The economic system of society

The economy of the state is represented by a huge complex system. It covers various activities. This structure can normally exist under the condition of interdependence and interconnection of all its links.

The concept and types of economic systems

In a narrow sense, the structure is represented by a set of connections between consumers and producers of goods. This set has a certain order.

The economic system of society provides for the organization and coordination of economic activities of citizens. Special tools are used to ensure the activity of the structure. The main ones are the institutions of money, property, government and labor organizations. An integral part is taxes in the economic system of society. A special institution has also been set up to regulate revenues.

In accordance with the foregoing, the economic system of society in a broad sense is an established or emerging historically existing in the state complex of specific principles and rules, fixed by law. Legal norms determine the content and form of relations in the relevant sphere of public life.

The economic system of a society in accordance with the method of conducting activities may be a commodity or subsistence economy.

There is a division according to the form of ownership. The economic system of a society, thus, can be private, state or (in traditional structures) communal.

As a criterion of classification, the forms are also used, in accordance with which the coordination of economic life is carried out. These include the market, centralized planning and traditions. In accordance with this, there are such economic systems as traditional economy, mixed structure, command system, pure capitalism.

The latter concept provides for the concentration of material resources in private property. Under the conditions of this economic system, prices and markets are the mechanisms by which coordination and direction of activity are carried out.

Command structure is a special method of regulation. This structure is characterized by a high level of centralization of the management function of the economy. In such conditions, directive methods are used. The main types of resources are concentrated in state property.

With a mixed economic system, the signs of a command and market structure are combined.

With traditional structure, great importance is attached to traditions and customs. In the conditions of this system, the economic role of a citizen is regulated by heredity and belonging to a certain class, caste. Due to the fact that historically formed traditions and customs prevail, the introduction of technical innovations is extremely limited. This is due to the likelihood of a conflict between the "new" and "old", which, in turn, can threaten the stability of the traditional system.

It should be noted that in modern conditions, states can not develop in isolation. In this regard, before the leadership of any power is the question of adapting the state system of the economy to the systems of other countries.

Certainly, the introduction of changes in the economic structure is a rather complex process, consisting of several stages. Experts identify the stage of reform, transformation and subsequent development. The whole process thus appears in the form of a gradual change in social and economic relations in the old structure, the formation and development of a new system.