Lecture № 5 Theme: Socially – economic systems

План: 1. Systems организаци economic life of a society. 1. Systems организаци economic life of a society. 2. System economy and variety of its forms. 2. System economy and variety of its forms. 3. The synthesised system. 3. The synthesised system.

Distinguish 5 types of economic systems: - Traditional system; - Pure capitalism; - Command system; - The mixed system; - The synthesised system.

Traditional system, its lines: - The economy is based on customs; - Technical progress is limited; - Religious and cultural values are primary in comparison with the economic; - Social and economic stagnation is accurately expressed. Traditional system, its lines: - The economy is based on customs; - Technical progress is limited; - Religious and cultural values are primary in comparison with the economic; - Social and economic stagnation is accurately expressed.

For the analysis of pure capitalism and command economy accept 2 signs: - Pattern of ownership; - A way by means of which the economic activities of these systems are co-ordinated and copes.

Pure capitalism, or capitalism of an epoch of a free competition: - A private property on resources; - For coordination of economic activities and management it uses system of the markets and the prices; - The economic power is widely disseminated;

It is very small or at all there is no necessity for the governmental planning, control and intervention for economic process. - The government role is limited to protection of a private property and an establishment of the appropriate legal structure facilitating functioning of the free markets.

Command economy: - Public property; - The centralised public planning; - Workers are fixed for a trade, and even their distribution on geographical areas of the country is carried out on-line.

The mixed economy has some forms or models: - The American; - The Japanese; - The Swedish; - The new industrial countries (Korea, Taiwan, Singapore, Hong Kong).

The American model is mainly market economy, but at the same time economic functions of the government play it very essential role.

The Japanese model is characterised: - The developed planning and coordination of activity of the government and a private sector; - Preservation of the traditions, and at the same time ability to borrow others all that is necessary for country development; - High prestige of public service;

- A core of strategy of economic development is installation on development of high technology production; - High prestige of formation, and first of all the higher;

The Swedish model: - Social policy. Swedes receive the most part of the blessings and services from the state social funds passing the market; - A full employment; - The rate on work, on self-realisation of the person, the statement of its public importance.

Lines of Korea: - Home market protection; - The rigid economic course spent by the central power; - Attraction of the foreign capital; - National shots; - Formation of mass middle class. Lines of Korea: - Home market protection; - The rigid economic course spent by the central power; - Attraction of the foreign capital; - National shots; - Formation of mass middle class.

Lines: - Transition of the countries to essentially new economic base of manufacture; - An economy humanisation, i.e. redistribution of public resources in favour of formation, cultures, medicine and change of most financially material base of these branches; - экологизация economic development, i.e. a new stage

developments it should be formed in with an ecological condition of a planet; - formation of new philosophy of consumption. Demand for the non-polluting products, new requirements to habitation grows, the policy of voluntary self-restriction of requirements is developed;

The number and share of the provided, formed and enterprising people grows; - The role socially – the cultural facts increases.