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 have also changed.
The concept and types of economic systems
Briefly, but succinctly, this concept characterizes the way of organizing strict relationships between the so-called economic agents. This method solves issues 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. About them and will be described 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 features are inherent in it?
For example, the lack of technological development. In the Middle Ages, manual labor was predominant. 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.
Along with this, small-scale production took place. Its essence was that the artisan produced products using the necessary resources at his own disposal.
In addition, the main type of organization of the economy was the community. In other words, it was conducted jointly by several families.
The traditional economic system also influenced society. Class division was present. Mandatory was the veneration and observance of centuries-old traditions and lifestyles. It was this that caused the absence or very slow development of society and its economic relations.
Types of economic system: administrative command
Those of Russian citizens who found Soviet times, the principles of this system are familiar firsthand. What are they?
Unlike the traditional system, production in a wide variety of industries is well developed here. However, it is wholly and completely controlled by the top, the state.
There is no private property in the country. Everything is common and at the same time a draw.
And only the state decides how, how 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 production. However, the command system existed not only here, but also in a number of Asian and European countries.
Types of economic system: market
We live in an age of market relations. This means that everyone has the right to private property. Anyone who wishes has the right both to work at a factory or factory, and to start his own business. By the way, the government even encourages this by allocating funds specially designed for this purpose (for small business development) from the budget.
In a society with market relations, not only economic, but also social infrastructure is well developed . This type of system is characterized by 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.