Economic Institution:
Sociologists consider economics as certain methods of management. Through which society produces goods and resources, distributes them and puts them into use. Economic institutions work to produce commodities, organize labour force, look after, protect capital a sell and purchase goods.
1:-According to Diana Kendall:
Economics is the social institution of society through which
society ensures the continuation of its obligations to produce, distribute and
consume goods and services.
It is obvious that this institution will be affected by
other institutions of the country, i.e. political, legal, economic and social
institutions and its growth and development will also be affected. However, it
is difficult to find out exactly how much any institution is influencing this
institution. Therefore, different countries continue to restructure their
institutions to reform them. But until there is a clear identification of what
is most useful and what aspects of the institution or institutions are to be
constructed and how should they be constructed? taking any steps is difficult.
Therefore, in these circumstances, the institutions of those countries which
are economically successful are looked
at, and the institutional structure created by these countries is imported,
i.e. it is adopted completely.
Different forms of different
economies are being seen over the years. The methods of development in
the economy of a country are also different. This is due to the economic
condition of a nation or country in which it is developing. The situation of
the institutions of each of the three states of the economy, i.e.
pre-industrial, industrial and post-industrial, will be different. For example
(i) Pre-industrial conditions:
Some economies are still at the basic levels of subsistence hunting. In their institutions
Changes also come at the same pace and speed.
(ii) Industrial Economies:
Industrialized economies seek alternative sources of energy and machinery. So that the economy can be further improved by using machinery and energy for more productivity.
(iii) Pro Industrial Economies:
These economies rely on the distribution of their resources.
These are consist of fast food transportation and technology. The process of mechanical acceleration continues
in their problems and occupations. They have less time to eat and drink.
Therefore, fast foods , transportation and modern technologies keep these
economies like machines.
Industrial and post-industrial economies are generally
divided into two types.
(A) Socialism.
(B) Capitalism.
(A) Capitalism:
Capitalism is defined as an economic system in which the market is owned and controlled by private citizens. The advantages of the capitalist system include that ownership of property is private, which generates income, and that price competition controls the prices of production goods. However, its drawback is that the government's intervention is very little. And based on this flaw, the capitalist system performs significantly better.
(b) Socialism:
An alternative economic system to capitalism is communism.
It is a method or process in which the state or government owns all the goods
(resources) and manages them.
The theory of communism contains three basic features.
(i) The state itself owns the means of production.
(ii) Struggle to achieve collective goals and objectives.
(iii) Decision making takes place at the central level.
The term idealistic cooperative economic theory is also used
as an alternative to communism. And in ideal communism there are no separate
social classes. There is no difference between leaders and people. In fact, in
pure socialism and in communism there will be no leader, but the society or
commune has all the authority and guides and run things.
(2):- According to Kendall:
The actual situation in the world is that the most often adopted economic theory is a mixture of capitalism and socialism and adopted which is considered more beneficial.
(i) Economic Institution:
An economic enterprise actually consists of many organizations.
For example, capitalism is a special type of economic institution. In the
modern era, the capitalist system is prevalent in different countries in
special forms of education.
In which multy national companies exist in the form of a system. As a whole, both politics and
economy are closely related and interconnected. It is the economies that decide
how to produce, distribute and consume the goods and the services that a
society needs. The effects of this global economy are increasing in today's world
in which the capitalist system dominates the economy. In a capitalist system,
goods and services are produced and sold for profit. This process is
found not only in the country, but also abroad at a fast
pace. Inequality at the international level is also related to what role a
nation can play in the global economy. It means that what the nation gives in
economy and what it receives?
(ii) Special Functions of Economic Institutions:
The special functions of economic institutions are as
follows:
(i) To provide methods of production of goods and services.
(ii) providing methods of distribution of goods and
services;
(iii) To enable the members of the society to use the goods and services produced.
0 Comments