Property Rights: The Key to Economic Development

The basis of the functioning of the economic system is property. It determines the socio-economic nature of the whole system, that is, the entire social order. The nature and forms of appropriation of the means and results of production determine the economic, social and political structure of society, the situation of man in manufacturing and in society in general.

Property in the economic sense is historically and logically defined. As a socio-economic category, it is defined by the degree of development of productive forces and is characterized by a system of objectively conditioned, historically changing relations between economic entities in the process of production, distribution, exchange and consumption of goods characterized by appropriation of the means of production and its results.

In other words, the socio-economic essence of ownership is revealed and realized in the plane of human-to-human interaction.

Property in the legal sense is reproduced by the system of connections “man – thing”. As a legal-legal category, property reflects property relations, conscious, volitional relationships between legal and natural persons regarding the appropriation of goods, which are enshrined in the system of relevant property rights.

Property determines the systemic role in economic, industrial, relations, it determines the socio-economic nature and character of this system of industrial relations. After all, all specific industrial relations realize a certain, historically and economically determined social form of appropriation.

This is what makes the property an economic category, because it permeates the whole system of industrial relations, determines their own method of appropriation. To-m and relations of production, and relations of distribution, and relations of exchange, and relations-n are consumption of property.

The ownership structure by its types, forms and types is common.

  • The type of property determines the most general principles of its operation, the nature of the nature of the combination of the worker with the means of production.
  • Form of ownership is a stable system of economic relations and economic ties, which determines the appropriate way and mechanism of combining the worker with the means of production.
  • The type of ownership is characterized by a specific method of appropriation of goods and methods of management. As can be seen from Fig. 5, the modern economic system is characterized by diverse forms of ownership, its mixed different types.

The basic types, forms and types of property in the economic system: The specific historical nature, content and forms of ownership are manifested in the unity of three elements – objects, subjects and essence of property relations. Understandably, in order to uncover the nature of property relations, it is necessary to find out who is the object of property, who and what objects are owned, what are the conditions of ownership, disposal and use of different objects and factors of societies production.

Despite the huge volumes and variety of property objects (land, subsoil, flora and fauna, objects of material and spiritual culture, buildings, structures, equipment, money, securities, etc.), nevertheless they are divided into two parts. First of all, these are the conditions (factors) of production. The main factor is labor. The worker is the owner of his or her ability to work, the workforce is a commodity that is used by the free hiring to carry out the work process.

Along with the workforce, important factors of production are the means of production and the objects of labor, which are also objects of ownership. The one who owns the means of production also appropriates the results of production. The ownership of the means of production plays a decisive role, because it determines the essence of the whole set of property relations.

As the society develops, changes are taking place in both objects and entities. After all, a fundamentally new technique and technology and equipment are created over time. All this enriches (quantitatively and qualitatively) the volumes of means of production.

From the objects of property, in addition to the traditional (means and objects of labor, labor, used by the forces of nature), the modern system of property relations include forms and methods of labor organization, science, information. Therefore, those enterprises and firms, the states that have become the largest owners of these facilities, have increased their economic power, competitiveness.

One of the fundamentally new important features of these appropriation objects is that they, unlike traditional ones, cannot be owned for a long time by an individual firm, a company. In addition, their carriers are not only techno-economic. but also from the socio-economic side, to a certain extent, they become hired persons.

As a result, they become, to a certain extent, co-owners of a given asset, which is one of the most important factors in the growth of the value of their workforce, and consequently the size of their wages, as well as participation in the acquisition and acquisition process. dividends.

This also applies to intellectual property, which is formed on the basis of such a qualitative new element of the system of productive forces as science. In this case, American scholars distinguish three main types of intellectual property:

  1. private property, which is secured in the form of a patent or license;
  2. public property, which exists as a sum of knowledge and ideas, is at the disposal of the whole society and cannot be assigned to a legal entity. With proper exchange of information, this kind of ownership can become the property of all mankind;
  3. Intermediate ownership, or “leaky” property that presents innovative scientific and technical information, cannot be fixed in the form of patents and licenses for a long time, since such information makes it possible to create products in a modified form.

Substantial changes occur within the other parties of property as a sociological category. Thus, in legal ownership, there is a growing de-integration of ownership rights such as ownership, disposal and ownership. This means that in the past these rights were mostly owned by one person. The exception was agriculture, where landowners often leased land to tenants. In modern conditions, business owners in various industries give them ownership, or disposal, use, and receive some compensation for this. They also widely practice the transfer of ownership of their property.

On this basis, a significant layer of managers or managers emerges and develops. J. Galbraith calls them techno-structure and claims that power has taken over it in today’s giant corporations in the US and other Western countries. Since there are about 12 million managers in the United States, it is in their hands, according to the American economist, that power is concentrated in a modern large-scale enterprise.

Another important feature of modern property relations in developed countries of the West is, on the one hand, the process of de-personification of major capital-owners and the transfer of its (ownership) to the hands of legal entities (companies, banks, other financial institutions). institutions). Thus, in Japan in the early 1990s, some 78% of legal entities were shareholders, and some 80% of them were owned by financial institutions. In the US, the share of legal entities in equity is almost two and a half times lower.

On the other hand, there is a process of growth of personalization of property through the mechanism of share purchase. This process is also partly carried out through pension and insurance funds.

In 1983, a law was passed in Sweden under which part of the shares of private companies were transferred to the ownership of the workers or to their foundations. This is due to a special tax on their earnings, as well as additional deductions from their payroll. In this way, workers obtain certain rights in the affairs of the company.

In particular, most of the seats on the boards of these funds belong to trade union representatives. In 1990, the financing of five such funds was completed. Each of them has the right to acquire no more than 6% of the shares in any company listed on the stock exchange. By the decision of Parliament, the total share of funds in the value of the stock of the stock exchange should not exceed 5%. An important feature of these funds is that public organizations, especially trade unions, take a leading role in their management.

In England, stocks are distributed among staff depending on the size of the salary or length of service at the firm. In the first half of the 1980s, the share of wage earners who bought shares at a fixed price (but were not allowed to sell them for 5-7 years under the contract) grew in all sectors of the economy from 13 to 23%.