Command and administration economy system

This system prevailed earlier in the USSR and Eastern Europe, and several Asian countries.

The characteristic features of the administrative-command system is the public (and in reality - the state) ownership of nearly all economic resources, monopolization and bureaucratization of the economy in specific forms, centralized economic planning as the basis of the economic mechanism.
Economic mechanism has a number of features. He assumes, first, the direct management of all enterprises from a single center - the highest echelons of the government, which has eroded the independence of economic actors. Second, the government completely controls the production and distribution of products, thereby avoiding free-market relationship between individual farms. Thirdly, the state apparatus directs economic activity with mainly administrative - administrative practices that undermine a material interest in the outcome of labor.

In countries with the command-administrative system of centralized distribution of material goods, labor and financial resources does not involve the direct producers and consumers based on central planning. A significant part of the resources in accordance with the prevailing ideological earmarked for the development of the military-industrial complex.

Main features:

• state ownership in almost all economic resources;
• strong monopolization and bureaucratization of the economy;
• centralized, policy economic planning as the basis of the economic mechanism;
• the absence of any competition and monopoly producers;
• lack of market incentives and motivation of producers;
• domination of the producer over the consumer. In markets with such a system is bought only what they produce. Consumer choice not.

The main features of the economic mechanism:

• direct rule by all enterprises from a single center;

• state fully controls the production and distribution of products;

• State apparatus directs economic activity mainly through administrative-command methods.

This type of economic system is characteristic of Cuba, North Korea, Albania, etc.

Market economic system

Market - a complex economic system of social relations in the sphere of economic reproduction. It is caused by several principles, which determine its nature and is distinguished from other economic systems. These principles are based on human freedom, his entrepreneurial flair and the fair treatment of the state. The state's role is to effectively regulate the economy. Under the regulation must be understood very wide range of measures, and the efficiency of its use, the higher the credibility of the state.

Distinguishing Features:

• diversity of ownership, including the still occupies a leading place private property in its various forms;

• the scientific and technological revolution, accelerating the creation of powerful industrial and social infrastructure;

• limited government intervention in the economy, however, the government's role in the social sphere is still great;

• changes in the structure of production and consumption (increasing role of services);

• increase the level of education;

• a new attitude to work (creative);

• Increased attention to the environment (limit reckless use of natural resources);

• humanize the economy ("human capital");

• computer science and society (increasing the number of producers of knowledge);

• revival of small business (quick update and high differentiation of products);

• globalization of economic activity (the world has become a single market).

Mixed system

The principles of the "mixed economy" developed A.Vagner, S.Cheyz, J.M. Keynes, E.Hansen, P.Samuelson and others.

Distinguishing Features:

• priority of the market organization of the economy;

• a multi-sector economy;

• state managers combined with private entrepreneurship with the full support of it;

• orientation state financial, credit and tax policy on economic growth and social stability;

• social protection.

The social orientation of the economy, improve on its basis of the human condition. Man becomes the main value of such a system. This can be achieved only on the basis of the growth regulatory role of the state, and on the other hand, should show the conditions of market self-regulation. In this case, the state should not interfere in economic structures. For mixed systems is the combination of self-regulation and government regulation of the economy.

This type of economic system is characteristic of Russia, China, Sweden, France, Japan, UK, SSHA, etc.

There are 4 specific models of mixed economy in modern terms: American, Japanese, German and Swedish.

Japanese model. Formation of modern management model occurred in the specific development. Rejecting the military spending, Japan has concentrated all its resources for "peaceful purposes" and above all to develop the economic potential of the industry. This was largely achieved through the free acquisition of U.S. and European patents and licenses, the decline in world commodity and fuel, the relative cheapness of Japanese labor, the lack of significant military spending.

Characteristic features:

1. High level of public impact on key areas of the national economy. First, the state supported the production of tankers, then small cars, and on the 70th the production of electronics and computers. This approach has led Japan to the mid 70's to avoid severe crises and ensure the dynamic development of the economy.

2. Compilation of the 5-year plan to strengthen self-defense, which are developed from 1957.

3. Widespread lifetime employment of workers in firms, the union of their common interests, the involvement of workers in the management and decision-making.

4. The slight difference in the level of wages, which is 17 times the gap between the head of the company and employees.

5. The social orientation of the model. The government is fighting against social inequality; ensure observance of social rights in the event of sickness, unemployment, retirement. Responsibilities to address social problems working largely rests on corporations and unions.

German model. It is close to its socio-economic content of the Japanese model. Ludwig Erhard described the basic principles of the German economy.
The distinctive features of the German economy are:

1. Strong state influence on the economy, which occurs mainly in the solution of social problems. In Germany, traditionally, there are significant social commitments: free health care and education.

2. Germany one of the first introduced in the early 70's principle of targeting (planning) of the main macroeconomic indicators. There was also implemented the principle of social partnership that involves the participation of workers the company of its property.

3. In the German model, as well as in the Japanese decisive role was played by the banks, with the central bank to have complete autonomy.

4. The difference in wage levels, as in the Japanese model is a minor and a 23-fold gap between the head of the company and the employee.

American model. This model is called "liberal model of capitalism."

Its features are:

1. Small proportion of state ownership (10-12%).

2. Minimum regulatory role of the state in the economy. Such intervention is usually triggered by economic crises (30's, 70's) or a sharp rise in the economy.

3. Encouraging entrepreneurship. Small business in the U.S. annually provides about 80% of new jobs.

4. Sharp differentiation between rich and poor.

5. The big difference in pay is 110 times the gap between the head of the company and the employee.

6. Acceptable standard of living of the poor.

Swedish model. In Swedish policy clearly identifies two dominant goals: full employment and income equality. Sometimes, the Swedish model is called the second model of socialism. Sweden has a high standard of living and welfare, civil rights. The government is actively involved in ensuring economic stability and in the redistribution of income.In Sweden, for the last 110 years, the gross domestic product grew at an annual average of 2.5% per capita, for the Swedish model is characterized by a low unemployment rate (2%). In Sweden, a very high level of public sector (50%). The government frequently intervenes in the pricing process, setting fixed prices. Finally, in the broadest sense of the Swedish model - a whole range of socio-economic and political realities in the country with its high standard of living and the high level of social policy.

Thus, the term "Swedish model" has no clear interpretation. There are principles that ensure the development of this country for a long time without social upheaval. We call the main ones are:

1) a high level of political culture;

2) the co-operative nature of the relationship between social strata
(Cooperation and culture);

3) in the economic sphere - in the highly competitive industry;

4) in the social field - the growing importance of the human factor - the highly skilled and innovative (social orientation).

Based on these principles, the Swedish type of organization of social life provides high efficiency and high living and environmental standards