In the last 150-200 years various types of economic systems: two market(market economy of free competition (pure capitalism) and the modern market economy (modern capitalism)) and two non-market systems(traditional and administrative-command).
Market economy— this is an economic system based on the principles of free enterprise, diversity of forms of ownership of the means of production, market pricing, contractual relations between economic entities, limited state intervention in economic activity. It is inherent in socio-economic systems where there are commodity-money relations.
Originating many centuries ago, the market economy has reached a high level of development, has become civilized and socially limited. The main features of a market economy are presented in table 2.1.
Table 2. Characteristics of a market economy
| The main features of a market economy: | |
| 1) the basis of the economy is private ownership of the means of production | |
| production; | |
| 2) variety of forms of ownership and management; | |
| 3) free competition; | |
| 4) market pricing mechanism; | |
| 5) self-regulation of the market economy; | |
| 6) contractual relations between economic entities - | |
| tami; | |
| 7) minimum state intervention in the economy | |
| Main advantages: | Main disadvantages: |
| 1) stimulates high production efficiency; 2) fairly distributes income according to the results of work; 3) does not require a large control apparatus, etc. | 1) increases social inequality in society; 2) causes instability in the economy; 3) is indifferent to the damage that business can cause to people and nature, etc. |
Market economy of free competition developed in the 18th century, but a significant part of its elements entered the modern market economy. The main features of the market economy of free competition:
1) private property on economic resources;
2) a market mechanism for regulating the economy based on free competition ;
3) a large number of independent sellers and buyers of each product.
Modern market economy (modern capitalism) turned out to be the most flexible, it is able to rebuild, adapt to changing internal and external conditions.
1) variety of forms of ownership;
2) development of scientific and technological progress;
3) the active influence of the state on the development of the national economy.
Traditional economy— this is an economic system into which scientific and technological progress penetrates with great difficulty, because conflicts with tradition. It is based on backward technology, widespread manual labor, and a mixed economy. All economic problems are solved in accordance with customs and traditions.
1) private ownership of the means of production and the personal labor of their owners;
2) extremely primitive technology associated with the primary processing of natural resources;
3) communal farming, natural exchange;
4) the predominance of manual labor.
Administrative command economy
(centrally planned economy) is an economic system in which the main economic decisions are made
the state, which assumes the functions of the organizer of the economic activity of the society. All economic and Natural resources are owned by the state. The administrative-command economy is characterized by centralized directive planning, enterprise
The tia act in accordance with the planned tasks brought to them from the "center" of management.
1) base - state property;
2) absolutization of state ownership of economic and natural resources;
3) rigid centralization in the distribution of economic resources and results of economic activity;
4) significant restrictions or prohibitions on private entrepreneurship.
1. By concentrating resources it can ensure the achievement of the most advanced positions in science and technology (the achievements of the USSR in the field of astronautics, nuclear weapons etc.).
2. Administrative-command economy able to provide economic and social stability. Every person is guaranteed a job, stable and constantly growing wage, free education and medical services, people's confidence in the future, etc.
3. Administrative-command economy proved its vitality in critical periods human history(war, liquidation of devastation, etc.).
1. Excludes private ownership of economic resources.
2. Leaves a very narrow framework for free economic initiative, excludes free enterprise.
3. The state fully controls the production and distribution of products, as a result of which free market relationships between individual enterprises are excluded.
mixed economy organically combines the advantages of a market, administrative-command, and even traditional economy, and thus to a certain extent eliminates the shortcomings of each of them or mitigate their negative consequences.
mixed economy - a type of modern socio-economic system that is taking shape in the developed countries of the West and some developing countries at the stage of transition to post-industrial society. Mixed economy but-sit multi-structural character; it is based on private property interacting with state property (20-25%).
Based on various forms property, various types of economy and entrepreneurship function (large, medium, small and individual entrepreneurship; state and municipal enterprises (organizations, institutions)).
The mixed economy is a market system with its inherent social orientation of the economy and society as a whole. The interests of the individual with its multilateral needs are put forward in the center of the country's socio-economic development.
The mixed economy has their characteristics in different countries and at different stages of development. Thus, the mixed economy in the United States is characterized by the fact that state regulation is represented here to a much lesser extent than in other countries, because the size of state property is small.
The main position in the US economy is occupied by private capital, the development of which is stimulated and regulated by state structures, legal norms, and the tax system. Therefore, here, to a lesser extent than in Europe, mixed enterprises are common. Nevertheless, a certain form of public-private enterprise has developed in the United States through a system of government laws.
Russia is practically the first in the world applied the experience of the administrative-command economy in the form of a state socialism. On the present stage Russia begins to use the basic elements of a mixed economy.
American, Swedish, Japanese. Russian model transition economy.
For every economic system characterized by their national models of economic organization. Consider some of the most well-known national models of economic systems.
American model built on a system of encouraging entrepreneurial activity, development of education and culture, enrichment of the most active part of the population. Low-income strata of the population are provided with various benefits and allowances to maintain a minimum standard of living. This model is based on a high level of labor productivity and a mass orientation towards achieving personal success. The problem of social equality does not stand here at all.
The Swedish model is different a strong social orientation focused on reducing property inequality through the redistribution of national income in favor of the poorest segments of the population. This model means that the function of production falls on private enterprises operating on a competitive market basis, and the function of ensuring a high standard of living (including employment, education, social insurance) and many elements of infrastructure (transport, R&D) - on state.
The main thing for the Swedish model is social orientation due to high taxation (more than 50% of GNP). The advantage of the Swedish model is a combination of relatively high rates economic growth with a high level of full employment, ensuring the well-being of the population. Unemployment has been reduced to a minimum in the country, differences in the incomes of the population are small, and the level of social security of citizens is high.
The Japanese model is characterized some lag in the standard of living of the population (including the level of wages) from the growth of labor productivity. Due to this, a reduction in the cost of production and a sharp increase in its competitiveness in the world market are achieved. Such a model is possible only with an exceptionally high development of national self-consciousness, the priority of the interests of society to the detriment of the interests of a particular person, and the willingness of the population to make certain sacrifices for the sake of the country's prosperity. Another feature of the Japanese development model is associated with the active role of the state in the modernization of the economy.
The Japanese economic model is different developed planning and coordination of the activities of the government and the private sector. The economic planning of the state is advisory in nature. Plans are state programs that orient and mobilize individual parts of the economy to fulfill national tasks. The Japanese model is characterized by the preservation of its traditions and, at the same time, active borrowing from other countries of everything that is needed for the development of the country.
Russian model of transitional economy. After the long-term domination of the administrative-command system in the Russian economy in the late 1980s - early 1990s. began the transition to a market economy. the main task The Russian model of the transitional economy is the formation of an effective market economy with a social orientation.
1) a high degree of nationalization of the economy;
2) the almost complete absence of a legal private sector with an increase shadow economy;
3) the long existence of a non-market economy, which weakened the economic initiative of the majority of the population;
4) the distorted structure of the national economy, where the military-industrial complex played the leading role, and the role of other sectors of the national economy was reduced;
5) non-competitiveness of industries and agriculture.
1) development of private entrepreneurship based on private property;
2) creation of a competitive environment for all business entities;
3) an effective state that provides reliable protection of property rights and creates conditions for effective growth;
4) an effective system of social protection of the population;
5) open, competitive in the world market economy
Any society, regardless of how rich or poor it is, solves three basic questions of the economy: what goods and services should be produced, how and for whom. These three fundamental questions of economics are decisive (Fig. 2.1).
Which of the goods and services should be produced and in what quantity? An individual can provide himself with the necessary goods and services in various ways: produce them on his own, exchange them for other goods, receive them as a gift. Society as a whole cannot have everything immediately. Because of this, it must decide what it would like to have immediately, what it would be possible to wait for, and what to refuse altogether. What needs to be produced at the moment: ice cream or shirts? A small number of expensive quality shirts or a lot of cheap ones? Is it necessary to produce less consumer goods, or is it necessary to produce more industrial goods (machinery, machine tools, equipment, etc.), which in the future will raise production and consumption?
Sometimes the choice can be quite difficult. There are underdeveloped countries so poor that the efforts of most of the labor force are spent just to feed AND clothe the population. In such countries, in order to raise the living standards of the population, it is necessary to increase production volumes, but this requires restructuring national economy, modernization of production.
How should goods and services be produced? There are various options for the production of the entire set of goods, as well as each economic good separately. By whom, from what resources, with the help of what technology should they be produced? Through what organization of production? There is far more than one option for building a particular house, school, college, car. The building can be both multi-storey and single-storey, the car can be assembled on a conveyor or manually. Some buildings are built by private individuals, others by the state. The decision to produce cars in one country is made by a state body, in another - by private firms.
For whom should the product be produced? Who will be able to use the goods and services produced in country? Since the quantity of goods and services produced is limited, the problem of their distribution arises. To satisfy all needs, it is necessary to understand the mechanism of product distribution. Who should use these products and services, benefit? Should all members of the society receive the same share or not? What should be given priority - intellect or physical strength? Will the sick and the old eat their fill, or will they be left to fend for themselves? Solutions to these problems determine the goals of society, the incentives for its development.
Main economic problems in different socio-economic systems are solved differently. For example, in market economy all answers to basic economic issues(what, how, for whom) determines the market: demand, supply, price, profit, competition.
“What” is decided by effective demand, voting money. The consumer decides for himself what he is willing to pay money for. The producer will himself strive to satisfy the desires of the consumer.
« How" is decided by the manufacturer, who seeks to get a big profit. Since the setting of prices does not depend only on him, in order to achieve his goal in a competitive environment, the manufacturer must produce and sell as many goods as possible and at a lower price than his competitors.
Brief conclusions
1. In the last one and a half to two centuries the following systems operated in the world: the market economy of free competition, the modern market economy, the administrative-command and traditional economies. In the last one and a half to two decades, a mixed economy has emerged.
2. Every system has their national models of organization economic development, because countries differ in the level of economic development, social and national conditions.
3. Russian model transitional economy has the following characteristic features: strong government sector, a small share of small and medium-sized businesses, uneven transition to market relations in various industries and regions of the country, high criminalization of the economy.
4. Basic questions of economics(what, how, for whom) are solved in different socio-economic systems in different ways, depending on the socio-economic development of the country.
Key terms and concepts
economic system; types of economic systems: traditional economy, market economy, administrative-command (centrally planned) economy, mixed economy; models of economic systems: Japanese, South Korean, American, Swedish; Russian transitional economics; basic economic questions: what, how, for what.
Control questions and tasks
1. What types of economic systems do you know and what is their essence?
2. Expand the essence of models of economic systems.
3. What are the features of the Russian model of transitional economy (as opposed to administrative-command to market)?
4. What is the difference between the Japanese model and the South Korean one? What elements of these models can be used in Russia to create a market economy?
5. What are the three main questions of economics constantly trying to answer economic theory and what is their content?
6. How are the three main economic issues (what, how, for whom) solved in a market economy and an administrative-command economy?
7. What are the features of the development of economic systems at the present stage?
Exercise. Compile an economic crossword puzzle using the following terms: types, systems, tradition, customs, community, entrepreneurship, property, diversity, self-regulation, inequality, plan, planning, administration, centralization, concentration, state, models.
The term "economic system" denotes the total amount of elements interconnected. 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 in which the economic labor of people is distributed and in the type of ownership of resources. AT modern world there is a whole list of 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.
In contact with
The very first of all existing at this stage of human development can be called the traditional scheme. To date, it is still used by almost all third world countries. A distinctive feature of this structure is what exactly and in what quantity the traditional economic system produces. More developed states, as well as those that are on the path of active development, have a traditional economy of a more complex pattern.
The economic concept originated and continues to exist at various stages of the life of the state, is a complex relationship between producers and consumers.
There are several main types of systems. The first such form is generally accepted, which is based on the customs of each individual tribe.
For example, if several generations in a row were engaged in the cultivation of wheat, then all the following ones will do the same. It does not occur to any of the residents that this state of affairs may be unprofitable and that one can do something else.
Let us list the features of the traditional economic system. The basic components are the mass prevalence of manual labor, the absence or slow development of technical progress, as well as the presence of various types of housekeeping.
States with have 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 poverty. Customs are changing, but, unfortunately, very slowly.
Important! It cannot be argued that in the underdeveloped countries the traditional economic system prevails, since in some regions of Russia you can find elements of it.
Traditional economy
The main features of the traditional economic system in third world countries:
The main task is to choose the most advantageous way solving a specific problem. At the same time, it is important to achieve complete satisfaction of needs. Speaking about the countries in which this economic form, you can clearly identify regions such as Africa, especially South, and the states of Asia.
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 compared to the market one, it can be argued that the generally accepted variety is more stable and has a higher quality of products.
This is due to the penny interest of workers in the sale of their own products. 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, so there is a high degree of trust in the ruling elite of society.
Despite the listed advantages of the traditional economy, it has much more disadvantages. The main one is the complete lack 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. It is also characterized by dependence on climate and other external factors. The disadvantages also include the insecurity of the population in socially which often provokes various conflict situations in society.
In the generally accepted system, there is an authoritarian principle of distribution of production resources among the population. Most of the public goods are allocated to the ruling elite of the country. This is the reason why 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 activities. 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 the fact that in a state with a customary generally accepted system, changes in the economic model take place. This is explained by the fact that no one wants the emergence of new competitors in the world and everyone is highly interested in maintaining the old structure.
What other features of the traditional economic system should be highlighted additionally: it consists of a set of general structures that are divided into four main types.
We list the main types:
Important! The traditional economic system is considered the progenitor of all others.
In a command economy, all questions about production are decided centrally. Private property in countries with a command form of government is absent partially or completely. 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, unlike the command one, is characterized by the predominance of private property over centralized production. In such an economy, the state does not play a major role, but only regulates it with the help of laws. The mixed economy in the modern world is the most widespread. The reason for this is the presence of elements of all the above economic structures, which gives it a visible advantage.
Traditional economy
Types of economic systems Traditional
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 at the same time, its features are present in all known forms of the economy. Now the traditional ones have been replaced by more developed ones.
A command economy is a way of organizing the life of a country in which land, capital and almost all resources are in state ownership. Such a system is well known to the inhabitants of the former Soviet Union. This is not surprising, because many of the states that were part of it have not been able to change it for several decades.
The command economy is a system that emerged as a result of a series of socialist revolutions that took place under the Marxist ideological banner. Its final model in the modern sense was developed by the communist leaders: first by V. I. Lenin, and then by I. V. Stalin. In the fifties and eighties of the last century, the period of the greatest dawn of the socialist camp fell. At that time, more than thirty percent of the inhabitants of the planet lived in its constituent countries. In this regard, it is not surprising that, according to many scientists, the command economy is the biggest economic experiment on Earth in the history of mankind. At the same time, many of the researchers forget that it began with the harsh suppression of the slightest civil liberties, and its implementation entailed huge sacrifices.
Based on the theory of Karl Marx, the only way to significantly increase the well-being and well-being of mankind is to eliminate such a thing as private property, eliminate any manifestations of competition and carry out all state activities solely on the basis of a generally binding plan. At the same time, it should be developed by the government on the basis of scientific data. It is on such positions that the roots of this theory can be found as early as the Middle Ages, in the works of the authors of the so-called social utopias. Then such ideas failed, but at the beginning of the twentieth century, after the formation of the socialist camp, the government of the Soviet Union began their practical implementation.
The main feature of a command economy is the shortage of some (or even many) goods. If they are on sale, then, regardless of the place of sale, as a rule, they do not differ from each other in quality. The government in this case proceeds from the assumption that the buyer will still buy what is. Thus, it is not surprising that there is no need to manufacture more expensive products and build similar stores on every street.
The next sign of a command economy is the absolute absence of an overabundance of manufactured goods under any conditions. The explanation for this is very simple and lies in the fact that the government of a state with such a system will under no circumstances allow the irrational use of its own resources.
It should also be noted that a country with such an economic system provides constant support to state-owned enterprises. It is expressed by a clear planning of break-even sales markets, loyal tax policy, as well as permanent subsidies. Another essential feature of a command economy is the highly expedient use of labor resources in the enterprises mentioned above. This fact can be explained by the fact that, due to the absence of excess production, the need for personnel processing and overtime appointments is leveled.
For countries in which a command economic system operates, it is typical that all production organizations are in the hands of government bodies. At the same time, there are enterprises with municipal or national property. Cooperatives also have their place in the system. At the same time, the latter form of ownership does not apply to production companies that make a profit. It applies only to such business entities that can provide individual benefits to citizens. This includes housing stocks, preschools, garages, and so on.
Almost all the problems of a command economy come from the fact that the highest power of the country exercises control over production. At the same time, all subjects of the state economy, in fact, are in equal conditions and rights. This leads to the fact that even the slightest inclinations of a competitive environment are reduced to zero. Based on the fact that this will not bring more material results, the desire of entrepreneurs to improve the quality of their products is also leveled. Due to the fact that all goods produced in the country are more or less evenly distributed among all regions, the wages of the working class are in the most equalized state possible. Thus, the desire of the personnel of enterprises to improve the quality of their own work is out of the question. The whole problem in this case boils down to the fact that no matter how hard a person works, he will not receive wages that go beyond the salary in one category or another.
Despite all the negative aspects of the system discussed earlier, there are some advantages of the command economy. Its main "plus" can be called the absence of the need for financial and labor costs to promote products on the market. Based on the fact that the government commercial market is a monopolist, there is no competition. In other words, the goods will be sold in any case, since there is a state quota.
Another great advantage of the planned-command economic system is the absence of class stratifications within society. In connection with the relatively equal wages, in any state where it dominates, there are no both too rich citizens and poor people. It would also be correct to note that many of the problems characteristic of a market economy can be easily solved by the planning-command method.
The command economic system has nothing to do with basic human needs. The circulation of products in society is arranged quite simply. The decision on the production of goods and their sectoral distribution is taken only by the government. In all regions of the country, products are distributed on the basis of the idea that the population of each of them evenly consumes not only essential goods (including food and medicine), but also clothing and household appliances in full accordance with the volumes produced. As practice shows, this kind of approach cannot be called correct, because those goods that are not at all in demand in one area may be vital in the neighboring region. Even such features of the command economy did not prevent it from flourishing very successfully even in many strong states. As for the well-being of citizens, the salary of each working person is proportional to the volume of his work. At the same time, the average salary in such countries is at a rather low level.
The very first and most famous state in history in a command economy is the Soviet Union, which switched to it back in 1917. The peak of the development of such a system fell on the fifties of the last century. At that time, a terrible industrial crisis reigned on the planet. In this regard, the USSR, Cuba, China and other socialist countries have become vivid examples of this way of organizing the economic life of the state. At present, it is difficult to judge and unequivocally answer how effective it was at that moment. On the one hand, the industry found itself in a catastrophically difficult state, which could not be settled by the mere correlation of supply and demand, and on the other hand, it was difficult to find a more rational way to overcome the current situation than government intervention.
Whatever it was, best indicator the quality of the economic systems of that time is the rate of GDP growth in the first decades after the war. If we analyze them, we can see that the capitalist Western European states were many steps ahead of the countries of the socialist camp in this indicator. Over time, the gap in their level of development only increased.
The planned-command development of the Soviet Union, which lasted more than eighty years, led to the fact that the real level of the state of the state at the beginning of the nineties of the last century was, to put it mildly, deplorable. This was expressed in the very low quality and uncompetitiveness of manufactured products, a decrease in the well-being and life expectancy of the population, the obsolescence of the manufacturing sector, as well as severe environmental pollution. The main reason for all this was the peculiarities of the command economy, which were discussed in more detail earlier.
Be that as it may, the process of transition to a market economic system is not as simple and fast as it might seem at first glance. No state can become successful for several years. In this regard, in theory there is the concept of the so-called transitional economy. It is characterized by uncertainty, instability and changes in the entire economic structure of the state. Something similar can be observed now in some countries of the former socialist bloc.
Summing up, it should be noted that the command economy is a way of organizing state life, which is often called socialism. Within its framework, the government plays a monopolistic role in regulating the economic life of the country. It is the government that decides on the volume of production of a particular type of product, as well as its value on the market. With all this, such data are not established on the basis of a real supply and demand ratio, but solely on the basis of long-term statistical data, on the basis of which plans are established. Although such a model of state development has some advantages, as practice shows, in a market economy and competition, any country develops much more efficiently.
economic system- an established and operating set of principles, rules, laws that determine the form and content of the main economic relations arising in the process of production, distribution, exchange and consumption of an economic product.
The type of economic system characterizes:
forms of ownership;
ways to allocate limited resources:
ways of regulating the economy.
Main types of economic systems |
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|---|---|---|---|---|
| Comparison lines: | Traditional | Centralized (command, planned) | Market | |
|
Maineconomic issues |
What to produce? | Mainly products Agriculture, hunting, fishing. Few products and services are produced. What to produce is determined by customs and traditions that change slowly. | The range of goods and services is established by the state (groups of professionals in a particular field, working on government orders). | Consumers themselves determine the demand for goods and services. Producers produce what consumers want, that is, what can be bought. |
| How to produce? | They are produced in the same way as the ancestors produced. | Determined by the state plan. | Manufacturers decide. | |
|
For whom shouldproduce? |
Distribution is carried out according to established customs. | "Planners" determine how goods and services will be distributed. | Manufacturers are driven by consumer demand and strive to produce/sell as much as possible for the highest possible profit. | |
| Definition | A way of organizing economic life, based on the widespread use of manual labor, multistructural economy(various forms of management). | A way of organizing economic life in which such factors of production as land and capital belong to the state, which manages the main economic benefits. | A way of organizing economic life in which capital and land are privately owned by individuals. | |
In real economic reality, neither a purely market nor a purely command economy exists, but there is mixed economy predominantly command or predominantly market type with different social coloring.
Mixed economic system- a way of organizing economic life, in which such factors of production as land and capital are mainly privately owned, and the distribution of limited resources is carried out both by markets and with significant state participation. The degree of these “mainly” and “with significant participation” may differ, therefore, mixed economic systems can also be classified in more detail, for example, Scandinavian, Japanese and other models are distinguished.
1. Establish a correspondence between the types of economic systems and their characteristics: for each position given in the first column, select the corresponding position in the second column. Write down the resulting sequence of numbers.
2. The above list shows the similarities between a centralized economic system and a traditional one, as well as the differences between a centralized system and a traditional one. Select and write down first the serial numbers of the similarities, and then the serial numbers of the differences.
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3. List three characteristics of a command-administrative economic system.
The correct answer may contain the following items:
state control over production and distribution;
the predominance (dominance) of state ownership of the means of production;
centralized pricing;
administrative methods of economic management.
4. In any economic system, there are three main economic questions that need to be addressed. Name these issues and give three examples of relevant solutions to these issues in a market economy.
A correct answer may contain the following examples:
"What to produce?" - solved taking into account consumer demand;
"How to produce?" - is solved taking into account the motive of profitability, i.e. firms choose the most efficient way of production;
"For whom to produce?" - is decided in accordance with the solvency of buyers.
5. Get acquainted with the statement of the scientist-economist V. Leontiev. “A free enterprise system can be likened to a giant computer capable of solving its own problems automatically. But anyone who has dealt with large computers knows that sometimes they fail and cannot operate without supervision. Name the type of economic system that V. Leontiev is talking about. List two economic problems that this system is able to solve on its own, and two economic problems that require government intervention.
The type of economic system that Leontiev speaks of is a market economy.
Economic problems that this system is able to solve independently:
Creation of conditions for efficient distribution of resources in the economy (according to the volume and structure of needs).
Ensuring freedom of choice for consumers and producers.
Limitation of opportunities for the emergence of monopolies.
Creation of incentives to work.
Economic problems that this system cannot solve on its own:
Ensuring the production of public goods (goods that cannot be given to an individual person, so as not to be provided to all other members of society).
Ensuring that all people have enough income to live on.
Regulation of external (side) effects.
The state can correct the situation associated with under- or over-production / consumption of products as a result of external (side) effects, using tax instruments, subsidies and regulatory measures for this.
David Ricardo (1772−1823) - English economist, specialist in political economy.
He worked at the London Stock Exchange, was engaged in business. Member of the House of Commons of the English Parliament from one of the constituencies of Ireland (1819). Founder of the first political economy club in England (1821).
He worked with the ideas of A. Smith, acting both as a follower and as an opponent.
He opposed state intervention in the economy, advocated free trade, a follower of economic liberalism. The state, in his opinion, should not interfere with free enterprise and pricing, its economic function is taxation, but low and affordable for citizens.
A follower of the labor theory of value. He noted that the price of a commodity depends on the quantity and quality of labor, as well as its rarity. Labor is taken as the basis of the value of goods, but other factors, including random ones, are not excluded. The cost of the goods is also not directly related to the wages of those who produced it, because in addition to costs, profit is included in it.
Separate natural and market value labor: means for the maintenance of oneself and the family and payment, taking into account the real relationship between supply and demand. Supporter of the quantity theory of money.
Adhered to the principle of specialization in production.
Better tax - less tax.
Water and air are extremely useful, they are directly necessary for existence, but under normal conditions nothing can be received for them in exchange. On the contrary, gold, although its usefulness in comparison with air or water is very small, is exchanged for a large number of other goods.
Thus utility is not a measure of exchange value, although it is absolutely essential to the latter. If the object is good for nothing, in other words, if it does not serve our needs in any way, it will be devoid of exchange value, however rare it may be and whatever the amount of labor required to obtain it.
Concept, criteria and types of economic systems.
The economic system is the totality of all economic processes taking place in society. The most important element in the economic system are socio-economic relations. These relations are based primarily on the forms of ownership of economic resources and the results of economic activity, as well as on the method of coordination economic activity people, firms, the state at the macro level. An important role is also played by the organizational forms of enterprises and the system of incentives and motivations that guide the participants in economic processes.
In any economic system, the primary role is played by production, distribution, exchange and consumption. In the process of interaction of these spheres, the transformation of resources takes place, that is, there is their flow, which turns into a flow of goods and services produced from these resources. But the systems differ in their approach and ways of solving the main problems. economic problems society.
There is really an unlimited variety of economic systems in the world. They can be grouped into the following types:
traditional economic system;
market economic system (pure capitalism, modern capitalism);
command-administrative (planned) economic system;
mixed economic system (social-oriented economy);
transition economy.
General characteristics of various forms of economy (forms of production).
Subsistence economy (patriarchal economy or traditional economy).
The traditional economy can be considered the most ancient type of economic system. It is based on natural production - production in which the products of labor are intended to satisfy the producer's own needs, for on-farm consumption.
Such relations were manifested in their purest form in a closed primitive community, producing everything necessary for itself. Basically, patriarchal peasant farming and feudal estates were subsistence. System subsistence farming in the economy contributed to the isolation of individual economic units (family, community, inheritance, principality) from each other. Each of them was self-sustaining, consuming all the product it produced. There was no significant exchange of goods.
In real life, natural production can be called the farm of one family on a garden plot, in the event that the products of labor are intended not for sale, but for their own consumption.
Under the traditional economic system, land and capital are held in common by the tribe or community, and limited resources distributed according to long-standing traditions. The economic roles of people are dictated by their heredity and caste, and because of this, there is socio-economic stagnation. Technological progress penetrates such a system with great difficulty, since it conflicts with traditions and threatens the stability of the existing system.
Of course, traditions also change over time, but very slowly and only due to significant changes in the external conditions of the life of a tribe or nationality. With the stability of these conditions, traditions are preserved for a very long time. Over time, the traditional economic system has ceased to be the basis for organizing the lives of people in most countries of the world. Its elements receded into the background and survived only in the form of different customs and traditions.
In the modern world, the traditional system still exists in economically underdeveloped countries. It is most often based on backward technology, the widespread use of manual labor and a pronounced multi-structural economy.
In a number of countries natural-communal forms of management have been preserved. Small-scale production is of great importance here. It is based on private ownership of resources and the personal labor of their owner. Such production is represented by numerous peasant and handicraft farms that dominate the economy. In conditions of relatively underdeveloped national entrepreneurship, foreign capital plays a huge role in the economy.
The solution of the main economic problems has in each such country specific features within the various settings. The traditional system is characterized by such a feature as the active role of the state. By redistributing a significant part of income through the budget, the state allocates funds for the development of infrastructure and social support for the poorest segments of the population.
Commodity economy (market economy).
The growth of the social division of labor, crafts, commodity-money relations and economic isolation destroyed the isolation of natural economy. And it was replaced by a market economy.
This system is based on:
1) private ownership of resources;
2) private economic initiative;
3) market mechanism of regulation macroeconomic activities based on free competition;
4) The presence of many independent sellers and buyers of each product and commodity.
By the middle of the XVII century. great geographical discoveries were made, which served as an impetus for the rapid expansion of world trade and the formation of a world market. All this led to an increase in demand for industrial products and a sharp increase in production. Small and isolated handicraft farms were not able to solve this problem, and the ruin of an increasing number of artisans replenished the labor market with hired labor.
A new era has begun - the era of capitalist production. Trade (merchant) and usurious capital played an important role in its formation. Merchants and usurers channeled their capital into industry and became either capitalist industrialists or capitalist bankers.
The formation of capitalist production relations was accelerated by the so-called primitive accumulation of capital. The essence of this process was the forcible mass separation of direct producers (primarily peasants under feudalism) from the means of labor that previously belonged to them and their transformation into sellers of their labor power. On the other hand, more and more monetary wealth and capital were concentrated in the hands of the emerging bourgeoisie.
The most important economic result in the development of capitalism was the provision of higher labor productivity. The decisive condition for economic progress was the freedom of entrepreneurial activity of those who had capital, as well as a new principle of relations between employers and workers. Buyers and sellers of labor power acted as legally equal agents of market relations. This involved freedom of movement within the labor market. The hired worker, receiving remuneration for his work, had the freedom to choose the means and ways of satisfying his needs. The employer also had the right to freely choose the labor force. The flip side of this freedom was personal responsibility for maintaining the workforce in a normal state, the correctness of decisions made and compliance with the terms of the labor agreement.
Under capitalism, there is a market mechanism for solving the basic economic problems of society. Each product and each service has its price, i.e. everything is bought and sold for a certain price. Even all types of labor force have their cost. Thousands of goods and services are produced by millions of people, tens of thousands of companies and factories without any centralized control or plan. However, there is no chaos, but there is a certain economic order. This happens due to the so-called social coordination mechanism. Its essence is that people, acting in their own interests, create choices for others. Social coordination appears as a process of continuous adaptation of people to changes in the net benefit arising from their interaction. Changes in market prices in one direction or another serve as a signal to producers about a change in consumer preferences. The manufacturer independently solves the problem of distribution of scarce production resources, focusing on market conditions and price levels, and determines what to produce and how much.
Resources are applied in accordance with the decisions made by individual consumers in the market and for profit. And in an effort to increase it, the entrepreneur tries to minimize production costs, and therefore uses natural, labor and investment resources very economically. Achieving this is possible with the maximum use of the creative and organizational potential of the entrepreneur himself, the realization of his entrepreneurial talent, which serves as a powerful incentive for the development and improvement of production.
Command economy (command-administrative system) and planned economy (planned economy).
The income disparities inherent in a market economy have long encouraged people to interpret capitalism as an "unfair" economic system and dream of a better way of life. These dreams led to the emergence in the XIX century. social movement, called "Marxism" in honor of its main ideologist - the German economist Karl Marx. He and his followers believed that the market system had become obsolete and became a brake on the further growth of the welfare of mankind. And so it was supposed to be replaced by a new economic system - command-administrative (socialism).
A classic example of such a system is the centralized planned economy in the former USSR. This system was offered as a role model, it was used to evaluate the economy - whether it was socialist or not. Its construction was based on the main features of socialism:
the dominance of public (and in fact - state) ownership of the means of production;
general control of the state;
implementation of the plan as an incentive;
equalizing principle of distribution;
government pricing.
With such an organization of economic life, the state is the sovereign owner of all types of resources: land, production capital, labor, and even entrepreneurial ability. And the distribution of these resources was carried out by the central government in accordance with the plans that were developed by the leadership of the state on a scientific basis. The state was a monopoly in all industries. Thus, socialism was the complete opposite of pure capitalism, where there is no place for any monopolies.
The economic mechanism of the command-administrative system has a number of features. It assumes, firstly, the direct management of all enterprises from a single center - the highest echelons of state power, which nullifies the independence of economic entities. The main economic problems of society were solved at the national level: the state plan determined what and how much would be produced, how it would be produced and how it would be distributed.
Secondly, the state, having full control over the production and distribution of products, sets prices, as a result of which free market relationships between individual enterprises are excluded. Suppliers were rigidly attached to consumers. At the same time, the supplying enterprises, both economically and administratively, were in a one-sided advantageous position compared to the purchasing enterprises, on which they imposed their goods.
Thirdly, the state apparatus manages economic activity with the help of predominantly administrative and administrative methods, which undermines the material interest in the results of labor.
Planning was of a directive nature, had the appearance of forceful pressure and was not based on economic interests. And this meant that in order to bring plans to the enterprise, a certain organizational system for managing social production was required. It found its expression in the State Planning Commission. His functions included bringing to each enterprise a detailed plan task and monitoring its implementation. At the same time, no one was interested in whether the products were in demand or not. The result of such a policy was the overstocking and waste of social labor.
As for the labor resources management system, the country set the task of making the organized recruitment of labor the main form of meeting the demand for it. The states of most enterprises were artificially inflated. And although there was no pronounced unemployment in the country, it is fair to note the presence of it in a hidden, suppressed form. In order to stimulate highly productive labor and improve skills, progressive forms of remuneration and wage scales were introduced.
Recall that during the heyday of the socialist camp (50s - 80s), more than a third of the world's population lived in its countries. So this is perhaps the largest economic experiment in the history of mankind.
The result of the action of the centrally planned control system was the contradiction between the structure of production and the structure of consumption, which was constantly deepening. On the one hand, they often expanded the production of not so necessary and even unnecessary products, both in heavy and in light industry On the other hand, the list of scarce goods grew.
The most important reason for the situation was that the center was not able to cover the entire system of relationships, and the existing planning and management methods focused the enterprise primarily on increasing production. At the same time, enterprises, striving to fulfill the plan, often spent resources uneconomically. It is fair to say that the idea of planning in the economy itself is quite reasonable within the enterprise as long as a specific person is responsible for all actions, risking, in case of a mistake, his property. Planning on a national scale is necessary, for example, in wartime, when the interests of individuals and firms recede into the background compared to the national task. But in peacetime, detailed centralized planning of the actions of all economic entities unreasonable, since the cumbersome and clumsy system of the State Planning Commission is unable to respond to changes in the structure of consumer demand.
A serious negative consequence of the impact of this system was the decline in the efficiency of the functioning of the economy as a whole. Capital investments were centralized and directed mainly to new construction, while existing enterprises worked on the old production base. Because of this, most of the products manufactured in the country were of poor quality and outdated designs. It was not in demand either in the foreign or domestic markets.
As a result, the end of our century became the era of the complete collapse of the economy of the countries of the socialist camp. The non-viability of this system, its insensitivity to the achievements of the scientific and technical progress, made fundamental socio-economic transformations inevitable in these countries. Planning on a national scale did not justify itself, and most of the former socialist countries were engaged in the revival of private property and the system of markets.
Mixed economy.
Speaking of a planned or market economy, one should not forget that in their pure form they can only be found on paper. In real life, the economy of most countries is somewhere between the extremes of pure capitalism and socialism, plus elements of the traditional economy.
For example, private ownership and reliance on market mechanisms do not necessarily go hand in hand, as do state ownership and central planning. Proof of this is the fascism of Hitler's Germany, which was called authoritarian capitalism. The economy here was under tight government planning and management, but property remained private. In contrast to this picture, the economy of Yugoslavia in the 1980s can be characterized as market socialism. It was characterized by state ownership of resources and at the same time reliance on the free market as a mechanism for organizing and coordinating economic activity.
And today in most countries of the world there is a mixed economic system. Under such a system, land and capital can be not only in private, but also in state ownership. Many countries have a significant public sector. It includes enterprises whose capital is partly or wholly owned by the state, but which:
do not receive plans from the state;
work according to market laws;
forced to compete on equal terms with private firms.
The distribution of factors of production is carried out both by markets and with significant state participation. Thus, the state and the market system share responsibility for solving the main economic problems of society.
State intervention in economic life necessary for a number of reasons. Here are the main ones:
Needs of society that cannot be met cash income(such as maintaining the army, fighting epidemics, etc.), the state can satisfy better than the market.
The state can mitigate the negative consequences of market mechanisms - too large differences in incomes of citizens, environmental pollution, etc.
The main functions of the state in a mixed economy include:
Development of a legal framework and some specific services, such as the activities of law enforcement agencies or government product quality standards.
Maintaining competition. Development antitrust law and tight price and quality controls in natural monopolies.
Redistribution of income. Social security programs and social transfer.
Redistribution of resources. The state from the budget pays for the resources that go to the production of "public goods", such as the construction of highways, the maintenance of national defense, etc.
In each country, such a way of managing as a mixed economy has acquired its own form - depending on the degree of state intervention in the economic life of society.
Transition economy.
The transition from one economic system to another causes a special state of the economy. The reason is usually the crisis and the transformation of the economic relations of the old system, as well as the emergence of new relations. ions inherent in the nascent system. Old and new relationships interact within the transition economy.
This situation can arise both in one country and simultaneously in a number of countries. The transition from one established economic system to another cannot happen instantly - it takes time to create a new set of economic relations. This usually takes a fairly long period of time. The duration of the transition depends on the characteristics of the country or region.
The transition from a traditional economy to pure capitalism took centuries in some countries. Elements of capitalist relations arose in the cities of Italy and Holland already in the 14th-15th centuries, however, the decomposition of feudal production and the beginning of capitalist production dates back only to the 16th century, and the final transition took place in Holland and England in the 17th century. These countries went through the classical path of development of capitalism - the initial accumulation of capital, simple cooperation, manufacture and, finally, the capitalist factory. In France, the process of primitive accumulation of capital stretched over three centuries. This is due to the stability of the absolutist state, the relative strength of the social positions of the nobility and small peasant farming. In Germany and the USA, the transition finally took place by the end of the 19th century. In Russia, however, the development of capitalist relations dragged on for more than two centuries. This process proceeded in conditions of significant remnants of feudalism and serfdom. And in the landowners' farms, where changes occurred most slowly, it was not completed even by the beginning of the 20th century.
However, today, speaking of a transitional economy, most often they mean the collapse of the former socialist camp. End of XX century characterized by a massive transition of a number of countries from an administrative-command economy to a market economy. The starting point for such transformations was the crisis of state ownership and the planned system of economic regulation. These elements began to be gradually replaced by various forms of private ownership and the formation of mechanisms for the functioning of the economy inherent in the market.
Although this process is much more intense than the transition from the traditional system to capitalism (due to the presence of a developed industrial production), it occurs in different countries in different ways. The more this or that country was "market" at the time of the establishment of the administrative-command system, the easier and faster it is now moving to the market. The Czech Republic and Hungary can serve as examples of such countries.
It should be noted that a transitional economy is characterized by a sharp aggravation of socio-economic contradictions, which fades as a mature economic system is formed.
Forms of a market economy based on private and collective ownership of the means of production. Pure capitalism, its main institutions and principles.
Above, we examined the history of the emergence of a market economy (capitalism) and identified the general characteristics of such a management system. But it should be recognized that the capitalism of the XVII-XIX centuries. significantly different from the economies of those countries that we today consider capitalist. Therefore, it is customary to distinguish between two types of capitalism: capitalism of the XVII-XIX centuries. and modern. The main differences can be seen in the table.
|
Main characteristics |
Capitalism XVII-XIX centuries. |
modern capitalism |
|
Dominant form of ownership. |
Sole private property. |
Collective, joint-stock and state property. |
|
Method of coordinating economic activity. |
Self-regulation of individual capitals on the basis of the free market. Weak government intervention. |
Active state regulation national economy in order to prevent crises, unemployment, etc. |
|
Social guarantees. |
Social insecurity of citizens in cases of unemployment, illness and old age. |
Establishment of public and private social insurance and security funds. |
Capitalism XVII-XIX centuries. comes closest to the concept of pure capitalism (we will consider its characteristic features below). As for modern capitalism, by all indications (the presence of both private and state property, state regulation) it can already be attributed to a mixed economic system.
The market economy, in comparison with all other systems, turned out to be the most flexible - it is able to rebuild and adapt to changing internal and external conditions. Competition forces manufacturers to constantly look for something new, offer the buyer better goods and services, and reduce production costs. And all this requires the use of the latest technologies and more advanced equipment. But new scientific developments are often beyond the strength of small firms; they require large expenses, which most often cannot be afforded by an individual owner of capital. And thus the development of scientific and technological progress in the twentieth century. led to the emergence of new forms of entrepreneurial activity - corporations (joint stock companies). An unlimited number of participants (depositors) can become participants in such a society, and thus it is possible to collect huge capital by selling shares. Corporations can be private if private investors become shareholders; public, organized and managed with the help of the government; and mixed - with the participation of the government and private investors.
The emergence of corporations did not eliminate free enterprise and small business, and today in countries with market economies, along with large corporations, which account for up to 90% of output, there are partnerships (collective enterprises) and individual private firms.
In the second half of the 20th century, when the scientific and technological revolution unfolded so widely and the production and social infrastructure began to develop more intensively, the state began to influence the development of the national economy much more actively. In this regard, the economic mechanism, organizational forms of economic activity and economic ties between subjects.
State regulation is also necessary because there is more and more internationalization of production. This process involves the participation of the country in the international division of labor and allows it to more rationally spend its resources. The state is supposed to protect national economy by introducing state regulation of foreign trade.
Recently, planning has become widespread both within individual firms in the form of a marketing system, and at the industry and national level in the form of forecasts for the development of social needs. Such forecasts make it possible to have a significant impact on the volume and structure of goods and services produced, focusing them on the consumer.
Thus, the modern market is a capacious multifaceted concept. Its characteristic features are: the presence of separate, independent producers, bearing material risk for their entrepreneurial activity; free pricing; competition; developed infrastructure; state intervention to create favorable conditions for the development of the economic system and social protection of the population and entrepreneurship through the implementation of appropriate economic, legal and credit policies, as well as the taxation system.
Pure capitalism.
Pure capitalism or free competition capitalism is an ideal image, an abstract model. Capitalism of the 17th-19th centuries comes closest to it, but it does not exactly correspond to the definition of “pure”. And although this type of management in the strict sense of the word has never existed in real life, its description will help to understand how the economy of the capitalist countries functions.
In its purest form, capitalism presupposes the presence of the following features:
Unlimited number of competitors, absolutely free access to the market and exit from it;
Absolute mobility of material, labor, financial and other resources;
Availability of each of the participants of the full volume of market information;
Absolute homogeneity of similar products, which is expressed in particular in the absence of trademarks and other individual characteristics of the quality of the goods. The presence of the same trademark puts the seller in a privileged monopoly position, and this is no longer a free market;
No participant in free competition is able to influence the decisions made by other participants. Since their number is very large, the contribution of each producer-seller to the total volume of production is insignificant, and therefore the price for which he is going to sell his product is hardly reflected in the market price. It turns out that real price levels do not depend much on the desires of individual economic entities and are formed using the mechanism of market coordination of the interests of sellers and buyers.
The undoubted merit of the market mechanism is that it forces each seller to think about the interests of the buyers in order to achieve a benefit for himself. Thus, as A. Smith said, "... Pursuing his own interests, he often serves the interests of society more effectively than when he consciously seeks to do so."
It should also be recognized that the market allows solving such problems of the economy as the structure and efficiency of production and product quality much better than other economic systems. All this is achieved through competition, which contains incentives for technological progress. This is due to the fact that the need to improve the efficiency of the use of scarce resources requires the reallocation of resources from industries where production technology is less efficient to industries where it is more efficient.
Finally, the mechanism of the market as a whole frees the economy from the shortage of goods and services. Under the conditions of a market economy, a stable commodity deficit is impossible, if only because it contradicts economic interests all participants in the competitive process.
From all that has been said, the following conclusions can be drawn: competition, as the main control mechanism in a market economy, favors the emergence of an identity of personal and public interests. The free market system operates and adjusts automatically as a result of individual rather than centralized decisions.
But precisely because of the absence of any centralized control, a purely market system has the following disadvantages:
a) the market system, as a mechanism for distributing the social product, is not characterized by any ethical principles and only those who can pay the equilibrium market price can receive benefits in a market economy;
b) the control mechanism and competition weakens over time;
c) the market system generates a huge difference in income and wealth levels;
d) a competitive market system does not guarantee full employment and a stable price level.
Once again, I would like to remind you that in its pure form, a free market system does not exist, and never has existed. Moreover, it could not exist, if only because no entrepreneur can have absolutely complete information about the state of the entire economy. The free market is an abstraction. At the same time, any really existing market carries elements of a free one.
Modern models of socially-oriented market economy. mixed systems.
As we have already noted, the economic system of most countries of the world can be considered mixed. Societies with different historical and cultural heritage, different customs and traditions use different methods and approaches to solving economic problems.
Let's look at the most famous models within a mixed system:
American model characterizes the comprehensive encouragement of entrepreneurial activity and personal enrichment of the most active part of the population. Those. there is a mass orientation to achieving personal success. The task of social equality is not considered here at all. Benefits are given to needy groups of the population, there is also a system of partial benefits for them, which creates an acceptable standard of living for them. America is characterized by high labor productivity. The state plays an important role in the development and observance of the rules of the economic game, the provision of R&D, freedom of enterprise, the development of education and culture.
Swedish model has a strong social policy aimed at reducing wealth inequality through the redistribution of national income in favor of the poorest segments of the population. For the successful implementation of such a social policy, a high level of taxation is established, which is more than 50% of national production (GNP). As a result, unemployment has been reduced to a minimum in the country, differences in the incomes of various groups of the population are relatively small, the level of social security of citizens and the export ability of Swedish companies are high. The Swedish model is called "functional socialization". The functions of production fall on private enterprises (the state owns only 4% of fixed assets), operating on a competitive market basis, and the functions of ensuring a high standard of living and many elements of infrastructure (transport, R&D) are assigned to the state. The main advantage of such an economy is that it combines relatively high rates of economic growth with a high level of employment and well-being of the population.
German model. This model was formed on the basis of the elimination of large concerns of the Nazi era and the provision of sustainable development opportunities for all forms of economic activity. As a result, medium and small businesses, as well as farms, using the patronage of the government, have achieved high efficiency in their economic activities. The state quite actively influences prices, duties and technical standards. This model is called the "social market economy".
The Japanese model is characterized by advanced planning and coordination between the government and the private sector. The plans are advisory in nature and are government programs that orient and mobilize individual sectors of the economy to fulfill national tasks. There are no barriers to property stratification. Such a model can exist only in conditions of highly developed national self-consciousness. In Japan, there is a priority of the interests of the nation over personal interests - the population is ready to make certain material sacrifices for the sake of the prosperity of the nation. The Japanese economy is also characterized by the preservation of national traditions while borrowing from other countries everything that is needed for the development of the country. This allows you to create such systems of management and organization of production that give the greatest success.
South Korean Model has a lot in common with Japanese. This is primarily due to the similar psychological makeup of the population, their hard work and responsible attitude to their duties. The state is also actively involved in the restructuring of the economy. But due to relatively undeveloped market relations, the South Korean government purposefully contributed to the creation of a market economy in the form of large corporations, which later grew into financial and industrial conglomerates. In addition, government agencies provided comprehensive support to small and medium-sized businesses. Another characteristic feature of the South Korean model was a clear and balanced division of functions between the center and the provinces, which also contributed to the formation of market relations.
It should be noted that in the mixed economy of different countries, a choice is made between two development paths - liberal and socially oriented.
The liberal mixed economy is based on:
1) the unconditional predominance of private property and economic legislation, ensuring maximum freedom of market entities and protecting them from state interference.
2) the focus of state regulation mainly on macroeconomic processes.
The principle prevails here - a working person provides for himself, his family and his old age. State paternalism extends to the poor and destitute.
The socially oriented economy is characterized by the following features:
1) mixed system management with a fairly significant public sector;
2) the state regulates the rules of the game in the market field for both public and private structures;
3) state regulation is carried out not only at the macro level, but also in the field of activity of economic entities;
4) the state guarantees certain provision of the needs of the population in health care, education, culture and housing;
5) regulation of employment of the population in order to minimize unemployment.
Thus, the state, through its intervention directly in the activities of industrial and commercial firms, gets the opportunity to take care of its citizens. Hence the name "socially oriented".
The emergence of such a model of a mixed economy took place in the 70-80s and today it has reached its greatest development in countries such as Germany and Sweden.
The choice of an economic system, the selection criterion is the level of transactional costs.
The search for an efficient economic system has a long history. This idea has occupied the minds of many famous economists. I.T. Pososhkov in his “Book of Scarcity and Wealth” at the beginning of the 18th century. tried to justify the need to improve the economic system of Russia of that period. Somewhat later, A. Smith devoted his main work, “Studies on the Nature and Causes of the Wealth of Nations,” to the study of this problem.
The idea of finding an ideal economic system is still relevant today. Currently, one of the most interesting theories is the idea of Ronald Coase on the influence of the level of transaction costs on the choice of the optimal economic system.
Transaction costs are those costs that society incurs when choosing an economic system, organizational forms, sizes and types of enterprises. These are the costs that are required for the creation and functioning of the structures of the economic system.
These costs vary among firms. In any economic system with developed commodity relationships, firms are forced to spend money on finding and processing information about prices and technologies, on concluding contracts and their legal execution, on monitoring their execution, and so on. Outwardly, these costs are imperceptible, but in reality they exist and can be so great that they exceed the income of the enterprise.
In a market economy, such costs fall on the shoulders of independent firms. They fund market research, technology, legal services, etc. out of their own pockets. What if it's a command-and-control system? For a long time it was believed that the state management of the economy costs society almost "for free" and does not require any costs. But in reality, to maintain such a system, to develop comprehensive plans and supervise their implementation from a single center, huge funds were required.
At present, it is impossible to judge exactly which of these two polar systems is the most economical for society. In order to compare them, accurate data on the transaction costs of similar firms in both systems are needed. As R. Coase noted, only the high cost of coordination systems and functions can eliminate the competitive price mechanism of self-government if it turns out to be more expensive than government regulation and vice versa.
Objective conditions and the economic system of modern Russia.
For quite a long period of time, the economy of the USSR developed quite successfully. The highest growth rates were observed in the late 50s - early 60s. But, starting from the mid-60s and until the mid-80s, a significant decline began in the economy of the USSR. This manifested itself in the production of the most important types of products (electricity, oil, steel, etc.).
March 1985 MS Gorbachev became General Secretary of the Central Committee of the CPSU. He portrayed the state of the Soviet economy in a negative light and declared the 70s and 80s a period of stagnation. This statement can be considered the starting point for the beginning of the transition period in the Russian economy. A course was taken to accelerate the social and economic development of the country. It was assumed that by the year 2000, thanks to the introduction of the achievements of scientific and technical progress, the most perfect society of “humane democratic socialism” would be created in the USSR, and in all respects the USSR would come out on top in the world and the previously drawn up food program would be solved.
It is worth noting that at that time the USSR was recognized as the second country in the world after the United States in terms of economic power, the ruble was a hard currency, there were no unemployed people in the country, and the inflation rate was much lower than in the West. But at the same time, there were serious disproportions both in the development National economy in general, as well as its individual branches. Some of the most important areas of development, such as computer technology and biotechnology, were generally missed. The huge material and technical base created was ineffective and worked not to improve the well-being of the people, but to reproduce itself.
Perestroika began with a change in the system of motivation and property relations. The search for economic levers to stimulate labor and search for new economic conditions began. Such "market" principles as economic independence, self-sufficiency and self-financing of enterprises were proclaimed. They created bodies of production self-government. At the same time, the creation of cooperatives and individual labor activity were encouraged. Laws were passed on property, on land, on rent. At that time, there was a split in the government into two opposing camps: "conservatives" who advocated a change in the Soviet economic system and "democrats" who insisted on the formation of a Western-style market economy.
In 1990 The Supreme Soviet of the RSFSR adopted the "Declaration of Sovereignty" of the Union Republics. This further exacerbated the political and economic crisis. A struggle began between the Center and the local administration. The weakening of state administration led to a decline in production and interruptions in the supply of the population with the most necessary products. An uncontrolled process of managing on the basis of contractual relations and barter through commodity exchanges developed in the country. Purchase and sale transactions were carried out on them through brokerage houses. The offices that got richest through mediation later became the founders of commercial banks and investment funds.
At the end of 1991 The USSR ceased to exist as a multinational state and a single national economic complex, and in 1992. The government announced a decisive step towards a market economy. The intention of the reforms is "inflationary shock therapy", i.e. stimulating economic activity through price liberalization, preferential loans, weakening control over income levels. In the future, it was supposed to overcome the financial and monetary imbalance by raising taxes and lending rates and income control.
At the same time, the privatization of state property and its decentralization unfolded. The cost of state property at that time was 1.5 trillion rubles, i.e. for 10 thousand. rubles for every inhabitant of Russia. Initially, it was planned that the Russians would be given nominal privatization checks (vouchers). Such a method would allow state property to become the collective property of enterprises, which would be an incentive to improve the work of labor collectives - after all, each employee (owner of the voucher) would be the owner of part of the property of his enterprise. But, as a result, impersonal (unnamed) vouchers were issued, which for the most part were immediately bought up by wealthy people, banks and mafia structures.
Thus, the privatization of state property has served the interests of private capital of a certain group of the population. And released on open market vouchers became like money and led to price spikes and hyperinflation. Unregulated price growth led to the fact that many industrial enterprises and agricultural organizations were unable to purchase the necessary raw materials and materials at free prices, which further aggravated the situation - both small enterprises and huge industrial plants were idle, unemployment covered most industries. Real incomes of citizens were steadily falling due to inflationary processes, which led to a decrease in aggregate demand for many groups of goods. Russian enterprises faced sales problems. The situation was aggravated by the huge flow of imports that flooded the shelves. Many enterprises turned out to be uncompetitive in the current conditions and were forced to close, which led to a new round of unemployment.
Why did the reforms in Russia not lead to positive results, which were achieved by such countries of the former socialist camp as, for example, Poland and Hungary? There are many reasons. Let's name some of them:
Absence general program organizational changes.
Criminalization of economic life and growth of corruption. (The entrepreneurial sector grew mainly from semi-criminal circles former USSR). The rapid growth of the shadow economy.
The vast territory of the country, which complicates management from the center, as well as the lack of a clear and balanced division of functions between the center and the regions.
Extremely unfavorable climatic conditions in most of the territory of Russia, nullifying the interests of both foreign and domestic investors in investing in Russian enterprises.
An unreasonable privatization policy that served the interests of only a certain group of the population and gave rise to inflation.
Non-competitiveness of the majority of Russian enterprises in the world market due to the high level of costs per unit of output. The reasons for this are the territorial and climatic features of Russia.
The diverse composition of the population on a national basis (over 300 nationalities) and its uneven distribution across the territory of Russia. This factor in periods of economic instability leads to increased interethnic conflicts.
The vast majority of the population, neither professionally, nor politically, nor in terms of its general cultural level, was ready for market relations. The economic initiative of the majority of the population has been weakened by decades of centralized economic rule.
The most important traditional sources of replenishment of the state budget have been destroyed, while there is no alternative replacement for them. Tax system does not fulfill its functions.
External public debt, the maintenance of which requires huge amounts of money, is, in fact, a "debt hole".
At present, it has already become clear that the model of radical economic transformations was built without taking into account the specifics of Russia. The result was the steadily deteriorating financial situation of the majority of Russian citizens, with the rapid enrichment of a relatively small part of society, mainly criminal and corrupt. And today the country still does not have a clear state strategy exit from economic crisis and ensuring the sustainable development of the economy.
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Tasks. Questions. |
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What is an economic system? How do economic systems differ? What is characteristic of subsistence farming? In which system are elements of subsistence farming more common? What was the reason for the transition from a traditional economy to a market economy? What is the basis of a market economy? What are the types of capitalism? What are the advantages of a market system? What are the disadvantages of the market? What is the role of the state in a planned economy? Why is state intervention necessary in the economic life of society? What are the models of a mixed economy and how do they differ? What problems arise during periods of transitional economy? What is the meaning of transaction costs? What are the features of the transitional economy in Russia? What, in your opinion, awaits Russia in the near future? |
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Tasks. Tests. |
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1. Which of the following features are characteristic of a traditional economic system: a) private property; b) natural production; c) collective property; d) state property; e) distribution of resources in accordance with traditions. 2. The presence of what signs implies capitalism: a) presence of trademarks; b) an unlimited number of competitors; c) the presence of monopolies; d) influence of sellers on the market price; e) sovereignty of the buyer. 3. What is typical for the command-administrative economy: a) private economic initiative; b) state prices; c) state ownership of the means of production; d) the influence of buyers on the price. 4. What features characterize a mixed economy: a) private property; b) state intervention in the activity of the economy; c) state property; d) government rates; e) state planning. |
