The modern economy is based not only on private, but also on extensive public sector. However the state ownership existed not at all times and eras, having appeared in specific conditions of the first east civilizations.
Instruction
1. The state ownership began to be formed with the advent of the first states. Its need was explained by the fact that in certain conditions the breeding groups and childbirth could not organize rather effective economic activity. As an example it is possible to cite Sumer and Egyptian civilizations. Agriculture to Entre Rios and in the valley of Nile demanded construction of irrigation canals that was possible only under control of the state.
2. Thus public sector of economy also began to appear. It promoted strengthening of the power of governors as it was necessary not only to build channels for irrigation, but also to protect and to repair. In turn, the similar system of agriculture helped to achieve productivity, rather high for those times. And from such agriculture also the state got an additional product that expanded its sphere of influence even more.
3. It should be noted that the state ownership in the Ancient World and in the Middle Ages differed from modern perception of this institute. In the conditions of the absolute power of the monarch his personal property actually equaled state. The monarch could dispose of it rather freely. In the conditions of class or constitutional monarchy more clear split into state ownership and personal possession of the governor appears. Partial control over the public expenditures is received by representatives of estates or freely chosen parliament.
4. In the conditions of the democratic government to the elected president there is a full separation of state property from personal savings and the real estate of the head of state. Salary is paid to the head of the country, and state revenues and property are operated by the Ministry of Finance and other state institutes.