Text 2 (C) First Socio-Economic Formations

Text 2(B) Mixed Economies

Mixed economies - are economies that have characteristics of more than one system. There may be both private and public ownership of property. There may also be common ownership of resources that are provided by government. Mixed economies answer the basic economic questions partly through the market and partly through government, with some decisions based on tradition as well.

It has been found necessary in many countries to control or regulate national economic conditions. Even the most dedicated free enterprise systems, such as the USA, have felt this need.

The under-developed countries of the world are usually interested in control and long-term planning.

Such countries as India have had a number of plans guided by the government. India makes a distinction between the public sector of the economy on the one hand and the private sector, on the other hand.

Britain today has a mixed economy. In the public sector of British economic life are the nationalized industries like coal and steel, British Rail and British Overseas Airways Corporation.* In the private sector are the majority of the nation's industries, both large and small.

The private sector includes giant companies like Imperial Chemical Industries** and British Petroleum*** and a great number of small family businesses.

In 1962 the government set up an official planning body to guide national economic policies. This body is called National Economic Development Council.

The members of this council are representatives of the employers, the employees and other interested people.

NOTES: * BOAC - British Overseas Airways Corporation - Британская корпорация зарубежных авиалиния

** ICI - Imperial Chemical Industries - "Империал кемикал индастриз" - Имперский химический трест (крупнейший в Великобритании и Западной Европе химический концерн)

*** BP - British Petroleum - "Бритиш петролеум" - Британская нефтяная компания

The first socio-economic formation was the primitive-communal system, which covered the period of many hundred years. At first people were in a semi-savage state, powerless against nature. They gathered nuts, wild fruit and berries, roots and plants. Man's first instruments were roughly chipped stones and sticks. Later people learnt to make the simplest tools.

The basis of production relations was communal ownership of the primitive labour instruments and production means. People lived together in communes. With the advance of cattle breeding and agriculture there arose a social division of labour: animal husbandry* separated from agriculture. This led to higher productivity and productive forces growing.

Productive forces continued to expand and man began to produce more. It became possible to use workmen obtained through warfare.**Captured prisoners became slaves. There followed the first division of society into classes known as slavery. Slave-owners possessed both the means of production and the people engaged in production. The ancient world achieved considerable progress in economy and culture. But time passed, and the necessity to replace the slave-owning relations arose: the new feudal mode of production began to take shape.

NOTES: *animal husbandry – скотоводство; **through warfare - в войнах

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