We buy groceries, choose a dress or suit in a boutique, stock up on stationery. All these actions are part of the global economic system, which is called the economy. It is she who, based on commodity-money relations, satisfies the basic needs of society and each of its members, gives us the opportunity to use in our own interests, and for the benefit of others, the vital benefits of civilization.
Human life is one continuous problem. Now we want to take a few sips of cold kvass, then try a fragrant donut, in a second we are already dreaming of a new car or a trip to the sea. Not for a single moment can we calm down and constantly crave something. All these are needs - a person's need for certain things, resources, intangible values. The role of the economy in the life of society is to satisfy them, to provide us with everything necessary for normal life and development.
All people have different needs. They are constantly transforming - this is how we grow up, get smarter, our life values, statuses, and sometimes even religion and nationality change. But the most interesting thing is that human needs are constantly increasing, and supply can never meet demand. Therefore, a person sets certain restrictions for himself: due to moral principles or due to lack of finances. This should also be taken into account by the economy. And its role in society is to balance needs and limitations, satisfying the "golden" mean between them.
Another component of the normal life of each of us. Imagine that there will be no gas. We will not be able to cook our own food, heat our houses in winter. You will say that once our distant ancestors did without blue fuel: they made fires or built stoves. You can do it now, but why? If there is a resource, you need to sell it to people for their maximum comfort and convenience. This is the economy. Its role in the life of society is to find places where resources are concentrated, create conditions for their extraction, profitable sale and making a good profit from the transaction, so that in the future the same money will be invested again in activities.
Resources are:
Unlike needs, the need for resources does not grow like mushrooms after rain. In addition, the need for them is often satisfied.
The economy and its role in the life of society is an invariable component of the normal existence of people. It is designed to ensure the availability of not only resources, but also benefits. They can be created by a person for himself personally or for other people. In the latter case, commodity-money relations work: I provide a service - you pay me for it. For example, you are going to a resort in the summer. A hotel, a swimming pool, a bowling alley, a disco and other infrastructure facilities were built by one person for another. Everyone benefits from this conditional deal: the first is income, the second is quality recreation. These are public goods. Personal ones include the creation of comfort in the house, the passion for any occupation or hobby, visiting interesting places.
The role of the economy in the life of society is undeniable. And this can be clearly traced on the basis of goods alone. Think about whether we could live in a world where culture is completely absent, where there is no elementary housing, household items. Of course not. Even primitive, mentally limited people tried to make life easier for themselves: they invented an ax, arrows and a bow, a spear. Today, we actively use not only these ancient, but also modern benefits - the Internet, a computer, a smartphone. They are constantly being improved depending on our needs and the resources that exist in the world.
What is the place and role of the economy in the life of society? Big, one might say, even the most basic. Without its normal functioning, people cannot develop, work for the benefit of the world around them, not to mention the fact that they die of hunger and want. How efficiently the economy works, demonstrates the standard of living of all members of society. It includes providing the people with all the necessary products, goods and services for their safe, comfortable and most convenient existence.
We often ask ourselves why some countries manage to achieve prosperity, while in others many people live below the poverty line. Everything is very simple. Previously, the rulers of the powers believed that high level life must be achieved solely through the conquest of rich lands, the further use of their resources. But over time, people realized that even staying in their own small territory, one can reach unprecedented heights of development. Take, for example, Japan: the country is considered rich, although it has few resources. Thanks to their effective and moderate use, the state can boast of a good provision and a high income for most of the citizens. Therefore, the role of the economy in the life of society is, of course, very great.
Undoubtedly, the main indicator is effective use resources: gas, water, electricity, timber, metal and so on. The main criteria are also considered:
Ensuring the smooth and uninterrupted operation of all these systems is the main role of the economy in the life of society. The problems and judgments associated with this concept always change depending on the time period in which the people live. For example, UN experts believe that the standard of living in each country in modern world determines the so-called personality development index. It is calculated using the values: country's GDP, the average life expectancy of residents, their level of education and general development.
There are many of them. Firstly, this is the poor performance of the indicators described above. Secondly, the use of old technologies in production, low qualification of personnel, wasteful use of the benefits and wealth of the environment, and so on. Therefore, it is so important to study the role of the economy in the life of society from childhood. The 10th grade (students) of the secondary school should already be closely familiar with the course aimed at revealing the basic concepts, so as not to make major mistakes in the future and not lead the country to poverty. On the contrary, to be able to maximize the work of the area in which the future specialist will work.
The low efficiency of the economy dooms the people to poverty. The level of poverty is determined by assessing a person's income and the ability to provide themselves with everything necessary with its help. It is logical that the richer the state, the higher its threshold. Today The World Bank set the following poverty lines: a daily income of less than 1.25 US dollars. The role of the economy in the life of society is to overcome poverty and raise the standard of living of each of its members.
The people, their general well-being, lifestyle directly depend on the standard of living, the availability of goods and resources. For example, the economy greatly affects a person's ability to buy a house, find a job, the number of women involved in production activities. Agree, if in a developed country a man earns enough and is able to provide for his family, his wife does not need to work 40 hours a week, sacrificing attention to children. She would rather stay at home, protect the hearth, take care of family members. As for work, you can go to it only for the sake of pleasure and self-development, and not for the sake of making money.
The economy and its role in the life of society can be traced even in the example of childbearing. Usually it drops sharply when the well-being of citizens worsens. Average life expectancy is another criterion by which one can assess the level of development of the state. Also here should be attributed the general discontent of the working people, the number of rallies and strikes organized by them, the total production of their labor.
Ideally, the state should not directly interfere in commodity-money relations. It is only obliged to create optimal conditions for the development of the economy: to pass laws that would give enterprises more freedom, reduce taxes, guarantee compensation. The government is also called upon to direct the funds received as a result of activities to those areas of life that affect the overall well-being of each family: health care, education, national security.
The state of roads, the level of landscaping of streets, the degree of environmental pollution, and so on depend only on the competent actions of the state. Thanks to the correct, expedient distribution of finances, these areas will be developed to the maximum. As a result, the standard of living of a person will rise, the mood of each member of society will improve, his energy and ability to work will increase - the economy will work more smoothly and bring more more income. Everything is interconnected. Therefore, if you are asked about the place and role of the economy in the life of society, there is only one answer: the most advanced. It is the core of life not only for the whole country as a whole, but also for each individual separately.
There are major and minor roles in our life. Our life can be divided into different spheres of social life. One of the elements of society is economic sphere. The economic sphere is the main sphere of society, it determines the course of all the processes taking place in it.
The economy plays a huge role in the life of society. It provides people with the material conditions of existence - food, clothing, housing and other consumer goods. The economy usually includes everything that is connected with the production, distribution, exchange and consumption of goods created by human labor. The main goal and role of the economy is to meet the needs of each individual, the needs of organizations and enterprises, as well as the whole society as a whole. economics material society welfare
For many centuries, the problem of how to satisfy the numerous needs of people was solved through the extensive development of the economy, that is, the involvement in the economy of new spaces and cheap natural resources.
With the development of scientific and technological progress, it became clear that this approach to the use of resources has exhausted itself: humanity has felt their limitations. Since then, the economy has been developing mainly in an intensive way, implying rationality and efficiency in the use of resources. According to this approach, a person must process the available resources in such a way as to achieve maximum results at a minimum cost.
The whole set of goods necessary for a person is created in two mutually complementary spheres of the economy: material production and spiritual production. The production of material goods - (bread, machine tools, electricity, etc.) is the basis of the life of human society. In the non-productive sphere, spiritual, cultural and other values are created, services are provided in the field of education, medicine (services mean expedient types of labor with the help of which certain needs of people are satisfied). Production must be continuous.
The level of development of production is reflected in the spirituality of society. If production develops on an increasing basis, then the need for cultural values also increases. People, gaining confidence in the future, spend money on a variety of entertainment, purchase goods for consumption.
If production falls, then unemployment rises, uncertainty about the future appears, crime and drug addiction grow, people become isolated, as it were, in themselves. There is a so-called subculture. Overcoming negative processes in society is stretched for an indefinite period of time. And this hurts all the foundations of the state: the family, the rule of law, etc.
Thus, the standard of living depends on production and labor productivity. The wider and more varied the production, the higher the productivity of labor, the better the quality of life and the well-being of the people.
Detailed solution Paragraph § 1 on social science for students in grade 11, authors L.N. Bogolyubov, N.I. Gorodetskaya, L.F. Ivanova 2014
Question 1. Can a society develop without an economy? How are economics and living standards related? What is the portrait new economy the beginning of the 21st century?
Society cannot develop without economy. Economy - the economic activity of society, as well as the totality of relations that develop in the system of production, distribution, exchange and consumption.
The standard of living (well-being) is the degree to which the material and spiritual needs of people are satisfied by the mass of goods and services used per unit of time. The standard of living is based on the volume real income per capita and the corresponding volume of consumption.
The new economy (neo-economics) is an economic infrastructure characterized by the predominance of intangible assets (services and technologies), and a decrease in the role of tangible assets. That is, it is the economy of knowledge, new information technologies, new business processes that provide leadership and competitiveness.
By universal human historical standards market mechanism cannot be regarded as a completely ideal form. Increasingly, researchers note in this context the so-called “market imperfection”, associated with the very problematic market opportunities in achieving a fair distribution and use of resources on Earth, ensuring environmental sustainability, and eliminating unjustified social inequality.
Question 2. What data confirm the deepening social inequality in the world?
According to the UN, the absolute extent of poverty in the world is increasing... Apparently, the future of the world economy should be associated with a more complex economic (socio-economic) mechanism than the actual mechanism of the market. In this mechanism, an increasing role will belong, along with market exchange relations, to a variety of more subtle mechanisms that involve the achievement of social harmony between the multitude of subjects of socio-economic relations.
Question 3. Using the content of the paragraph and your knowledge of the course of social science, suggest possible (except for market exchange) mechanisms for achieving social harmony between participants in socio-economic relations.
In modern international relations, issues of international cultural cooperation are of particular importance. Today there is not a single country that would not pay close attention to building strong cultural contacts with the peoples of other states.
Culture, being a process of spiritual, creative, intellectual communication, implies mutual enrichment with new ideas in the context of cultural exchange and thus performs an important communicative function, uniting those who are different in their social, ethnic, religious affiliation groups of people. It is culture that today is becoming the “language” on which the entire system of modern international relations can be built.
The theoretical and practical significance of cultural ties in the modern political space, the active processes of integration and globalization in the modern world, the problems of cultural expansion dictate the need to address the issues of international cultural exchange in the system of international relations.
International cultural exchange includes all the features of culture and reflects the main stages of its formation, which are directly related to contacts between peoples, states, civilizations and are part of international relations. Cultural ties have a significant difference from international relations in that the cultural dialogue between countries continues even when political contacts are complicated by interstate conflicts.
Cultural exchange in the system of international relations is a complex, complex phenomenon that reflects the general laws of international relations and the world cultural process. This is a complex of diverse cultural ties along the state and non-state lines, including the entire spectrum of various forms and directions of interaction, reflecting both modern international relationships, and historically developed forms, which have significant stability and breadth of influence on political, economic, social, cultural life.
Question 1. What are the place and role of the economy in society?
The economic life of society is primarily the production, distribution, exchange and consumption of goods and services. It can be material goods, industrial and Financial services as well as spiritual values.
During the production process, natural materials are transformed, giving them properties that allow them to meet the needs of people. Distribution relations and the very consumption of goods and services by people significantly affect production. They can either stimulate or hinder its development. For example, the principle of distribution according to the quantity and quality of labor, used in all developed countries, significantly stimulates the work of hired workers, gives rise to a material interest in increasing labor productivity, in creatively influencing the production process. On the contrary, the egalitarian principle of distribution does not give rise to such motives.
The fundamental incentive for the development of production is consumption as a process of using the results of production to meet certain needs of people and society.
An important manifestation economic life Societies are relations of exchange between people, acting as an exchange of activities, goods and services.
The development of society and its economic life are closely interconnected. They relate to each other as a whole and its part. Economic life, being influenced by all aspects of social life (social, political, spiritual), in turn, also significantly affects various phenomena of social life and society as a whole. This conclusion is confirmed by the following statements:
The existence of society is impossible without the constant production of material goods and services;
Social production and, above all, the established division of labor and property relations determine the emergence and development of its social structure;
Economic relations actively influence the political life of society (economically dominant social groups, as a rule, seek to influence the work of the state apparatus, the activities of political parties, etc.);
In the process of production, the necessary material conditions are created for the development of the spiritual life of society (library buildings, theaters, equipment for publishing books, newspapers, etc.).
Question 2. What determines the wealth and prosperity of the country?
The level of welfare of the state to a large extent depends on the perfection of economic mechanisms, that is, the methods and forms of combining the efforts of people in solving life support problems. Such economic mechanisms include the division of labor, specialization and trade already familiar to you from history and social studies courses. They create conditions for the achievement of high labor productivity by the employee and allow producers to exchange the results of labor on a mutually beneficial basis. The significance of the operation of economic mechanisms for ensuring the level of people's well-being can be understood if we compare the standard of living of a society based on a subsistence economy (tribes of Africa, Latin America) and a commodity economy (the developed countries of the West). (Remember the benefits latest form organization of economic life.
The reason for the low efficiency of the economy may be the use of outdated technologies, low skill levels, wasteful use of natural resources, etc. A low level of economic development leads to a decrease in consumption: in order to consume more, you need to produce more. Thus, the level of economic development directly affects the standard of living in the country.
The minimum level of consumption determines such an indicator as the poverty line (level, poverty threshold). The level of poverty is called the normatively established level of a person's monetary income for a certain period, which allows him to ensure his physical (physiological) living wage.
The World Bank defines the global poverty rate at incomes of less than $1.25 a day per person. According to him, as a result of various crises in 2009, 50 million people fell below the poverty line, and by the end of 2010, approximately 64 million people lived in extreme poverty.
Perceptions of poverty in different countries different. As a general rule, the richer a country as a whole, the higher its national poverty line. Conditions and methods of Russia's transition to market economy turned poverty into a serious problem for our country. Since the beginning of the XXI century. indicators in this area have been significantly improved. The share of the population living below the poverty line in Russia decreased from 29% to 12.6% from 1998 to 2011, i.e. by 2.3 times.
The main condition for solving this problem is economic growth.
Question 3. What economic mechanisms contribute to the movement of society to a higher level of well-being?
An important indicator and result of the economic life of a society is the standard of living of its members. This indicator characterizes a person's ability to satisfy the needs for goods, services and living conditions necessary for a comfortable and safe existence. Raising the living standards of the population is regarded as the most important goal of the country's socio-economic development.
For many centuries, the rulers were convinced that the wealth of the country and, accordingly, the well-being of its people is associated with the seizure of territories and the wealth of other peoples during wars, with the presence of significant natural resources (timber, oil, gas). However, the modern history of the economic development of countries proves that these factors are not decisive. For example, Japan is considered today a rich country, although it has limited resources and has long lost all previously captured foreign lands. The level of economic development allows the country to use these insignificant resources much more productively. It is the efficient use of production resources that is considered today as a valid criterion for the level of economic development of countries.
The standard of living in a broad sense includes many indicators: the level of people's health, the state of the environment, the degree of uneven distribution of income in society, the availability of culture, the cost of living, etc. for comparison with other countries.
Question 4. How can social peace be ensured in the context of increasing social differentiation of society?
The pace of social development, crisis or flourishing largely depends on such indicators as the total population, its growth rate, and health status. In turn, all these indicators are very closely related to the economic life of society. Thus, the birth rate is affected by the level of material well-being, living conditions, housing, the degree of involvement of women in social production.
At the same time, other social factors also influence birth rates, in particular the value preferences of the majority of the population. It is the latter that can explain the high birth rate in many countries, including Russia, at the stage of a traditional society, when a significant part of the population lived in poverty, and the decline in the birth rate in developed countries.
There is also an inverse relationship. The acceleration or deceleration of economic development depends on the total population, its density (in a region with a small population, the division of labor is difficult, subsistence farming lasts longer), growth rates (low rates make it difficult to reproduce the labor force and reduce production volumes, too high growth rates the population is forced to devote significant resources to its simple physical survival).
The health status of the population is also a factor in economic development. Its deterioration leads to a decrease in labor productivity in the economy, a reduction in life expectancy. An increase in the standard of living contributes to an increase in its duration. Yes, for last years the average life expectancy of men in Russia increased and in 2012 amounted to 62 years.
The economic life of society has a noticeable influence on the formation of professional social communities. In traditional societies, where the social structure is most stable, socio-professional groups associated with subsistence farming, small-scale production. In the developed countries of the West, under the influence of the scientific and technological revolution, a new middle class (intelligentsia, managers, highly skilled workers) is growing. At the same time, structural changes in the economy lead to a reduction in the industrial working class, the disappearance of clear boundaries between it and other social groups.
Question 5. Do we need democracy in a market economy?
The market economy, left to itself, gives advantages to one social strata and, conversely, “punishes” others. If it is not corrected with the help of social policy, then it can degenerate into a system that operates in the interests of a minority of society (the elite) and against the majority.
Social politics Russian government is aimed at supporting low-income citizens, regulating labor relations and facilitating the employment of the unemployed population, ensuring the availability of education and assistance in retraining personnel, and ensuring freedom of entrepreneurship.
The problem of harmonizing the interests of various participants in the economic life of society remains relevant, therefore, the economic and social spheres must complement and mutually support each other.
Democracy and the rule of law create the most acceptable conditions for the functioning of a market economy. Thus, it is important for an entrepreneur to start his own business, knowing the “rules of the game” in the market space (what laws he can act on, what taxes to pay, etc.). And issues important to the economy, such as taxation, environmental laws, ordinances governing the relationship of employers and employees, should be openly discussed, taking into account the views of various parties.
In turn, the rule of law is based on civil society, which is made up of citizens who make their own decisions, realizing private interests. Structural units of civil society in the economic sphere are private enterprises, cooperatives, joint-stock companies and other production cells created by citizens on their own initiative.
Question 6. Does government policy affect the conditions for the functioning of a market economy?
One of the public functions of the state is the use of available opportunities for economic development. Each country is faced with the problem of choosing the best option for such development, and the role of public policy. In recent decades, this policy has undergone a major reorientation in Russia.
In a market economy, the main functions of the state are to facilitate and stimulate the action of market forces through government policies. The most general, important condition for the existence of a market economy is the implementation by the state of such political goals as the free development of society, the legal order, external and internal security (these goals were indicated by Adam Smith).
The free development of society is understood both as a social and as economic category. The higher the individual's freedom is valued in society, the more significant economic freedom is perceived.
The state is interested in ensuring legal reliability economic activity. The creation of a legal order involves, first of all, ensuring, through laws, the right to property, the right to freedom of entrepreneurial activity.
Ensuring external and internal security involves the creation by the state of institutions to maintain public order within the country and the presence of a professionally trained army capable of protecting the country from outside attacks.
An important task of the state is the protection and maintenance of competition in the national economy, the fight against the desire of firms for monopoly. For the developing market economy of Russia, this is one of the most pressing problems. (Give examples of antimonopoly regulation of the economy by the Russian government.)
Question 7. What are the priorities of the policy of the Russian state in the economy?
The priorities of the Russian state in the economy are constantly, although certainly not dynamic, changing depending on the global political and economic situation.
At the moment, serious attempts are being made to change this vector in the direction of focusing on high, science-intensive technologies and increasing labor productivity.
Awareness of the need for such changes occurred a long time ago, but the political and economic preconditions forcing this process to be accelerated are only now being formed, before our very eyes.
Question 1. Aristotle, discussing the role of the state in economic affairs, noted that "the goal of the state is a joint promotion to a high quality of life." Do you share this point of view? Justify your answer.
All activities of the state should be aimed at improving the quality of life of citizens living in the country. And joint promotion means that both citizens and the state should work together as much as possible to improve the quality of life in the country.
Question 2. The population of the Earth is growing rapidly. In 2011, it amounted to 7 billion people. The first billion was reached by about 1800, and it took another 125 years to reach 2 billion. However, it took 50 years for the population to rise from 3 to 7 billion. At the same time, the center of growth from Europe and North America has moved to the countries of Southeast Asia and Africa. Explain the connection demographic situation in peace with the economic life of society. How does fast growth population in poor countries and population decline in developed countries on their economic development as a whole, on such indicators as living standards, incomes of the population, labor productivity, etc.?
The demographic situation is directly related to the economic life of society. If the population in poor countries increases, then the country will become even poorer, the standard of living will fall, incomes will decrease, all this will happen due to the labor market, etc. The more people in underdeveloped countries, the worse the situation in the country.
Population growth or decline does not affect economic development in general, as well as income, living standards, etc., until the situation becomes catastrophic. In this case, everything happens in accordance with normal development - the poor countries become even poorer, and the rich, hiring cheap labor, continue to get richer. However, it is precisely at these moments that global changes are possible on political map peace - wars become, first of all, wars for territories, and, accordingly, for food and other resources.
Question 3. How does the process of differentiation of incomes of the population in market conditions on the attitude of workers to work? What are the positive and negative results of socio-economic differentiation in the course of reforms in Russia.
The ratio of workers to work will fluctuate depending on the price for their work (in other words, wages). The higher the efficiency of labor, the more salary. The difference in income has not carried anything good yet. This is the germ of stratification.
Pluses - this is the desire to get an education in order to be in demand in the future as a qualified specialist who earns a lot of money. Minus - further stratification of the population. Stratification. The division into rich and poor.
3.1. Economy, its role in the life of society.
The word "economy" appeared in ancient times. It belongs to Aristotle and comes from two Greek words "oikos" - household, house and "nomos" - law. In other words, the concept of "economy" can be defined as the laws of housekeeping, housekeeping. The basis of such an economy is the production and consumption of vital goods necessary for the life of people, members of this house.
In the 17th century, the term “political economy” was introduced into circulation, in which the word “politey”, meaning social structure, led to a new understanding of the economy at the level of not a single economy, but at the level of the whole society. Thus, the economy began to be interpreted as the laws of public economy. And this meant that each farm is in close connection with other farms and depends on their activities. Together they make up national economy(the economy of a particular state), which are included in the global (world) economy of the planet Earth.
The economy is based on the needs of people and economic interests that compel them to act in one way or another. As a result, relations arise between people regarding the production, exchange, consumption and appropriation of life's goods, which are usually called economic relations.
The economy in the modern sense is an economic system that ensures the satisfaction of the needs of people and society by creating the necessary living goods. In modern conditions, this system includes production and infrastructure. Production covers: the material sphere, where material goods are created, the non-material sphere, where spiritual, scientific, cultural and moral values are created, the service sector, in which any needs are satisfied. For example, trade or notary services, transport or telephone communications etc.
It is customary to interpret economics in three terms:
the economy as a system of relations between people, due to the production, exchange and consumption of vital goods,
the economy as the economy of an individual (family, enterprise, region, state, group of countries and the whole world),
economics as a discipline that studies the manifestations of the economic life of a person, company, society.
Economics has practical implications for business. Understanding the general nature of the functioning of the economic system helps the head of the enterprise to better determine his economic policy, to make reasonable economic decisions. Knowing the course of economics gives the individual as consumer and as worker some idea of what the best solutions when buying goods and hiring, what kind of work to choose, what to invest in.
Economics, for all its practical usefulness, is a predominantly academic subject.
Thus, economics is a science that studies the activities of an individual, a group of people, society as a whole to provide certain material conditions for the organization of life.
Economic theory consists of two sections: ^ Microeconomics and Macroeconomics. Microeconomics examines the behavior, economic life of households and individual firms. Its features are:
Study of the behavior of a firm, a household as economic agents in a market system and, therefore, taking into account the constant choice of decisions, price fluctuations in the process of interaction between supply and demand and the determination of costs;
Study of the impact of the state on firms, households;
Studying the conjuncture and the factors that determine it in private markets;
The study of such phenomena as the interests of individuals, the usefulness of goods and services, supply and demand.
Macroeconomics considers the behavior or functioning of the national (world) economic system as a whole. Its features are:
Research of branches and spheres of the economy, economic relations between them, development of the national and world economy,
The study of such phenomena and processes as employment and unemployment, the general dynamics of prices, national income, expenditures, etc.
The main difference between micro- and macroeconomics is not in the scale of the objects they study, but in those that take place in national farms economic processes that make up these objects. P. Samuelson says that microeconomics is a separate tree in the forest, and macroeconomics is a forest.
3.2. Goods and services, resources and needs, limited resources.
All economic relations based on the production and sale of goods or services.
^ Material production (production of goods)
The key to the study of the economic life of society is the analysis of material production, since society cannot exist without the production of material goods necessary for the life of people. The production of the means of subsistence forms the starting point of the history of mankind, its first historical act.
This sphere is not only historically the first, it is also the "progenitor" of all other spheres of society's life - social, political, spiritual. It is the economic sphere as a basis that integrates the remaining subsystems of society into integrity.
In the process of material production, people interact with each other in order to effectively influence nature. In this area, a person and society are satisfied with material goods: food, clothing, housing, etc.
way of producing wealth economic way production) includes productive forces and relations of production.
Productive forces are a system of subjective (human) and material (technical, objects of labor) elements necessary for the process of material production.
decisive element productive forces is a person.
^ The means of labor is a complex of things that a person places between himself and nature to influence it. Among the means of labor, tools of labor are distinguished, with which a person directly affects nature.
^ Objects of labor - everything that human labor is aimed at. The relations of production that develop between people in the process of production, distribution, exchange and consumption of material goods are called relations of production.
The relations of production represent a complex system imbued with a single principle. This means that in this system there are some fundamental relationships that cement it, act as backbone. This attitude is primarily production relation- ownership of the means of production. There are various forms of ownership - personal, private, public.
At present, most experts believe that private property is most closely connected with human nature, with its vital needs. It is she who gives people property independence, develops personal initiative, stimulates and improves entrepreneurial skills, instills a sense of responsibility in their business. Private property strengthens the legal consciousness, the culture of law-abiding. A person's life is manifested in his property.
In our country, the importance of private property was denied, but time proved the unreasonableness of this.
Resources and needs: Production resources - an economic category that denotes the resources actually involved in the production process.
AT economic theory There are four main production resources:
"Earth" meaning:
A) all natural resources used in the production process;
B) an object of management in a number of industries (agrarian, mining);
B) property.
"Capital" - material and financial resources(all types of buildings, structures, machinery and machines for industrial purposes, equipment and tools; land; raw materials and materials; energy and ideas; computer software, various information of economic content, money).
"Labor" is the part of society that is directly involved in the production process.
"Entrepreneurship" - combines all of the above resources in one enterprise.
Markets of production resources - the sphere of commodity circulation of the most important groups of resources economic activity: land, natural resources and artificial raw materials, labor resources of various specialties and qualifications, capital and technical resources, information, knowledge, intelligence, methods of their transfer.
The movement of productive resources is mediated by money markets and valuable papers, adjustable economic policy states.
The demand for production resources has its own specifics:
The demand for resources has a derivative, secondary character in comparison with the demand for final consumer goods, since the need for them arises only if they can be used to produce consumer goods and services.
The demand for any resource can rise or fall depending on whether the demand for consumer goods produced by a given factor of production.
Demand for resources is presented only by entrepreneurs.
The demand for resources is an interdependent process, where the volume of each resource involved in production depends on the price level not only for each of them, but also for all other resources and factors associated with them.
Price is one of the most important conditions for changing the elasticity of demand for each production resource. Demand is more elastic, ceteris paribus, for those resources that have a lower price, because Replacing more expensive inputs with cheaper ones lowers production costs.
The supply of productive resources is the quantity that can be represented on the markets at the current prices. In the markets for inputs, demand creates supply. But the offer depends on the specifics of each particular resource. In general, the supply of productive resources is subject to the law of rarity, limited resources.
Needs: -biological (food, clothing, safety)
Spiritual (everyone else)
3.3. Economic systems and property.
Own.
Property is a system of economic and legal relations between people regarding the possession, disposal, management, use and appropriation of life's goods, due to any property (land, real estate, money, capital) or information.
Property relations are constantly (systematically) recurring, reproducible relations between people, inextricably linked with property rights possession, disposal, management, use and appropriation of the means of production and the results of their use.
Consequently, property relations are the rights to own and dispose of property (donation, sale, inheritance).
Assignment - economic connection between people, which establishes their attitude to things as to their own. Appropriation can be combined with the opposite attitude - alienation. It arises, for example, if some part of society seizes all the means of production, and when products created by some people are appropriated by others without any compensation. Such were, say, the relationship between the feudal lords and serfs employed in corvee.
An example of relations for the economic use of someone else's property is a lease - an agreement on the provision of the property of a person for temporary use to another person for a certain fee. A similar picture is with a concession - an agreement under which the state leases to private individuals, foreign firms industrial enterprises or plots of land for a specific industrial activity.
After the state legally regulates property relations between persons, they are endowed with the right of ownership. This right includes the powers of the owner to own, use and dispose of the property.
Possession is the physical possession of a thing. This right of the owner is protected by law. Legal ownership of property always has a legal basis (law, contract, administrative act).
Use - consists in the right to consume productively or personally to satisfy one's own needs and interests, depending on its purpose (for example, to use a car to transport people and goods).
The owner can transfer his property to the use of other persons for some time and on certain conditions.
The boundaries of the right to use are determined by law, contract or other legal basis (for example, a will).
Disposition - the right to change the assignment (belonging) of property. It is most often carried out by making various transactions (purchase - sale, exchange of one thing for another, donation).
The powers of the owner indicated here may be temporarily limited at his initiative. Thus, a person who leases a thing to another person deprives himself of the right to own and use the thing for the duration of the property lease agreement.
^ Types and forms of assignment
General indivisible appropriation means that all people united in a collective treat the decisive means of production or other means of subsistence as jointly and indivisibly belonging to them, an indissoluble unity and equality of joint owners is established in relation to the main economic conditions of their life support. This suggests the following implications:
A) the alienation of workers from the means of production is not allowed;
B) collective appropriation of the products of common labor is generated;
C) a trend is developing towards an equal distribution of consumer goods.
The general inseparable assignment appears in the following specific forms:
A) primitive
B) family (in terms of jointly acquired property);
C) collective (collective enterprise with indivisible property);
D) public property.
^ Private appropriation means that individuals treat property as a personal source of enrichment. Private appropriation has two types that differ significantly from each other: ownership of the means of production by a person who himself works, and ownership of the means of production by a person who uses someone else's labor (slave ownership, feudalism and individual capitalism).
Two socio-economic methods of combining factors of production are used: a) non-economic (violent) coercion and b) economic attraction of workers to work.
In a slave-owning society, as is known, private property extended not only to the material conditions of production, but also to people.
In feudal society, the position of workers has changed significantly. Along with the property of the feudal lords, there was the sole property of peasants and artisans.
A deep qualitative change in the socio-economic ways of combining factors of production occurred already at the initial stage of development capitalist society when the sole ownership of the means of production by the bourgeoisie was established. Employees, being legally free, can choose the place and type of work at their own discretion. They receive wages for their work and are interested in the results of production to a certain extent. Therefore, as a rule, methods of non-economic coercion are not applied to them.
^ In joint-share (or mixed) ownership, the basic principles of general and private appropriation are organically combined. This is achieved in the following way.
Firstly, mixed ownership is formed by combining the contributions that all participants in the enterprise make to the common property.
Secondly, jointly-shared property is used for common purposes and under a single management.
Thirdly, the final results of the economic activity of the enterprise are distributed according to the share of ownership of each.
Jointly-shared property appears in specific forms:
Joint-stock company;
A cooperative based on shares of participants;
Partnership;
Large economic associations of enterprises (associations, unions, etc.)
Joint ventures (with the participation of national and foreign capital);
Jointly-shared property of the spouses who have concluded the corresponding marriage contract.
^ Economic systems and their main types
The economic system is a specially ordered relationship between producers and consumers of tangible and intangible goods and services.
Economic science distinguishes the following types of economic (economic systems):
Traditional (pre-capitalist);
Market (capitalist);
Planned (socialist);
Mixed.
These types differ in the type of ownership on economic resources, as well as by the method of solving the main economic issues(what to produce, how to produce and for whom to produce), the method of coordinating the economic activities of people, firms, states. It is characteristic of the traditional economic system that land (the main means of production) and capital are in communal or state ownership. Resources are distributed in accordance with existing traditions. In this economic system, such questions as: what to produce, whether it is profitable, for whom to produce and how to produce, are not worth it. Factors of production are used inefficiently here.
In a market economy, land and capital are usually privately owned, and limited resources are distributed by market mechanisms, the main issues of the economy are decided by the producer himself according to the laws of the market. The market system has a cyclical, spontaneous nature, subject to crisis phenomena. Therefore, it is no coincidence that as an antipode to this economy, a planned economy arises, in which land, capital, means of production are owned by the state, limited resources are distributed by the state in accordance with plans. The state also decides the main issues of the economy.
The introduction of a planned economy into economic life was not crowned with success. Currently, in most countries there is a mixed economic system in which both the market mechanism and state regulation operate.
Traditional system
The traditional system exists in underdeveloped countries. This system is based on a mixed economy, widespread manual labor and backward technology.
The multistructural nature of the economy means the existence of various forms of management. In a number of countries natural-communal forms based on extensive collective farming and natural forms of product distribution are preserved. In countries with a traditional system, small-scale production, based on private ownership of productive resources and the personal labor of their owner, plays an important role; this includes peasant and handicraft farms.
Traditions and customs, religious and cultural values, caste and class divisions, which act as a brake on socio-economic progress, are at the heart of the life of the traditional system.
The existing statutes in a traditional society hinder technological progress, which negatively affects labor productivity. A high birth rate at a given level of economic development dooms a huge number of the population to a miserable existence. AT traditional system the state plays an active role. The vast majority of the national income it is forced to allocate to provide social support to the population and the development of infrastructure.
In these countries, in conditions of relatively weak development of national entrepreneurship, foreign capital plays an important role.
^ Market economy. Pure capitalism
This system took shape in the 18th century and existed depending on the dynamics of the development of countries until the beginning of the 20th century.
Many elements of this system function in the modern market economy.
Pure capitalism is characterized by private ownership of both production and labor resources. The market system itself acts as a coordinator of economic activity. The state does not interfere in its functioning, since it does not play any role in the distribution of resources, all decisions are made by market entities at their own peril and risk in order to maximize profits with minimal use of labor and investment resources.
Characteristics of a market economy Main features Main "pluses" ^ Main "minuses"
Private ownership of the means of production.
Stimulates high entrepreneurial spirit and efficiency.
Increases inequality in society.
Freedom of enterprise.
Rejects inefficient and unnecessary production.
Instability in the economy.
Freedom to choose economic partners.
Basically a fair distribution of income according to work.
He does not care about creating the necessary for society, but non-profit benefits.
Personal benefit of participants in economic relations.
More rights and opportunities for consumers.
Indifferent to the damage that business can cause to people and nature.
Self-regulation of the economy by market factors.
It does not require a large apparatus of managers.
Minimal state intervention in the economy.
^ Command system
The command (totalitarian) system is the exact opposite of a market economy. The command system dominated in the USSR, in the countries of Eastern Europe and a number of Asian states from 1917 to 1992. characteristic features command system are public (state) ownership of virtually all economic resources and the collective acceptance economic decisions. The management of the country's economy was carried out centrally through state planning. economic mechanism command economy through totalitarian control practically deprived economic objects. The absence of elementary market relations completely undermined the material interest of individuals and legal entities in the results of labor. Centralization in management led to the monopolization of production and marketing of products.
State regulation prices against the backdrop of monopolization of the economy, the slowdown of scientific and technical progress naturally gave rise to an economy of deficit. The paradox was that the deficit occurred under conditions of universal employment and almost at full load. production capacity. The reason for this is simple - the economy did not work on demand, since it was almost impossible to foresee and detail the structure of social needs and their changes from the center.
Characteristics of a command economy Main features Main "pluses" ^ Main "minuses"
State property to the means of production
A more sustainable economy.
Forms non-initiative workers who are not interested in the results of labor.
State planning of the entire economy.
More confidence in the future.
Economic inefficiency.
Administrative methods of economic management.
Less inequality in society.
Dictatorship of producers over consumers.
There are no economic incentives to work effectively.
A minimum of life support is guaranteed to everyone.
The low standard of living of the people.
There is no employment problem.
^ Mixed economic system
State in modern society plays a significant role without crossing boundaries that would violate the economic laws of the market. The state determines the customs and tax policy regulates the actions of monopolies in the market. The state produces individual cases and distributes goods and services, controls some prices (for example, for energy).
Today it is clear to everyone that the economy cannot be separated from the state, just as the state cannot function without relying on the economy. However, the degree government intervention in the economy, many countries decide differently.
3.4. Production, labor productivity. Division of labor and specialization.
Production is one of the possible activities of an organization or individual aimed at creating an end product or service.
AT economic sense process of creation different types economic product. The concept of production characterizes a specifically human type of exchange of matter with nature, or more precisely, the process of active transformation of nature by people in order to create the necessary material conditions for their existence.
A manufacturing plant is also called manufacturing.
Modern social production includes not only material production, but also the non-material sphere - the production of intangible goods and services (new scientific discoveries, technical inventions, public education, culture, art, healthcare, consumer services, management, financing and lending, sports and etc.). The development of non-material production and the service sector depends to a decisive extent on the production of material goods - its technical equipment and output.
Breeding of animal and plant products with the help of the natural forces of nature (agricultural production and its branches: forestry, cattle breeding, fish farming, etc.);
Processing of raw materials into a form suitable for human consumption (manufacturing industry);
Transfer of economic benefits from producers to consumers (trade (retail), organization of warehouses and transport (logistics)).
Financial activities: banking and insurance activities
Spiritual production: new scientific discoveries, technical inventions, programming, public education, culture, art, health care, consumer services, management, sports, etc.
Labor productivity - labor efficiency. Labor productivity can be measured by the amount of time spent per unit of output or by the amount of output produced by an employee over a period of time. Usually under labor productivity in economic statistics of course, the actual productivity of labor, but in economic cybernetics, in particular, in Stafford Beer's model of viable systems, the concepts of cash and potential labor productivity are introduced.
The growth of labor productivity means the saving of labor costs (working time) for the manufacture of a unit of output or an additional amount of output per unit of time, which directly affects the increase in production efficiency, since in one case the current costs for the production of a unit of output are reduced under the item “Wages the main production workers", and in the other - more products are produced per unit of time.
^ The actual productivity of labor is determined by dividing the actual output in units of measurement of this type of product (production), by the actual costs of living labor in units of time (labor intensity).
^ Available labor productivity is a calculated value that shows how much product can be produced under current conditions (for example, on existing equipment from available materials) if all downtime and delays are reduced to zero.
^ Potential labor productivity is a calculated value that shows how much production can be produced in theoretically achievable data natural conditions at this level of civilization (for example, from the best materials available on the market, using advanced technologies and installing the most modern equipment available on the market) if all downtime and delays are reduced to zero.
^ Division of labor and specialization.
The division of labor is a historically established process of isolation, modification, consolidation of certain types of labor activity, which takes place in public forms differentiation and implementation of various types of labor activity.
For example, the main method of work in accounting is the division of labor of specialists. We distribute the work of employees by sections accounting under the guidance of leading experts and auditors, which allows to achieve maximum efficiency of their work. Thus, we dynamically combine experience in the field of accounting automation and experience in the field of administration of accounting services.
Distinguish: - the general division of labor in the branches of social production; - private division of labor within industries; - a single division of labor within organizations according to technological, qualification and functional characteristics.
It is the reason for the increase in the overall productivity of an organized group of specialists (synergistic effect) due to:
Development of skills and automatism of performing simple repetitive operations
Reduced time spent transitioning between different operations
The concept of the division of labor is quite fully described by Adam Smith in the first three chapters of his five-volume treatise An Inquiry into the Nature and Causes of the Wealth of Nations.
Allocate social division of labor - distribution in society social functions between people - and the international division of labor.
The division of labor has led in the modern world to the presence of a huge variety of different professions and industries. Previously (in ancient times), people were forced to provide themselves almost completely with everything they needed, it was extremely inefficient, which led to a primitive life and comfort. Almost all the achievements of evolution, scientific and technological progress can be explained by the continuous introduction of the division of labor. Thanks to the exchange of the results of labor, that is, trade, the division of labor becomes possible in society.
The market sells and buys a special commodity - labor power.
The labor force is the physical and mental capabilities, skills, abilities that allow a person to perform certain types of work, while ensuring the necessary level of labor productivity and quality of manufactured products.
An integral element of the labor market is unemployment - this is a situation in the economy in which some people cannot find work. The state is working to reduce it. In the same time modern economy came to the conclusion that the complete eradication of unemployment is impossible, it is not necessary. Experts believe that having natural level unemployment is necessary, it helps to maintain the necessary competition in the labor market. But a high level of unemployment can lead to many negative phenomena in society and to social conflicts.
From a social and economic point of view, a long duration of unemployment is dangerous. Sociologists say that if a person does not work for 2 to 3 months, then he loses his desire to work, after 9 months the skill in work is lost, i.e. there is some disqualification.
Unemployment is conditionally divided into natural and involuntary.
The natural form includes the following types of unemployment:
frictional - the movement of people from one job to another, from one region to another. The movement itself takes a certain amount of time to find. new job. This type of unemployment is short-term;
institutional - provoked by the actions of the state itself, when it becomes unprofitable to work. For example, large payments from the social budget, imperfection tax system, at wages, which is lower than the unemployment pension, etc.
voluntary form. The name itself speaks for itself. There will always be people among the working-age population who, for certain reasons, simply do not want to work.
More difficult is involuntary unemployment, which, as a rule, exceeds the natural rate and is associated with events that do not depend on the will of employees. Involuntary unemployment has the following types:
Structural unemployment is associated with the release of labor under the influence of structural changes in the economy. There are changes in the demand for resources. The demand for certain professions and specialties is changing, one part of the people who do not meet the new technological requirements have to be fired, the other part, the most prepared and with sufficient education, are taught new specialties;
regional unemployment is formed under the influence of a combination of historical, demographic and socio-psychological factors. The solution of this problem is carried out on the basis of national targeted programs;
cyclical unemployment is associated with a cyclical decline in production and, as a rule, with a corresponding decline in the demand for labor.
hidden unemployment is most characteristic of modern Russia. Due to the incomplete use of production resources in conditions economic crisis enterprises, fighting for the safety of personnel, do not dismiss employees, but transfer them to a shorter working week, and in more difficult cases send employees on unpaid leave.
3.5. Exchange, trade.
The origins of market relations go back to ancient times, when people entered into a sale and purchase relationship through a simple (natural) exchange of goods, when they mutually acquired what they did not have, but which was vital for them.
Exchange in the economy - the movement of goods from one owner to another.
It can be violent or non-violent. Trade is a form of non-violent exchange.
The exchange presupposes the presence of a measure of equivalence of goods, which requires a comparison of things that are different in appearance, quality, form and purpose. This requires a single basis, which is the value of goods.
The exchange can take place both with the participation of money and without it (barter)
Trade is the process of exchanging goods, services, values and money. In a broad sense, a type of activity (including entrepreneurial) associated with the sale and purchase of goods. Distinguish between wholesale and retail trade.
Trade as a type of activity refers to intermediary services, i.e. is a third party between producers and buyers of goods.
Trade between countries ( international trade) is divided into imports and exports.
Invisible trade - services provided mainly by transport companies in the transportation of goods and passengers of third world countries; implementation of insurance and credit operations; organization of foreign tourism; leasing equipment and real estate abroad.
Trade is a significant source of tax revenues to the budget of a country or region.
Profit in the most general terms can be defined as
We buy groceries, choose a dress or suit in a boutique, stock up on stationery. All these actions are part of the global economic system, which is called the economy. It is she who, based on commodity-money relations, satisfies the basic needs of society and each of its members, gives us the opportunity to use in our own interests, and for the benefit of others, the vital benefits of civilization.
Human life is one continuous problem. Now we want to take a few sips of cold kvass, then try a fragrant donut, in a second we are already dreaming of a new car or a trip to the sea. Not for a single moment can we calm down and constantly crave something. All these are needs - a person's need for certain things, resources, intangible values. The role of the economy in the life of society is to satisfy them, to provide us with everything necessary for normal life and development.
All people have different needs. They are constantly transforming - this is how we grow up, get smarter, our life values, statuses, and sometimes even religion and nationality change. But the most interesting thing is that human needs are constantly increasing, and supply can never meet demand. Therefore, a person sets certain restrictions for himself: due to moral principles or due to lack of finances. This should also be taken into account by the economy. And its role in society is to balance needs and limitations, satisfying the "golden" mean between them.
Another component of the normal life of each of us. Imagine that there will be no gas. We will not be able to cook our own food, heat our houses in winter. You will say that once our distant ancestors did without blue fuel: they made fires or built stoves. You can do it now, but why? If there is a resource, you need to sell it to people for their maximum comfort and convenience. This is the economy. Its role in the life of society is to find places where resources are concentrated, create conditions for their extraction, profitable sale and making a good profit from the transaction, so that in the future the same money will be invested again in activities.
Resources are:
Unlike needs, the need for resources does not grow like mushrooms after rain. In addition, the need for them is often satisfied.
The economy and its role in the life of society is an invariable component of the normal existence of people. It is designed to ensure the availability of not only resources, but also benefits. They can be created by a person for himself personally or for other people. In the latter case, commodity-money relations work: I provide a service - you pay me for it. For example, you are going to a resort in the summer. A hotel, a swimming pool, a bowling alley, a disco and other infrastructure facilities were built by one person for another. Everyone benefits from this conditional deal: the first is income, the second is quality recreation. These are public goods. Personal ones include the creation of comfort in the house, the passion for any occupation or hobby, visiting interesting places.
The role of the economy in the life of society is undeniable. And this can be clearly traced on the basis of goods alone. Think about whether we could live in a world where culture is completely absent, where there is no elementary housing, household items. Of course not. Even primitive, mentally limited people tried to make life easier for themselves: they invented an ax, arrows and a bow, a spear. Today, we actively use not only these ancient, but also modern benefits - the Internet, a computer, a smartphone. They are constantly being improved depending on our needs and the resources that exist in the world.
What is the place and role of the economy in the life of society? Big, one might say, even the most basic. Without its normal functioning, people cannot develop, work for the benefit of the world around them, not to mention the fact that they die of hunger and want. How efficiently the economy works, demonstrates the standard of living of all members of society. It includes providing the people with all the necessary products, goods and services for their safe, comfortable and most convenient existence.
We often ask ourselves why some countries manage to achieve prosperity, while in others many people live below the poverty line. Everything is very simple. Previously, the rulers of the powers believed that a high standard of living should be achieved solely through the conquest of rich lands and the further use of their resources. But over time, people realized that even staying in their own small territory, one can reach unprecedented heights of development. Take, for example, Japan: the country is considered rich, although it has few resources. Thanks to their effective and moderate use, the state can boast of a good provision and a high income for most of the citizens. Therefore, the role of the economy in the life of society is, of course, very great.
Of course, the main indicator is the efficient use of resources: gas, water, electricity, timber, metal, and so on. The main criteria are also considered:
Ensuring the smooth and uninterrupted operation of all these systems is the main role of the economy in the life of society. The problems and judgments associated with this concept always change depending on the time period in which the people live. For example, UN experts believe that the standard of living in every country in the modern world determines the so-called personality development index. It is calculated using the following values: the country's GDP, the average life expectancy of residents, their level of education and general development.
There are many of them. Firstly, this is the poor performance of the indicators described above. Secondly, the use of old technologies in production, low qualification of personnel, wasteful use of the benefits and wealth of the environment, and so on. Therefore, it is so important to study the role of the economy in the life of society from childhood. The 10th grade (students) of the secondary school should already be closely familiar with the course aimed at revealing the basic concepts, so as not to make major mistakes in the future and not lead the country to poverty. On the contrary, to be able to maximize the work of the area in which the future specialist will work.
The low efficiency of the economy dooms the people to poverty. The level of poverty is determined by assessing a person's income and the ability to provide themselves with everything necessary with its help. It is logical that the richer the state, the higher its threshold. Today, the World Bank has set the following poverty lines: a daily income of less than $1.25. The role of the economy in the life of society is to overcome poverty and raise the standard of living of each of its members.
The people, their general well-being, lifestyle directly depend on the standard of living, the availability of goods and resources. For example, the economy strongly influences a person's ability to buy a house, find a job, the number of women involved in production activities. Agree, if in a developed country a man earns enough and is able to provide for his family, his wife does not need to work 40 hours a week, sacrificing attention to children. She would rather stay at home, protect the hearth, take care of family members. As for work, you can go to it only for the sake of pleasure and self-development, and not for the sake of making money.
The economy and its role in the life of society can be traced even in the example of childbearing. Usually it drops sharply when the well-being of citizens worsens. Average life expectancy is another criterion by which one can assess the level of development of the state. Also here should be attributed the general discontent of the working people, the number of rallies and strikes organized by them, the total production of their labor.
Ideally, the state should not directly interfere in commodity-money relations. It is only obliged to create optimal conditions for the development of the economy: to pass laws that would give enterprises more freedom, reduce taxes, guarantee compensation. The government is also called upon to direct the funds received as a result of activities to those areas of life that affect the overall well-being of each family: health care, education, national security.
The state of roads, the level of landscaping of streets, the degree of environmental pollution, and so on depend only on the competent actions of the state. Thanks to the correct, expedient distribution of finances, these areas will be developed to the maximum. As a result, the standard of living of a person will rise, the mood of each member of society will improve, his energy and ability to work will increase - the economy will work more smoothly and bring even more income. Everything is interconnected. Therefore, if you are asked about the place and role of the economy in the life of society, there is only one answer: the most advanced. It is the core of life not only for the whole country as a whole, but also for each individual separately.
