Content and main features of a market economy Plan: introduction


Figure 3. Modern market economy models3



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Figure 3. Modern market economy models3
In both types, the main features and characteristics of a market economy are preserved, in which the movement of goods and money, their laws serve as the basis and conditions for development.
The modern market economy is based on the interaction of the private and public sectors of the economy. The following models of a modern market economy differ depending on the intensity of the impact on the economy and the priorities to be addressed by the state (Figure 3).
In a market economy, in addition to the above-mentioned signs and procedures, a number of conditions are required that are common to all modern economic systems.
1.2 Basic models of the emergence and transition to a market economy
During the historical development of human society, a market economy emerged in the heart of the commodity economy and showed that it was growing. By the seventeenth and eighteenth centuries, humanity had moved to a market economy based on private property.
In the middle of the 19th century, the Marxist idea emerged. According to this idea, the main source of injustice was the loss of private property in order for the members of society to live well and justice to be done. According to this idea, in the former Soviet Union and in some countries, as an alternative to management, there was an administrative command, management based on central planning.
This form of management:

  • Loss of private property;

  • Termination of market, commodity-money relations;

  • Establishment of state distribution and control based on social property instead of a market mechanism for the distribution of goods and resources;

  • It is envisaged to determine the share of each person in the blessings created by his labor, and to determine the amount of labor on the basis of working hours.

The system of market relations has such an incentive that it ensures continuous economic growth and social development. Asian countries such as Thailand, South Korea, Taiwan and Singapore have also demonstrated the advantages of the market system. Currently, China, East Germany (formerly GFR) and Vietnam are also showing their superiority.
The transition to a market economy is a historically objective necessity, and Uzbekistan has chosen the path of transition to a market economy as the only way to develop in the future, to achieve rational management.
By the twentieth century, the transition to a market economy has become a global phenomenon. The transition to a market economy is a complex process, so it will take a long time. In addition, each country has its own characteristics, which are based on different models and directions of transition to a market economy. The specific path of each country's transition to a market economy depends on the following factors:
Geographical location;

  • Availability of natural resources and their reserves;

  • Level of historical development;

  • Traditions and customs of the population;

  • Level of development of productive forces;

  • Social orientation of the society.

However, common features of market economy models are:

  • Market economy based on diversified ownership;

  • Preference for free prices for goods and services;

  • Based on competition;

  • Existence of a certain system of state regulation of the economy, etc.

A market economy is a unique mixture of features and commonalities in all countries, and is represented in economics in the form of various models.
Models of transition to a market economy can be historically divided into 3 groups. The main criteria for dividing into such groups are:

  • Purpose, direction of state programs;

  • Methods of regulating the economy;

  • The share of the public sector in the economy;

  • Differences about work etc. are obtained.

Table 1


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