Types of economy. Characteristics

It was always difficult to classify scientific phenomena. From the correct choice of the sign of separation in many respects will depend on its validity and success. To distinguish the types of economy in the modern scientific approach use different signs. Since there are several approaches to the generalization and characterization of management systems, there will also be a lot of classifications.

Criteria for types of economic systems

That the level of abstraction when considering the different types of economic systems and their characteristics is more approximate to the real processes occurring in public economic life, it is necessary to consider the characteristics by which they are classified.

In accordance with the existing form of economy, types of economy are distinguished with a natural and commodity type of exchange. If the types of state economy are classified according to the basic form of ownership, communal, private-ownership, cooperative-public and mixed types of management are distinguished.

By the way of managing the actions of economic entities, there are such basic types as traditional, market, planned management. This is the most common type of classification. Presented types of economic systems and their characteristics maximally fully reveal the features of the economy of the last two centuries.

Other classifications of types of economic systems

If we take into account the criterion of the method of income distribution, we can single out a community-leveling type, with the distribution of income in accordance with the land, with the distribution of income in accordance with the factors of production, with the distribution according to the amount of labor contribution.

According to the type of state intervention, free, liberal, administrative-command, economically regulated and mixed types of economy are distinguished. And according to the criterion of the involvement of the economy in world relations, an open and closed system can be distinguished.

By degree of maturity, the systems are distinguished for the emerging, developed, mature and degrading types of the state economy.

Traditional classification of systems

In the contemporary literature of the West, there is the most frequently occurring classification, which contains only three different types of economic systems. In the works of KR McConnell and SL Bru, such systems as the traditional, market and command types of economics are distinguished.

However, only in the last two centuries there were many more types of economic systems in the world. These include a market economy with free competition (pure capitalism), a modern market economy (free capitalism), a traditional and administrative-command system.

The presented models differ in the variety of economic development within the framework of individual countries. Therefore, the types of economic systems and their characteristics should be considered based on these characteristics.

Net Capitalism

Market economy, which has free competition, developed in the XVIII century. And ceased to exist in the first decades of the twentieth century. Very many elements of this system have entered the modern market economy.

The distinctive features of pure capitalism are private property from investment resources, the mechanism for regulating activities at the macro level is based on free competition, a lot of buyers and sellers who act independently in each field of activity. Employee and entrepreneur acted as equal legal agents of market relations.

Types of market economy before the twentieth century determined economic development through prices and the market. Such a system proved to be the most flexible, capable of adapting to the realities of the functioning of economic relations in society.

Modern Capitalism

The current market economy arose in the early twentieth century. In the period of rapid development of the scientific and technological revolution. During this period the state began to influence more actively the development of the national economy.

Planning is seen as an instrument of public administration in the regulation of the economy. These types of economy allowed you to quickly adapt to the changing needs of the market. On the basis of marketing research, the question of the volume, the structure of output products, as well as the forecast of priority directions of the scientific and technical progress is being solved.

Large companies and the state began to allocate more resources for the development of the human factor (education, medicine, social needs). The state in developed countries today allocates up to 40% of the budget for poverty alleviation. Employer companies take care of their employees, allocating funding to improve working conditions and social guarantees for their employees.

Traditional system of management

In economically underdeveloped countries, the system of using manual labor and backward technologies has been preserved. In a number of such countries, natural-communal forms of distribution of the created product prevail. The main types of economy in the underdeveloped economies are the existence of a large number of small enterprises and industries. This is a lot of peasant handicrafts. A huge role in the economy of such countries is played by foreign capital.

Traditions, customs, religious values, caste division and other factors restraining scientific and technical progress occupy an important place in the life of a society that carries out the traditional economic system of an organization.

The state redistributes through the national income budget. His role is quite active, since it is the central government that directs funds for social support to the poorest sections of the population.

Administrative and command system

This system is also called a centralized economic system. Its domination spread earlier in the countries of Eastern Europe, in a number of Asian states, and also in the USSR. This economic system is still called centralized. It is characterized by public property, which in reality was public, for all economic resources, bureaucratization of the economy, administrative planning.

The centralized economic system applies direct control to virtually all industries from a single center - the government. The state absolutely controls the distribution of production and production. This causes the monopolization of all areas of the national economy. As a consequence, there was a slowdown in scientific and technological progress.

In the presented system, there were specific attitudes in ideology. They explained the process of planning the volume and structure of production too complex to entrust it directly to producers. The central planning bodies determined the structure of the general needs of the country's population. It is impossible to anticipate all changes in needs on such a scale. Therefore, the most minimal of them were satisfied.

Mixed economic system

In modern realities in the world there is not a single system having features of only one type of organization of economic activity of the state. It is a mixed type of economy. It is characterized by a combination of the regulating role of the country against the background of the financial autonomy of production.

The government in the presented system carries out antimonopoly, tax and public policy. The state supports its enterprises, as well as medical, educational and cultural institutions. The government's policy is aimed at preventing unemployment and crises. This contributes to stability and economic growth.

The downside of the presented system is the absence of universal development models, as well as the development of planned indicators in accordance with the national specifics.

Having examined the types of economy that exist in the past and present, one can single out their positive and negative features. This approach will make it possible to draw conclusions about the appropriateness of each organization of economic activity of the state. Applying the positive features of each system, the state can better manage the economy in the current and planned period.