Topic 3 Economic institutions: property and entrepreneurship

Subtopic 1 Property as economic, juridical term

Subtopic 2 Types of property. Transformation of the property relations in the Republic of Kasakhstan

Subtopic 3 Enterprise as a main production unit.

1/Property is not a thing, it is a relation between people concerning the thing. It means the relations between people in the production process of material and non material goods. The economic relations (production, distribution, exchange and use) linked with property.

According to P.Khane property is not just relation to the thing, it is a relation between people about thing. The property as economic term means production relations between people in possession of the production results and the production assets. Property is usually thought of as being defined and protected by the local sovereignty. Ownership, however, does not necessarily equate with sovereignty. If ownership gave supreme authority, it would be sovereignty, not ownership. Some philosophers^] assert that property rights arise from social convention, while others find justifications for them in morality or natural law. Various scholarly disciplines (such as law, economics, anthropology or sociology) may treat the concept more systematically, but definitions vary within and between fields. Scholars in the social sciences frequently conceive of property as a bundle of rights. They stress that property is not a relationship between people and things, but a relationship between people with regard to things.

Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation. Depending on the nature of the property, an owner of property has the right to consume, sell, rent, mortgage, transfer, exchange or destroy it, or to exclude others from doing these things.

The property has two elements: subject and object(target).

The property subject is a person, corporation, local and government organs. (Who is user?)

The property object is a real estate(earth, water, forest resources, buildings and etc),moveable/ движимое имущество(money, securities/ценные бумаги and other needed properties). Also there is scientific work results, cultural wealth such as work of art, masterpiece, trade label and others.

The property answers to main questions of social-economic relations. They are:

1. Who owns the production factors and their results?

2. What kind of economic link (связь) influence to achieve effective production?

3. Who gets the income from the economic activity?

Taking into consideration answers to these questions the property consists of the following elements: possession of the production factors and their results, use of material and other things to produce goods, realize the property from the economic point of view. All these relations identify a way of conducting business, distribution of income, satisfaction of social-economic needs and all of them describe the economic meaning of property.

All economic relations between people based on property are regulated from the government side through juridical tools. They are normative acts, laws, documents and etc. According to the identified documents the resources are divided and the results of the production appropriated (владеть). In this case the property consider as a juridical term.