John Maynard Keynes (1883-1946), an English researcher of economic theory, by the 30s of the 20th century developed the theoretical foundations of a mixed economy, systematizing the conditions and results of placing government orders in private commerce enterprises. The data obtained showed that the use of such an economic system helps to solve the financial and social problems of the state. Keynes's theoretical conclusions were used by F. Roosevelt to formulate a new course for the country's development during a difficult economic period.

In the 60s of the 20th century, the American economist Paul Anthony Samuelson, relying on the works of D. Keynes, in his theoretical research introduced the concept of a mixed economy.

Ludwig Erhard, a West German economist, used the theory of a hybrid economy, while serving as the Minister of Economy of the Federal Republic of Germany, to successfully build a social market economy.

The concept of "mixed economy"

A mixed economy is a hybrid model of an economic system: the production of goods and services is carried out by the state and private individuals. This type of economy is focused on encouraging private entrepreneurial activity. Redistribution of income under state control ensures high level social guarantees, which corresponds to national interests.

A hybrid economy implies the presence of means of production, finance, products, the possibility of free trade or provision of services, hiring and firing of personnel, management of property and means of production, public and private companies, or their mixed forms, which gives all market players equal rights.

Functions of the state in a mixed economy

The state in a mixed economy performs a number of functions. The main ones include the following:

  • regulation of financial, excise and tax policies;
  • antimonopoly regulation;
  • establishment of subsidies and benefits;
  • formation of the legislative framework;
  • use and maintenance of state property;
  • control of foreign trade;
  • income distribution.

The state regulates consumer, research, banking, social, customs, labor and other areas that are part of a mixed economy.

Private sector in a mixed economy

Representatives of the private sector in a mixed economic system are full-fledged market participants. They participate in the production of goods and services both individually and in the format of public-private partnerships.

To ensure the social and financial policy of the state, private entrepreneurs, companies and other commercial associations are required to pay target, industry, insurance, license fees and taxes.

As part of supporting private entrepreneurship, the state provides market participants with grants, subsidies, and other incentives aimed at increasing efficiency and development economic activity individual entrepreneurs and companies.

Let us choose two basic characteristics for classification:

  1. who owns capital and land;
  2. who makes decisions about the allocation of limited resources.

We are able to distinguish four main types of economic systems:

  1. traditional;
  2. command (socialism);
  3. market (capitalism);
  4. mixed.

The oldest economic system is traditional.

Traditional economic system - a way of organizing economic life in which land and capital are in the common possession of a tribe (community) or are inherited within the family, and limited resources are distributed in accordance with long-existing traditions.

Remnants of such a structure of economic life can still be found today among tribes living in remote corners of the planet (for example, among the peoples of the Far North of Russia). This economic system is distinguished by the lowest return from the use of limited economic resources and therefore provides the people living in accordance with it with a very low level of well-being, and often with low life expectancy. Let us recall that even in Europe, before the mass transition from the traditional economic system to the capitalist system, the average life expectancy was about 30 years, and this was not only due to frequent wars:

  • Primitive technologies
  • In-kind exchange (barter)
  • Low labor productivity
  • Poverty from generation to generation

How did changing economic systems affect the world's population?

For many millennia, the increase in the world's population has been extremely slow; According to rough estimates, by the end of the Neolithic era (2 thousand years BC) it was only 50 million.

After 2 thousand years, at the beginning of our era, there were already about 230 million people on Earth. In the 1st millennium AD. further growth in the number of people for the first time came into conflict with the low level of development of the productive forces. Population growth has slowed again - over a thousand years it has increased by only 20%. By the year 1000, only 275 million people lived on Earth.

Over the next five centuries (by 1500), the world's population increased by less than 2 times - to 450 million.

In the era of the emergence of a new economic system - capitalism, the population growth rate became higher than in previous eras. It especially increased in the 19th century. - in the era of the heyday of capitalism. If the population of the Earth in 1650 was 550 million people (an increase of 22% over 150 years), then by 1800 it was 906 million (an increase of 65% over the same period), by 1850 it reached 1170 million, and by 1900 exceeded 1.5 billion (1617 million).

The markedly higher rate of world population growth is due to the continuous decline in mortality. The mortality rate is closely related to the level of socio-economic development of a country, financial situation population and the state of the healthcare system. The process of reducing mortality first began in Europe, which was ahead of other parts of the world in development.

If in modern industrial societies with capitalist and mixed economic systems the average life expectancy is about 70-75 years, then in the Middle Ages it in no way exceeded 30 years. Guillaume de Saint-Patu, listing the witnesses at the process of canonization of Saint Louis, calls the 40-year-old man “a man of mature age,” and the 50-year-old “a man of advanced years.”

Over time, the traditional one was replaced by a market system (capitalism). This system is based on the following:

  1. private property rights;
  2. private economic initiative;
  3. market organization of distribution of limited resources of society.

Market system (capitalism)- a way of organizing economic life in which capital and land are owned by individuals who make all economic decisions, and limited resources are distributed through various types of markets.

The first of the foundations of the market system is the right of private property. This is the name of the right of an individual recognized and protected by law:

  • own;
  • use;
  • dispose of a certain type and volume of limited resources (for example, a plot of land, a coal deposit or a factory), and therefore receive income from it.

The government only ensures compliance with economic legislation
Private ownership of capital
Markets set prices and distribute resources and goods

The ability for an individual to own a type of productive resource such as capital and to receive income with it determined another commonly used name for this economic system - capitalism.

At first, the right of private property was protected only by force of arms, and the owners were only kings and feudal lords. But then, having gone through a long path of wars and revolutions, humanity created a civilization that allows every citizen to become a private owner.

The second basis of the market system is private economic initiative. This means the right of each owner of production resources to independently decide how to use them to generate income.

The third basis of the market system (capitalism) is the markets themselves, i.e. in a certain way organized activity for the exchange of goods.
Markets perform the following functions:

  • determine the degree of success of a particular business initiative;
  • ultimately form the amount of income that property brings to its owners;
  • ensure the distribution of limited resources between alternative areas of their use.

In a market economic system, everyone's well-being is determined by how successfully he can sell on the market the goods he owns: his labor force, skills, handicrafts, his own land plot or the ability to organize commercial transactions. And ideally, the one who offers customers a product of better quality and on more favorable terms turns out to be the winner in the struggle for customers’ money and opens the way to increased prosperity.

This organization of economic life, turning out to be most consistent with the psychology of people, ensured a sharp acceleration of economic progress. At the same time, it created large differences in the level of well-being between those who had private property and those who did not. This model of the economic system also revealed other serious shortcomings, which we will discuss later. And they gave rise to criticism and, accordingly, attempts to create a different model of the economic system, devoid of the defects of pure capitalism, but preserving its main advantages.

The result of attempts to construct an alternative economic system, as well as to practically implement the corresponding scientific theories, was a command system, more often called socialism (from the Latin socialis - public).

Command system (socialism)- a way of organizing economic life in which capital and land are actually owned by the state, which distributes all limited resources.

The birth of this economic system was the result of a number of socialist revolutions the beginning of the 20th century, primarily in Russia. Their ideological banner was a theory called Marxism-Leninism. It was developed by German politicians K. Marx and F. Engels, and implemented in practice in our country by the leaders of the Communist Party V.I. Lenin and I.V. Stalin.

In accordance with this theory, humanity could sharply accelerate its path to heights of prosperity and eliminate differences in the individual well-being of citizens through, firstly, the elimination of private property, the transfer of all productive resources into the common ownership of all citizens of the country and, secondly, the management of all economic activity countries on the basis of a single universally binding plan, which is developed by top management on a scientific basis.

The roots of this theory go back to the Middle Ages, to social utopias, but its practical implementation occurred precisely in the 20th century, when the so-called socialist camp arose and then collapsed.

During the heyday of socialism (1950-1980s), more than a third of the world's population lived in the countries of the socialist camp. So this is probably the biggest economic experiment, which the history of mankind knows. An experiment that ended in failure, despite the enormous sacrifices of several generations of the inhabitants of these countries. Thus, collectivization alone - the transition to planned, socialist methods of organizing agriculture - claimed from 1.8 million to 2.1 million peasant lives during the period from 1930 to 1940, according to the now published data of the Federal Security Service of the Russian Federation.

At the same time, the very fact of socialist revolutions, as well as other events that have taken place in the world of economics over the past two centuries, have shown that a purely market system (classical capitalism) is imperfect. And therefore the XX century. became the period of birth of a new version of the market economic system (capitalism) - a mixed economic system (social market economy).

Mixed economic system- a way of organizing economic life in which land and capital are privately owned, and the distribution of limited resources is carried out by markets with significant state participation.

The mixed system retains as its basis all the elements of the market system (capitalism), but adds to them a sharp expansion of the scope of intervention in economic life by the state, using, among others, command methods of management. This means that in a mixed economic system the state takes upon itself the solution of those problems that markets either cannot solve at all or do not solve in the best way.

At the same time, the bulk of goods and services are still sold through free markets, and the state is not trying to force all sellers and buyers to act on the basis of a generally binding plan or set prices for all goods and services (Figure 3.3).

IN modern world A number of countries in Asia, Africa and Latin America are closest to a purely market system (classical capitalism). The command system (socialism) is still the basis of life in Cuba and North Korea, and the mixed economic system (in its various modifications) is characteristic of countries such as the USA, Japan, Great Britain, Sweden, and the Netherlands.

The collapse of the socialist camp in the late 1980s - early 1990s. and the transition of the peoples of these countries to the reconstruction of destroyed market mechanisms became evidence of the historical victory of the market (or rather, mixed) system over the planned-command system. Moreover, this victory was achieved peacefully, as a result of the loss of economic competition by socialist countries (with a planned system) with countries where a mixed economic system was created.

Why did socialism, with its command economic system, so cruelly deceive the expectations of many peoples?
The fact is that it is no coincidence that the command system begins with the destruction of private property. The state can command the use of economic resources only if the law does not protect the right of the private owner to independently dispose of what belongs to him.

But if no one owns anything, if all resources (factors of production) are declared to be the property of the whole people, but in reality they are completely controlled by state and party officials, then this is fraught with very dangerous economic consequences. The income of people and firms ceases to depend on how well they use limited resources and how much the result of their work is really needed by society. This leads to irrational, incompetent use of limited resources and, as a result, a slowdown in the growth rate of people's well-being.

If there were no socialist experiment, Russian Federation and other former USSR republics and countries Eastern Europe today would not represent transitional economies, but would be highly developed states. The command system in them has in many ways already been destroyed, but in its place neither a purely market nor an effectively working mixed economic system has yet emerged.

The movement of the economic systems of Russia and Eastern European countries towards a mixed economic system is due to the fact that the market mechanisms underlying this system create the best opportunities known to mankind (although not absolutely ideal) for a more rational use of limited resources. After all, the law of the market is simple: you can get the goods you need only by offering in exchange to the owners of these goods something created by you and desired by them.

In other words, the market forces everyone to think about the interests of others: otherwise, his product may turn out to be unnecessary, and instead of benefits, only losses will result. Every day, both sellers and buyers are looking for the most optimal compromise between their interests. Based on this compromise, market prices are born.

Unfortunately, the market as a mechanism for distributing limited resources in the production of economic goods is also not flawless - it does not provide an ideal solution to all problems. That is why all over the world there is a constant search for ways to improve market mechanisms. Even in those countries that avoided socialist revolutions and subsequent experiments with planning, market processes at the beginning of the 21st century. very different from the methods of management at the beginning of the 20th century.

No matter how ordered, no matter how regulated by the state, economic life in developed countries world, its basis remains the same three elements:

  1. private property;
  2. private initiative;
  3. market allocation of scarce resources.

It is in markets that the correctness of the economic decisions of producers of goods and their right to receive profit as a reward for their efforts are verified. The mechanism for forming such an assessment is a comparison of the costs of producing goods and the market prices at which these goods can actually be sold.

But how are these prices formed? To find the answer to this question, we need to become familiar with the two forces that shape market prices: supply and demand.

The understanding of what traditional economics is appeared among economists in the 20th century. Institutionalists gave their definition to this term. Traditional economics is the most ancient system. Now its features are characteristic of only a small number of developing countries.

Brief Definition

A traditional economy is an economic system in which traditions and customs play a leading role in production, exchange and distribution. It is characterized by the great influence of religion and the state on the economy, low labor productivity and the traditional structure of society. Questions of how much and how to produce and how to distribute are decided through customs and traditions.

Signs of a traditional economy


The first characteristic of traditional economics is low level of technological development production. This causes low labor productivity. Subsistence farming characteristic of an economic system of this type. The development of production technology is destroying the foundation of the traditional economy.

The characteristic features are weak economic ties between settlements. This prevents sustainable economic development, and also forces all members of the traditional community to engage in heavy physical labor. The signs include the communities themselves, which are a condition for the survival of large groups of people, but hinder progress.


In this type of economy trade is not developed. Low labor productivity leaves the community with no surplus to sell. Trade ties not only with foreigners, but also with neighboring settlements are very weak. This exacerbates the penetration of technology into the economy and perpetuates entrenched practices. Countries with economies isolated from the rest of the world develop more slowly.

Social and economic stagnation- distinctive features of traditional economics. Societies dominated by this system develop very slowly or do not develop at all. If a community is isolated from outside world and other settlements, it can maintain its way of life for centuries. An example from history in which countries this led to disaster is the communities of indigenous people in America and Africa.

Stagnation is first caused by economic reasons, and then consolidated by a system of informal institutions that make up the totality of traditions and customs of society. Their characteristics are dogmatism, inability to adapt to changing conditions and strict execution. Traditions decide who to give political power and in whose favor to distribute economic resources.


In a traditional economic system the agricultural sector predominates in the structure of production. Food is the main value for such communities because labor productivity barely allows them to feed themselves, and the low level of technology development with a growing population gives rise to the problem of hunger.


 Main Features traditional society

The role of state and religion in traditional economics

The state as it was before urbanization and the industrial revolution was significantly different from today. In modern states, the main institution that determines life in the country is the bureaucracy; the will of individuals and religion is significantly reduced compared to past eras. Find any developed country and you will see that the power of even its leader is significantly limited.

If planned and market economies try to distribute power in society using vertical and horizontal structures, then the traditional economy is characterized by primitive power relations. The form of government in such communities is most often absolute monarchy, based on an extensive military class. The main resources are concentrated among the upper classes.

Political power in traditional societies is exercised not for the sake of providing social guarantees and development, but to extract rent in favor of the upper classes. The role of the state is to forcibly preserve the existing order. Social orientation is not typical traditional states.


 Chief at Indian Tribal Council

The traditional economy is based on class and caste divisions. This is driven by low labor productivity and maintained through state violence. The basis of this social structure is the desire of the dominant economic class to continue to receive its rent stably, and not to face the risks that arise from accelerated urbanization and the launch of social elevators.

The state is not the only institution that regulates the economy of traditional societies. Religious institutions play a great role in such economies. They are integrated into the power system of traditional society and give rise to a separate privileged class, also interested in obtaining rent. Religious institutions perpetuate and justify the practice of state violence against those who try to change the social order.

Advantages and Disadvantages


TO merits traditional economics include:

  • Relative stability characterizes the traditional economy. Significant social upheavals are unusual for them, and the current order can last for centuries.
  • In the few cities where craft production is located, goods are made using technologies passed down from generation to generation. This means that they maintain good quality for centuries.

Disadvantages traditional economics are:

  • Characteristic slow or no technological and social progress. Labor productivity has remained low for centuries. When a society produces the same amount of food with a steadily growing population, it creates a Malthusian trap problem.
  • Private property under this system is a very shaky institution. In a society where property rights are ensured by the ability to use violence against those who encroach on it, the development of private entrepreneurship is hampered not only by the low level of technology, but also by low security guarantees for producers.
  • Societies based on this type of economy do not adapt well to external conditions. They do not resist external invaders and natural disasters well.
  • The problems of societies with this type of economy are aggravated by entrenched religious institutions and the monarchical structure. A sign of societies with a predominance of such an economy is that states do not promote modernization, but hinder it.

Traditional economies in modern times (examples)

Most modern countries have already overcome the period of dominance of the traditional economy. Currently, there are a very small number of states in which this way of life is preserved. Examples of countries can be found in Southeast Asia and Africa. These are countries where low labor productivity and low levels of technology development remain. However, even there the influence modern technologies and globalization threatens to end the era of traditional economics.


 Kenya

Examples of such countries (with some reservations due to globalization) include the following countries:

Bangladesh, Bhutan, Laos, Myanmar, Nepal, Vanuatu, Barbados, Chad, Zimbabwe, Ethiopia, etc.

A similar system is also found among some peoples of the Far North of Russia.

Traditional farming is a thing of the past in Russia, where forced industrialization finally destroyed the village community and lured a significant part of the former peasants to urban settlements. Some signs of a traditional economy are preserved in it, but they are too insignificant to consider it as such.

We, as residents of the post-Soviet space, are extremely close to the command economy as a system, which we have been trying to get out of for several decades. Let's look at why it is so difficult to move to the market, and how the planned regime is typical for both sides of the business.

Concept and types of economic systems

Economic systems, from a theoretical point of view, are a collection of various market elements, 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;
  • team;
  • 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 (times of prosperity of agriculture as the main niche of production);
  • industrial (appeared with the birth of industry);
  • post-industrial (still developing today, characterized by the prosperity of the service sector and information technology).

But let's return to the modern understanding of the economic system. Let's try to first highlight the main key points that characterize this or that 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 relationship between supply and demand. The state, as a rule, does not interfere at all in economic relations between business entities, and all government participation consists in the creation of regulatory legal acts. The authorities can only ensure that the latter are respected.

This is why market and command economies are absolutely contradictory systems, but more on that later.

But as far as state non-interference in market processes is concerned, this issue is very controversial. The relationship between supply and demand cannot always reach a so-called consensus. For example, during periods of crisis there is absolutely no demand for some groups of goods and services, so the only buyer can be the government sector, but the market system of the economy completely excludes this possibility.

Concept of traditional economy

Traditional and command economies 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, therefore its distinctive feature is the most optimal development of rural industry.

As for values ​​in this system, banknotes are not as important as, for example, essential goods. Therefore, traditional economies are often characterized by relationships that we are accustomed to calling barter exchange.

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

Concept of command economy

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

Within this system, the state itself plays an important role in the economic regulation of the country. It is the authorities who decide which 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 an oversupply of goods produced, since the government is unlikely to allow its own resources to be wasted. Therefore, often the main symptom 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 there is no point in building the same type of stores on every street and producing more expensive products, because anyway the buyer has no choice - he will take whatever is left on the shelves.

Also a sign of a command economy is the appropriate use of labor resources. The explanation for this is very simple: there is no overproduction - no overtime hours per shift, no overworking of personnel.

Well, thanks to the constant support of the state for entrepreneurship, the following signs of a command economy take place:

  • permanent subsidies;
  • 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 a planned regime.

The role of property in a command economy

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

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

Private property in a command-administrative society extends to property intended for running a household and nothing more.

Planned economy in the life of the population

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

  1. The government decides in what proportion, according to industry shares, products should be produced.
  2. The produced goods are distributed throughout the entire territory of the state, taking into account the assumption that the population evenly consumes in each geographical area of ​​the country both food and medicine, and even household appliances in accordance with the produced 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 is needed detergents for dishes, and some of the northerners need more warm socks. But these are the realities of a planned economy, which flourished more or less successfully in its time in the vastness of many powerful states.

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

Examples of countries with planned economic systems

The command-administrative economy began its active and fruitful development in post-war times, namely in the 50s of the twentieth century. At that time, the world was subject to a terrible production crisis, and therefore such socialist countries as China, Cuba, and the closest to us in spirit and understanding - the USSR, which switched to planned measures back in 1917, became a striking example of this system.

It is difficult to say unequivocally whether this solution was effective in those days. Considering that the entire industry was in a deplorable state, and it was problematic to regulate anything based on the same ratio of supply and demand, then it is likely that the policy of government intervention at that time was the best way out of the current situation.

However, if we compare GDP growth statistics for a couple of post-war decades between countries Western Europe and states that represent socialism, then we will see that the latter were many times behind in terms of growth.

Positive aspects 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 or labor resources to promote his product - he always has a quota allocated by the state that the population needs and will definitely buy. And they will do this because the government is the only monopolist on the commercial market, so there can be no competition a priori.

As for society, a planned economy excludes any class divisions within society. In the reality of this system there are no poor people and no too rich, because salaries everyone strives for the average value.

Theoretically, it can be said that many problems 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 directed by the highest authority, and this is done on equal rights and conditions in relation to each business entity, any inclinations of a competitive environment are excluded. Therefore, a command economy reduces to zero any desire of an entrepreneur to improve his product, because no matter how hard he tries, he still cannot get more material wealth.

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 specialist he is in his field, he will not be able to receive more.

Difficulties in leaving the planned economy

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

In any case, the period of transition from a planned system to a market system is extremely difficult. We all witnessed how this affected practice after the collapse of the USSR. It is clear that every state cannot become successful in a matter of years, which is why in political economic theory there is such a thing as a transition 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.

The economic systems of modern states, as well as those that have been built historically in different countries, are presented in three main models - traditional, command, and market. Each of the noted economic management systems is characterized by specific features. Let us consider the features of the traditional economy as the historically earliest one. What are its most notable characteristics?

The essence of the economic system

What is an economic system? There are quite a few approaches to defining this concept. According to one version, an economic system should be understood as a set of laws, norms, traditions, values ​​and institutions through which society solves problems related to economic management, and also answers questions about what to produce, how and for whom.

Regarding classification, there is a traditional economic system, command and market. Let's study the specifics of each of them in more detail.

Features of the traditional system

The traditional economic system is typical, if we talk about the modern period, for economically underdeveloped states. It is based on conservative norms and guidelines relating to methods of managing the economy, understanding the laws of supply and demand and the interaction of economic entities. If we talk about the history of human development, the traditional economic system was characteristic of the early feudal periods, when the basis of the economic systems of states and societies was craft production, agriculture, elementary forms trade.

Apart from conservative attitudes at the level of rules and regulations, it has seen a rather slow implementation of new technologies. The first factor - the strong role of traditions - predetermines the reluctance of citizens to master new industries and modernize the economic structure of society. The second - the slow introduction of new technologies - becomes the reason that even if people want to bring something new to the economy, there are few actual opportunities for this.

Social inequality in traditional systems

The traditional economic system is characterized by an authoritarian, mainly principle of distribution of public goods. A certain elite receives the main resources. If we talk about tribal relations - a leader or a group of them. The standard of living of most subjects of society is low, since economic resources are concentrated in the hands of the ruling elite. At the same time practical significance this may not be the case, since conservative attitudes at the ideological level may predetermine the lack of interest of people in any excesses, social protection, or entrepreneurship. Therefore, the traditional type of economic system in some cases is characterized by very high stability. There are not many factors under the influence of which changes can occur in farms of this type. Mechanisms of revolutionary change from within, as a rule, are not formed due to conservative ideology.

The likelihood of the emergence of external entities interested in seeing a transformation of the economic model take place in a particular state with a traditional economy is low. Firstly, major players in the international business arena do not always want competitors to appear. Secondly, it may be more profitable for them to interact with the traditional economy - as a rule, locating production there, even if technologically simple, is often much cheaper than in developed countries.

Social characteristics of traditional economy

The most important aspect that is useful to consider when studying a phenomenon such as a traditional economic system is the characteristics of this model in a social context. The first thing worth mentioning is that farming is based on community labor. The release of goods is carried out jointly. Proceeds from their sales are distributed among the people who participated in the creation of the corresponding products. The sale of goods is carried out, as a rule, at the lowest prices due to great competition, as well as the relatively small purchasing power of the citizens who purchase them. In some cases, the economy of local farms may include service industries - for example, those related to repairs.

Labor productivity in traditional communities is not the highest. We noted above that public goods can largely be concentrated in the hands of the ruling elites. At the same time, in many cases, states build institutions for social protection of citizens, since the income that local farms bring can be extremely low, which creates a threat of political instability.

Sectoral structure of traditional economies

The main industry in traditional economies is agriculture. In order to organize production, we need, firstly, investment in the necessary infrastructure, and secondly, the desire of people to do something different, which may differ significantly from traditional occupations, perhaps to acquire new knowledge, skills, and competencies. In communities of the type under consideration, both may be absent in the required amount.

The agricultural industry is also usually not characterized by innovation. This is often due to a warm climate, in which there may be no need for significant modernization of growing and harvesting technologies. In addition, direct buyers of the relevant products may not be interested in improving agricultural work. The fact is that, thanks to the warm climate and other positive conditions for growing fruits, agricultural producers can be spared the need to use chemical fertilizers, genetically modify products, and use substances that accelerate the growth of vegetables and fruits. Buyers are thus beginning to get used to the fact that agricultural products coming from a particular market will be completely environmentally friendly. They may lose interest in purchasing fruits that are grown using innovative approaches.

As for the productive sectors of the traditional economy, most often these are small craft workshops. Technologies for producing goods in them are also, as a rule, quite conservative. And this may also be due to the wishes of potential buyers of the product. Many of them prefer to purchase products produced by craftsmen of the relevant profile - dishes, interior items, furniture - which are made by hand and using natural materials.

So, the main features of the traditional economic system: the communal structure of the economy, the predominance of agricultural products in the structure of goods produced, the presence of conservative norms in public behavior, limited access to new technologies. The corresponding model of economic management, in general, allows for free trade turnover, and this makes it possible for citizens to provide an acceptable standard of living for themselves and their families. In some cases, the social role of the state becomes significant.

Command economic system

Having studied the characteristic features of the traditional economic system, we will also examine the specifics of the command model of managing the national economy. Its main feature is the minimal intensity of free market relations. Key economic processes are managed by the state. If we talk about early historical periods - a feudal lord or a slave owner. Although it should be noted that even in the appropriate historical stages development of mankind, free trade rarely had restrictions. If we consider positive traits traditional economic system, we can highlight, first of all, the unpopularity of bans on the purchase and sale of goods by citizens. That's why practical examples building a command economic model at the state level, before it appeared in the USSR, China, Warsaw Pact countries, North Korea, Albania, Cuba, is difficult to find in history.

In most states, the economy of the corresponding type has been completely or partially transformed into a market economy. The most active discussions are taking place in the expert community regarding assessments of this fact. There are experts who are confident that the command economic system has not taken hold in the world due to its low efficiency. Others, paying particular attention to the experience of China, say that the corresponding model is superior to any other in many aspects, especially when it comes to the social orientation of the national economy. The refusal of states from the command economy was, therefore, dictated rather by political reasons.

A characteristic feature of the traditional economic system is inequality in society. With a command economic model, it is not so pronounced. Therefore, in many states the corresponding system of economic management was very popular, and in many modern countries - China, Cuba, and largely in Belarus - it still works.

Command principles of economic management

As we noted above, a sign of a traditional economic system is the presence of conservative norms by which economic processes are managed. How does the state solve the corresponding problems when building a command model?

The key subject of the economy in this case is a certain political institution. Its task is to formulate economic development plans and ensure their implementation. The relevant political institution determines:

  • what are the likely needs of people and society for certain resources;
  • how many products of one type or another should be produced by specific enterprises;
  • what technologies should be used to produce goods;
  • how the products will be distributed.

The state also resolves issues with the optimal location of production, supply and sales channels. In a command economic system, the authorities set salaries, bonuses, and desired profitability indicators.

In some cases, the principles of self-regulation may be introduced in the economic systems of states. As a rule, this is expressed in permission to engage in entrepreneurial activities for certain categories of citizens, provided that the corresponding activities will be primarily related to the satisfaction of personal needs, and not the desire to obtain as much profit as possible. In this sense, traditional and command economic systems may have some similarities. In the first case, the basis of social production is precisely those farms that operate at the local level - private workshops, small shops, individual production of goods. In the case of a command economy, the permitted forms of business activity are likely to be the same.

Market economy

So, we have explored what a command and traditional economic system is. The characteristics of the second predetermine its pronounced dissimilarity with the first. Mainly because the subjects of society and business under it have the right to conduct economic activities relatively freely. In this sense, the features of a traditional economic system make it closer to a market one, which, first of all, is characterized by practically unlimited freedom of participation of citizens in purchase and sale relations. The level of government involvement in regulating these processes is minimal.

A market economic system presupposes, in a country with developed social institutions, primarily the participation of citizens in political governance. The model of economic development under consideration requires the protection of private property. Traditional, command, and market economic systems are dissimilar from the point of view of the mechanism for distributing public goods. In the first case, the main resources, as we noted above, are concentrated in the hands of the ruling circles. Under the command system, they are distributed by the state.

Distribution of public goods in a market economy

A market economy assumes that public goods will be distributed in society based on self-regulating mechanisms of supply and demand. The best public goods must therefore be acquired by citizens who have the necessary capital. In turn, no one forbids other people to invest their labor, establish their own business, develop as an economic entity and acquire the same status - a person with capital. While, for example, characteristic feature The traditional economic system is an extremely complex mechanism for increasing citizens' social status. Despite the fact that the corresponding model of economic development does not prohibit market relations, in practice, a person’s ability to develop their own business or capitalize their labor is greatly complicated by a lack of access to technology, an underdeveloped legal framework, and often disapproval of entrepreneurial activities from others.

Compatibility of economic systems

The most important point to pay attention to: the types of economic system we have considered (traditional, command, market) can, firstly, be mutually combined, and secondly, if we talk about modern stage development of mankind, they are practically never found in their pure form, at least at the level of the national economy of the state. Even in developed countries there may be communities in which economic communications may have characteristics of a traditional economy. For example, in Russia, as well as in many Western European countries, a significant percentage of GDP is provided by agriculture. From a technology point of view, this industry can easily be classified as a segment developing within the traditional economic model.

Command principles of economic management are preserved in many countries - China, North Korea, Cuba, and to a large extent in Russia, if we talk about state-owned enterprises, which are leaders in many industries. Thus, in practice, in most countries of the world, a virtually mixed economic model has been formed. It can combine the characteristics of each of the ones we have considered.

What determines the predominance of certain elements in states that most characterize the types of economic systems we have considered? Traditional, command, market, mixed models, as a rule, are established due to social factors, the historical specifics of the country's development, the influence of other states, and the geopolitical situation. It is difficult to identify a set of criteria that states can rely on in all cases when choosing optimal economic management models.

There are approaches according to which the compatibility of a country’s economic system with market, command or traditional principles should be determined based on the civilizational affiliation of the state. There are many countries that are formally independent, having their own language and culture, but, if you follow similar points of view, forming a single civilization. In this case, even with marked differences in political priorities, it makes sense for them to practice similar approaches to economic management. Even if such theories are not considered as guiding ones, it can be seen that in many states that are similar in culture, very similar principles for building economic relations are observed. For example, many researchers associate the economic successes of Asian states - Japan, South Korea, Taiwan, Singapore, primarily with a developed culture of discipline and hard work among citizens. If there were no appropriate basis, Western investors, who are often credited with a decisive role in the economic successes of these countries, would probably not invest in the development of new high-tech industries in territories that are not very developed infrastructurally and do not have significant natural resources.

The noted discipline of Asian peoples, according to researchers, is associated primarily with the enormous role of conservative attitudes in socialization, education, perception of the world, and communication with other people that have developed in their respective societies. A similar characteristic is distinguishing feature traditional economic system. However, in the case of the national economies of the mentioned Asian states, we are talking about a successful combination of conservative approaches and full-fledged market mechanisms.

Thus, several forms of management have emerged on the world market. These are traditional, market, command and mixed economic systems. The first is based on small-scale production, retail trade, and individual entrepreneurial activities with low turnover. In a command economy, the leading role in economic management belongs to the state; in some cases, certain forms of private business are allowed, allowing citizens to satisfy their personal needs.

Under the market model, economic processes are managed with minimal government intervention. Commercial communications are implemented based on the laws of supply and demand. However, in its pure form, if we talk about national economy In a single country, traditional, command or market economies are practically not observed. There may be some basic business management model, but in most cases it will include elements of other systems.