The traditions and consuetudes, religious and cultural values

Rubric: Character
Ambience(Environment;Wednesday), 13 May 2009 г.
Viewed: 698

Traditional economic system. In economic countries there is the traditional economic system, which is based on backward technology, wide distribution of hand labour, of economy. Mnogoukladnost' of economy means existence in this economic system of different forms of management. In a number of countries natural-communal forms, based on a communal collective menage and natural forms of distributing of the created product, are saved. An enormous value has a small-scale production. It is based on a peculiar on production resources and personal labour of their proprietor. In countries with the traditional system a shallow commodity production is presented numerous peasant handicraft economies which prevail in an economy.

In the conditions of relative the poorly developed national enterprise enormous role in the economy of the examined countries a foreign capital plays often. The traditions and consuetudes, religious and cultural values, caste and class division, sanctified ages prevail in life of society, retentive socio-economic progress.

The decision of key economic tasks has specific features within the framework of the different modes. The traditional system the active role of the state is incident to. Redistributing considerable part of national income through a budget, the state sends facilities to development of infrastructure and providing of social support the poorest layers of population.

Administrative-command system (centralized-planned communist). This system dominated before in the USSR, countries of Eastern Europe and in a number of the Asiatic states. Last years many domestic and foreign economists in the works made an effort give its generalized description.

The personal touches of the administrative-command system are: communal (and in reality state) property is practically on all economic resources; monopolization and bureaucratization of economy is in specific forms; centralized economic planning as basis of economic mechanism.

The economic mechanism of the administrative-command system has a row of features. He supposes, at first, a direct management all enterprises from the single center of higher echelons of state power, that takes independence of economic subjects on it is not. Secondly, the state controls a production and distributing of products fully, as a result free market intercommunications are eliminated between separate economies. Thirdly, a state machine manages economic activity by primary methods, that undermines the financial personal interest in the results of labour.

Bureaucratization of economic mechanism and economic connections develops during the overcentralization of executive power. On the nature a bureaucratic centralism is not able to provide growth of efficiency of economic activity. Business here foremost in that complete of economy causes extraordinary on the scales monopolization of production and sale products. Giant monopolies, becomings firmly established in all areas of national economy and supported ministries and departments, in default of competition does not care of introduction of novelties of technique and technology. For the scarce economy generated a monopolism absence of normal financial and still human backlogs is characteristic in the case of origin of disproportions in a national economy.

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