Mixed economy

A mixed economy is an economy that contains both private and public, or state owned (or controlled) enterprises. There is not one single definition for a mixed economy, but relevant aspects include a degree of private economic freedom (including privately owned industry) intermingled with centralized economic planning (which may include intervention for environmentalism and social justice, or state ownership of some of means of production).

There is not a consensus on which countries are capitalist, which are socialist, and which are mixed economies. Economies in countries ranging from the United States to Cuba, have been termed mixed economies. Most of the major economies in the world today are actually mixtures of command economies and market economies. These economies vary greatly in how close they resemble either the pure command economy or the pure market economy.

Participatory economics

Participatory economics, often abbreviated parecon, is an economic system proposed as an alternative to contemporary market economies and also an alternative to centrally planned socialism or coordinatorism. It emerged from the work of activist and political theorist Michael Albert and that of radical economist Robin Hahnel, beginning in the 1980s and 1990s.

The underlying values that parecon seeks to implement are equity, solidarity, diversity, and participatory self management. It proposes to attain these ends mainly through the following principles and institutions:

• workers’ and consumers’ councils utilizing self-managerial methods for decision making,

• balanced job complexes,

• remuneration according to effort and sacrifice,

• participatory planning.

The intention is that the four main ingredients of parecon be implemented with a minimum of hierarchy and a maximum of transparency in all discussions and decision making. This model is designed to eliminate secrecy in economic decision making, instead encouraging friendly cooperation and mutual support.

COMPREHENSION

Ex. 1. Decide which of the following statements are true. Correct the false ones. Expand the ideas with the information from the text or any other examples from your own experience.

1. An economic system is determined by the political system of a country.

2. There is hardly any pure type of economic system.

3. A market economy restricts individual initiative and has a lack of advanced goods, new technology, and growth.

4. In a market economy government can sometimes intervene to diminish market freedom.

5. The underground economy may be seen as an actualised free market economy.

6. A planned economy can serve rather individual than social ends.

7. Planners can always detect demand with sufficient accuracy.

8. Most of the major economies in the world today are actually mixed economies.

9. Parecon is considered as the fairest economic system.

Ex. 2. Having read the text above answer these questions in your own words.

1. What is an economic system? How is it related to a political system and ideology?

2. Are there any economies in the world that represent a pure type of an economic system?

3. What is the main principle of classifying economic systems?

4. What are the advantages and disadvantages of traditional economies? Where do such economies exist?

5. What are the advantages and disadvantages of planned (command) economies?

6. What are the advantages and disadvantages of market economies?

7. Why may the underground economy be seen as an actualised free market economy?

8. What are the advantages and disadvantages of mixed economies?

9. What do you think of parecon? Is it practicable?

10. What is the best kind of economic system?

Ex. 3. Which of the following expresses the purpose of the text best of all? Justify your choice.

1. The author wanted to show that parecon is the best economy.

2. The main purpose of the text is to inform the reader about the advantages and disadvantages of socialism.

3. The purpose of the text is to give the reader some information about basic economic systems and to show their advantages and disadvantages.

Ex. 4. Give the main points of it in 8 – 12 sentences. You may use the following clichés:

The text … is devoted to (deals with) … . … are described. It is spoken in detail … . … is analyzed. Much attention is given to … . The author comes to the conclusion that … .

Ex. 5. Speak about the essences of different types of economic systems.

Ex. 6. Work in groups. Having read the descriptions of the main types of economic systems in the text, decide which economy is your country. Prove your ideas by the facts and examples from the mass media (newspapers, TV, the Internet, etc).

T e x t 4