Natural economy

The natural economy is the simplest form of the economic system. In the conditions of existence of this form people independently provide themselves with necessary goods, satisfying their own needs.

The natural economy has its own characteristics.

Mainly this form of economic organization is a closed complex of relations. The society itself, in which these relations exist, includes torn off and disconnected farms (regions, estates, communities, families). In this case, each element of the structure provides itself, relying only on its own strength. Thus, in the conditions of subsistence farming, different work is performed: from the extraction of raw materials to the production of products ready for consumption.

The natural economy is distinguished by the presence of manual universal labor. At the same time, any division of it into species is excluded. Every worker, having a simple inventory (a shovel, hoe, rake, etc.) does all the necessary work. In the old days, such "universal workers" were made up of sayings ("The Master of all trades", for example).

The natural economy is characterized by direct economic ties between the consumer and production. These relationships develop according to the scheme of "manufacturing-distribution-consumption". In other words, the division of production occurs between producers, and then it (production) goes into personal consumption, bypassing the exchange for other goods. Such a scheme ensures the sustainability of subsistence farming.

The simplest form of economic relations dominated the world throughout the pre-industrial era - for over nine and a half millennia. Such a system stability is associated with many factors.

The natural economy is characterized by some economic stagnation. This is due to a very slow increase in production. In addition, manual labor does not contribute to the improvement and consolidation of knowledge and skills.

For economic activity under conditions of subsistence production, labor productivity is low . In many economically backward countries, a village worker is able to feed only two people. At the same time, natural economic activities do not fully satisfy the traditional needs of the main part of society.

These factors depend on each other and hamper the development of this type of economic relations. As a result, under conditions of subsistence economy, cause-effect relationships form a kind of closed system. Experts call it "a circle of economic stagnation".

Under capitalism, there was a natural and commodity economy. The second was further developed in the capitalist countries. The natural system of management was largely preserved in states with pre-industrial economies. In the underdeveloped countries, by the mid-20th century, more than half of the population in semi-natural and subsistence economy was employed. At present, as analysts say, in these countries the economic system is going through a turning point.

In Russia, the natural way of farming is noted in the gardens and gardens of urban residents, as well as in the subsidiary plots of peasants.

In the history of the development of the Russian economy, specialists identify a number of paradoxes. For example, from the moment when the "movement to the market" was announced, the number of personal plots with a natural type of management increased. Thus, the development went in the opposite direction. Moreover, instead of striving forward many areas of the state have increased their economic isolation. In these areas, a ban was imposed on the export of products to other regions. Thus, local leadership sought to increase the supply of local people.