4 What are economic models? Meet them here

Since the emergence of the first civilizations in the world, economics It is the most influential part of growth and development Various peoples and nations throughout history; Here we explain what are the four models of economics.

(You may also be interested in: Dimensions of Developmental Models, An Analytical Approach).

First agricultural systems

According to history books, economics It has existed in the world for five thousand years Roughly, when the farmers of the first civilization bartered livestock or agricultural products.

In a published article bbva bankIt is said to be the first economic model born in the world Agricultural systems‘, which sustained the main products of agriculture, fishing and livestock.

Because there was no money then. Transactions were made through barter, It, along with the water’s tributaries, It allowed the economy to expand For the first time in the world.

This pattern began to change with the rise of the civilizations of Rome, Greece and EgyptAnd began to use money Set aside, little by little, barter as a form of payment.

Feudal system

According to the cited article, Fall of the Roman Empire The key to the origin of this system was, where A feudal lord had a limited number of workers Those who were accountable to him and served in his stead for security.

In history books, people are mentioned They did a kind of annual tithe and gave a percentage of their crops to the church. In this way, the cited article explains, the world’s first great wealth began to be created.

See also  North Korean economy shrinks to 3rd place by 2022 consecutive year

Commercial system

With the expansion of trade in the world, currencies became important in the form of payment for the purchase of goods or commodities. From there A division was created between the nobility, the clergy, the bourgeoisie and the peasantry, Each of them had a specific hierarchy in this economic model.

(We recommend reading: The Orange Economy was born from the cultural and artistic sector, but it goes further).

Origin of business organization, Important in the creation of the famous ‘interest charge’Creditors ensured recovery of money and received legalized compensation in different cities.

Capitalism and Communism

Currently, the world’s dominant economic systems Capitalism and CommunismThere they have certain characteristics which are very different from each other.

In capitalism, People seek to acquire the greatest wealth Work with the goal of possibility and self-enrichment. This model based on private property And not public, ‘where the market allocates resources and capital is in charge of creating wealth. It encourages the search for profit and competition in markets,’ explained the portal Sun software.

For its part, communism is based on having the same resources, privileges and services for the people who make up a community, city, country or nation. There, public property is protected, placed above private property, and equal distribution of wealth is carried out to achieve social justice.

Harold Yepes

Latest news editorial

More news on EL TIEMPO

Table of contents

Read more

Local News