Topic 3 Economic institutions: property and entrepreneurship

Subtopic 1 Property as economic, juridical term

Subtopic 2 Types of property. Transformation of the property relations in the Republic of Kasakhstan

Subtopic 3 Enterprise as a main production unit.

1/Property is not a thing, it is a relation between people concerning the thing. It means the relations between people in the production process of material and non material goods. The economic relations (production, distribution, exchange and use) linked with property.

According to P.Khane property is not just relation to the thing, it is a relation between people about thing. The property as economic term means production relations between people in possession of the production results and the production assets. Property is usually thought of as being defined and protected by the local sovereignty. Ownership, however, does not necessarily equate with sovereignty. If ownership gave supreme authority, it would be sovereignty, not ownership. Some philosophers^] assert that property rights arise from social convention, while others find justifications for them in morality or natural law. Various scholarly disciplines (such as law, economics, anthropology or sociology) may treat the concept more systematically, but definitions vary within and between fields. Scholars in the social sciences frequently conceive of property as a bundle of rights. They stress that property is not a relationship between people and things, but a relationship between people with regard to things.

Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation. Depending on the nature of the property, an owner of property has the right to consume, sell, rent, mortgage, transfer, exchange or destroy it, or to exclude others from doing these things.

The property has two elements: subject and object(target).

The property subject is a person, corporation, local and government organs. (Who is user?)

The property object is a real estate(earth, water, forest resources, buildings and etc),moveable/ движимое имущество(money, securities/ценные бумаги and other needed properties). Also there is scientific work results, cultural wealth such as work of art, masterpiece, trade label and others.

The property answers to main questions of social-economic relations. They are:

1. Who owns the production factors and their results?

2. What kind of economic link (связь) influence to achieve effective production?

3. Who gets the income from the economic activity?

Taking into consideration answers to these questions the property consists of the following elements: possession of the production factors and their results, use of material and other things to produce goods, realize the property from the economic point of view. A ll these relations identify a way of conducting business, distribution of income, satisfaction of social-economic needs and all of them describe the economic meaning of property.

All economic relations between people based on property are regulated from the government side through juridical tools. They are normative acts, laws, documents and etc. According to the identified documents the resources are divided and the results of the production appropriated (владеть). In this case the property consider as a juridical term.

2/ Types of property

The property from economic point of view is divided into following stages: the lowest stage is conducting a business alone and the highest stage is cooperation. According to these stages there are three types of the property such as individual, shared, common. Also the following types of property are possible: Most legal systems distinguish different types (immovable property, estate in land, real estate, real property) of property, especially between land and all other forms of property—goods and chattels, movable property or personal property. They often distinguish tangible and intangible property. One categorization scheme specifies three species of property: land, improvements (immovable man-made things), and personal property (movable man-made things). In common law, real property (immovable property) is the combination of interests in land and improvements there to, and personal property is interest in movable property. Real property rights are rights relating to the land. These rights include ownership and usage. Owners can grant rights to persons and entities in the form of leases, licenses and easements. Later, with the development of more complex theories of property, personal property was divided into tangible property (such as cars and clothing) and intangible property (such as financial instruments, including stocks and bonds, and intellectual property, including patents, copyrights, and trademarks).

In case of the individual property- owner takes all the results of the production or any other activities. There are two types of individual property such as

· individual property based on owners labour (owner does all the work)

· individual property based on others labour (owner engages (нанимать)other workers)

The shared property means using owner’s all production factors together to achieve planed aims.

There are several types of shared property. They are partnership, joint-stock company, joint venture (совместное предприятие), production co-operation.

Partnership is a commercial unit, which aim is to get a profit. The establishment fund of the partnership is formulated from the capital of each participant.

Joint-stock company is a commercial company, where its establishment fund is divided into shares. Only joint-stock company has right to issue shares.

Joint venture is an enterprise where national and foreign businessmen combine their capital to produce goods and services.

Production co-operation is an independent cooperation of its members. They combine their share fees to conduct a business.

In case of common type of the property all members of the society use the results of the activity. General property is divided into government property, municipal, family.

The government property is an object, which is used to provide social stability and national security in the society. They are military, health, education, agricultural spheres and others.

Municipal property is a property rights of local management. The objects of municipal properties are water supply system, canalization, gas supply system, electricity supply system, transportation and others.

Important widely recognized types of property include real property (the combination of land and any improvements to or on the land), personal property (physical possessions belonging to a person), private property (property owned by legal persons or business entities), public property (state owned or publicly owned and available possessions) and intellectual property (exclusive rights over artistic creations, inventions, etc.), although the latter is not always as widely recognized or enforced. A title, or a right of ownership, establishes the relation between the property and other persons, assuring the owner the right to dispose of the property as the owner sees fit.