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Economic activity - production and non-production. Industrial sectors. Classification of industries

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-productive sphere meets the social needs of society and each 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 an object or thing endowed with certain properties. It was obtained as a result of work done in the past. The service only has beneficial features, 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-production sphere, together with all its institutions and enterprises that provide material services, collectively represents social infrastructure.

There are also industries related to the service sector that serve large social strata:

management of government organizations;
secondary, primary, higher education;
the 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 the basis. Non-productive industries are a superstructure to 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

Non-production sphere 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.

Industry− a separate sphere of science, knowledge, production. Branch of the economy - a set of enterprises producing (extracting) homogeneous or specific products using similar technologies.

All industries National economy are divided into two large areas:production And non-productive. 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.

Enterprises that carry out activities aimed at creating material wealth belong to the industry of the production sector. Organizations in this group also sort, move, etc. Precise definition The production sphere is as follows: “A set of enterprises that produce a material product and provide material services.”

The production sector 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.

1 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 a major part of such an area as the manufacturing sector. Sectors of the economy related to industry are divided into:

− electric power industry. The enterprises included in this group are engaged in the generation and transmission of electrical energy, as well as control over its sales and consumption. The production of products of any kind without organizations carrying out similar activities is impossible.

− metallurgy. This industry, in turn, is divided into two sub-sectors: non-ferrous and ferrous. The first includes enterprises engaged in the extraction of precious metals (gold, silver, platinum), diamonds, copper, nickel, etc. Ferrous metallurgy plants produce mainly steel and cast iron.

− fuel industry. The structure of this industry includes enterprises engaged in the extraction of coal, oil and gas.

− chemical industry. Technological production of this type produces products of the most for various purposes. The latter can be divided into four main categories: basic and specialty chemicals, consumer goods, and life support products.

− forestry industry. This group includes enterprises that harvest logs, produce lumber, as well as paper, pulp, matches, etc.

− mechanical engineering and metalworking. Factories in this area are engaged in the manufacture of equipment, tools and machines.

− light industry. Enterprises of this group produce mainly consumer goods: clothing, shoes, furniture, etc.

− building materials industry. The main activity of factories and combines in this industry is the production of products intended for the construction of buildings and structures ( concrete mixtures, bricks, blocks, plasters, insulation, waterproofing, etc.

− glass industry. The structure of this industry also includes factories for the production of porcelain and earthenware. Enterprises in this sub-industry produce dishes, sanitary ware, window glass, mirrors, etc.

All industrial enterprises are classified into two large groups:mining– mines, quarries, mines, wells; processing– combines, factories, workshops.

2 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 production.

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. Agricultural enterprises of this group supply the market with dietary meat, eggs and feathers.

Crop production includes such sub-sectors as:

− growing grains. This is the most important sub-sector of agriculture, the most developed in our country. Agricultural enterprises of this group of production sphere 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. Developed mainly in the southern regions of the country. 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.

Industry and agriculture are considered the main sectors of the production sector. However, no less important role Enterprises and other groups that are in close interaction with them play a role in the country's economy.

3 Construction. Organizations of this group are engaged in the construction of buildings and structures. These can be objects for domestic purposes, as well as cultural, administrative or industrial. Besides, construction organizations develop projects of buildings and structures, carry out their reconstruction, expansion, major renovation etc.

Absolutely all other branches of the production sector interact with groups of enterprises of this type. Work construction companies can be either on government orders or from specific organizations or individuals.

4 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:

− road transport. Companies in this group mainly deliver goods over short distances.

− marine. This type of transport mainly carries out foreign trade transportation (oil and petroleum products). In addition, maritime companies serve remote areas of the country.

− rail transportation. Within the developed economic zone, trains are the main transport delivering goods over long distances.

− aviation. Companies in this area of the transport industry are mainly engaged in the transportation of perishable products.

The success of the functioning of enterprises in such industries as agriculture, industry, construction, etc. directly depends on the efficiency of the transport group companies. In addition to those discussed above, this area of the production sector includes organizations transporting oil, its products, gas, etc.

5Trade. An equally important role in the country's economy is played by such industrial sectors as: wholesale trade; retail; catering.

Its subjects are enterprises and organizations involved in the sale of goods produced by industry and agriculture, as well as related work and services. Catering establishments include canteens, kebab shops, cafes, restaurants, pizzerias, bistros, etc.

6 Logistics support. The main activity of the subjects of this branch of the production sphere is providing for industrial enterprises, agriculture, etc. working capital: components, packaging, spare parts, rapidly wearing equipment and tools, etc. The logistics group also includes organizations involved in supply and sales. Thus, the branches of the production sphere, the definition of which was given at the beginning of this article, are the most important components of the national economy. The effectiveness of the development of the country’s economy as a whole and, as a consequence, the growth of the well-being of its citizens directly depends on the success of the activities of their enterprises.

In the non-production sector, two groups of industries can be distinguished:

1. Industries whose services satisfy the general, collective needs of society:

− geology and subsoil exploration and water management (except for those activities that were classified as material production);

− authorities: administrative apparatus, court, prosecutor's office;

− defense;

− party and public organizations;

− science and scientific services;

− finance;

− lending and state insurance.

2. Industries whose services satisfy the cultural, everyday and social needs of the population:

− housing and communal services;

− institutions and enterprises providing consumer services to the population (passenger transport, baths, hairdressers, etc.);

− education (schools, secondary and higher educational establishments, libraries, etc.);

− cultural and art institutions (museums, theaters, cinemas, palaces, cultural centers, etc.);

− communications regarding services to the population and non-production sphere;

− institutions for medical care population (clinics, hospitals, sanatoriums, etc.);

− physical culture and sports institutions;

− institutions for social welfare of the population.

Workers employed in the non-productive sphere of the national economy do not produce material goods, but their work is necessary for society and is socially useful work.

Sometimes outside the classification of industries in the production and non-production spheres, the industry "Public services" distinguished as a collecting industry, which includes enterprises included in the branches of the production and non-production spheres. From the production sector, this includes industrial enterprises engaged in the manufacture and repair of personal consumption items. individual orders of the population, and construction organizations that carry out the construction and repair of housing according to individual orders of the population. From the non-production sector to the collecting industry consumer services of the population included non-productive activities that are purely domestic services for the population (baths, hairdressers, etc.).

Cholinergic system

x cholinergic system. This system consists of neurons that release acetylcholine, its neurotransmitter. Cholinergic neurons are quite widely represented in the brain, but its central areas are the cortex (frontal, parietal, temporal), hippocampus, caudate and Meynert's nucleus (basal nucleus of Meynert), the functions of which are related to cognitive processes, including memory.

The functioning of the cholinergic system is determined by muscarinic acetylcholine receptors - Ml and M2, which differ in secondary intracellular processes (secondary messenger systems). The latter makes them similar to histamine receptors.

Target: understand the concept, characteristics of industries, prerequisites for their emergence, stages of formation and classification; study the production and non-production spheres of the national economy, its sectoral structure, as well as the structure of industries in the production and non-production spheres.

National economy is a functional and territorial production system, including intersectoral and sectoral links, regions, complexes, organizations and enterprises.

In the sectoral structure of the country’s national economy, two large groups of industries are distinguished:

1. Industries in the sphere of material production.

2. Branches of the socio-cultural sphere.

The first group includes the following industries:

· industry;

· Agriculture;

· construction;

· transport;

· trade and public catering, logistics and sales, procurement.

The second group includes the following industries:

· housing and communal services and non-productive types of consumer services for the population;

· healthcare, physical education and social security;

· education;

· Culture and art;

· finance, loans, insurance;

· management;

· public associations.

It must be taken into account that although trade and transport traditionally belong to the sphere of material production, their final product is not a material good, but a service. At the same time, these industries have much in common with other branches of material production, and therefore can be considered in the context of both spheres. It is important to note that currently the concept of social production includes not only the process of creating material goods, but also services (the term “production of services” is found). Thus, social production is the process of creating material goods and providing services by sectors of the national economy. In a narrower sense, production (not social) is the process of producing goods necessary for the consumer using labor and means of production.

Great importance for the development of the national economy has it sectoral structure, which is understood as the relationships and proportions between industries, inter-industry complexes, and areas of activity.

Industry is a set of organizations, enterprises and industries that are characterized by the following characteristics:

· similarity in the purpose of the products produced;

· homogeneity of consumed materials;

· community technical base and technological processes;

· special professional composition of personnel;

· specific working conditions.

Industries can be united into inter-industry complexes. An inter-industry complex is a complex inter-industry system, characterized by a high level of integration between elements along the flow of produced goods and information, and is highly cost-effective and resistant to the influence of external factors.

The leading sector in the sphere of material production is industry. Industry as a branch of the national economy, in turn, consists of a number of interrelated sectors.

Question No. 3 Industry as the leading sector of the national
economy of the Republic of Belarus

Target: study the sectoral structure of industry of the Republic of Belarus, priority directions for industrial development; characterize the features of other sectors of the production sector (construction, agriculture, transport, communications).

Industry occupies a leading place in the national economy of the country, and this is facilitated by the following factors:

· industry produces tools that are used in other sectors of material production and the socio-cultural sphere;

· creates a significant share of GDP and national income;

· a significant number of the active population is employed in industry;

industry determines the level of competitiveness in the domestic and foreign markets, contributes to innovative development the country's economy;

· the state of the environment depends on the technologies used by industry;

depends on the level of industrial development social sphere, working conditions and quality of life of the population;

· national security and defense capability of the country is determined by the level of industrial development.

Thus, industry determines the economic, scientific, technical and socio-economic development of the country.

The economic efficiency of industry largely depends on its sectoral structure.

Industry structure- this is the composition of industries, their quantitative ratio, based on mutual production connections and characterized by the share of individual industries and complexes in the total volume industrial production.

Industry includes the following sectors:

· electric power industry;

· fuel;

black and non-ferrous metallurgy;

· chemistry and petrochemistry;

· mechanical engineering and metalworking;

· forestry, woodworking and pulp and paper industries;

· building materials industry;

· light;

· food, etc.

The structure of industry is dynamic and depends on many factors, among which are the following:

· level of activation of innovation activity and development of scientific and technological progress;

· economic policy of the state;

· consumption structure of society;

availability in the country natural resources necessary for the development of industries;

· traditionally established specialization and development of integration processes.

To quantify the sectoral structure of industry and its dynamics, the following indicators are used:

1. The share of individual industries in the total volume of industrial production and its change over time.

2. The share of progressive industries (electric power, mechanical engineering, chemical industry) in the total volume of industrial production and its dynamics.

3. Lead coefficient (the ratio of the growth rate or production index of a particular industry to the growth rate or production index of the entire industry).

4. The ratio of mining and manufacturing industries.

Based on the magnitude of these indicators, it is possible to assess the state of industrial sectors and determine the main tasks and directions of their development.

Question No. 4 Organization (enterprise), its functions, structure,
goal and tasks

Target: understand the concepts of “enterprise”, “organization”, “firm”; determine the purpose and objectives of the creation and functioning of an industrial organization.

Organization (company) is an independent economic entity created in accordance with current legislation to produce products, perform work and services in order to meet the needs of specific consumers, as well as to ensure the functioning of the organization (enterprise) itself and its employees.

An organization can also be considered:

· How Property Complex, used to implement entrepreneurial activity;

· as an independent economic entity created to produce products, perform work or provide services, which is legal entity;

· as a separate specialized unit that uses means of production and labor to obtain products of the appropriate profile and range required by consumers.

In a market economy, the goal of the current commercial organization is profit maximization. To achieve this goal the following is required:

· maximizing production volume;

· ensuring the competitiveness of products;

· stability and stability of functioning;

· maintaining market positions;

· provision high efficiency production.

For non-profit organization the most important goal is to satisfy social needs, which, in principle, also does not exclude making a profit. However, it should be remembered that the maximum achievement possible profit It is impossible for a commercial organization if it does not take into account social needs. Therefore, goals such as profit maximization and meeting social needs should be considered in close connection.

Every organization should have the following types unity:

· production and technical;

· organizational;

· economic.

The basis for the formation of an enterprise is manufacturing process. It is a system of actions for converting raw materials into finished products. The production process includes the following private processes:

1. Basic production processes, where objects of labor are transformed into finished products.

2. Auxiliary and servicing processes that create conditions for the normal execution of the main process.

3. Management processes who organize, direct and coordinate the progress of production.

Each group of private production processes organizationally formed into the relevant divisions (shops and farms), which form industrial organization structure.

There are production and general structures of the organization.

The production structure includes the following:

· main production (workshop);

· auxiliary production (workshop);

· service farms;

· management bodies of the organization.

The divisions of the production structure and the organization for servicing the collective of employees of the enterprise (housing office, libraries, clubs, sports organizations on the balance sheet of the enterprise) together form the general structure of the industrial organization.

The production structure reflects the following:

· size of the enterprise;

· number and composition of workshops and services;

· number and layout of areas in workshops;

· the nature of the division of labor between workshops and their cooperative connections in the production process.

The primary link in industrial organization is workplace. The set of workplaces at which technologically homogeneous work is performed forms a production site. In large and medium-sized organizations, areas are combined into workshops. In small organizations with relatively simple technological process A shopless structure is used, the main link of which is the production site. The main workshops at all enterprises are different, auxiliary goals are usually the same.

Question No. 5 Classification of industrial organizations
(enterprises)

Target: consider the classification of industrial organizations (enterprises) according to various signs; study the organizational and legal forms of enterprises and organizations.

Organizations are classified according to the following main characteristics:

1. By industry:

· industrial;

· agricultural;

· transport, etc.

2. By type of ownership:

· state;

· private.

3. By organizational and legal forms:

· partnership enterprises;

· enterprises-societies;

· unitary enterprises;

· production cooperatives, etc.

4. According to the objectives of the activity:

· commercial;

· non-profit.

5. By type of activity:

· material production enterprises;

· service sector enterprises.

6. By the number of types of products produced:

· universal (multidisciplinary);

· specialized;

highly specialized.

7. By degree of concentration:

· large;

· average;

8. By the nature of the impact on the subject of work:

· mining;

· processing.

9. According to the economic purpose of the product:

· producing means of production;

· producing consumer goods.

10. If possible, year-round work:

· seasonal;

· non-seasonal.

11. By the nature of the product, i.e. producing:

· work;

· service.

12. According to the dominant factor in the cost of production:

· material-intensive;

· labor-intensive;

· energy-intensive;

· capital-intensive, etc.

13. Regarding the participation of foreign capital:

· joint;

· foreign.

Each classification has a certain practical significance. There are other criteria by which organizations are classified.

Question No. 6 Economic environment for the functioning of industrial
organizations (enterprises)

Target: understand the economic environment of the functioning of an industrial organization (enterprise), its essence, factors, subjects, properties, indicators, dynamism; study the problems of state regulation of production and economic activities of an industrial organization (enterprise).

The quality of an organization's functioning depends on its internal and external environment.

The external environment of an organization is determined by all those economic entities with which it is connected: suppliers, consumers, business partners, competitors, state and local governments, public organizations, as well as parts of the market infrastructure (exchange).

The organization's relationship with the external environment is dynamic and determined by its vertical and horizontal connections. Vertical The organization’s connections are those determined by law, i.e., mandatory (with all governing bodies). Horizontal communications are the connections of an enterprise with suppliers and customers, business partners and competitors.

In external environment There are macrolevel (macroenvironment) and microlevel (microenvironment). At each of these levels, the organization is influenced by its own specific factors.

At the macro level, the following factors have a significant impact:

· natural;

· environmental;

· socio-demographic;

· political.

At the micro level, the organization is influenced by:

· market conditions;

· form and closeness of partnerships;

· relations with suppliers and consumers;

· degree of development of market infrastructure.

All environmental factors can be divided into factors of direct and indirect impact.

Direct impact factors include:

· state;

· suppliers;

· labor market;

· legal space;

· consumers;

· competitors;

· public structures (trade unions).

Indirect impact factors can be broadly grouped into the following four groups:

1. Situational (reflect the economic situation in the country and the world, interstate relations).

2. Innovative (form the potential of the enterprise for its successful development).

3. Socio-cultural (include a complex of life values, traditions, and customs of the country).

4. Political (reflect the policies of the administrative bodies of the state).

The main elements of the external environment are:

· economic environment (interest rates, taxes);

· political situation;

· legal environment;

· technological environment;

· socio-cultural environment;

· natural and climatic environment;

· geographical environment;

· demographic situation.

The external environment has a strong influence on the enterprise, which, in turn, can influence external environment only indirectly.

Internal environment An enterprise is a set of relationships between its divisions, i.e. workshops, sections, services.

The elements of the internal environment of the organization are the following:

· organizational structure;

· structure functional responsibilities;

· structure of exchange of services;

· information structure;

· structure of labor resources;

· organizational culture, i.e. the totality of relationships between members of the work team.

In order to achieve main goal, the internal environment of the organization must be adaptive. The level of adaptability can be judged by indirect indicators, which include:

· time from the moment of increase in prices for raw materials and materials until the moment of increase in prices for products manufactured by the organization;

· development time new products or technology compared to major competitors;

· time for preparing documents necessary to assess the creditworthiness and solvency of the enterprise.

External and internal environmental factors are interconnected. Taking into account their influence on the activities of the organization (enterprise) requires its high adaptability, which is necessary to ensure competitiveness.

This is a conventional name for economic sectors, the results of which primarily take the form of services.
The non-production sphere includes:
housing, communal and consumer services for the population;
passenger transport;
communications (for servicing organizations and non-productive activities of the population);
healthcare, physical education;
education;
culture;
science and scientific services;
lending, financing and insurance;
control;
public organizations.
The leading place in the economic structure of any region of Russia belongs to industry. This is determined primarily by the fact that, providing all industries with tools and new materials, it serves as the most active factor in scientific and technological progress and expanded reproduction in general. Among other sectors of the economy, industry stands out for its complex and area-forming functions.
Industry is divided into:
mining, which includes industries related to the extraction and enrichment of ore and non-metallic raw materials, as well as the extraction of sea animals, fishing and other sea products;
processing, which includes enterprises for processing products of the mining industry, semi-finished products, as well as for processing agricultural products, forestry and other raw materials.
Manufacturing industries form the basis of heavy industry. During the period of economic reforms, significant changes occur in the structure of the mining and manufacturing industries.
According to their economic purpose, industrial products are divided into two large groups:
group "A" C production of means of production;
group "B" C production of consumer goods.
Along with the sectoral structure, the region also has a territorial one.

More on the topic Non-production sector:

1. Contents and specifics of non-production finance
2. Features of budget planning and financing in the non-production sphere.
2. Features of budget planning and financing in the non-production sphere
15. Basic production and non-production assets. Fixed capital of the enterprise
14.2. Audit of production costs in auxiliary and auxiliary industries, maintenance of non-production facilities included in the balance sheet of construction organizations

The non-productive 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 a person or at transforming the social conditions in which he exists, and is mediated by economic relations regarding the provision of various services to satisfy national and personal needs , as well as servicing the movement of material products.
The subject of economics in the non-productive sphere is the totality of economic relations that arise 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) finances of consumer services for the population;
3) finances of passenger transport;
4) finances of a number of industries;
5) finances of health care 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) of the socially useful labor expended in them. 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 the free time of 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 public catering and consumer services establishments 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 a strong impact on the growth of production. 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 special 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.

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