Production and non-production sphere of the economy. Production and non-production sphere
All industries national economy are divided into two large areas: production and non-production. The existence of organizations belonging to the second group (culture, education, consumer services, management) is impossible without the successful development of enterprises of the first.
Industrial sectors: definition
Enterprises that carry out activities aimed at creating material wealth belong to this part of the national economy. Organizations in this group also sort, move, etc. Exact definition production sector sounds like this: “A set of enterprises that produce a material product and provide material services».
General classification
It plays a very significant role in the development of the national economy. It is the enterprises related to it that create national income and conditions for the development of intangible production. There are the following main branches of the production sector:
- industry,
- agriculture,
- construction,
- transport,
- trade and catering,
- logistics.
Industry
This industry includes enterprises engaged in the extraction and processing of raw materials, equipment manufacturing, energy production, consumer goods, as well as other similar organizations that are the main part of such an area as the manufacturing sector. Sectors of the economy related to industry are divided into:
All industrial enterprises are classified into two large groups:
- Extractive - mines, quarries, mines, wells.
- Processing - plants, factories, workshops.
Agriculture
This is also a very important area of the state’s economy, falling under the definition of “production sector”. Branches of the economy in this area are primarily responsible for the production and partial processing of food products. They are divided into two groups: livestock farming and crop farming. The structure of the first includes enterprises engaged in:
- Cattle breeding. Raising large and small livestock makes it possible to provide the population with such important food products as meat and milk.
- Pig farming. Enterprises of this group supply lard and meat to the market.
- Fur farming. The skins of small animals are mainly used to make wearable items. A very large percentage of these products are exported.
- Poultry farming. This group supplies the market with dietary meat, eggs and feathers.
Crop production includes such sub-sectors as:
- Growing grains. This is the most important sub-sector agriculture, the most developed in our country. Agricultural enterprises in this group of production spheres are engaged in the cultivation of wheat, rye, barley, oats, millet, etc. The degree of provision of the population with such important products as bread, flour, and cereals depends on how effectively this industry will be developed.
- Vegetable growing. This type of activity in our country is carried out mainly by small and medium-sized organizations, as well as farms.
- Fruit growing and viticulture. Mainly developed in southern regions countries. Agricultural enterprises of this group supply fruits and wines to the market.
Sub-sectors such as potato growing, flax growing, melon growing, etc. also belong to plant growing.
Transport
Organizations in this area of the national economy are responsible for the transportation of raw materials, semi-finished products and finished products. It includes the following industrial sectors:
The non-production sphere should be understood as a set of industries and activities that are not involved in the creation of material wealth, the activities of which are aimed directly at people or at transformation social conditions, in which it exists, and is mediated by economic relations regarding the provision of various services to satisfy national and personal needs, as well as to service the movement of material products.
The subject of economics non-production sphere is a set of economic relations arising in society in connection with the functions of non-productive industries.
The finances of non-production sectors have the following components:
1) finances of housing and communal services;
2) finance consumer services population;
3) finances of passenger transport;
4) finances of a number of industries;
5) health care finance and physical culture;
6) education finances;
7) finances of culture and art;
8) finances of science and scientific services;
9) finances of public organizations;
10) finances of banking, credit and insurance organizations;
11) finances of commercial and intermediary organizations (including commodity and stock exchanges, brokerage houses, funds, etc.);
12) finances of governing bodies;
13) defense finances;
14) finances of law enforcement agencies.
The non-productive sphere includes: healthcare, education, art, culture and science, sports, tourism, consumer services, housing and communal services.
Based on the form of influence of non-productive industries on material production and the nature of their impact on the subject of productive labor, a classification of industries is proposed, divided into five main groups.
First group. Material and technical supply and sales; procurement, finance, credit, trade.
Second group. Public catering, consumer services, preschool children's institutions.
Third group. Health care and education.
Fourth group. Science, art, literature, cultural services.
Fifth group. Public Administration, defense, paid features in public organizations.
Industries of the first group. They are so close to the sphere of production of material goods that statistics directly take into account most of them as branches of material production. These industries serve the circulation of production assets and are directly related to the commodity and monetary forms of these assets, their metamorphoses in the conditions of commodity production.
By the nature of its connection with material production and by the method of influencing it, the first group of non-production sectors has a number of differences from its other groups. A feature of the first group of non-production sectors is the combination of direct and indirect impact on material production (through subjects of productive labor) spent in them socially useful work. This labor is aimed at servicing the processes of exchange of activities between productive workers and the distribution of individual consumption products among them.
Industries of the second group. The main purpose of the non-production sectors classified in the second group in the classification is the socialization of labor serving the consumption of workers. This reduces the time spent on unproductive work in individual household, and expands free time workers.
Industries of the third group. Education and healthcare directly ensure the process of expanded reproduction of the labor force, and also create conditions for the full and comprehensive development of all members of society.
The economic effect of healthcare is manifested through an increase in the working capacity of workers as a result of improved sanitary and hygienic living conditions and a reduction in morbidity. However, the effect of the development of the healthcare system is not limited to these indicators: it is also necessary to take into account the increase in labor productivity of workers as a result of maintaining or restoring their health. In addition, the development of healthcare creates conditions for the education of a new person, in whom spiritual wealth and moral purity should be harmoniously combined with physical perfection.
Industries of the fourth group. If institutions catering and consumer services can rightfully be called factories of workers’ free time, then non-production industries classified in the fourth group serve this free time.
Thus, non-productive industries, the source of existence and development of which is productive labor, in turn have an impact on strong impact for production growth. This reverse influence of the non-productive sphere on material production is carried out in various forms: servicing the circulation of production assets (material and technical supply and sales, finance and credit, trade); strengthening the material interest of workers in the results of their work (financial and credit system, trade), etc.
Features of the non-production sphere.
The functions of the non-production sphere differ from material production.
There is no exchange between man and nature, and labor is aimed at the formation and development of human needs.
Labor in the non-production sphere is individualized, which requires the non-production worker to special properties character.
Labor in the non-production sphere is practically not subject to automation and mechanization.
Natural factor is not of decisive importance when locating non-production enterprises.
Basic non-productive assets (except for buildings and structures), as well as resources of current material consumption, enter the non-productive sphere as follows:
1. by purchasing from a retail chain;
2. in the order of transfer (patronage);
3. through the material and technical supply system (MTS).
Features of pricing in the non-production sector:
1. in the pricing process, it is recommended to adhere to the principle of equal payment for services with the same beneficial effect;
2. when setting prices, it is necessary to take into account quality characteristics services and the conditions for its consumption;
3. when setting the price, it is necessary to take into account the social significance of the service;
4. The variety of prices and methods for setting them necessitates careful monitoring of their level.
Methods of financing the non-productive sector.
1. self-supporting;
2. budgetary - which consists of regulatory financing, in which natural and cost standards for resource consumption are applied and which provides more rational use funds and equal conditions for all enterprises in the industry.
3. estimate method - the estimate reflects all expense items intended purpose funds and their quarterly distribution.
A significant part of the national income created by society is directed by the state to the development of the non-productive sphere.
The effective and rational use of these funds and their targeted expenditure largely depend on the organization of finances in the non-production sphere.
In non-production sectors, labor is not directly productive and, most often, is in the nature of services. This is the main difference between the product of labor in the non-productive sphere.
The result of labor, acting in the form of a service, is consumed in the process of production itself, or the processes of production and consumption coincide in time.
The amount of funds allocated to non-productive sectors is determined by the needs of society for the results of their activities, as well as the national income generated. Also, at present, it largely depends on the state of the state budget and the ongoing financial policy. But, despite the significant reduction in funding for unproductive industries at this stage of development of the national economy, they have an active influence on material production, ensuring the reproduction of the labor force.
Services provided by non-production sectors can be either free or paid (in whole or in part). Services to the population paid for by the state are mostly free. The source of provision for the production of free services is the state budget.
However, in the context of a shortage of public funds due to the budget deficit, paid services are increasingly developing, defining specific methods of farming and forms of financial relations.
Taking into account the nature of the activity, methods of organizing management and financing of enterprises, institutions and organizations in the non-productive sphere, they are classified into three groups:
1. Non-productive industries that are very close to material production. They operate on the principles of self-financing and self-financing; their services are provided for a fee. The source of covering the costs of their production is the revenue from the sale of services, that is cash consumers. Finances are organized in them, as in material production enterprises.
2. Industries that are not fully self-supporting, that is, they have some income and receive funds from the budget in the form of direct financing or subsidies (mixed financing). Their services are partially paid.
3. Industries supported by budget funds. The services they provide are free, and their source of funding is the state budget.
Thus, the production of services in non-productive institutions is accompanied by the formation, distribution and use of funds and specific financial relations.
More on topic 1. Content and importance of the non-productive sector for the national economy:
- G.A. MENSHIKOVA. ECONOMY AND SOCIOLOGY OF NON-PRODUCTION SPHERE (Teaching and methodological manual for correspondence students), 2001
- G.A. MENSHIKOVA
. ECONOMY AND SOCIOLOGY OF NON-PRODUCTION SPHERE (Teaching and methodological manual for correspondence students), 2001 - 1. The ratio of production and non-production spheres
- SECTION 2. REGULARITIES OF DEVELOPMENT AND FUNCTIONING OF MARKET ORIENTED INDUSTRIES OF NON-PRODUCTION SPHERE
- Unknowna7a7a. Non-production finance. Lecture. 2013, 2013
- Economic crises: causes, symptoms and their consequences for the national economy.
- 2. National legal prerequisites for prejudicial requests to the Court of Justice of the European Union and their significance for the proper degree of implementation
- An approach to implementing the admissibility of evidence in criminal proceedings of national legal systems and its significance for law enforcement
- §5. The importance of the APEC Model Contract on Investment Projects for securing uniform approaches to investment regulation in national legislation
- Topic 2.1. National economy. State regulation of the economy
- 1.2 Contents and meaning of Article 3, common to all Geneva Conventions for the Protection of Victims of War of 1949.
- Copyright - Advocacy - Administrative law - Administrative process - Antimonopoly and competition law - Arbitration (economic) process - Audit - Banking system - Banking law - Business - Accounting - Property law - State law and administration - Civil law and process - Monetary law circulation, finance and credit - Money - Diplomatic and consular law - Contract law - Housing law - Land law -
All activities that do not produce material goods are grouped into branches of the non-productive sphere, which is also called the tertiary sector of the economy, the first two being mining and processing. Until the mid-90s in the world, and in Russia even before the transition to capitalism in the mid-90s, the sector was considered auxiliary, since it did not produce a significant social product. It is now a full-fledged and increasingly important sector of the economy. It is believed that the development of the non-manufacturing sector is the main catalyst for economic growth.
Main difference
The main difference between the goods of the industrial sector and the non-productive sector is that the goods of the first can be produced in one place and consumed in another, while the goods of the second are produced and consumed in one place. If the same consumer goods from China are bought all over the world, then you can only take part in the tea ceremony directly in a Chinese or Japanese tea house. And it is difficult to imagine where, other than during a fire, the work of firefighters might be needed; in some countries, the fire department provided paid services, for which it was necessary to pay directly, and not through taxes.
True, with the development of non-production industries, especially those related to information services, not everything is so simple, and some services are already provided regardless of distance.
Further from nature
For simplicity, the first researchers in the non-production sector of the economy included everything that does not relate to mining and processing natural resources. These are all types of human activity that produce intangible goods and services aimed at directly satisfying material, spiritual, social and other needs. That is, the non-productive sphere does not have a direct connection with nature and serves to organize human consumption and maintain his habitat and mainly redistributes what is extracted and processed in the first two sectors of the economy.
What other features
Simplification does not always help, so the definition that all industries that produce something intangible belong to the non-productive sphere had to be supplemented. A number of features characteristic of the non-production sector have been identified. The most obvious thing is that there must be a direct connection between the manufacturer and the consumer of the product, which also often implies an individual approach. It is difficult to imagine that the same hairdressing or translation services can be provided differently. But with development information technology everything is no longer so simple, the same translation can occur without direct contact between the consumer and the service provider, and by 2024, according to UN forecasts, artificial intelligence will be able to do this.
Another feature of the non-production sphere is that the final product is often not materialized. When you listened to music or rode public transport, your consumption will end there, although the consequences may be felt for a long time. Nowadays we can safely call a significant share of intellectual and creative work a feature of the industry, which is associated with digital revolution, the emergence of a large number of new types of services using high-tech technologies and artificial intelligence. Even in the largest non-manufacturing industry - trade, where a lot of low-skilled labor is used, online platforms and offline stores are playing an increasingly important role. In China, Japan, and Korea, entire chains of stores began to operate that do not employ people.
What industries are included?
Since the beginning of time, when people showed the beginnings of social consciousness, individual species activities that were subsequently classified as non-production industries. The first leaders, warriors, shamans, if we draw an analogy with the current terminology, are government, security, social services and, partly, healthcare, which are also in demand in modern conditions.
Non-production sectors include: all types of trade, management and security, healthcare and education, science and consulting, transport and utilities, household and hotel services, financial and information services, art and culture.
Non-production products
To begin with, when economists realized that non-productive industries are a serious and independent area of the economy, all products of the sector were divided into tangible and intangible services. Material services include all industries that ensure the consumption of material goods: hotel services or, more broadly, hospitality services, trade, and now e-commerce, household and transport services have also been added. Intangible services include all types related to the satisfaction of cultural, religious, spiritual needs and activities related to the creation external environment for human life, safety, security environment to religious worship, health care, education and the arts.
Products of non-production sectors in lately They also began to divide into services and intellectual products. Products of creative and intellectual activity have been valued at all times, but in a post-industrial society, where almost all activity is based on knowledge, the value of intellectual products increases exponentially, as does its share in the non-productive industry. Because of this, it is now proposed to allocate all activities related to the production of knowledge into the quaternary sector - the intellectual sector.
There will be more to come
In developed countries, non-production sectors already occupy up to 80 percent of the economy, and more than two-thirds of the employed population work there. In developing countries, including Russia, about 50 percent. Not only is the sector's share of the economy increasing, but new types of services are also emerging, especially in industries related to digital technologies. Products also acquire new quality characteristics, such as the ability to be stored, accumulated and transmitted over distances. Very soon we will have to give new definitions to the non-production sphere, its features and characteristics.
Video tutorial 2: Sectoral and territorial structure of the world economy
Lecture: Sectoral structure of the economy. Geography of the main industries of production and non-production spheres
Sectoral structure of the economy– this is the interconnection of all industries, their composition and pace of development.
It is divided into production and non-production spheres. TO production or material include all industries that produce material goods, deliver them to consumers, and continue the production process in the sphere of circulation. Non-production spheres a includes services provided to the population and social services.
Each sector of the economy is subdivided into smaller sectors, which are divided into specialized sectors, then into types of production.
For example. The transport industry is divided into water, air and land. Water, divided by specialization into river and sea.
A more complex division agro-industrial complex, where agricultural and industrial sectors are closely intertwined and interconnected:
agriculture;
industry that produces agricultural machinery;
industries that process products and bring them to the consumer (product processing, catering).
Types of industries:
newest
TO old include coal, metallurgical, etc. New arose in the 20th century. This is the automotive industry, the production of plastic products. Newest connected with science - these are high-tech industries: robotics, microelectronics, organic synthesis chemistry. High technology is inherent in the Japanese economy.
Geography of the main industries of production and non-production spheres
Manufacturing sector
The transformation of industries has led to a reduction in the percentage of old ones, and an increase in new and innovative ones. Separate southern countries moved from developing to the top ten in industrial production. In high-tech production Nordic countries are in the lead. The geography of industries is determined by the location of large industrial districts (about 100). They are located in almost all regions. The numerical superiority is in Europe.
Fuel and energy complex provides the population with fuel and energy. The fuel and energy industry rules the world's progress. Today there is alternative sources energy, but so far they are not able to meet the needs of humanity. This industry is characterized by the development of extractive industries in some countries, and consumption in others. The main consumers are the USA, Europe, and Japan. But developing countries are engaged in mining. The development of this industry has undergone changes: the first stage is the extraction and use of coal as fuel. The second is based on the use of oil and gas, which gave advantages to countries with oil deposits. Until today, the price of oil on the world market is an indicator of the economy on a global scale. Oil is produced in 90 countries. 40% of production comes from OPEC countries. Russia is one of the top three countries in terms of oil production. 45% of oil goes to the international market.
Gas production in the 21st century got a “second wind”. The idea of radioactive decay energy has not justified itself, since its use can lead to irreparable consequences. Gas is easier to produce, easier to transport, and more environmentally friendly. The geography of gas production has also transformed. The countries of the South began to produce gas. 25% enters the market natural gas. Some of it is transported through pipelines, the rest is liquefied. Algeria was the first to begin transporting liquid gas.
The world has become bigger produce and consume electricity. Most it is produced in the countries of the northern hemisphere. 64% of electricity is generated at thermal power plants. The leading places here are occupied by the USA, China, Russia, and Japan. The percentage of thermal power plants in the share of electricity prevails in Poland, Saudi Arabia, Kuwait. Their stations operate on coal and petroleum products. 18% of energy is generated by hydroelectric power plants. The leading position is in the countries of North America, Russia and China. The share of nuclear energy in the world is growing. 31 countries around the world use nuclear power plants. The USA, France and Japan produce the most atomic energy. The share of nuclear energy is higher compared to other sources in Lithuania, France, and Belgium. Accident on Chernobyl nuclear power plant reduced the construction of new nuclear power plants. Some countries have declared a moratorium on the use of nuclear energy, and in some countries nuclear power plants have been dismantled. The amount of nuclear energy in Russia has decreased. People have paid too much for the use of nuclear energy. Although it is impossible to completely abandon this type of energy, developments are now underway to use it more safely.
Development rate mining industry have decreased noticeably, but the role of the industry in the world is great. After the raw materials crisis of the 70s, many countries reconsidered the concept of using the mineral resource complex, reoriented towards using their own raw materials and saving resources. There are 8 leading mining countries in the world: USA, Canada, Australia, South Africa, Brazil, India, China, Russia.
Until the 70s metal production determined the degree of economic development. Now the trends have changed, since today in many industries metal products have begun to be replaced by plastic products. The second reason is the transfer of “dirty production” to southern countries. The geography of metallurgy location has also changed. If earlier this industry was focused on raw materials and coal deposits, then now mini factories are appearing that focus on the consumer. About 200 million tons of ferrous metals are exported annually. Main suppliers: Europe and Japan.
Development non-ferrous metallurgy decreased in post-industrial countries, but volumes increased in the south. The reason is the same. The countries of Europe and America care about the environment in their countries, “dirty production” is moving to the south.
Mechanical engineering also underwent some metamorphoses. Older industries have stabilized or are in decline, such as shipbuilding. The production of new ones is growing, such as automotive, electronics, robotics, etc. On the world economic map, 4 large regions can be distinguished: North America(all types of production), Europe, Eastern and Southeast Asia(issue household appliances), CIS countries in which mechanical engineering is the main industry.
Accommodation chemical production has changed radically. The production of organic synthesis products and polymers, which are based on the processing of petroleum products, is increasingly expanding its boundaries. Chemistry moved to oil producing countries: the Persian Gulf countries, North Africa, Mexico.
Old industries light industry, previously located in the UK, USA, and Europe, have fallen into disrepair. But the countries of the south, focused on cheap labor and their own raw materials, received a new impetus in development. You can find cheap clothes and textiles from China everywhere.
- Non-production sphere
The non-production sector occupies significant position in the economy of states. It includes: education, art, culture, science, transport services, housing and communal services, financial sector, tourism, etc. The United States leads the world in the non-manufacturing sector. The share of the economy is dominated by the non-productive sector. It employs 2/3 of the country's population. For example, New York is the largest financial center; cities such as Stanford, Cambridge, and Los Angeles are centers of science and education. There is a large share of tourism, especially to the states of Florida, California, and Hawaii.
Each country has centers of finance, culture, science and tourism. In Hungary it is Budapest, in Russia it is Moscow and St. Petersburg. The structure of the countries' trade turnover is growing. Imported goods can be found in all countries of the world. Some developing countries' budgets depend entirely on tourism. Great Britain is considered the center of world education.
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Modern man is a consumer of not only goods, but also services. The development of the non-production sphere is the most important indicator in the economy of any state.
What is the non-productive sector?
This concept refers to all economic sectors that satisfy the non-material needs of people in society. Such needs include organization, redistribution and use of material assets, spiritual benefits, development of various aspects of personality, as well as health care. The non-production sector is responsible social needs society and every individual in it.
This also includes the concept of “spiritual production”. This term was introduced by Karl Marx, who understood it as the production of skills, habits, ideas, artistic images and values. The non-manufacturing sector also includes industries that produce services.
The difference between a service and a product
A person is an object of labor for employees of an enterprise that provides services. A product is some object or thing endowed with certain properties. It was obtained as a result of work done in the past. The service only has beneficial properties, not attached to a material carrier, and is the result of labor in the present. A service is sold by the employee of the company who provides it; it cannot change its owner, unlike a product. Services have no cost. However, they have a price that is determined by the cost of the worker’s ability to work and the costs spent
The non-production sphere is based on material base. Without material production it could not exist. After all, services are ultimately exchanged for goods. Workers involved in material production also provide support for those who work in the service sector.
Non-production sectors
Sociologists identify 15 industries:
- sales (commerce);
- public catering;
- household services: home care, repairs and custom manufacturing various groups goods, personal hygiene;
- school and preschool education;
- medicine;
- social services;
- recreational services;
- servicing cultural institutions;
- information support;
- finance and insurance;
- legal support for citizens;
- services of legal and notary offices;
- connection;
- transport support.
Often, enterprises are engaged in providing several different industries at once.
The non-productive sphere, together with all its institutions and enterprises providing material services, collectively constitutes social infrastructure.
There are also industries related to the service sector that serve large social strata:
- management of government organizations;
- secondary, primary, higher education;
- science;
- state security agencies;
- public associations.
Connection with productive work
The non-production sphere does not create new value. However, this does not mean that such work is useless for society. Material production is at the core Non-manufacturing industries are a superstructure to the material ones and cannot exist without them.
It is not created by the non-productive sphere, since it focuses on the comprehensive spiritual development of a person, his state of health, etc. Nevertheless, it can affect productivity, improve the qualifications of personnel, that is, it indirectly affects the national income of the state.
The situation in modern Russia
The non-productive sphere of the economy is a reflection of the needs of society and changes in their structure depending on the standard of living of citizens. IN modern Russia More than 30% of the population works in this area.
The non-production sphere in our country is characterized by territorial differentiation in terms of its level of development. Such differences are inherent when comparing both individual regions and federal districts. Territorial differentiation is one of the reasons. It arose in the 60s of the last century.
Non-production centers have a hierarchy:
- Moscow.
- Central cities of the federal subjects.
- Regional centers.
- Rural settlement centers.
- Rural settlements.
Organizations engaged in recreational and health resort services have their own specific territorial distribution. They depend on the location of the natural and socio-economic base. Therefore, two largest centers were formed in Russia - the North Caucasus and the Black Sea.
The non-productive sphere is represented in the economy by industries that satisfy the cultural and spiritual needs of people. It is closely connected with material production and strongly depends on it. In our country, non-material production sectors are characterized by territorial differentiation.
