Mobilization in the economy is Definition of the concept, essence, content

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

For the first time in history, Seymour Harris spoke about such a concept as mobilization in the economy. He believed that this was one of the most effective tools in the fight against the economic crisis. Although there are many different opinions on this issue. Opponents of this theory believe that the concentration of all efforts in one area only brings problems to the economy, and such actions are only a product of the command-administrative system of government and have nothing to do with a market economy.

The heart of the matter

Today, there are many interpretations of the term. The generally accepted one says: “Mobilization in the economy is a set of measures at the level of a particular state, which are aimed at using all available resources in order to overcome the crisis that already exists in the country.”

In fact, anti-crisis measures are aimed at the full use of production capacity to overcome the emergency.

Signs and principles

Oneone of the main signs that mobilization is required in the economy is the threat of a split in society or the collapse of the integrity of the country, international isolation.

There are also a number of principles:

"Main Link"	This principle assumes that resource concentration occurs in those sectors of the economy that can affect the planned activities. However, the policy in this case involves the infringement of other sectors of the economy.
"At all costs"	In this case, the government of the country has the strongest impact on those economic entities that affect the speed of achieving goals.
"Teamwork"	All subjects of the economy that affect the speed of the task are united into a single team.
"Discreteness"	All activities are limited to a certain period of time, otherwise the country's economy will decline even faster.
"Consciousness"	In a difficult situation for the country, all economic entities and citizens are required to fully concentrate their efforts and understand that it will be necessary to make even sacrifices for the common good.

General characteristics

Mobilization in the economy is, first of all, a high rate of accumulation. In fact, most of the resources go to investing in production. Otherpart of the effort goes to protection from external factors. It could be an internal defense against trade wars or higher oil prices.

One of the characteristic features is also a strong government intervention in the economy. To concentrate efforts, long-term and strategic forecasting and planning are carried out.

Under what conditions is the program implemented?

The definition of "mobilization" is, first of all, the availability of a country's raw material and resource base, which will allow the formation of a highly productive production system. In addition, the state must have a sufficiently high level of development of production capacities and forces, that is, it must be possible to make an economic breakthrough. The country should have the latest achievements of scientific and technological progress.

It should also be understood that no state can compete in the world market if there is no effective economic model within the country itself.

Mobilization of the Japanese economy in the Meiji era

This is the most striking example in history when the state succeeded under the pressure of a number of factors to build an efficient economy within the state.

Even in the 19th century in Japan, it was practically the Middle Ages, where the bow was considered the most effective weapon. And here comes the threat of American occupation. After some time, the power of the Shogunate was overthrown and a new emperor became at the helm.

This man was able tocompletely reconstruct the country. The feudal principalities were liquidated, instead of them prefectures and the central government appeared. As early as 1871, the peasants had the right to independently choose what they would grow, and a year later free trade was already allowed. A single currency appears in the country, and internal duties are canceled.

In this case, we can say that the synonym for mobilization is the process of forming a new model of society and economic relations. In fact, the land was given into the ownership of precisely those persons who actually cultivated it. This is what gave a huge impetus to the development of the agricultural sector. Another incentive for the development of the agrarian economy was the abolition of the poll tax, that is, the peasants had more money on their hands and, accordingly, they tried to grow a good harvest, knowing that they would then have more money.

Samurai and princes (daimyo) were given a "compensatory pension", which was the impetus for the development of the banking sector. They were the first investors in the banking sector. Most of the samurai, after receiving payments from the state, began to engage in medium and small businesses, and they actually formed the middle class of the state. They founded banks, opened industrial enterprises and acquired land. They were also involved in the state administration and construction of state institutions and enterprises.

The Meiji Revolution is a mobilization in history that makes it possible to take as a basis the model of building a strongstates. After all, by the beginning of the last century, Japan was becoming an industrial giant. And the war with the USSR allows us to say that even such a small country may not suffer from a military conflict and dominate the sea.

Relevance of the issue for Russia

No one will argue that Western countries have been waging an economic war against the Russian Federation for several years now. The crisis is gradually growing, so the government of the country is faced with a choice of which way to move now.

Today it is already clear that these are only the first stages of a protracted war, that is, Russia needs to look for internal resources to overcome the crisis, create an independent financial system and reduce the degree of discontent on the part of citizens.

Where can I start?

First of all, mobilization in the economy is the state influence on the country's economy. That is, the government should return to the economy and take a direct part in solving anti-crisis tasks. Such a step should not be regarded as anti-market, otherwise it is simply impossible to overcome a crisis of this magnitude.

The government should take a number of measures at the legislative level to protect economic actors from growing anarchy and corruption. Moreover, it is known from history that many states started with this, the same Japan and America, the USSR and Singapore.

Along with the material base of private enterprises, aa state base that will create economic security for the entire country and protect the population.

Possible immediate action

One of the synonyms of resource mobilization is the modernization of state power, that is, the following steps are required from the government:

Return to mandatory state orders at enterprises. It is necessary that strategic goods be produced within the country and by order of the state. These are cars, computers, aviation, sea, river vessels and so on. The government should adhere to the policy of import substitution, which will protect against external threats and ensure economic growth within the country.
Attraction of labor resources. In this case, we are not talking about labor service, it means that every person in a crisis should not only have the right to work, but also a duty. According to some reports, out of 86 million able-bodied population, 38 million do not know what they are doing at all, this cannot continue. You can even give everyone land plots for personal subsidiary farming. It is known from history that it was precisely such farms that allowed people to survive during a period of war or economic recession. It is also necessary to restore vocational education, military duty. Homeless people and drug addicts need to be involved in socially significant work.
The third step to take is to change financial management. This means that a ban on the withdrawal of funds from the state should be announced. If the company implementsraw materials obtained from the bowels of the earth, they must pay at least 50% of export earnings in favor of the state. It is also necessary to minimize reserve and foreign exchange funds, that is, withdraw funds from foreign banks and direct them to invest in industry and lending to really working enterprises for the benefit of the country.

Of course, these methods are not exhaustive, but the main thing is that the government understands that Russia should already be on the path to mobilizing the economy when there is an international isolation with no prospect of a quick end.