The definition of the economic system covers the aggregate set of methods by which the economic and economic processes of a particular society are organized: the use of natural resources of the territory, the creation of any material wealth, the distribution and use of the final
product and so on. The oldest type of management in human history is the traditional system. Its beginning is rooted in the Neolithic revolution, when the first agricultural and cattle breeding civilizations were created. The traditional management system had no alternative until the XV - XVI centuries. During this period, important transformations take place in all spheres of public life, as a result of which completely new types of economic systems arise and form. The market among them was the first and, as practice has shown, the most viable. It has gained popularity in many regions of the planet.
Signs of a market economic system
As already noted, this type of management emerged in Europe during the New Age. It was the result of the evolution and later transformation of feudal relations, large-scale geographical discoveries of this period, the initial accumulation of capital (that is, the appearance on the European markets of the huge amount of silver and gold that were looted in the colonies) and, of course, the industrial revolution. Essentially the most important signs of a market
economic systems are the result of its decentralization. For a long time, a very serious competitive alternative to the Western market was the planned-command economy (in practice, implemented in fascist systems, and later in socialist systems). A distinctive feature of the latter was that all its elements are strictly subordinate to state needs, and all economic issues were considered the exclusive competence of the state. In contrast to this state of affairs, the signs of a market economic system imply a multi-layered form of ownership of material goods, means of production, etc.: private, public, collective, and, of course, state. In such circumstances, the government only acts as a guarantor of equal opportunities and norms prescribed in the constitution, but it does not directly intervene in economic processes and has no direct influence on this sphere of public life.
Negative signs of a market economic system
It should also be noted that with this type of management, not everything is and is not always successful. First of all, the modern market economic system is characterized by weak social security, often the deplorable situation of those categories of the population that are not market oriented. In addition, the consequence of freedom of competition, in addition to revitalizing economic relations, is often such processes, as a result of which the winners of this very competition become sufficiently powerful to intervene in the social and political life of the country. It should be noted that many modern progressive states (the USA, European countries) have chosen the so-called mixed economic system, in which governments, on the one hand, encourage the free market, on the other hand, they retain effective ways of influencing the economy at the first sign of a crisis. In addition, mixed farming provides an opportunity to develop a serious social base, as the countries of Scandinavia, for example, have successfully demonstrated.
