TO THE QUESTION OF THE CONCEPTS OF "ECONOMIC MECHANISM" AND "ORGANIZATIONAL AND ECONOMIC MECHANISM"
Issue № 5, 2022, article № 4, pages 22-33
Section: Economic mechanism of managing
Original language title: К ВОПРОСУ О ПОНЯТИЯХ «ЭКОНОМИЧЕСКИЙ МЕХАНИЗМ» И «ОРГАНИЗАЦИОННО-ЭКОНОМИЧЕСКИЙ МЕХАНИЗМ»
Abstract: This article is devoted to clarifying the content of the concepts of economic mechanism and organizational and economic mechanism in the system of other fundamental economic concepts. Despite the extremely large number of works where these concepts are used, their economic content, and, most importantly, the relationship of these concepts in the system with the concepts of institutions, economic interests and incentives, production relations, economic phenomena, laws and regularities, do not seem to be fully elucidated. Abstract-logical method, systemic approach, a number of provisions of political economy, classical economic theory, new institutional theory, theory of economic mechanisms are used. We proceed from the definition of the concept of "mechanism" as a set of bodies (links), successively transmitting motion from one moving link to another with a repeating result. This allows formulating the definition of an economic mechanism as a sequence (a chain or several interconnected chains) of interrelated recurring economic phenomena that lead to a certain result. At the same time, it is necessary to distinguish between economic mechanisms that exist objectively and are not dependent on the subjective intentions of persons acting in the economy (people and / or organizations), and economic mechanisms that are consciously formed to obtain certain results. Economic mechanisms can be distinguished by science or practice in various ways - by industry or by territorial principle, by management functions or some economic processes, by acting subjects, which also have their own mechanisms of influence in the economy, or by subjects. Consequently, the number of isolated mechanisms can be, generally speaking, very large, potentially infinite. Economic mechanisms are important for theory and practice because they form economic incentives and influence economic interests. Analyzing the relationship between the concepts of economic mechanisms and production (economic) relations, the author came to the conclusion that production relations are such mutual objective relations arising in social production that form the rights and obligations of each of the parties for some specific reason in the course of production activities. The concept of production relations is more abstract than the concept of institutions - formal and informal rules of action for people and organizations in the economy. At the same time, certain institutions that characterize rights and obligations form the forms and content of certain production relations. Production relations, in turn, shape the economic interests of people. Thus, economic mechanisms, on the one hand, are an important link on the basis of which economic laws and regularities are formed, and, on the other hand, they form incentives for people's economic actions. A figure showing the dialectical relationships of these concepts is presented.
Authors: Epshtein David Berkovich