Main types of economic system

With the development of society varied and its various spheres. The society, politics and economy today differ significantly from those in the Middle Ages. Step by step, social relations related to production, consumption, exchange and distribution also changed.

Concept and types of economic systems

In short, but capaciously, this concept is characterized by a way of organizing strict interrelations between so-called economic agents. This method solves questions about 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 told below.

Types of economic system: traditional

As the name implies, this economic type is based on traditions and is characterized by a high degree of conservatism. What are the features of it?

For example, the lack of technology development. In the Middle Ages, manual labor was the dominant factor. Handicraft workshops were distributed 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.

At the same time, small-scale production took place. The essence of it was that the artisan produced products, using the necessary resources at his disposal for this.

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 had an impact on the society. There was class division. Compulsory was the veneration and observance of centuries-old traditions and way of life. This is what caused the absence or very slow development of society and its economic relations.

Types of economic system: administrative-command

Those of the Russian citizens who found the 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 perfectly developed here. However, it is wholly and completely controlled by the tops and the state.

There is no place for private property in the country. Everything is common and at the same time nobody's.

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 number of products. 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 has the right to work in a factory or factory, and start a business of his own. By the way, the state even encourages this, allocating funds specially allocated for this purpose from the budget (for the development of small business).

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 so many countries, economic relations in which 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.