Models of the mixed economy: American, Japanese, German and Chinese

Each country is building its own system of national economy. The authorities are trying to make the economy competitive, fulfill social obligations to citizens. There are models of a market, mixed economy, there are also purely command-administrative formats for state interference in economic processes. What are the characteristics of each of them? How different are the principles of economic construction in Western countries?

What are the models of the economy

The economies of the countries of the world work under different models. Criteria that determine the properties of each of them are many. In the modern scientific environment, two are popular: the predominant form of ownership of the resources underlying economic development, and the mechanisms for coordinating business entities. Based on these two criteria, several groups of economic models are distinguished. We list them.

1. Models of command economy

Characterized by the predominance of state forms of ownership of economic resources. The activities of economic entities are based on administrative-command directives issued by the authorities. The key mechanisms that determine what to produce, how to distribute and through which channels to exchange, form the state. Command economy was considered the USSR. Among the existing countries such model has, according to some experts, North Korea.

2. Models of market economy

Characterized by the fact that resources are mostly represented by private property, there is freedom of pricing. The state does not affect the key economic processes and does not actively participate in the allocation of any resources.

3. Models of the mixed economy

Researchers note that the market or command models in their pure form today are quite rare. One way or another, the state interferes in business affairs in almost any country, which actively promotes the values of the free market. In turn, even in North Korea there is a place though illegal, but still having signs of private business.

Models of the mixed economy today, according to experts - the most common in the world. The only question is how big and what is the role of the state in the economic system of a single country. In addition, in a number of cases, the importance of the political regime is not so much the extent to which the authorities interfere in business affairs.

What is a mixed economy?

Before studying the models of mixed economy in different countries, we will study the general characteristics of this kind of economic systems. The main criterion here is that the roles of the state and the private sector are equally important. In addition, both forms of ownership are present in a comparable proportion. However, the main economic mechanisms are still determined by the market. The state supplements them by amending the regulatory legislation.

What is the expediency of government intervention in the affairs of the market? Why not let the business go free swimming? Some economists explain this by the fact that in a pure market there is a risk that a significant part of citizens will remain socially unprotected, they will not be able to find a job. And this is not for the benefit of private businesses, many of which need solvent customers. It will be better if someone provides them with income (let it be state-owned enterprises), and the sales market at the same time expands. There is a version that the Russian model of the mixed economy works in a similar way. In it, the state, providing jobs to millions of citizens in the budgetary sphere, which has little in common with entrepreneurship and a free market, stimulates their purchasing power, which, in turn, operates "clean" businesses, such as retail, fast food , Automobile retail.

Another view on the role of the state in a mixed economy is based on the problem of free pricing. The fact is that the market in its pure form is very speculative. Many of its players are not able to negotiate a moderate policy in terms of increasing selling prices, and if they show such initiatives, then, as a rule, in order to collude against competitors, as a result of which inflation accelerates (as, for example, in Russia in the early 1990s , And in many other countries of the former socialist bloc). As a result, the economy is plunged into a crisis. The state, through reasonable intervention in the affairs of the market, can regulate the course of pricing, which can contribute to a slowdown in inflation.

Basic concepts of mixed economy

Consider what are the main models of the mixed economy, based on their fundamental nature. Experts identify the following.

1. Neo-static model

Its main feature is the nationalization of key industries, as well as the impact on the market so that the capabilities of individual players are approximately the same. In a number of cases, antimonopoly mechanisms are included in economic policy.

2. The neoliberal model

It is characterized by less government interference in the affairs of the market than under the neo -etatist scenario. The authorities are trying to influence the quality of the functioning of economic institutions, but not the competitive process itself. At the same time, the antimonopoly component can also be used to protect free competition.

3. The model of concerted action

It is based on the principle of finding a compromise between various subjects of the economic process - businesses, government, society (often represented by trade unions). Characterized by fairly high taxes (usually higher than in countries where the neo-liberal model is practiced), often calculated on a progressive scale. The ultimate goal of the authorities is to acquire resources to maintain equality of citizens' social status.

These are the most common models of the mixed economy. Undoubtedly, as far as the natural course of economic processes is concerned, priorities in these or those states can change. National models of the mixed economy, according to experts, tend to evolve, adapting to the socio-political reality, the external conjuncture, the development of technology, the emergence of new markets.

Features of the mixed economy

How do the mechanisms of the mixed economy work in practice? How is the work of the economic systems of the countries where they are used? Experts, taking into account the fact that national models of a mixed economy in different countries may have peculiarities, suggest that there may still be some commonality of signs for economic systems of this type. The most universal mechanisms for mixed economies of different countries are the following.

1. The bulk of industrial production is produced by large corporations, which, however, compete with each other. Thus, economic processes, on the one hand, are not dispersed, on the other - there is no monopoly, there is no market player who would form the rules for everyone. The form of ownership of such enterprises is of no fundamental importance-even if it is not state-owned, then businesses are somehow responsible to the authorities because of their obligations to pay taxes or contributions to pension accounts.

2. Legislation is largely socially oriented. For example, a factory employee, as a rule, can not just be dismissed or reduced his salary in comparison with that prescribed in the contract. Thus, the law stimulates the maintenance of the purchasing power of citizens.

3. High standardization and security of payment procedures, as well as those that ensure the protection of contracts (usually a developed judicial system). The state in this case undertakes part of its obligations to ensure the stable operation of the business, demanding, in particular, from banks the strictest correctness in performing settlement procedures. The judicial branch, in turn, guarantees assistance to entrepreneurs in resolving the complexities in the legal field. The state and business sign a kind of social contract: the first side gives protection in a number of key mechanisms for entrepreneurs, the second side pays for it through taxes and hiring of citizens.

It is these three characteristics that, according to experts, all the main models of the mixed economy are characterized, with all the possible difference between them in terms of sovereign mechanisms for the implementation of the national economic policy.

How did the mixed economy appear?

An interesting fact is that the "progressive", according to many experts, the market model appeared earlier than the mixed one. It so happened that by the beginning of the 20th century the "clean market" in the form of capitalism without significant state intervention was not as effective as the subjects of economic relations had expected. The market began to be regulated by the authorities. At the same time, attempts to deviate from this model and return to the "pure market" have become, as many experts believe, the cause of the crisis in the US in the early 30's. Economists realized that the optimal functioning of the economy should still imply a significant role for the state. Thus, a mixed model of national economic construction appeared in the 30-40-ies. During the war years, the priorities of the states were somewhat different due to the need to provide resource support to the armies, but after the end of World War II, the principles of the mixed economy were especially introduced. Today's economic models in these states are the result of the progressive introduction of principles that provide a compromise between private and public capital.

Mixed economy in the USA

Models of the mixed economy function in different countries? Let us briefly consider the relevant features on the example of the most powerful economic powers. Let's start with the USA. The American model of the mixed economy, according to many experts, is characterized by minimal government intervention in economic processes. The corresponding type of property takes a relatively small role in comparison with the private. Non-state capital plays a leading role in the US economy, but its direction is regulated by power structures - by issuing laws related to reporting, social obligations, payment of taxes and other charges. The role of the authorities in the US economy can be noticeable in the segment of government orders, mainly of defense and scientific nature. As you know, the US military budget is more than 500 billion dollars.

Many economists believe that the American model of the mixed economy is aimed at stimulating civil entrepreneurial activity. In practice, this can be expressed in a minimum of formalities when starting a business. Also, measures of social support for low-income groups of Americans are not as large as in many other Western countries. Unemployment benefits and benefits are able to provide only the minimum requirements at the prices that are present in the United States. Therefore, citizens are eager to find work or organize their own business.

Model of the mixed economy in Germany

What characterizes the German model of a mixed economy? Experts call its main characteristic as the once expressed social orientation. And this distinguishes the Germans from the Americans. The same benefits in Germany provide a normal standard of living. The authorities of the FRG are trying to build the regulation of the economy so that there is a trade-off between the priorities of business and society. On the one hand, enterprises should be effective, contribute to GDP growth and the development of the economy as a whole. On the other hand, social justice must be ensured.

The German model of the mixed economy has the following characteristic features.

First, this is a fair competitive environment. Each subject of the economic process, based on the policy of the authorities of the Federal Republic of Germany, should have equal opportunities to realize its entrepreneurial potential.

Secondly, the German model of the mixed economy implies an equitable distribution of income. This can be expressed both in encouraging businesses to build balanced tariff grids in the aspect of charging salaries for posts, and, for example, in direct participation of the state in equalizing the social status of citizens, whose work is paid unequally. In particular, through the provision of housing benefits, support in insurance, education.

The Japanese model

The Japanese model of the mixed economy is very specific. First of all, it should be noted that national traditions are strong in it, the influence of which can be traced in many areas of the economic process. This is the specificity of the relationship between the management and the subordinate, it is also the persisting institution of heredity in the aspect of the profession and the choice of the enterprise to work on. Another feature that characterizes the Japanese model of a mixed economy is much more pronounced than, say, in the US, government intervention in economic processes. This is most pronounced in the definition of key vectors for the development of the national economy, the principles of interaction with foreign players. An important role in the Japanese economy is played by the same social justice.

The Swedish concept

Consider what is characteristic of the Swedish model of the mixed economy. According to experts, in Sweden a society is built that is close in characteristics to typically socialist ideals. Measures of financial and material support are guaranteed to virtually all categories of citizens, regardless of the presence or absence of work, length of service, profession. There is even the term "Scandinavian socialism". Of course, within the framework of the functioning of such a model of economy, a big tax burden is imposed on business.

In return, at the same time, he receives customers with a guaranteed high purchasing power, as well as security - in the aspect of bank payments and fair courts, what we discussed above, listing aspects of the "social partnership" between the state and business. At the same time among economists there is an opinion that the Swedish model of the mixed economy has too big "socialist" bias. It becomes difficult for many enterprises to do business under the condition of a strict tax burden.

Chinese model

Consider how the market economy of the communist country functions. How is this possible with the fact that in the USSR everything was under state control? How is the Chinese model of the mixed economy?

The thing is that since the 1970s, the Communist Party of China has decided to open a national economy for external investors in order to use the country's huge production potential. Laws concerning the opening of branches of foreign corporations were liberalized. But the political system remained unchanged. Foreigners were attracted by the cheapness of human resources in the PRC, and they willingly invested in the economy of the communist state, which decided to open itself to the market. As a result, today China is one of the leading industrial powers. At the same time, because the political regime has not changed, the PRC authorities have the opportunity to use this resource in a command-administrative manner, as they see fit. For example, to use it to improve the standard of living of citizens, their social security. Which now, as many experts admit, is not at a very high level.

It is also worth noting, then in China the Institute of Small Business is well developed. Many Chinese people open small and profit-making outlets, restaurants, transport companies. It turns out that under communism, China has a very developed capitalism.

Comparison of models

Let's try to "visualize" the above-described models of the mixed economy. The comparison table for national concepts may look something like this. Estimates, of course, are very relative, but we will have a general idea of the features of economic systems by country.

Feature / Country	USA	Germany	Japan	Sweden	China
Social security	Low	High	High	High	Low
Intervention by the state	Low	Moderate	High	High	High
Taxes	Moderate	Moderate	High	High	Moderate
Ownership of enterprises	Primarily private	Primarily private	Primarily private	Primarily private	Significant Proportion State

What conclusions can be drawn? Despite the fact that in all these states - the mixed economy model, the table shows that the differences are traced in many aspects.