Subsistence farming

The Natural economy – it is the simplest form of economic system. In terms of the existence of this form of people provide themselves with the necessary goods to satisfy their own needs.

The Natural economy has its own characteristics.

It is principally a form of economic organization is a closed set of relations. The society in which these relationships exist, includes divorced and separated households (region, estates, communities, families). Each element of the structure provides himself, relying only on their own strength. Thus, under conditions of subsistence farming is done through various activities: from extraction of raw materials to manufacturers of products ready for consumption.

Subsistence agriculture is characterized by the presence of a universal manual labour. When this is possible any division into species. Each worker, having the simplest equipment (a shovel, hoe, rake, etc) performs all the necessary work. In the old days about these "universal workers" stacked sayings ("handy", for example).

Subsistence agriculture is characterized by direct economic links between customer and production. These relationships develop according to the scheme "manufacture-distribution-consumption". In other words, the separation of products between producers, and then it (the product) goes to private consumption, bypassing the exchange for other goods. This scheme ensures the stability of subsistence farming.

The simplest form of economic relations dominated the world throughout the pre-industrial era – for more than nine and a half millennia. This resistance system is associated with many factors.

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Subsistence agriculture is characterized by some stagnation of the economy. This is due to the very slow increase in production. In addition, manual labor is not conducive to the improvement and consolidation of knowledge and skills.

Economic activities in subsistence production characterized by low productivity. In many economically backward States, the village worker is able to feed only two people. Along with this natural economic activity does not fully meet the traditional requirements of mainstream society.

These factors are independent from each other and hinder the development of economic relations. As a result, in a subsistence causal relationships form a closed system. Experts call it the "circle of stagnation of the economy."

Under capitalism was a natural and commodity economy. The second was further developed in the capitalist countries. Natural economic system largely remained in the States since pre-industrial economy. In underdeveloped countries by the mid-20th century employed more than half of the population in seminatural and natural economy. Currently, as analysts note, in these countries the economic system is going through a critical period.

In Russia, natural way of farming noted in the orchards and gardens of urban residents, and plots of the peasants.

In the history of the development of the Russian economy experts identify a number of paradoxes. For example, from the moment it was announced "movement to market", increased the number of plots with natural form of management. Thus, the development went in the opposite direction. Moreover, instead of striving forward, many areas of the state has increased its economic isolation. In these areas a ban was imposed on the export of products in other regions. Therefore, the governance sought to increase the supply of the local population.