The types of economic systems

Mankind has long known the different types and models of economic systems.They gradually formed in the course of a long historical development.

classification of economic systems based on specific criteria.The most common grounds on which they are grouped:

- ownership, extending the means of production;

- methods of economic management.

On the basis of these principles includes such types of economic systems: the command-administrative, market, traditional and mixed.Each of them has a definite place in history.But not all the above types of economic systems exist concurrently.

So, in the past dominated by the traditional system.Some of its features and today are found in less developed countries.It is characterized by multi-level economics, natural forms of management, extensive use of manual labor, the lack of new technology, the most basic form of organization of labor and production, poor infrastructure, poverty among the population.Traditions and rituals were formed over several centuries, cultural and religious values, the division of the population into castes and social strata - all this greatly affects the socio-economic processes.Those countries, which still remains a traditional economy to endure the domination of foreign capital and excessive state intervention in the redistribution of national income.

market economic system.It is characterized by the dominance of private ownership of economic resources.It implies the involvement of many manufacturers and, consequently, purchasers of their products.All economic actors have personal freedom and the freedom of choice of business activity, as well as the freedom of access to resources, to information, to the achievements of science and technology.Personal interests - the main motivator of behavior of every economic entity.As a result, independent decision-making, he wants to get the most revenue.But his private interest in economic entity will be able to realize only when it is in addition to their interests will be represented and the interests of society.The distribution of resources, income, pricing and other macro- and microeconomic processes regulate the market mechanism, which is based on free competition.Other types of economic systems differ greatly from the absence of the latter.Indeed, in this case, it is the competition is the main engine of economic development.

State during the market system in the economic processes intervenes very sparingly and carefully.Its role is only to protect the property and private owners to establish such a legal framework that is conducive to the functioning of the market.Market actors completely independently taking economic decisions, often risking much.

Such a market economy with free competition, there was a prevalence of up to 30-ies of the 20th century.

In the socialist countries of Asia and Eastern Europe, the former Soviet Union there was a command-administrative system.It is a non-market economy.The dominance of state power, monopolization and nationalization of the economy, directory, hard production planning, allocation of resources, lack of competition and the free formation of prices, and this commodity-money relations - is striking features of the command-administrative system.

countries of the modern world can function adequately in the mixed economic system.Its main characteristics:

- a variety of forms of ownership;

- combining the best practices of government regulation of the economy with the market mechanism;

- high level of development of productive forces, the availability of market infrastructure of society.

In a mixed economic system together different types of economic systems at their best.