Economic system. The concept. Types

The economic system is the totality of all economic processes that take place in society. They are determined by the economic mechanism. Any economic system is built on production in combination with consumption, exchange, distribution.

In all structures production is provided by economic resources. At the same time, the products of economic activity are consumed, distributed and exchanged.

One or another economic system includes different elements. In particular, such components should include:

- structure of motivations and incentives of participants;

- economic mechanism;

- communication between organizations and enterprises and so on.

Basic economic systems and their types

The market is considered a rather complex structure. Inside this economic system are the relationships in the sphere of production. The market is based on several principles. This economic system is mainly built on human freedom, its entrepreneurial talents. At the same time, a fair treatment of the state is ensured.

It should be noted that the principles on which the market is built are rather small. However, they are of great importance for the very notion of "market economy". Such foundations as fair competition and individual freedom in a market environment are closely related to the notion of "rule of law".

For the underdeveloped countries, the traditional system of economy is inherent . It is based on a backward technology, the widespread distribution of manual production, the multi-structure of the structure (the existence of various forms of management).

In some countries, natural and communal forms of management remain . Great importance is attached to small-scale production, which is based on the principles of private ownership of the resources of production and personal labor of the person owning them (resources).

Small-scale production in some countries is represented by numerous handicraft and peasant farms.

Often in the conditions of such an economic system great importance is attached to foreign capital. It itself is predictable, stable. In the conditions of the traditional structure, a large number of material goods are created. Along with this, such a system is not protected from external influences and can not progress and improve itself.

The life of society itself is distinguished by the domination of customs and traditions, class and caste divisions, religious values. All these factors restrain economic development.

In the USSR, in a number of East European and Asian countries, the administrative-command (planned) system of the economy dominated.

This structure is characterized by public (real - state) ownership of almost all economic resources, bureaucratization and monopolization. As the basis of the economic mechanism is the central planning of the economy.

Management of enterprises is carried out from one center located in the highest echelons of power. This does not allow the subjects of the economy to develop independently.

With a mixed system of economic development, the priority areas are the following: market organization, multi-sectoral, social protection. The structure is based on the combination of the state manager of entrepreneurship and the private one. At the same time, the former provides comprehensive support to the second.

Along with this, the state tax, credit, and financial policies are oriented towards social stability and constant economic growth.

There is a mixed economic system of Russia, France, USA, Japan, China, Sweden, Great Britain.