Crisis is what is it? Essence, reasons, ways to overcome

Human needs are unlimited, which can not be said about the resources of our planet. Therefore, all technical progress is aimed at ensuring a decent standard of living for as many people as possible. However, long-term economic growth is not uniform. Periods of prosperity alternate with instability. A crisis is a state of imbalance in consumption and production on a public scale. The periods of instability are characterized by a deterioration in the standard of living of the population, but they are an integral part of economic development. In this article, we will examine the essence, types, causes and ways out of crises.

Definition

Considering the meaning of the word "crisis", it is logical to start with the origin of the term. In translation from Greek - a turning point, a decision, an outcome. A crisis is any event that can lead to an unstable or dangerous situation that affects an individual, a group of people or a whole society. Negative changes often occur not in one sphere, but in several. It affects the economy, politics, security, public relations, and even the environment.

Essence

Among economists there is no consensus on what the crisis is. This, of course, is a negative phenomenon, according to all scientists. But its causes and consequences differ, depending on the direction that we have chosen to study. In the USSR it was believed that a crisis is an inalienable attribute of an exclusively capitalist mode of production. But in a socialist society there can only be "difficulties of growth". Some modern scientists believe that the concept of crisis is applicable exclusively to the macroeconomic level. This phenomenon is manifested in the overproduction of goods, which leads to massive bankruptcy of business entities, increased unemployment among the population and other socio-economic problems. Scientists view the crisis as a state that can not be overcome without fundamental internal and external changes.

Functions

Periodic crises are an indispensable attribute of development. They, undoubtedly, lead to a deterioration in the life of the population. Despite this, crises are progressive in nature. They perform the following main functions:

• Elimination of obsolete and exhausted elements of the dominant system that hinder its further development.
• Promotion of the adoption of new rules.
• Test for the strength of the elements of the system and the transfer of inheritance only the most effective.

Considering what a crisis in the economy is, it is important to understand that this phenomenon, rather than a one-time event. First you can observe the latent period of its development, when the prerequisites are only ripening. The national economy at this time still characterized by stable development. At the second stage of the crisis there is a rapid aggravation of existing socio-economic contradictions. On the third, prerequisites are created for overcoming the latter and a revival begins in the national economy.

Typology

Crisis is the extreme aggravation of socio-economic contradictions. This phenomenon can cover the entire system as a whole or only a part of it (individual spheres). In the first case, it is a general crisis, in the second case it is a local crisis. This phenomenon is also characterized by its problems. Depending on the scale of the latter, macro and microcrys are distinguished. Also, this phenomenon is classified according to the scope and causes of occurrence. Allocate economic, social, psychological, technological and organizational crises. And for reasons of origin - environmental, social and natural.

Prerequisites and ways to overcome instability: crisis-2015

Forecasts for Russia by leading international institutions and domestic experts for a year now say that the economy is in a recessionary phase. On the inevitability of the crisis in 2015, many journalists wrote. Did not deny the possibility of a recession and the government. The causes of the crisis in recent years in Russia were low oil prices, the national currency rate, inflation, high credit rates. The way out of this negative situation is a radical restructuring of the socio-economic system. It is necessary to understand what the key problems are and to eliminate them. To overcome the crisis, it is necessary to consider the economic concept and development strategy. For example, Russia should reorient itself from the export of raw materials and semi-finished products to goods with higher added value. And for this, investments in science and advanced development, as well as the development of human capital, are paramount. Crisis is a complex phenomenon, therefore it is impossible to fight with individual problems, one must think about all spheres and plan for a long-term period.