With the development of society, its various spheres also changed. Society, politics and economics today are significantly different from those in the Middle Ages. Step by step, social relations related to production, consumption, exchange and distribution also changed.
The concept and types of economic systems
To put it briefly but succinctly, this concept characterizes the way of organizing strict relationships between the so-called economic agents. This method solves questions regarding how, what and for whom exactly to produce.
Today, economists and historians distinguish the following main types of economic systems: traditional, market (modern) and command. Each of them has its own clear signs. They will be discussed below.
Types of economic system: traditional
As the name implies, this economic type is based on tradition and is characterized by a high degree of conservatism. What traits does she have?
Lack of technology development, for example. In the Middle Ages, manualwork. Craft workshops were widespread, in which everyone was able to produce a certain unit of goods. Thus, the process took a very long time. And all because of the lack of division of labor.
At the same time, small-scale production took place. Its essence was that the artisan produced products using the necessary resources at his own disposal.
Besides, the main type of organization of the economy was the community. In other words, it was run jointly by several families.
The traditional economic system also had an impact on society. There was class division. It was obligatory to honor and observe the centuries-old traditions and way of life. This was the reason for the absence or very slow development of society and its economic relations.
Types of economic system: administrative-command
Those of the Russian citizens who found the Soviet times, the principles of this system are familiar firsthand. What are they?
Unlike the traditional system, production in a variety of industries is well developed here. However, it is entirely controlled by the top, the state.
There is no place for private property in the country. Everything in common and at the same time a draw.
And only the state decides how, in what way and what to produce. In the USSR, for example, there were five-year plans, during which it was required to produce a certain amount of products. Howeverthe command system existed not only in our country, but also in a number of Asian and European countries.
Types of economic system: market economy
We live in the age of market relations. This means that everyone has the right to private property. Anyone has the right to both work in a plant or factory, and start their own business. By the way, the state even encourages this by allocating funds specially intended for this from the budget (for the development of small businesses).
In a society with market relations, not only economic, but also social infrastructure is well developed. This type of system has a high degree of flexibility and elasticity.
Types of economic system: mixed
In modern conditions, there are not many countries in which economic relations could be characterized specifically. Therefore, today it is customary to talk about the widespread distribution of a mixed economic system - one in which there are features of two or even three systems at once.
