Type of ownership in a command economy. The traditional economic system: its pros and cons

Any economic system must solve the following problems: what to produce; how to produce (what resources and technologies to use, what types of enterprises should prevail in

economy, what are the optimal sizes of firms, etc.); for whom to produce (the problem of distribution of the produced product between economic agents, the problem of income inequality, the structure of production, etc.). Traditional economic system The traditional economy is based on traditions that are passed down from generation to generation. These traditions determine what goods and services are produced, for whom, and how. The list of benefits, production technology and distribution are based on the customs of a given country. The economic roles of members of society are determined by heredity and caste.

Characteristic features of economies of the traditional type: Weak development of equipment and production technologies; A large share of manual labor in all sectors of the economy; Insignificant role in the traditional economy of entrepreneurship, including small business with a constant increase in the scale of activities of large divisions; The predominance of traditions and customs in all aspects of the life of society.

Market economic system

The main features of the capitalist economy: Private property, Freedom of entrepreneurial choice, Competition, Reliance on the market system, Limited role of the state. A market economy is characterized by private ownership of resources and the use of a system of markets and prices to coordinate and manage economic activity. What, how and for whom to produce is determined by the market through the mechanism of supply and demand. In such an economic system, the government does not interfere in the economy.

Its role is reduced to the protection of private property, the establishment of laws that facilitate the functioning of free markets.

Command economic system

A command or centralized economy is the opposite of a market economy. It is based on state ownership of all material resources. Hence, all economic decisions are made by state bodies through centralized (directive planning).

For each enterprise, the production plan provides for what and in what volume to produce, certain resources are allocated, thereby the state decides how to produce, not only suppliers, but also buyers are indicated, that is, the question is decided for whom to produce. The means of production are distributed among branches on the basis of long-term priorities determined by the planner.

Mixed economic system

Today it is impossible to speak about the presence in this or that state in its pure form of one of the three models. In most modern developed countries, there is a mixed economy that combines elements of all three types.

A mixed economy involves the use of the regulatory role of the state and the economic freedom of producers. Entrepreneurs and workers move from industry to industry by their own decision, not by government directives. The state, in turn, implements antimonopoly, social, fiscal (tax) and other types of economic policy, which to some extent contributes to the economic growth of the country and an increase in the living standards of the population.

More on the topic 8. Economic systems: Command, market, traditional, mixed.:

1. 1.1. Conceptual foundations for the formation of models of economic behavior of entrepreneurial structures
2. 1.3. Methodology and factors of preventive management in the system of ensuring the economic security of business structures
3. 48. Formation of the command-administrative system of management of the national economy
4. 3.1. Objective conditions and contradictions of economic development
5. Basic questions of economics and types of economic systems
6. CONTENT OF THE EDUCATIONAL DISCIPLINE "ECONOMIC THEORY" OF THE INTEGRATED MODULE "ECONOMY"
7. Basic concepts and categories of the course "Economic theory"
8. Questions for the exam in the discipline "Economic theory" of the integrated module "Economics" for 1st year students

Introduction
I. Basic concepts of economic systems
II. Criteria and classification of economic systems
III. types of economic systems
IV. Advantages and disadvantages of economic systems
V. Examples of different types of economic systems
VI. Models of economic systems

Conclusion

Introduction

The modern market is a complex system of relationships between producers and consumers, sellers and buyers, their economic ties, including direct direct multi-link contacts with the participation of intermediaries. In conditions of limited economic resources and production possibilities, limitless needs, society needs to choose and decide what to produce, what to refuse, where, in which productions to direct economic resources, how much and how to produce, how to distribute also quantitatively limited produced goods. The society should work out some procedure for resolving these issues. Only if there is a mechanism for coordinating, coordinating the economic activities of individuals, enterprises, organizations, fruitful economic cooperation between members of society can be achieved.
Therefore, the chosen topic of the test work has a high degree of relevance.
The purpose of the study is to study the concept of "economic system", types of economic systems, as well as an overview of existing national models of farm organization.

In accordance with the goal, the following research tasks were put forward:
- To study the basic concept and essence of the economic system.
— Identify the main types of economic systems.
- To reveal the advantages and disadvantages of economic systems.
— Consider models of economic systems.
The economic system can be defined as a set of ordered elements of the economy that are closely interconnected and form the economic structure of society.
Each system has a national model of economic organization. This fact is determined by different levels of economic development, social and national conditions that exist in countries.
Thus, the economic system is an integral part of society, which, in addition to economic relations, includes political, ideological, socio-cultural, legal and other relations.

I. Basic concepts of economic systems

The economic system is a set of interconnected and in a certain way ordered elements of the economy.
That is, the economic system is an ordered structure of relations between people in relation to the production and consumption of material goods and services. In an economic system, there are always three main subjects of the economy: households, firms and the state.
Outside the systemic nature of the economy, economic relations and institutions could not be reproduced (constantly renewed), economic laws could not exist, a theoretical understanding of economic phenomena and processes could not take place, there could not be a coordinated and effective economic policy.
Real practice constantly confirms the systemic nature of the economy. Objectively existing economic systems find their scientific reflection in theoretical (scientific) economic systems. The first detailed analysis of the economy as a system was given by A. Smith, the founder of the classical school of political economy, in his main scientific work "A Study on the Nature and Causes of the Wealth of Nations" (in the accepted abbreviation - "The Wealth of Nations"), published in 1776.
Adam Smith suggested that there is a "hand invisible to the world" that directs individual behavior, personal interests to social goals, to the satisfaction of the interests of other economic entities. What is meant by the "invisible hand" is the market, as a coordinating mechanism, with its own elements: demand, supply, price. Demand expresses the intentions of consumers, supply expresses the capabilities and desires of producers, price is a tool for coordinating their decisions and actions. Through the interaction of these elements, the decisions of producers and consumers are transmitted and coordinated. It is a self-regulating system that does not require external intervention.

II. Criteria and classification of economic systems

As the history of economic science shows, the classification of economic systems can be made on the basis of various criteria (features). This multiplicity is based on the objective diversity of properties of economic systems.
In an enlarged form, the criteria of economic systems can be divided into three groups:
— structure-forming criteria;
— socio-economic (substantive) criteria;
— Volumetric and dynamic criteria.
Structure-forming criteria- these are criteria from the side of structural elements that form the subject of economic theory. These can be relations of production (primarily understood as relations of appropriation), functional economic relations, and institutions.
Accordingly, economic systems are subdivided into systems of production relations, systems of functional relations, and institutional systems.
Volumetric and dynamic criteria are criteria that characterize the complexity of the system and its variability. Among them: homogeneity or heterogeneity of the system, static or dynamic system.
The simplest systems according to these criteria, systems can be considered according to the forms of management. They are based on only one criterion - the method of combining production and consumption (the method of coordinating economic activity).
Formation systems are more complex. Although they assume one main criterion for their differentiation (the form of ownership of the means of production), they nevertheless include the previous criterion. Each formation is inextricably linked with one or another form of economy and cannot exist without it: for example, feudalism without a subsistence economy, capitalism without a market economy.
The most difficult are civilizational systems, since they include, in addition to the noted economic elements, a number of non-economic elements (factors). As a result, systems acquire a multidimensional (multilayered) character.
Accordingly, economic systems can be divided into "pure" and "mixed", static and historically developing.
Socio-economic criteria- these are criteria based on the allocation of key content aspects of the economic system. Among them: the method of connecting production and consumption (the method of coordinating economic activity), the method of connecting direct producers with the means of production (type of ownership), the role of the aggregate factor, the degree of development of industrial and economic principles.
The most characteristic classification of economic systems for science is to distinguish the following types of economic systems:
1. Forms of economy (or forms of production, or "types of economy").
The main criterion for their differentiation is the way of linking production and consumption, or the way of including individual labor in the total labor of society, or the way of coordinating economic activity.
2. Socio-economic formations (or methods of production).
The main criterion for their differentiation is the method of connecting producers with the means of production or the dominant form of ownership of the means of production. The basis of the formational approach in its most famous Marxist version is the idea of ​​the correspondence of production relations (as relations of appropriation, property relations) to the level and nature of the productive forces. The development of the latter ultimately determines formational transitions.
The most common interpretation of the implementation of the formational approach identifies five formations (modes of production): primitive communal, slaveholding, feudal, capitalist (bourgeois) and communist (the first phase of which was called socialism).
At the same time, different interpretations of the final stage of the formational sequence are distinguished. The main positions look like this:
a) capitalism is a “natural reasonable order” capable of internal evolution and not requiring a “transition to socialism”;
b) socialism (communism) as the final stage of historical progress in the spirit of the Marxist approach;
c) post-capitalism as an expression of a certain future society, in which, on the basis of post-industrial development, the priority of an intrinsically valuable creative person arises;
d) a mixed economy that integrates private ownership (private entrepreneurial) principles with a developed system of social guarantees for workers and reflects the interaction of two global trends - capitalist and social (socialist).
Accordingly, economic systems are subdivided according to the forms of management, formation characteristics, civilizational criteria and in relation to the type of technological development.
In reality and in science, all the above criteria and classifications are superimposed on each other, intertwined, although they reflect different aspects of economic systems. Only consideration of the entire set of criteria and classifications can make it possible to create a holistic, comprehensive view of the economy as a system.

III. Types of economic systems

It is customary to single out the following main types of economic systems: traditional, administrative-command, market and mixed.
Economic systems arose in solving economic problems associated with the distribution of limited resources and the presence of opportunity costs. In other words, to paraphrase the concept, the economic system is the way in which the economic life is formed in the country, society; the way in which decisions are made about WHAT, HOW and FOR WHOM to produce.
More specific distinguishing features by which they can be compared, compared, are:
— prevailing forms and types of ownership,
— economic power and ways to exercise it,
- forms of business
— the place and role of the market and market relations,
- the nature of state regulation of economic life.
Traditional economy- this type of economic system should be considered separately, since it takes place in countries defined as undeveloped. Its most characteristic features are: economic activity is not perceived as a primary value; the individual belongs to his original community; economic power is combined with political power. Almost all questions - what to produce, how, on the basis of what technologies, how to distribute the products produced - all this is determined by the prevailing customs and traditions. The same applies to needs that do not perform a stimulating function here for the development of production. The traditional economy is immune to the achievements of technological progress and is difficult to reform. A similar system is common in third world countries with underdeveloped economies.
Centralized economy (command) (communism)- an economic system in which the opposite principles are implemented: strict centralization of economic power by the state - the main subject of economic life, including the use of resources at all levels; the behavior of subjects is determined by national goals, the public interest dominates over the private. All resources are owned by the state, are not available for free use and are distributed in a directive way according to plans. As a result, production often acquires an autonomous character, does not meet social needs, technical progress is hampered, and economic stagnation sets in.
Market economy (pure capitalism)- this is an economic system, the hallmarks of which are private property, free competition and pricing in the markets based on the laws of supply and demand, the priority of personal selfish interest (the desire to maximize one's income), the minimum level of economic power of individual entities (the inability to radically influence the market situation) , the minimum degree of government intervention in the economy. This type of economic system is best described by A. Smith, who proclaimed the law of the "invisible hand", i. self-regulation of the market mechanism, when the desire to extract one's own benefit simultaneously leads to ensuring the interests of the whole society. In conclusion, it should be noted that the term "pure capitalism" is conditional, it is used only in theory, in reality there was a capitalism of free competition. Moreover, today “pure capitalism” is even more absurd than “pure socialism”.
mixed system- an economy in which a combination of some properties of the first and second systems takes place. A mixed system has been formed in many industrialized countries, where an efficient market mechanism is complemented by flexible contour state regulation. The role of the state is reduced, first of all, to creating favorable conditions for doing business, improving market infrastructure, providing certain social guarantees for the population, and solving national problems and tasks. In general, this type of economic system makes it possible to combine the advantages of the market mechanism with state regulation, which eliminates market failures and minimizes its negative effects on society.
Thus, at the moment, humanity has gone through a long historical path of development, during which several types of economic systems have developed at different stages - market, command, mixed, and also traditional. The criteria for their separation are, first of all, the form of ownership and the type of coordinating mechanism (plan or market). Modern analysis shows that a mixed system has become the most attractive for society, allowing to supplement the advantages of the market with a flexible system of state regulation.
In modern conditions in industrialized countries, a mixed economy is increasingly replacing pure capitalism. Its main advantage is that it does not have the extremes inherent in the above two models. The main producers of products and buyers of production conditions there are large corporations, so economic power is not dispersed here, but at the same time it is not totalitarian in nature, it is not carried out by administrative and bureaucratic methods. Under such conditions, distribution relations do not suppress exchange relations, but supplement them; ownership of material resources can be public, state, private; the behavior of each subject is motivated by his personal interest, but at the same time, priority goals are also defined in society. The state performs an active function in the economy, there is a system for forecasting, planning and coordinating the activities of the public and private sectors.
The means of evolutionary transition to a mixed system is reform, during which the economy finds itself in a transitional state (transitional economy). It should be noted that the transition from one system to another does not always mean the need to change the form of ownership. For example, by the beginning of the 20th century, the economic model based on market mechanisms and regulated by the free market had exhausted itself. The free market mechanism was replaced by a regulated one: the system of state regulation of the economy arose during the First World War, its dismantling after the war led to a severe economic crisis (1929-1933). J. M. Keynes and his followers realized this and substantiated the need to reform the economy and strengthen the role of the state. F. Roosevelt's course in the USA confirmed their conclusions in practice.
It would not be superfluous to mention the so-called transitional economy - one that implies the presence of certain changes both within the framework of the current system and changes that occur during the transition from one model to another. In most cases, a country with an economy in transition has both the features of a pre-existing command economy and the forms of organization characteristic of a market economy. In the process of transition from a command economy to a market economy, the state needs to pay attention to the following points:
1. Reforming the public sector of the economy through privatization, leasing
2. Creation of a market infrastructure that would satisfy all the features of production for the greatest efficiency of available resources
3. Creation of a private sector of the economy (primarily small and medium-sized businesses) and encouragement to engage in entrepreneurship
4. Stimulating the economic isolation of producers with different forms of ownership (private and state)
5. Formation of the existing pricing system using market mechanisms.

IV. Advantages and disadvantages of economic systems

At all historical stages of human development, society faces the same question: what, for whom and in what quantities to produce, taking into account the limited resources. The economic system and types of economic systems are designed to solve this problem. And each of these systems does it in its own way, each of them has its own advantages and disadvantages.
The study revealed the following advantages and disadvantages of economic models:

The main advantages and disadvantages of a centralized economic system can be represented as follows, reflected in the table.

Main features	Main advantages	Main disadvantages
State ownership of the means of production; State planning of the entire economy; Administrative methods of economic management; There are no economic incentives to work effectively.	A more sustainable economy; More confidence in the future; Less inequality in society; A minimum of life support is guaranteed to all; There is no employment problem.	Forms initiativeless and irresponsible workers who are not interested in the results of their work; Economic inefficiency; Dictatorship of producers over consumers; The low standard of living of the people.

The market economy has the following advantages and disadvantages, which are shown in the table.

Main features	Main advantages	Main disadvantages
Private ownership of the means of production; Freedom of enterprise; Freedom to choose economic partners; Personal benefit of participants in economic relations; Minimal government intervention.	Stimulates high entrepreneurial spirit and efficiency; Rejects inefficient and unnecessary production; Basically a fair distribution of income according to work; More rights and opportunities for consumers; It does not require a large apparatus of managers.	Increases inequality in society; Instability of the economy; Does not care about the creation of non-profitable, but socially necessary goods; Indifferent to the damage that business can cause to nature and man.

As a result, we can conclude that the expansion of the functions of the state in modern society, while maintaining market freedoms, institutions and mechanisms, is to a decisive extent due to the increased complexity of the socio-economic process. Many of the fundamental problems of today's society cannot be effectively solved with the help of market mechanisms alone.
This is, first of all, the strengthening of the social sphere, which has become one of the most important sources of economic growth. Thus, the level of education, qualifications of the labor force and the state of scientific research directly affect the pace and quality of economic growth, which is confirmed by econometric calculations. The quality of the labor force and economic development in general are greatly influenced by health care, social security and the state of the environment. The market itself cannot create a powerful social sphere, although market mechanisms, especially competition, may have a strong social focus. The mixed type of economy is the most widespread in the world.

V. Examples of different types of economic systems

It remains to consider examples of modern countries, which are characterized by one or another economic system. For this, a special table is presented below. The types of economic systems are presented in it taking into account the geography of their distribution. It should be noted that this table is very subjective, since for many modern states it is difficult to unambiguously assess which of the systems they belong to (see Table 4).

Table: Types of economic systems and their examples

- Traditional - Afghanistan, Bangladesh, Burkina Faso (mainly agriculture) and with a more developed economy, but with the characteristic features of traditionalism: Pakistan, Côte d'Ivoire.
- Planned (administrative-command) - former socialist countries (USSR, countries of Eastern Europe until the 90s). Currently - North Korea, Cuba, Vietnam.
- Mixed type of economic system - China, Sweden, Japan, Great Britain, USA, Germany, France, etc.
- The market system in its purest form has no real examples.
Speaking about Russia and the countries of the post-Soviet space, we can say that in these states a specific type of economic system has not yet been established. They are in a transitional period between command and modern market economies.

VI. Models of economic systems
The modern economic system provides that the vast majority of civilized countries are based on market relations. Based on this, various models of the modern economic organization of society are distinguished. Depending on the model of economic organization, they bear the names of those countries in which they are implemented most fully (see Fig. 1).

American model provides for the predominance of the private enterprise sector and its support. The government and the public sector serve the economy, not run it. The mechanism of competition and market pricing is developing. There are large differences in the incomes of the population.
Chinese model provides for the coexistence in the economy of two opposite sectors - market and administrative. Availability of free economic zones. significant role of the household. Small differences in incomes of the population. An important role in the development of the economy belongs to
Chinese living abroad.
Japanese model- strong government support for the business sector. Five-year planning in certain spheres of the national economy. Social orientation of firms (lifelong employment, social partnership). Slight income differentiation.
Swedish model- Developed public sector. Partnership of workers and entrepreneurs with the support of the state. Influence of the state budget on the formation of incomes of the population. Reducing the role of pricing through government intervention.

The listed models of modern economic systems of management are often supplemented by intermediate options: German, French, South Korean, etc.

Conclusion
In conclusion, we can conclude that in the course of the historical development of human society, several types (models) of economic systems have developed, differing primarily in ways and means of solving the main economic problems (what, how and for whom to produce).
Each economic system responds differently to the three main questions of the economy: “what, how and for whom to produce?” Modern economists distinguish four main types: traditional, command-and-plan, market, and mixed systems.
The form of ownership does not prevent even more drastic changes in the economic course. The transition from one economic model to another is greatly facilitated by the fact that all modern economic systems have a common basis - commodity production, although the systems themselves differ in the level of its development, as well as in the type of economic power and forms of its implementation, and in what place economic power occupies in the value system of a given society. activity.
It is also important that each economic system has special properties that must be taken into account when reforming the economy. On the one hand, it looks like an open system interacting with the external environment (does not prevent the exchange of world experience, the approval of general patterns of production development, allows updating its elements, changing models). On the other hand, being a reflection of the cultural layer of a particular civilization, the economic system is primarily focused on the reproduction of this type of civilization, i.e. appears as a rigid closed system, when the possibilities of using the model developed in one economic system in other systems are limited Borisov E.F. Economic theory: Textbook. - M .: Yurayt-Izdat, 2005. - S. 125. .
As a result, we can conclude that almost all existing economies in the modern world should be classified as a mixed type. In the real life of any country, not a single economic system is present in its pure form.
In England, for example, about 30% of the workforce is employed in the public sector, the remaining 70% is employed in the private sector.
But speaking about Russia and the countries of the post-Soviet space, we can say that in these states a specific type of economic system has not yet settled down. They are in a transitional period between command and modern market economies.
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We, as residents of the post-Soviet space, are extremely close to the command economy as a system from which we have been trying to get out for several decades. Let's see why it is so difficult to move to the market, and how the planned regime is typical for both sides of the business.

The concept and types of economic systems

From a theoretical point of view, economic systems are a combination of various elements of the market, which, when interacting with each other, form a single structure within the country, which takes into account not only aspects of production and consumption, but also the distribution of goods and labor resources.

Modern systems are divided into three types:

• market;
• command;
• traditional economy.

Although from a historical point of view, if we consider the development of the market in stages, they will have the following classification:

• pre-industrial economy (the times of prosperity of agriculture as the main niche of production);
• industrial (appeared with the birth of industry);
• post-industrial (it is still developing, characterized by the prosperity of the service sector and information technology).

But let us return to the modern understanding of the economic system. Let's first try to highlight the main key points that characterize a particular type, and the table "Market, command, traditional economy: main features", which is presented below, will help us with this.

Well, now let's take a closer look at each point.

Characteristics of a market economy

This is the most popular system today, which is characterized by the free formation of prices for products and services, depending on the ratio of supply and demand. The state, as a rule, does not interfere at all in economic relations between business entities, and all government participation lies in the creation of regulatory legal acts. The authorities can only see to it that the latter are respected.

That is why the market and command economy are absolutely contradictory systems, but more on that later.

But as for non-intervention of the state in market processes, this issue is highly controversial. Not always the relationship of supply and demand can reach the so-called consensus. For example, during periods of crisis there is absolutely no demand for certain groups of goods and services, so the government sector can act as the only buyer, but the market system of the economy completely excludes this possibility.

Concept of traditional economy

Traditional and command economy are not the same thing. However, both systems have some similar features, although the first is more aimed at maximizing the development of the national economy's own wealth, so its distinguishing feature is the most optimal development of rural industry.

With regard to values ​​in this system, banknotes are not as important as, for example, essential goods. Therefore, the traditional economy is often characterized by relations that we used to call barter exchange.

At first glance, it seems that countries with a similar system of economic relations no longer exist, but there are more than enough of them in the expanses of Central Africa.

The concept of a command economy

To begin with, let's decide on what principles the command-administrative economy is based, or, as it is also commonly called, planned.

Within the framework of this system, the state directly plays an important role in the economic regulation of the country. It is the authorities who decide what goods, in what quantities and at what price to produce and sell. These data are not taken from the real relationship between supply and demand, but from planned indicators according to long-term statistical data.

Signs of a command economy

Under a planned economic system, there is never a surplus of produced goods, since the government is unlikely to allow its own resources to be wasted. Therefore, often the main sign of a command economy is the shortage of certain goods. Moreover, as a rule, this product is of identical quality everywhere, since in such countries it makes no sense to build the same type of stores on every street and produce more expensive products, because anyway the buyer has no choice - he will take any that remains on the shelves.

Another sign of a command economy is the expedient use of labor resources. The explanation for this is very simple: there is no overproduction - there are no overtime hours in the shift, there is no processing of personnel.

Well, thanks to the constant state support for entrepreneurship, there are also such signs of a command economy:

• permanent grants;
• loyal taxation;
• clear planning of a break-even sales market.

So, we not only determined the foundations of this economic system, but also assigned a role to state influence in it. Now let's try to understand what production itself and property as such mean for entrepreneurs under the planned regime.

The Role of Ownership in a Command Economy

As we have already found out, the market economy is aimed at private production, while the traditional economy is aimed at collective production. Well, what features of a command economy indicate the advantage of a particular form of ownership in this system? It is easy to guess that all industrial organizations in the vast majority belong to government bodies. Here, ownership rights are subdivided into both national and municipal scales.

As for cooperative forms of ownership, they also take place in the command economic system, but, as a rule, they do not apply to production organizations from which financial profit can be extracted, but to business entities with their own benefit. In other words, cooperative housing funds, garages, preschool institutions are quite common in the planned economic system.

Private property in a command-administrative society extends to property intended for housekeeping and no more.

Planned economy in the life of the population

As mentioned above, the command economy is in no way related to human needs. In other words, if we simplify the process of this system to two actions, then the following algorithm of the circulation of products in society will come out.

1. The government decides in what accordance, according to industry shares, products should be produced.
2. The produced goods are distributed throughout the state, taking into account the assumption that the population evenly consumes food, medicines, and even household appliances in each geographical area of ​​the country in accordance with the released volumes.

We all understand that this approach is not entirely correct - perhaps someone in the south of the country does not need a new TV, but more dishwashing detergents are needed, and someone from the northerners needs more warm socks. But such are the realities of the planned economy, which flourished more or less successfully in its time in the vastness of many strong states.

With regard to the general welfare of the population, under the command system, each person earns in proportion to the amount of work he performs. But despite this, the level of the average salary in the country remains quite low.

Examples of countries with a planned economic system

The command-administrative economy began its active and fruitful development in post-war times, namely in the 1950s. At that time, the world was subject to a terrible production crisis, and therefore such socialist countries as China, Cuba, and, well, the closest to us in spirit and understanding - the USSR, which switched to planned standards back in 1917, became a vivid example of this system.

It is difficult to say unequivocally whether this decision was effective at that time. Given that the entire industry was in a deplorable state, and it was problematic to settle something on the basis of one supply and demand ratio, then it is likely that the policy of state intervention at that time was the best way out of the situation.

However, if we compare the statistics of GDP growth for a couple of post-war decades between the countries of Western Europe and the states representing socialism, we will see that the latter lagged behind in terms of growth rates by several times.

Benefits of a command economy

Despite all the above factors, it cannot be said that the command system of the economy does not have any advantages.

The manufacturer does not need to spend extra financial and labor resources to promote his product - he always has a quota allocated by the state, which the population needs and which they will definitely buy. And they will do this because the government is the only monopolist in the commercial market, so there can be no competition a priori.

As for society, the planned economy excludes any class stratification within society. In the realities of this system, there are no poor and no too rich, since the wages of everyone tend to the average value.

Theoretically, it can be said that many of the problems that are present in a market economy are easily solved within the framework of a command order.

Disadvantages of a command economy

Due to the fact that all production is managed by the highest authority, and this is done on equal terms and conditions in relation to each business entity, any inclinations of a competitive environment are excluded. Therefore, the command economy nullifies any desire of the entrepreneur to improve his product, because no matter how hard he tries, he still cannot get a greater material benefit.

And since all products are distributed evenly throughout the country, wages are equalized as much as possible, so the staff completely loses any interest in improving the quality of their work. If an employee of this category is supposed to have a salary within a certain amount, then no matter how he is a specialist in his field, he will not be able to get more.

Difficulties in exiting the planned economy

It is difficult to say which system is better - a market economy or a command economy. Each is good in its own way under certain conditions: sometimes government intervention is extremely necessary, and sometimes the quality of baby food produced in competitive conditions is more important than an equal distribution of milk throughout the country.

In any case, the period of transition from a planned system to a market one is extremely difficult. We have all witnessed how this affected practice after the collapse of the USSR. It is clear that each state cannot become successful in a matter of years, therefore, in political economy theory, there is such a thing as a transitional economy. It is characterized by instability, uncertainty and deformation of the entire economic national structure, but in our world everything is for society, so we must build further business ourselves.

For the prosperity of the country, it is necessary that its population be economically literate. This is necessary in order to make good decisions both in your personal life and in order to understand what people who claim to power and control the state organism are talking about. The article will consider what kind of economy is, types, functions and features of each type model.

Use of economic knowledge

Knowledge about the features of functioning is useful not only from an economic point of view, but also from a legal one, when it is necessary to defend one's rights as a citizen or entrepreneur. Also, individual economic tricks can become useful in life, if used correctly and appropriately. Among economic knowledge, there are those that are used only in very rare cases, but if there is a successful experience of exploiting one type of economy by one country, then others may also want to learn from the experience in the future. And with the export of knowledge, both services and manufactured goods are exported, so countries with more universal economic devices receive an additional economic incentive.

What are the types of economies?

The preamble is over, let's move on to the text itself. Economic sciences distinguish four types of economies: traditional, market, command-administrative and mixed. These are the main types of economy that, to one degree or another, can be found on the territory of the Earth. Only the last three species will be considered, because the traditional one has long outlived its usefulness and can only be found in the depths of the taiga, jungle and savannah.

All types of economy differ in a number of parameters, which are focused on the features of managing the economy, the different scope of rights that economic entities have, as well as the predominant form of ownership.

Pure market economy

Proponents of this type of economic organization rely on the fact that the market for goods and services, as well as labor, can easily control itself without additional interference from the state or other public structures. With this type of economic relationship within human society, private property is proclaimed the highest value, as an indisputable component of human rights. But the negative side of these economic relations is a significant vulnerability to various crisis phenomena. In addition to systemic crises, there is always a certain level of unemployment and a certain level of tension, which is extinguished with the help of a sizable middle class. When they talk about types of market economy, they mean not pure, but mixed, which will be discussed further.

Command-administrative economy

A feature of this type of economic organization of the state of affairs is that it relies on significant regulation of ongoing economic processes. The bureaucracy or its part acts as a regulatory body, which sets the requirements and methods for achieving goals. The predominant form of ownership is the state. In the event of a crisis situation in the global market, it allows using the manual regulation mode to reduce the harmful impact of the crisis or make it so that its impact is not noticeable. Also, with this type of economic interaction, a sufficient level of social security is provided, and unemployment is absent as a social phenomenon. Although this effect can often be achieved due to the deliberate deterioration of performance indicators. A classic example is the situation in the Soviet Union, when timber was transported from the Carpathian Mountains to Siberia, and from Siberia to Ukraine. The situation, of course, is a little exaggerated, but similar cases of glaring inefficiency were quite frequent.

mixed economy

It is the most universal type of economic system, which has taken a little from others in such a way as to get as much benefit as possible and at the same time reduce the negative influences of each type. Since there are no clear parameters for a mixed economy, how much and from what it is necessary to take, several models have arisen that offer their own vision of the ratio of characteristics and the borrowing of details. They are based on various parameters, different features in the approach to solving the problems that have arisen, as well as the features of building organizational structures that prevail in the economy. Behind the names of the countries that use their models, they are called Japanese, German, French, American, and so on. Although, as they developed, individual researchers repeatedly named not models, but types of economics. Although this sounds a little strange, there are still some reasons. As more advanced state-social mechanisms are developed, it will be possible to say that new types of economy are being created.

Type of economy of the future

The world is changing, and even mixed types of building economic life cannot cope with the growing needs of human society. It is impossible to say exactly what the model of economic relations will be, only to model the potential directions of their development. We can say that it will be aimed at meeting human needs. Scientific and technological progress will also play an important role. In this regard, the need for various highly professional personnel will increase significantly: engineers, programmers, highly qualified workers. A significant place will be occupied by scientific and inventive personnel, on which the scientific and technological development of civilization will largely depend. It can already be said now that knowledge, as well as self-discipline of the elements of the system, will play a significant role. This is not to say that they are not important now, but in the future their value will only increase.

It is hoped that after reading the article, readers can operate with basic terms: the concept of economics, the concept of types, the concept of basic characteristics. And, perhaps, there will be an opportunity to apply knowledge in practice.

Human society in its development has used and uses various economic systems. They differ in their approach and methods of solving major economic problems. The economic system differs from one another in the following main ways:

1. Ownership attitude;

2. Methods of regulation and management of the economy;

3. Ways of distribution of resources and benefits;

4. Pricing.

Types:

1.Traditional system(economy) is the primary type of economic system, where relations are built on the basis of centuries-old and rooted traditions and customs. Traditions passed down from generation to generation determine what goods and services, how, and for whom to produce. The distribution of the jointly produced product is carried out not on the basis of who produced how much using the means of production, but on the basis of who, what position he occupies in society. Economic power is connected with political power. It is very stable and difficult to reform, and the stability of society is created by maintaining the status of each individual.

2. Command economy(administrative planning) - all decisions on major economic problems are made by the state, all resources here are the property of the state, centralized economic planning covers all levels from the household to the state. The state is the main subject of the economy and the questions: what, how, and for whom to produce are decided on a planned basis (above). The distribution of resources is carried out on the basis of long-term priorities, because of this, the production of goods is constantly separated from the public.

3. Market system- all the answers to the basic economic questions - what, how and for whom to produce is determined by the market, price, profit and loss.

"What?" - is solved by solvent demand, "voting, money". The consumer decides for himself what he is willing to pay money for. The manufacturer will strive to satisfy the desires of the consumer, to give money for the goods he needs. The question "How?" - is decided by the manufacturer, seeking to get more income. Since price setting does not depend on him, then in order to achieve his goal, the manufacturer must produce and supply as many goods as possible at lower costs (costs) than his competitors. For whom?" decided in favor of the consumer with the highest income. In a market economy, private individual property prevails, the behavior of each subject of the economy is motivated by his personal selfish interests. There are many sellers and buyers of products, which contributes to the development of free competition. The market is a self-regulating system, performing the function of coordination and pricing.

4. Mixed economy- the main producers of products and the buyer of the means of production are large corporations, whose activities are regulated by the state. Ownership: public, private, state. The behavior of the subject is motivated by his personal interests, as well as common and priority goals are defined in society.