Economic models generally represent a sustainable socio-economic relations and ties between economic entities, established on the basis of the prevailing forms of property and methods of regulation of macroeconomic activity.As economic entities can serve households, firms and the government.
Over the past two hundred years the world has mostly acted in four global economic models.These are two of the dominant market economy - pure capitalism and modern capitalism, and two types of non-market system - administrative-command and the traditional.And as part of this or that general economic models emit a variety of models of economic development of individual regions and countries.The following are general descriptions of the global economic system.
traditional system
This type of management prevails in underdeveloped countries and implies a low level of technology, the high prevalence of manual labor and mnogoukladovuyu economy, which is manifested in the coexistence of various economic forms.Often, community-based natural-preserved form of production and distribution.In economics, a significant role is given to small-scale production represented by numerous artisans and farmers.
in the national economy that operates under the traditional system, the decisive role played by foreign capital.The social structure of the society at the same time depends entirely on the age-old foundations and traditions, caste, estate - which greatly hinders socio-economic development.
administrative-command system
Economic models of the type of command have been taken in all countries of the socialist camp (first of all, in the Soviet Union), and in some Asian countries.
The characteristics of this type of management include the following:
- ownership of economic resources - government,
- bureaucratization and state monopolization of the economy,
- basis of economic activity - the centralized planning of the economy;
- requirements, supply and demand were determined by centralized planning department, without the direct consumers and producers on the basis of a common political ideology.
Pure capitalism
This model is operated in the 18-19 centuries and was a system of a market economy with a clear competitive.Economic activity was carried out by sole traders, capitalists and, accordingly, they also possessed the right of ownership.There was self-regulation of private capital on the basis of free markets and minimal government interfere in this process.In fact, there was no wage-workers social protection in case of unemployment, old age, sickness.
Modern capitalism
the middle of the 20th century, with the arrival of the technological revolution, the rapid development of social, technical and production infrastructure, government agencies are beginning to more actively participate in the development of the national economy.Pure capitalism gradually transformed into a system of development of modern capitalism.Under this system any national economic models that have received their specific features based on the features of social, ethnic, geographical and historical conditions.Let us examine some of them.
American model
- active promotion of small businesses (about 80% of all new jobs are created by small businesses);
- minimally interferes with the state regulation of the economy;
- state property shows very little in the overall volume of ownership;
- pronounced stratification of society into classes of rich and poor;
- adequate standard of living and social protection of the poorest citizens.
Japanese economic model
- active influence on the economic development of the state mandatory planning of this development (five-year plans drawn up for certain areas of the economy);
- wages among ordinary employees and managers of firms differs only slightly, so the income level of the population is fairly evenly;
- economy has a social orientation (the practice of lifetime employment, social partnership, etc.).
South Korean model
- state planning, the development of five-year plans;
- strict regulation of foreign economic activity with a view to developing exports and minimizing imports;
- control of the state in the banking sector.
Chinese model
- coexistence of market and administrative-planned economy;
- maintaining free economic zones;
- flat income levels;
- importance of households;
- Chinese emigrants to actively support the development of the national economy.
