Planned market traditional economy. Types of economic systems. What is an economic system, its main types
Economic systems are the means by which countries and governments allocate resources and exchange goods and services.
They are used to control five factors of production, which include: labor, capital, entrepreneurship, physical and information resources.
V Everyday life these factors of production include employees, the money the company has at its disposal, and access to entrepreneurs (people who want to run a business or start their own business).
Any physical resources needed to run a business, as well as data and information, are also factors of production. Different economies consider the use of these factors in different ways.
Types of economic systems
There are four different kinds economic systems: traditional economy, command economy, market economy and mixed economy. Each type of economy has its own strengths and weaknesses.
Traditional economic system
It is the most traditional and oldest type of economy in the world. A huge part of the world still functions within this economic system. These areas are typically rural third world countries and are closely linked to land, usually through agriculture.
Pros and cons of the traditional economic system
In general, in an economy of this type, economic surplus would be rare (they consume all or almost all of what they produce, and little is saved for the next year).
Each participant in the traditional economy has a very specific and pronounced role, and these societies are usually very close and socially satisfied. However, they lack access to technology and advanced medicine.
Command (centralized) economic system
In a command economic system, much of the economic system is controlled by centralized power. For example, in the USSR, most decisions were made by the central government. This type of economy was the foundation of communist philosophy.
Because government is such a central element of the economy, it is often involved in everything from planning to reallocating resources. The command economy is able to create a good supply of its resources, and it rewards its people with affordable prices.
The government usually owns all significant industries such as public Utilities, aviation and railway.
In a command economy, it is theoretically possible for the government to create enough jobs and provide goods and services at affordable prices. In reality, however, most countries with this economic system focus on the most valuable resources, such as oil.
North Korea and China are examples of command economies.
Pros and cons of a command (centralized) economic system
The main advantages of a command economic system are that, if properly enforced, the government can mobilize resources on a massive scale. And this mobilization can provide jobs for almost all citizens.
The government can focus on the good of the community rather than the individual. And this focus can lead to more efficient use of resources.
One of the drawbacks of the command economic system is the fact that it is difficult for central planners to meet the needs of each member of society. This forces the government to ration output because it cannot calculate demand due to the fact that it sets prices.
Another disadvantage of this economy is the lack of innovation, since there is no need for risk. Employees are also forced to have a profession that the government sees fit.
Market economic system
In a market economy, firms and families act in their own interests and determine how resources are allocated, what goods are produced, and who buys those goods. This logic is the opposite of how a command economy works, where the central government makes a profit.
There is no government intervention in a market economic system. However, there is no truly free market economy in the world.
For example, although America is a capitalist country, its government still regulates (or tries to control) fair trade, government programs, fair business, monopolies, etc. In this type of economy, there is a separation of government and market.
This division prevents the government from becoming too powerful and maintains its interests in line with the interests of the markets.
Hong Kong is seen as an example of a market economy.
Pros and cons of a market economic system
The main advantage of a market economy is that consumers pay the highest price they want and businesses only produce lucrative goods and services.
There are also many incentives for entrepreneurship. This leads to the most efficient use of the means of production, since the enterprises are very competitive.
Businesses are investing heavily in research and development. There is an incentive for continuous innovation as companies compete to provide consumers with the best products.
Because of the fierce competition in the free market, businesses will not be too concerned about the disadvantaged, such as the elderly or the disabled. This leads to greater income inequality.
Since the market is built solely on personal interests, economic needs take precedence over social and human needs, such as, for example, the provision of medical care the poor. Monopolies can also exploit consumers.
Mixed economy
A mixed economy is a combination of different types of economic systems. This economic system is a crossroads between a market economy and a command economy.
There are several types of mixed economies in the world. In the most common types, the market is more or less free of state ownership, with the exception of a few key areas such as transportation or sensitive industries such as defense and railways.
However, the government is also usually involved in the regulation of private enterprise. The idea of a mixed economy was to use the best of both worlds - to combine socialist and capitalist politics.
To some extent, most countries have a mixed economic system. For example, India and France are mixed economies.
Pros and cons of a mixed economic system
One of the first and notable benefits of a mixed economy is less government intervention than a command economy. This means that private businesses can be run more efficiently, leading to cost savings.
The government can intervene to correct any market disruptions. For example, most governments will intervene to shut down large companies if they abuse monopoly power.
Another example would be taxing harmful products, such as cigarettes, to reduce their negative impact on their citizens. Governments can create programs such as social protection health care or social security.
In a mixed economy, governments can use tax policies to redistribute income and reduce inequality.
Sometimes situations can occur in which there is too much government intervention, and sometimes, on the contrary, it is not enough.
A common problem is that state-run enterprises are often subsidized by the government and are heavily indebted because they are not competitive.
Types of economic systems - table
For a more visual understanding of economic systems, you can compare them in the following table:
| Comparison characteristics | Traditional | Command / centralized | Market |
|---|---|---|---|
| Definition | diversified economy, backwardness in technology, extensive use of manual labor | land, capital and almost all economic resources belong to the state | land and capital are privately owned by people |
| Own | mostly community | mainly state | mostly private |
| What is produced | agricultural production, fishing, hunting, etc .; few goods and services are produced; what to produce is decided by traditions that are slowly developing | what to produce is decided by associations of specialists: economists, engineers, representatives of a particular industry | determined by consumers; what they want is produced, what will be sold / bought; Demand creates supply |
| Mode of production | produce as their ancestors did | determined by planning | manufacturers decide |
| For whom goods and services | the overwhelming majority of citizens are on the brink of survival; the surplus product remains for the leaders / chieftains or landowners, the remainder is divided according to custom | professionals who specialize in production plans, with the guidance of leaders, decide who, what and how much goods and services will receive | consumers buy as much as they want (and can pay for it), and producers get their profits |
The economic system of Russia
In principle, most of the countries in the world are considered mixed economies. Thus, one needs to analyze deeper. In Russia on this moment a mixed economic system, and the basis is a market economy, where the state plays an important role in its economic processes.
By the mode of production, Russia is a capitalist economy.
In terms of the level of production development, Russia is following the path of a post-industrial society: high-tech technologies, knowledge and information are actively used, they are turning into one of the most important production resources, high qualifications of employees, a continuous increase in the professionalism of employees, a desire for self-development.
And since Russia conducts active foreign trade with many countries, the economic system is thus open.
Capitalist or socialist society
Gerald Cohen, Lecturer at Oxford University, in Socialism — Why Not? on the simple example how a group of people goes on a picnic in nature, explains how this group would interact if capitalism or socialism dominated within it.
In short: at a picnic of a capitalist group, they would bargain, who did how much and what this service costs, but not in a socialist one.
Julian Cooper, a British researcher, economist and specialist on Russian economic issues, wrote in 2011 an article entitled "The Russian economy twenty years after the end of the socialist economic system" ).
In it, he discusses how Russia developed after the Soviet Union, whether there is still a socialist economic influence that has existed on the territory of our state for six whole decades, or has completely disappeared.
And he comes to the conclusion that there are still significant vestiges and legacy of our socialist past and that the transformation of the market is not over yet.
Jason Brennan (professor of political science and philosophy at Georgetown University) already has a slightly different opinion on this. Most economists believe that capitalism is a compromise with selfish human nature.
As Adam Smith (economist and philosopher) said: "It is not because of the kindness of the soul of the butcher, brewer or baker that we wait for our dinner, but because of their interest in their own benefit."
In his book, Jason Brennan says that capitalism works better than socialism just because people are not kind and generous enough to make socialism work. And if people were saints, we would be socialists.
Jason Brennan argues that even in an ideal world, private property and free markets would be the best way development of mutual cooperation, social justice, harmony and prosperity.
As the professor says, socialists seek to conquer moral heights by showing that ideal socialism is morally superior to realistic capitalism. According to Brennan, ideal capitalism trumps ideal socialism, and therefore capitalism beats socialism at every level.
A professor at Monash University (Malaysia) Kai Lit Phua, in a presentation in June 2015, said that the governments of social democracy prefer a mixed economy - a market economy combined with a certain degree of state ownership with state regulation of the economy.
According to him, the market should work for the benefit of people (full employment, low inflation, environmentally sustainable economic growth).
He also said that fiscal (fiscal) policy is being used to reduce economic inequality: free or highly subsidized health care, education, transport and housing for the poor, financial assistance through social benefits or "conditional cash transfers." For example, you only get government money if your children are in school or get vaccinated.
Types of economic systems - the classification of the organization of the economy according to a number of characteristics: forms of ownership, methods of distribution of material wealth, methods of managing economic activities, and others. Typology depends on the economic school that the theorist adheres to.
Leading modern economists distinguish two main features on the basis of which they classify economic systems. The first sign is the form of ownership production facilities, which include economic enterprises. In one or another economic system, the means of production can be in public or private ownership. Also, private and state enterprises can operate simultaneously in the economic system.
The second feature is the approaches to the management of economic activity. A planned approach is distinguished, in which the production and distribution of material goods is completely controlled by the state. There is also a market approach. It presupposes the free distribution of the results of labor based on the results of competition. Finally, there is a mixed approach. It assumes the simultaneous existence of state planning and free competition between participants in the economic system.
Also, economic systems are classified according to the technological state of the economy. On this basis, pre-industrial, industrial and post-industrial systems are distinguished.
The main types of economic systems
The main types of economic systems are traditional, planned, market and mixed. Let's consider the characteristics of the systems in more detail.
Traditional economic system
From a historical perspective, this is the first economic structure that has formal signs of an economic system. It belongs to the pre-industrial period of economic development.
Traditional economic systems arose earlier than states. In most cases, the means of production belonged to communities and tribes. This is due to the inability of one or several people to independently preserve the means of obtaining material benefits, which included territories: agricultural land, hunting grounds, water bodies.
A representative of the Waorani tribe. The people living in Ecuador retained the traditional economic system
Management of economic activity in traditional systems can be called planned and situational at the same time. Decisions on certain economic activities were made by the strongest members of the community, elders, and leaders.
Currently, traditional economic systems are found among residents of third world countries: in Africa, South America, South-East Asia.
Planned economic system
This economic system is characterized by state management of the means of production. This applies to both natural resources and human-built enterprises. At the same time, individuals can own personal means of production and tools of labor.
The planning system presupposes the formal administration of economic activity. In practice, it is carried out by calculating the planned indicators of the economy as a whole, as well as industries and enterprises in particular.
The advantages of the planned system of the economy include:
The ability to quickly regulate the activities of industries and enterprises. This is especially important in force majeure conditions, for example, during wars and economic crises. Also, the operational management of the economy gives positive results during periods of recovery growth.
Equitable distribution of wealth. This advantage belongs to ideal planning systems, but in practice it has not been fully realized.
The planned economic system worked in the Soviet Union. It provided double-digit economic growth in the pre-war period, as well as the restoration of infrastructure and industry after the war.
Construction of the White Sea-Baltic Canal in the USSR
A planned economy has several disadvantages. These include the lack of competition, the lack of balance between the creation of means of production and consumer goods, possible mistakes in planning economic activities.
Modern economists consider the planned economy useful at certain stages of development of states and regions. These include the period of formation of a country or a commonwealth of countries, a time of deep economic crises, periods of wars and post-war periods. Scientists believe that within several decades after the creation of a state or the end of wars and crises, the economic model should gradually change from a planned to a mixed or market one.
Market economic system
The market economic system can be called the antipode of the planned one. In such systems, the means of production are privately owned. The regulation of the economy is carried out through competition. Producers of quality goods and services are making profits and increasing production by ousting inefficient enterprises from the market.
The state actually reserves the role of a night watchman. It guarantees the inviolability of private property and monitors the observance of laws by all participants in economic relations.
The advantages of a market economic system include:
Encouraging entrepreneurship both at the enterprise level and at the level of individuals.
Self-regulation of industries and the economy as a whole.
Squeezing out economically unprofitable approaches to work, products, enterprises from the market.
The disadvantages of the market system include social injustice. The free market creates conditions for the implementation of social Darwinian processes. They contribute to the success and enrichment of the fittest individuals and businesses. And the misfit people and companies are doomed to poverty and lack of livelihood.
An artistic depiction of social inequality that exists under a market economic system
In its pure form, a market economic system exists only in theory. The closest to it are the economies of some Western countries, for example, the United States. But even in this country, which is considered an apologist for the market, the state owns a large number of enterprises, actively intervenes in economic processes and participates in the distribution of material wealth.
In theory, the market model is considered ideal for wealthy countries during periods of sustained economic growth. In such conditions, it should stimulate innovation and promote further economic growth.
Mixed economic system
This is the most common market model today. It operates in most countries of the world, including the USA, China, Russia, and European countries.
A mixed system of economic activity assumes that the means of production are in both private and state ownership. At the same time, state-owned enterprises do not receive any preferences at the legislative level, but compete on a general basis with private ones.
The regulation of economic processes is carried out through competition. The state plays the role of night watchman, as in the market model. In the same time government bodies actively participate in the activities of critical industries for the country. This can be the mining industry, the military-industrial complex, or innovative sectors of the economy. The mixed model is characterized by the desire of the state to actively redistribute material values in order to achieve social justice.
A purposeful transition to a mixed model is being lobbied by supporters of the center-left ideology: socialists and social democrats. For example, these include the Labor Party in the UK.
An example of an attempt to consciously build a mixed system is the Scandinavian model of the economy. In some Nordic countries, including Sweden and Denmark, leaders have implemented welfare state while maintaining capitalism and market competition. Currently, these countries are considered one of the most socially oriented in the world. However, businesses in them are forced to pay high taxes.
The transition from a planned to a mixed economy in the post-Soviet space was painful. In the photo, a rally in the 90s
In fairness, it should be noted that the social model of development in the Scandinavian countries is possible thanks to the extraction and export of raw materials.
In most other countries of the world, the authorities arrived at the mixed economic model by accident or ad hoc. For example, in the United States, the country's leadership was forced to intervene in the economy and nationalize large banking institutions due to the global financial crisis.
Which economic model is the best
Humanity has not yet come up with an ideal economic model. All other systems of doing business have objective advantages and disadvantages. They arise at certain stages in the development of society and the state and replace each other.
The currently dominant mixed model can be considered optimal at the current stage of development of society and the state. But in the case of deep economic crisis, the probability of which is estimated very high, it can be replaced by a planned economy. With its help, the states will maintain an acceptable standard of living and social security of citizens.
At all historical stages of human development, society faces the same question: what, for whom and in what quantities to produce, taking into account the limited resources. The economic system and the types of economic systems are precisely designed to solve this problem. Moreover, each of these systems does it in its own way, each of them has its own advantages and disadvantages.
Economic system concept
The economic system is a system of all economic processes and industrial relations, which has developed in a particular society. This concept is understood as an algorithm, a way of organizing the production life of society, which presupposes the presence of stable ties between producers on the one hand and consumers on the other.
The main processes in any economic system are the following:
Production in any of the existing economic systems is carried out on the basis of appropriate resources. some elements do differ from system to system. It is about the nature of the management mechanisms, the motivation of producers, etc.
Economic system and types of economic systems
An important point in the analysis of any phenomenon or concept is its typology.
Characterization of types of economic systems, in general, is reduced to the analysis of five main parameters for comparison. This:
- technical and economic parameters;
- the ratio of the share of state planning and market regulation of the system;
- property relations;
- social parameters (real income, amount of free time, labor protection, etc.);
- mechanisms of the system functioning.
Based on this, modern economists distinguish four main types of economic systems:
- Traditional
- Command-planned
- Market (capitalism)
- Mixed
Let's consider in more detail how all these types differ from each other.
Traditional economic system
This economic system is characterized by gathering, hunting and low-productivity farming based on extensive methods, manual labor and primitive technologies. Trade is poorly developed or not developed at all.
Perhaps the only advantage of such an economic system can be called a weak (practically zero) and minimal anthropogenic load on nature.
Command-planned economic system
The planned (or centralized) economy is a historical type of management. Nowadays, it is not found anywhere in its pure form. Previously, it was characteristic of the Soviet Union, as well as some countries in Europe and Asia.
Today, they often talk about the shortcomings of this economic system, among which it is worth mentioning:
- lack of freedom for producers (commands "what and in what quantities" to produce were sent from above);
- dissatisfaction with a large number of economic needs of consumers;
- chronic shortage of certain goods;
- occurrence (as a natural reaction to the previous point);
- impossibility to quickly and effectively implement the latest achievements of scientific and technological progress (due to which the planned economy always remains one step behind other competitors of the global market).
Nevertheless, this economic system had its own advantages. One of them was the possibility of ensuring social stability for one and all.
Market economic system
The market is a complex and multifaceted economic system that is typical for most countries modern world... Also known by another name: "capitalism". The fundamental principles of this system are the principle of individualism, free enterprise and healthy market competition based on the balance of supply and demand. Private property dominates here, and the desire for profit acts as the main incentive for production activity.
Nevertheless, such an economy is far from ideal. The market type of economic system also has its drawbacks:
- uneven distribution of income;
- social inequality and social insecurity of certain categories of citizens;
- instability of the system, which manifests itself in the form of periodic acute crises in the economy;
- predatory, barbaric use of natural resources;
- weak funding for education, science and other unprofitable programs.
In addition, the fourth is also distinguished - a mixed type of economic system, in which both the state and the private sector have an equal weight. In such systems, the functions of the state in the country's economy are reduced to supporting important (but unprofitable) enterprises, financing science and culture, controlling unemployment, etc.
Economic system and systems: country examples
It remains to consider examples for which this or that economic system is characteristic. For this, a special table is presented below. The types of economic systems in it are presented taking into account the geography of their distribution. It is worth noting that this table is very subjective, since for many modern states it is difficult to unequivocally assess which of the systems they belong to.
What type of economic system in Russia? In particular, Moscow State University professor A. Buzgalin characterized the modern Russian economy as a "mutation of late capitalism." In general, the country's economic system is considered to be transitional today, with an actively developing market.
Finally
Each economic system responds differently to the three "what, how and for whom to produce?" Modern economists distinguish four main types of them: traditional, command-planning, market, and also a mixed system.
Speaking about Russia, we can say that in this state a specific type of economic system has not yet been established. The country is in a transitional phase between a command economy and a modern market economy.
What is an economic system?
Economic system - 1) the way 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 basic economic relations that arise in the process of production, distribution, exchange and consumption of an economic product;
3) the organization of 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: it is produced in the same way and with what the ancestors produced; 2) centralized: determined by the plan; 3) market: it is 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 by 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) an economy that satisfies its needs at the expense of its 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 (extraction process useful properties from this property); 3) order (definition further destiny of this property = sale, donation, exchange, inheritance, lease or mortgage, 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 by 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) the belonging of things, material and spiritual values to certain persons, the legal right to such belonging and economic relations between people regarding the belonging, 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) fixed 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. all greater importance begins to acquire property management.
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 Naturalist"), the very term "technocracy" 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 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 patterns of behavior.
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 groups of influence, 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.
The material basis of “soft power” is formed by the triumvirate “1) creators of meanings - 2) non-governmental organizations - 3) mass media”.
What is the difference different types property?
To 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 = slave-owning, 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 individual people treated the means of production as belonging personally only to them. 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 have argued that the sense of private property is natural feeling a person who 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. developed different kinds mixed (collective-private, group, corporate) ownership, which combines the characteristics of the first two types. A typical form of such ownership is a 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 by 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 contributed - 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 ( 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 the property is at the disposal, the conduct of local 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 Russian Federation other forms of ownership are also recognized.
Privatization(lat. privatus - private) - 1) transfer of state property to individual citizens or to legal entities created by them; 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 in the development of an industrial society, and the modern stage of capitalism - as a "mixed economy", "post-industrial society", "information society", etc .; in Marxism, capitalism is a socio-economic formation based on private ownership of the means of production and the exploitation of hired labor by capital.
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, economy 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 monetary circulation are characterized in particular in detail; much attention is also paid to the influence of the geographical 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, concept 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, i.e. 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. An 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 drawn into 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 nervous interweaving of financial schemes and the trophy economy of the Crusades, mainly in the coastal areas of Europe (the exception is the "land port" of the fairs in Champagne). Its ancestral nests are, first of all, the city-states and regions of Italy: Venice, Genoa, Florence, Lombardy, Tuscany, as well as the coast North Sea: cities of the Hanseatic League, Antwerp, later - Amsterdam.
The spiritual source of capitalism was, apparently, multi-confessional, but fairly uniform in their basis - 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 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.
The Waldenses played a special role in the rise 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, to the Netherlands, Bohemia, Piedmont, to 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.
The former Waldensians are actively involved in wholesale and retail trade, which allows them 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, to communicate indirectly, the sectarians discovered that precisely because of these circumstances they have serious competitive advantages and are excellently 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, in Western Europe a new type of attitude is spreading, 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: with the compulsory nature of labor, 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 traditional economic system is based on traditions passed down from generation to generation. Traditions and customs determine production technologies, types of goods and services produced. The economic role of each member of society is dominated by heredity and caste. Modern technologies and innovations are not applied, manual labor is widely used. Currently, the traditional economy is found in a small number of developing countries.
What is an economic system? In each state at different times there was and is a certain system of economy. The economic system can be characterized by the combination of elements consisting of laws, norms, traditions, values, institutions, with the help of which the society solves the problems of economic management, and the totality of economic and social relations between consumers and producers.
Comparison of the advantages and disadvantages of economic systems is made according to the following criteria:
- the predominant form of management - natural or commodity form of economic management;
- the main types of property - communal, cooperative-public, private and mixed;
- ways of making decisions on income distribution. Community-leveling system (income is distributed according to factors of production) and distribution according to the quality and quantity of labor input;
- the degree of state intervention - free, economically regulated, administrative-command and mixed economic systems;
- a way of coordinating the actions of business entities - traditional, market and planned systems of the economy;
- the degree of openness to international relations - closed and open systems;
- by the degree of maturity - emerging, developed and degrading systems.
In modern economics, economic systems are classified into 4 main types with characteristic properties:
- Traditional.
- Administrative command (planned).
- Market.
- Mixed.
The earliest form, formed in antiquity, is considered to be the traditional economy, when the economic and economic activity, interpersonal relations in society and the system of distribution of material wealth are determined by the principles of traditions and customs.
A distinctive feature of the command-administrative (centralized) system is the predominant role of the state in the economy and the minimum of market relations. The state regulates the main economic processes:
- location of production;
- supply and distribution channels;
- fixation wages and allowances;
- establishment of indicators of profitability.
The main features of the market economic system are considered to be developed social institutions and citizen participation in governance. In a market economy, material goods must be distributed by self-regulating mechanisms of supply and demand. Consequently, the best material wealth will be acquired by citizens who have the necessary capital. On the other hand, other people are not prohibited from starting their own business, investing labor, developing as a subject of the economy and acquiring the status of a person with capital.
Distinctive features of the traditional economy
The main features of a traditional society:
Non-market economy originated in the deep past, and is based on natural production, that is, the manufacture of products for their own consumption. The economic entities at that time were the family, clan, tribe, community.
The traditional economic system is characterized by the predominance of peasant and handicraft farms, where descendants inherit the occupations of their ancestors. The main feature of this economy is that property belongs to individual farms, and each owner has the right to dispose of his own resources.
Signs of a traditional economy are:
- slow introduction and development of modern technologies;
- power is built on traditional tribal relations;
- semi-feudal social and economic system;
- widespread use of manual labor is characteristic;
- farms make up the bulk of the economy;
- the extractive industry is absent or undeveloped;
- exploitation of the lower classes and restriction of their rights and freedoms;
- science does not develop;
- only a small stratum of society, which is the ruling elite, can get an education;
- religious or military pressure is exerted on the political views of the people.
The main characteristic of the traditional economic system is considered to be a low degree of development. production technologies, what is the reason for the low labor productivity. The traditional economy inherent in this type of economy is subsistence farming (dominated by farming, hunting, gathering). The introduction of modern technologies is destroying the foundations of such an economy.
Characterizes the traditional system is weak economic connection between settlements. This interferes with the stable development of the economy, and forces people to take on hard physical labor. The signs include the traditional communities themselves, which are a condition for the survival of a large group of people, but hinder progress.
Underdeveloped trade can characterize the traditional economic system. Due to the low productivity of labor, there is no surplus left in the community that can be realized. Trade links even with the nearest villages are very weak. This contributes to the consolidation of entrenched orders and prevents the introduction of new technologies.
Social and economic stagnation is a hallmark of traditional economics. The development of society is very slow or does not develop at all. The community has maintained its own way of life for a long time. An example from history where this happened and led to disaster is the indigenous people of America and Africa.
Economic reasons first cause stagnation, then it is reinforced by the system of informal institutions that make up the country's aggregate traditions and customs. Tradition is involved in regulating distribution political power and economic resources. The traditional economy is distinguished by its characteristic features:
- Dogmatic.
- Failure to adapt to changing conditions.
- The severity of execution.
With this structure of society, the predominance of the agricultural sector in production is observed. The main value for such communities is food products, since low labor productivity barely allows farmers to feed themselves, and imperfection of technology with a high birth rate of the population causes the problem of starvation.
Influence of the state and religion
The traditional economic system is characterized by primitive power structures. In most cases, the form of government in such communities - absolute monarchy supported by a broad military class. The main resources and material goods are owned by the upper classes.
Political power in such a society does not provide social guarantees and development, but collects rent for the upper classes. The state has no social orientation and carries out the forcible preservation of the existing order.
The traditional economy is based on the caste and class division of society and is supported by state violence. The main systemic principle of such a society is the desire of the ruling class to continue to regularly extract rent and maintain the usual way of life of society, and not introduce modern technologies and innovations.
The state is not the only institution that regulates the economy in traditional societies. Religion plays a significant role in this type of society. Religious institutions are embedded in power structures and are formed into a privileged class, which is also interested in collecting and receiving rent. Religious institutions consolidate and substantiate the practice of state violence against those who are trying to change the existing social order.
Pros and cons of the traditional economic system
Advantages and Disadvantages Table:
| Advantages | Flaws |
|---|---|
| Relative stability | Slow or absent social and technological progress, low labor productivity |
| Predictability. The current order has been maintained for centuries, there are no significant social upheavals | Society does not adapt well to external influences, poor resistance to conquerors and natural disasters |
| High quality and good quality of material goods. Artisans produce goods using technologies that are inherited by their ancestors and preserve quality | Private property is a very shaky institution under such a system. In a society where property rights are enforced by violence, private entrepreneurship is hampered not only by a low level of technology, but also by low guarantees for the safety of manufacturers. |
| The problems of society are aggravated by religious institutions and the monarchical order. The state does not contribute to modernization and progress, but hinders them |
Modern states with traditional economies
In most modern states, this period in the economy has already been overcome. In our time, there are very few countries where such a way of life has survived. These countries are in Africa and Southeast Asia. There remains low labor productivity and old technologies are being used. However, globalization and the impact of innovation foreshadows the possibility of the end of the era of the traditional economic system ...
Examples of countries with traditional economies (with minor reservations) are the following: Bhutan, Afghanistan, Nepal, Burkina Faso, Laos, Vanuatu, Burundi, Myanmar, Zimbabwe, Benin, Chad, Barbados, Ethiopia, etc.
