What is a sector of the economy? Primary, banking, municipal, private and financial sectors of the economy

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

Sectors of the economy are related industries. In their interaction they form a single system. The enterprise in market conditions is considered the main economic element. His role is quite significant in this whole system. The country's economy does not just give him a certain place in general. The enterprise is also distinguished by its obligatory belonging to a particular economic branch in particular. Further in the article, we will consider in detail what the sectors of the national economy of the Russian Federation are.

General information

It's no secret that the country's economy as a whole is a fairly complex and dynamic organism. The whole system is represented by different directions, which is explained by the diversity of the production process itself. The structure of sectors of the economy reflects its structure, the ratio of all links and existing subsystems, the relationships and proportions formed between them. Study of differentdirections is important for the development of economic activity of the state, optimization of its components.

Spheres that form the system

From the standpoint of the release of the total social good and the creation of income, two fairly large areas stand out: the non-production part and material production. The latter consists of several subsystems. This is:

• industry;
• freight transport;
• forestry, agriculture;
• communication serving production processes;
• trading;
• computing and information systems;
• catering;
• construction.

The following elements are distinguished in the non-production sphere:

• Utilities;
• social security;
• physical education;
• passenger transportation;
• serving the population and organizations in this area communications;
• art and culture;
• insurance and credit systems;
• public education;
• he althcare;
• scientific services in particular and science in general;
• activities of administrative bodies.

Today, this whole system includes a huge number of organizations, companies, associations.

System structure

Summarizing the characteristics of economic processes, the components of the entire industrial complex are usually divided into sectors. Under this term isunderstand the totality of all institutional units that differ in similar functions, behavior, tasks. There is a classification of subsystems in accordance with the direction of activity. Thus, in the Russian Federation there is an external sector and a system that includes state institutions, enterprises and households. Let's take a closer look at them.

Businesses

There are various organizations in this sector of the Russian economy. Some activities may be aimed at making a profit. Others have the status of "non-profit" companies. The sphere of enterprises includes financial and non-financial companies. The latter include commercial organizations engaged in the production of goods or the provision of services for profit. Non-financial enterprises are non-profit associations that do not aim to benefit from their activities. The regulatory body is also important in this classification. Depending on its nature, state, non-state and foreign enterprises are distinguished. The financial sector of the economy includes both non-profit and commercial associations. The activities of enterprises in this area are aimed at mediation, insurance, security, and so on. The banking sector of the economy includes the relevant enterprises (the Central Bank of the Russian Federation, for example). Other commercial companies also belong to this industry. The financial sector of the economy includes investment funds, sponsorship, pension, insurance, leasing, charitable funds and organizations, stock exchanges and other enterprises.

Government institutions

This sector of the economy includes various judicial and executive bodies, as well as legislative power. The same area of activity includes social security funds and non-profit corporations controlled by them. The sphere of state institutions, in turn, is divided into the federal, regional and municipal sectors of the economy. The top level controls the bottom. The activities of state institutions are regulated by law.

Households

The agricultural sector of the economy mainly combines consuming elements. These include, in particular, various farms and enterprises that they have formed. This sector of the economy is divided into several more. Farms are generally classified according to the branch of work, the qualifications and specialization of the person acting as the manager, and, in fact, according to the occupation. Depending on the type of income, experts note the following subcategories: employed, income from property, employers. A subgroup may include households by number of members, total income, or location.

The rest of the world

This sector of the economy includes a complex of institutional units. These elements represent non-residents located in other states. At the same time, they have consulates, embassies, communications, bases and other organizations on the territory of the Russian Federation. This sector of the economy is closely connected with the country's foreign policy. It includes not onlynon-resident organizations, but also those associations with which they interact.

Other species

Considering the economic activity of the country as a whole, experts also single out the state and private sectors of the economy. The first subgroup includes institutions, companies, associations, enterprises, control over which is provided by the state administrative apparatus. The state regulation does not apply to the second subgroup. There are also non-market and market sectors. Such a classification is established from the position of relation to the trade sphere. For this or that sector of the market economy, the presence of a production process is characteristic. Enterprises are engaged in the production of goods, the formation of a variety of services intended for sale at a cost that affects demand. In the same subgroup, the barter of products or offers, the stock of finished products, and the payment of remuneration for labor in kind are carried out. Within the non-market sector of the economy, there is the release of services or products used by the owners of the enterprise or directly by the producers themselves. Here, the transfer of produced goods or services can be carried out free of charge or at a cost that does not have a significant impact on demand. In this area of activity, the primary sector of the economy should also be singled out. It unites industries that are associated with the extraction of various raw materials and their further processing. The primary sector of the economy is of great importance for the development of the country as a whole.

Industries

It should be noted that sectors in the economy are formed from homogeneous types of occupations. These activities are called industries. In accordance with international statistics, the entire economic system is divided into "production of goods" and "provision of services". The first category should include agricultural activities, industry, construction and other areas of production of material values (recycling of raw materials, publishing, picking berries, and so on). The service sector should include education, general government, trade, he althcare, defense, etc.

Intersectoral complexes

These categories are formed within certain economic sectors or between them. An intersectoral complex should be understood as an integration system, which is distinguished by the presence of interaction between different components and areas of activity, stages of production and distribution of products. For example, in industry, metallurgical, fuel, energy, and machine-building sections can be distinguished. Complexes in which various sectors of the economy are combined are distinguished by a more complex structure. These, for example, include a construction site.

Target and functional systems

This classification is based on various criteria. So, for example, the reproductive principle is characteristic of target complexes. This intersectoral system is based on the criterion of participation in the production of final products. Examples include transport, fuel, energy,agro-industrial complexes. Functional systems are based on the criterion and principle of its specialization in accordance with a specific task. In this case, environmental, scientific and technical, investment complexes can be cited as examples. The unification of emerging diversity is a consequence of the improvement of the quality of the part in production aimed at meeting social needs.

Development of the economic structure in Russia

According to most experts, the system of the national economy is not permanent. Changes in it can occur both spontaneously and under the influence of regulatory state activities. In addition, various internal and external conditions also have a great influence. The latter include competition from overseas manufacturing firms. Of particular importance is the external economic situation - the state of world trading floors for specific types of products, as well as the cost of oil. Internal factors include investment activity, competitiveness of manufactured goods, production capacity and potential, the degree of solvent demand.

Factors affecting the development of the economy

Among the main instruments contributing to the development of the country's economy are targeted programs, subsidies, government investments, purchases, as well as various preferential concessions for enterprises, industry groups, and regions. According to analysts, the need for restructuring,improvement of the economic activity of the Russian Federation is determined by the change of priorities in the country. The administrative-command system was replaced by market relations long ago. In this regard, the nature of economic activity should correspond to the current state of affairs. Improvement and development in accordance with the requirements of the times are possible in Russia due to a number of factors. Also important are the presence on the territory of the country of vast natural reserves, human resources, as well as the implementation of continuous scientific and technical research.

Conclusion

In Russia, various programs are being developed to maintain and further develop the economy. In particular, it is planned to continue the formation of vertically integrated associations in the oil industry. Their activities are aimed not only at the extraction, but also the processing of raw materials obtained from the bowels. At metallurgical enterprises, a constant expansion of the volume and quality of rolled metal produced is envisaged. To implement everything planned, it is necessary to use high-tech equipment, new advanced production schemes. In connection with the predicted increase in metal prices, this industry is one of the most attractive for investment. This, in turn, will quickly lead to the recovery of these enterprises. Industries characterized by a high scientific and technical level (for example, the production of rocket and space complexes, the nuclear industry, biotechnology, heavy machine tool building, and others) receive direct support from the state. It is expressed in the form of export credits, various kinds of subsidies, government investments and purchases. However, the main method of restructuring the Russian economy is the re-profiling and winding down of companies with reduced capacity, increasing the production of goods that are in greatest demand both in foreign and domestic markets. An integral part of the improvement of the system is the formation of optimal conditions for the development of advanced and promising activities that form the real economic potential of the state.