UNIT 6 Mixed Economies

Date: 2015-10-07; view: 622.

Essential Vocabulary

1. be reduced бути зменшеним, зниженим; скороченим

2. comprise містити в собі, вміщати, охоплювати

3. charge the price for призначати, правити, вимагати (певну) ціну за

4. central authority центральна влада

5. personal effects особисте майно, особисті речі людини

6. the liquidity of money ліквідність грошей

No state today is completely communistic or completely capitalistic. The various national economic systems tend generally towards one type or the other, but many systems are difficult to classify.

It has been found necessary in many countries, even in such dedicated strongholds of free enterprise as the USA, to control or regulate national economic conditions. The under-developed countries of the world are inevitably interested in control and long-term plans guided by the government. India has had a number of plans guided by the government. India makes a clear distinction between the public sector and the private sector of its economy. Systems of this type are sometimes called mixed economies.

Britain nowadays has a mixed economy. In the public sector of British economic life are the nationalized industries like coal and steel, British Rail and BOAC. In the private sector are the majority of the nation's industries, both large and small, from giants like ICI and BP to small family businesses.

In 1962 the government set up an official planning body to guide national economic policies. This body is known as the National Economic Development Council. The members of the NEDC are representatives of the employers' federation, and the Trades Union Congress, together with members of the government, eminent industrialists and leading economists.

The main function of the NEDC is planning national production and setting up production targets. It is however a very difficult matter to plan ahead in a mixed economy. It is not possible to plan ahead with any certainty even in a rigidly controlled economy, because natural disasters, political changes and other factors can affect the general plan in unexpected ways.

BOAC: British Overseas Airways Corporation

ICI: Imperial Chemical Industries

BP: British Petroleum

Exercise 1. Answer these questions. You may answer Yes or No. Give your reasons. Quote from the text in support of your answer.

a. Are there any completely communistic states?

b. Are there any completely capitalistic states?

c. Do the various national economies tend towards one or another ideology?

d. Are the various economic systems difficult to classify?

e. Have most countries found economic control necessary?

f. Has the US felt the same need?

g. Are the under-developed countries interested in control and planning?

h. Has India had a number of national economic plans?

i. Is the Indian economy based entirely on private enterprise?

j. Does the Indian economy have two different sectors?

k. Is the Indian system a mixed economy?

l. Is BOAC a national British industry?

m. Is ICI a nationalized British industry?

n. Was the NEDC set up by the British government?

o. Are both employers and employees represented on the NEDC?