further fate of this property = sale, donation, exchange, inheritance, lease or pledge, etc.).
Rent (from Lat. Arrendare - to lease) - 1) provision of property (land) by its owner for temporary use to other persons on contractual terms, for a fee; 2) the right to use without having the right to dispose.
Trust (from the English trust - trust) - 1) the right of the owner to transfer the right to manage his property to another person, without the right to interfere in his actions; 2) the institution of trust, associated with the transfer of property and its property rights the founder of the trust (beneficiary) for a certain period of time to the trustee.
Property as an economic category - 1) relations between people in the process of production, distribution, exchange and consumption regarding the appropriation of production resources, factors of production of material goods; 2) belonging of things, material and spiritual values certain persons, legal law for such an affiliation and economic relations between people about ownership, division, redistribution of property objects.
Owners: 1 person; 2) family; 3) labor collective; 4) social group; 5) the population of the territory; 6) governing bodies of all levels; 7) the people of the country.
Property objects: factors of production and finished products: 1) land, land, land; 2) money, currency, securities; 3) material and property values; 4) natural resources; 5) jewelry; 6) buildings for social and cultural purposes; 7) basic production assets; 8) labor force; 9) spiritual, intellectual and information resources.
Functional characteristics of the property: 1) ownership, 2) management, 3) control.
Which of these characteristics is the main one?
1. Karl Marx prioritized ownership.
2. In the XX century. property management is becoming increasingly important.
Technocracy (Greek ?????, "skill" + Greek. ??????, "power") is a socio-political structure in which society is regulated by competent scientists and engineers based on the principles of scientific and technical rationality.
Technocratic ideas were expressed by A. A. Bogdanov, who introduced the term "technical intelligentsia" into circulation (in 1909 in the article "Philosophy of a Modern Natural Scientist"), while the term "technocracy" itself is Americanism that appeared in the 1920s. Initially, the idea of technocracy as the power of engineers was described by Thorstein Veblen, in the social utopia "Engineers and the Price System" (1921). Veblen's ideas were developed by James Burnham in The Managerial Revolution (1941) and John Kenneth Galbraith in The New Industrial Society (1967).
Thanks to the scientific and technological revolution, knowledge becomes the basis of power, subjugating both power and wealth. The very appearance of power is also changing - giving up direct and brutal domination, it takes on milder forms of influence and domination. Now the level of knowledge, rather than the presence or absence of private property, is becoming the main source of social differences. In the information age, power is transferred from those who give orders to those who shape the consciousness of people, lays in it certain stereotypes, images, and behavioral models.
The creators of meanings are the creative layer of the information society, the "creative class" that forms stereotypes of behavior, patterns of perception and actions of the media and through them influences the worldview and behavior of broad strata of citizens. Real power is increasingly disappearing into the shadows, to various non-governmental influence groups, often international or simply foreign. The official government only formalizes and implements the policy developed by these circles. Hard power, based on violence, gave way to "soft power" based on the persuasion of people, ideological work, and subtle manipulation of public consciousness.
“Soft power” is a new historical type of power based not on direct violence or economic enslavement, but on persuasion and information manipulation. "Soft power" is turning into the main instrument of power in the information age, when the previous methods of domination lose their effectiveness and there is a need for a hidden and unobtrusive subordination of people to other people's interests.
Material basis“Soft power” forms the triumvirate “1) creators of meanings - 2) non-governmental organizations - 3) mass media”.
How do the different types of property differ?
Those who own the means of production, how and by whom the income from the use of property is distributed, who is a participant in economic activity.
Classification No. 1: 1) general (primitive communal, family, state, collective); 2) private (labor = family, farming, individual labor activity; non-labor = slaveholding, feudal, bourgeois-individual); 3) mixed (joint-stock, cooperative, joint).
1) Historically, the first type of property was common property, in which all people were united in collectives and all means of production and goods produced belonged to all members of society.
2) The second in time of origin was private property, in which individuals treated the means of production as belonging to them personally only. Private property is a form of legal assignment to a person of the rights to own, use and dispose of any property, which he can use not only to meet personal needs, but also to conduct commercial activities. Private property was dominant in the economy until the 20th century. Opponents of private property pointed out that it is a source of exploitation of man by man, contributes to the separation of people, the development of such qualities as selfishness, individualism and greed, generates inequality between people. The proponents of private property argued that the sense of private property is the natural feeling of man, which expresses his nature. In their opinion, it is private property that gives an individual the opportunity not to depend on the state, being a guarantee of human rights.
3) In the XIX century. the main figure of the owner was the capitalist - the entrepreneur. In the XX century. various types of mixed (collective-private, group, corporate) property have been developed, in which the characteristics of the first two types are combined. A typical form of such ownership is joint-stock company(corporation).
Corporation (Latin corporatio - association, community) is a form of organization of an enterprise, where the right to property is divided into parts according to shares, and therefore the owners of corporations are called shareholders.
Unlike the individual owner and the members of the partnership, the most a shareholder can lose is the amount paid to them for the shares. Shareholders can enter and leave the corporation simply by buying them. The capital of such a company is formed as a result of the sale of securities - shares, which are evidence that their owner has made a contribution - a share - to the capital of the corporation and has the right to receive a dividend. Dividend is a part of the profit that is paid to the owner of the shares (as a rule, in proportion to the amount of the share contributed by him).
Classification No. 2: 1) private (personal, individual); 2) state; 3) collective, joint.
Individual private property is widespread ( Agriculture, craft, trade, service sector).
Signs of an individual private enterprise: 1) ownership of the means of production used; 2) the use of personal labor of the manufacturer, his family, employees; 3) the right to single-handedly dispose of income from economic activities; 4) the right of economic independence in resolving economic issues.
In the economy of the late XX century. the importance of state property is great (from 15 to 20%). Usually, the state concentrates in its hands enterprises and industries of strategic importance ( railways, communications enterprises, nuclear and hydroelectric power plants).
Preserved and such forms of ownership as cooperative and collective ownership. Under cooperative ownership, a group of people united for the joint use of some property (own or rented) manages this property. In a collective enterprise, the owner is the collective of this enterprise, which takes part in the management of the production process.
Municipal ownership is a form of ownership in which property is at the disposal, maintained local authorities authorities.
Forms of ownership in Russia.
According to the Constitution of the Russian Federation, in Russia 1) private, 2) state, 3) municipal and other forms of ownership are recognized and protected in the same way. The list of forms of ownership specified in the Constitution and in the Civil Code (Civil Code) of the Russian Federation is not exhaustive, since it is accompanied by a clause, by virtue of which other forms of ownership are recognized in the Russian Federation.
Privatization(lat. privatus - private) - 1) transfer of state property to individual citizens or those created by them legal entities; 2) the process of denationalization of ownership of the means of production, property, housing, land, Natural resources... It is carried out through the sale or gratuitous transfer of objects of state and municipal property into the hands of collectives and individuals with the formation on this basis of corporate, joint-stock, private property.
Nationalization(lat. natio - people) - transfer of private property into the hands of the state.
Market and capitalism.
Version # 1. Capitalism = market system.
Capitalism is a type of society based on private property and a market economy.
In various currents of social thought, it is defined as a system of free enterprise, a stage of development industrial society, and the modern stage of capitalism - as a "mixed economy", " postindustrial society"," Information society ", etc .; in Marxism, capitalism is a social economic form tion based on private ownership of the means of production and capital exploitation of hired labor.
Version number 2. Capitalism? market system.
Capitalism is not just a method of efficient economic activity that naturally arises in the bosom of a market economy. Capitalism is an intellectual, psychological and social breakthrough, inaccessible to a pagan, a person of traditional culture.
Capitalism is distinguished from the market not so much by the object of activity as by its mode, scale, and goals. Fernand Braudel, describing this difficult phenomenon, called it "anti-market", since there is clearly another activity, unequal exchanges, in which competition, which is the basic law of the so-called market economy, does not take its rightful place.
Fernand Braudel (1902 - 1985) is an eminent French historian. He laid the foundations for a world-systems approach.
The most famous work of Braudel is considered his three-volume "Material civilization, economics and capitalism, XV-XVIII centuries." (1979). This book shows how the economies of European (and not only) countries functioned in the pre-industrial period. The development of trade and money turnover, much attention is also paid to the influence of the geographic environment on social processes.
Arnold Toynbee:
"I believe that in all countries where the maximum private profit acts as a motive for production, the private enterprise (market) system ceases to function."
What is capitalism?
Capitalism is a holistic ideology, design and scenario of a specific world order, the essence of which is not production itself or trade operations, but systemic operations aimed at controlling the market and aiming at deriving systemic profits (stable superprofits).
Certain features of the mafia's activities can serve as a rough, not too precise and even completely unsightly analogue, and in the "classical" sense of the concept, that is. not as a crime, but as a specific system for governing the world, control over it, and collecting tribute.
Capitalism gains universal power not through administrative, national structures but mainly through international economic mechanisms. Such power by its nature is not limited to the state border and extends far beyond its borders.
George Soros. The crisis of world capitalism. Open society in danger:
“The analogy with the empire in this case is justified, because the system of world capitalism governs those who belong to it, and it is not easy to get out of it. Moreover, it has a center and a periphery like a real empire, and the center benefits from the periphery. More importantly, the system of world capitalism exhibits imperialist tendencies ... It cannot be calm as long as there are any markets or resources that are not yet involved in its orbit. In this respect, it is not much different from the empire of Alexander the Great or Attila Hun, and its expansionist tendencies may become the beginning of its downfall. "
The nutrient medium of capitalism, its magnetic field, and lines of force have historically formed in the neural interweaving of financial schemes and the trophy economy of the Crusades, mainly in the coastal areas of Europe (with the exception of the "land port" of the fairs in Champagne). His ancestral nests are, first of all, the city-states and regions of Italy: Venice, Genoa, Florence, Lombardy, Tuscany, as well as the coast of the North Sea: the cities of the Hanseatic League, Antwerp, later - Amsterdam.
The spiritual source of capitalism was, apparently, multi-confessional, but fairly uniform in their essence - and free from the specific restrictions imposed by the Christian worldview and culture - heresies. During this period, sects and heresies are actively spreading in Europe: the baton is passed from the Paulicians and Bogomils to the Pataren and Albigensians. They are also the Templars who were actively involved in financial activities, the very system of organization of which is an impressive prototype of the future TNB and TNC.
A special role the Waldensians played in the emergence of capitalism. During the years of persecution that followed the Albigensian wars, the Waldensians split up, and the radical part, who refused to repentance, moved to German-speaking countries, the Netherlands, Bohemia, Piedmont, the Western and Southern Alps, where, according to some information, communities that had left state Christianity as early as the IV century. There, in remote areas, places of exile, a kind of "European Siberia", in the harsh conditions of the struggle for survival, the spirit of Protestantism is formed, marked by a special attitude to work, personal asceticism, enthusiasm, self-denial, honesty, scrupulousness, corporatism.
Former Waldensians are actively introduced into the wholesale and retail trade, allowing you to move freely and establish multiple connections. Contacts with the Waldensians are attributed to almost all significant figures of pre-Reformation Protestantism, from John Wycliffe to Jan Huss. Expelled from the legal world, forced to live in masks, communicate in an indirect way, the sectarians discovered that precisely because of these circumstances they have serious competitive advantages and are superbly prepared for systemic operations. In other words, they possess the mechanism for the successful implementation of collusion and control over the situation, for the development and implementation of complex, complex projects, the implementation of large (often collective) capital investments, the informal conclusion of trust agreements that require a long-term turnover of funds and active co-presence in different parts of the earth.
On this basis, a new type of attitude is spreading in Western Europe, which is characterized by active fatalism, which considers earthly wealth as a visible proof of vocation, and success as a sign of charisma. In medieval Europe, a completely different logic dominated: when labor was obligatory, the opposition of the necessary - necessitas - to the excess - superbia - with an appropriate moral assessment was emphasized, that is, the desire for profit was assessed as a shame and even the activity of a professional merchant itself was hardly pleasing to God.
The term "economic system" refers to the total amount of elements related to each other. A certain integrity of relations between people is assumed, the basis of which is the production, coordination and use of the benefits of the economy. All of them differ in the ways of distributing the economic labor of people and the type of ownership of resources. V modern world there is a whole list economic concepts... Each of them has both positive and negative sides, as well as its own unique features. Here is a description of the most common of them.
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Description
The very first of all that exists at this stage of human development can be called the traditional scheme. Today, almost all third world countries still use it. Distinctive feature This structure is what exactly and in what quantity the traditional economic system produces. More developed states as well as those on the way active development, have a more complex traditional economy.
The economic concept originated and continues to exist at various stages of the life of the state, is a complex relationship between producers of products and consumers.
There are several main types of systems... The first such form is considered to be generally accepted, which is based on the customs of each individual tribe.
For example, if several generations in a row have been growing wheat, then all the next will do the same. It never occurs to any of the residents that such a state of affairs may be unprofitable and that one can do something else.
Distinctive features
Let's list the features of the traditional economic system. The basic components are the massive prevalence of manual labor, the absence or slow development of technological progress, as well as the presence different types thrift.
States with a widespread small-scale production, the basis of which is private property. The customs and traditions of a country with such an economy slow down technological process... And with a high birth rate, this in all cases leads to poor people. Customs change, but unfortunately very slowly.
Important! It cannot be argued that in underdeveloped countries the traditional economic system prevails, since in some regions of Russia you can find its elements.
Traditional economics
Signs
The main features of the traditional economic system in third world countries:
- inaccessibility of education for some strata of society;
- absence or weak manifestation of progress in the field of science;
- ignoring advanced technologies;
- the predominance of manual labor of the population in the country's economy;
- pressure from religion on the political views of people;
- basing power on the basis of traditional tribal relations and foundations;
- restriction of the rights of the lower strata of society and so on.
The main task is to choose the most profitable way solving a specific problem. At the same time, it is important to achieve full satisfaction of needs. Speaking about the countries in which this economic form is present, one can clearly identify regions such as Africa, especially South, and the states of Asia.
All the pros and cons
Let's list the pros and cons traditional system... For the most part, such a similar form is related to primitive society and is perceived by contemporaries as undeveloped and weak. But in comparison with the market one, it can be argued that the common variety is more stable and has a higher quality of manufactured products.
This is due to the penniless interest of workers in the sale of products of their own production. Based on this, it can be argued that this is a more predictable form than all the others. The people have confidence in the future, therefore there is a high degree of trust in the ruling elite of society.
Despite the listed advantages of the traditional economy, it has many more disadvantages. The main one is considered to be the complete absence of technical progress, which ensures economic relations. The volume of production is at a low stage of development, which is explained by the predominance of manual labor over machine labor. It is also characterized by dependence on climate and other external factors. The disadvantages also include the social insecurity of the population, which often provokes various conflict situations in society.
The problem of inequality in society
In the generally accepted system, there is an authoritarian principle of distribution of production resources between the population. Most of the public goods are allocated to the country's ruling elite. This is the reason for the fact that the standard of living of the majority is at a low level. Most often, people in a country with this form of economy are subject to ideological influence, so they do not have an increased interest in all kinds of excesses and entrepreneurial activity. There are practically no factors that could influence any changes in the economy under the generally accepted system.
Important! It is in the traditional economy that the authorities impose a conservative ideology on the population, so that the role of the state in it can be called the leading one.
Any external actors do not have much interest in changes in the economic model in a state with a customary generally accepted system. This is explained by the fact that no one wants new competitors on the world market and everyone is highly interested in preserving the old structure.
Views
What other features of the traditional economic system should be highlighted additionally: it consists of a set common structures, which are divided into four main types.
Let's list the main types:
- traditional economy;
- market;
- team;
Important! The traditional economic system is considered the progenitor of all others.
V command economy all production issues are resolved centrally. Private property in countries with a command form of government is partially or completely absent. One of the advantages of such an economy is the low probability of an overproduction crisis. But along with this, there is a high probability of a shortage of production products.
Types of economic systems
The market economic system, in contrast to the command, is characterized by the predominance of private property over centralized production. In such an economy, the state does not play the main role, but only regulates it with the help of laws. The mixed economy in the modern world is the most common. The reason for this is the presence of elements of all of the above economic structures, which gives it a visible advantage.
Traditional economics
Types of economic systems Traditional
Output
Summing up, we can say that the traditional economic system is not the most perfect form of economy that exists in the modern world. But along with this, its features are present in all known forms of economics. Now the more developed ones have replaced the traditional.
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