Scientific works within the theories of funds and credit score, based on the specification of the analysis object, are characterised to be many-sided and many-leveled.
The definition of totality of the economical relations fashioned within the strategy of formation, distribution and utilization of funds, as cash sources is broadly unfold. For instance, in “the final concept of funds” there are two definitions of funds:
1) “…Funds replicate economical relations, formation of the funds of cash sources, within the strategy of distribution and redistribution of nationwide receipts based on the distribution and utilization”. This definition is given comparatively to the circumstances of Capitalism, when cash-commodity relations acquire common character;
2) “Funds symbolize the formation of centralized advert decentralized cash sources, economical relations comparatively with the distribution and utilization, which serve for achievement of the state features and obligations and in addition provision of the circumstances of the widened additional manufacturing”. This definition is introduced with out exhibiting the atmosphere of its motion. We share partly such rationalization of funds and assume expedient to make some specification.
First, funds overcome the bounds of distribution and redistribution service of the nationwide earnings, although it’s a fundamental basis of funds. Additionally, formation and utilization of the depreciation fund which is the a part of monetary area, belongs to not the distribution and redistribution of the nationwide earnings (of newly fashioned worth throughout a yr), however to the distribution of already developed worth.
This newest first seems to be part of worth of important industrial funds, later it’s moved to the fee value of a prepared product (that’s to the worth too) and after its realization, and it’s set the melancholy fund. Its supply is taken into consideration earlier than hand as a melancholy type within the consistence of the prepared merchandise price value.
Second, important objective of funds is way wider then “achievement of the state features and obligations and provision of circumstances for the widened additional manufacturing”. Funds exist on the state degree and in addition on the manufactures and branches’ degree too, and in such circumstances, when probably the most a part of the manufactures should not state.
V. M. Rodionova has a unique place about this topic: “actual formation of the monetary sources begins on the stage of distribution, when the worth is realized and concrete economical types of the realized worth are separated from the consistence of the revenue”. V. M. Rodionova makes an accent of funds, as distributing relations, when D. S. Moliakov underlines industrial basis of funds. Although each of them give fairly substantiate dialogue of funds, as a system of formation, distribution and utilization of the funds of cash sources, that comes out of the next definition of the funds: “monetary money relations, which kinds within the strategy of distribution and redistribution of the partial worth of the nationwide wealth and complete social product, is expounded with the topics of the economic system and formation and utilization of the state money incomes and financial savings within the widened additional manufacturing, within the materials stimulation of the employees for satisfaction of the society social and different requests”.
Within the manuals of the political economic system we meet with the next definitions of funds:
“Funds of the socialistic state symbolize economical (money) relations, with the assistance of which, in the way in which of deliberate distribution of the incomes and financial savings the funds of cash sources of the state and socialistic manufactures are fashioned for guaranteeing the expansion of the manufacturing, rising the fabric and cultural degree of the folks and for satisfying different basic society requests”.
“The system of creation and utilization of mandatory funds of money sources for guarantying socialistic widened additional manufacturing symbolize precisely the funds of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, areas and separate citizen based on the motion of money funds make monetary relations”.
As we have seen, definitions of funds made by financiers and political economists don’t differ significantly.
In each mentioned place there are:
1) expression of essence and phenomenon within the definition of funds;
2) the definition of funds, because the system of the creation and utilization of funds of money sources on the extent of phenomenon.
3) Distribution of funds as social product and the worth of nationwide earnings, definition of the distributions deliberate character, important targets of the economic system and economical relations, for servicing of which it’s used.
If refuse the preposition “socialistic” within the definition of funds, we might say, that it nonetheless retains actuality. We meet with such conventional definitions of funds, with out an adjective “socialistic”, within the fashionable economical literature. We might give such an elucidation: “funds symbolize money sources of manufacturing and utilization, additionally money relations appeared within the strategy of distributing values of fashioned economical product and nationwide wealth for formation and additional manufacturing of the money incomes and financial savings of the economical topics and state, rewarding of the employees and satisfaction of the social requests”. on this elucidation of funds like D. S. Moliakov and V. M. Rodionov’s definitions, following the standard inheritance, we meet with the widening of the monetary basis. They concern “distribution and redistribution of the worth of created economical product, additionally the partial distribution of the worth of nationwide wealth”. This newest may be very precise, comparatively to the method of privatization and the transition to privateness and is periodically utilized in observe in numerous international locations, for instance, Nice Britain and France.
“Funds – are money sources, monetary sources, their creation and motion, distribution and redistribution, utilization, additionally economical relations, that are conditioned by intercalculations between the economical topics, motion of money sources, cash circulation and utilization”.
“Funds are the system of economical relations, that are related with agency creation, distribution and utilization of monetary sources”.
We meet with completely innovational definitions of funds in Z. Physique and R. Merton’s foundation manuals. “Finance – it’s the science about how the folks lead spending `the deficit money sources and incomes within the particular time period. The monetary selections are characterised by the bills and incomes that are 1) separated in time, and a pair of) as a rule, it’s inconceivable to take them into consideration beforehand neither by those that get selections nor another particular person” . “Monetary concept consists of numbers of the conceptions… which learns systematically the topics of distribution of the money sources comparatively to the time issue; it additionally considers quantitative fashions, with the assistance of which the estimation, placing into observe and realization of the choice variants of each monetary selections happen” .
These fundamental conceptions and quantitative fashions are used at each degree of getting monetary selections, however within the newest definition of funds, we meet with the next doctrine of the monetary basis: important operate of the funds is within the satisfaction of the folks’s requests; the topics of economical actions of any type (corporations, additionally state organs of each degree) are directed in the direction of fulfilling this fundamental operate.
For the targets of our monograph, you will need to examine well-known definitions about funds, credit score and funding, to resolve how and the way a lot it’s potential to combine the funds, investments and credit score into the one complete half.
Some researcher factor that credit score is the consisting a part of funds, whether it is mentioned from the place of essence and class. The opposite, extra quite a few group proves, that a cheap class of credit score exists parallel to the economical class of funds, by which it underlines impossibility of the credit score’s existence within the consistence of funds.
N. Ok. Kuchukova underlined the independence of the class of credit score and notes that it’s only its “attribute characteristic the turned motion of the worth, which isn’t associated with transmission of the mortgage alternatives along with the house owners’ rights”.
N. D. Barkovski replies that functioning of cash created a cheap foundation for apportioning funds and credit score as an unbiased class and gave rise to the credit score and monetary relations. He observed the Gnoseological roots of science in cash and credit score, because the science about funds has enterprise with the analysis of such economical relations, which lean upon money movement and credit score.
Let’s talk about probably the most unfold definitions of credit score. within the fashionable publications credit score seemed to be “luckier”, then funds. For instance, we meet with the next definition of credit score within the finance-economical dictionary: “credit score is the mortgage within the type of money and commodity with the circumstances of returning, normally, by paying p.c. Credit score represents a type of motion of the mortgage capital and expresses economical relations between the creditor and borrower”.
That is the standard definition of credit score. Within the earlier dictionary of the economic system we learn: “credit score is the system of economical relations, which is fashioned whereas the transmission of money and materials means into the temporal utilization, as a rule underneath the circumstances of returning and paying p.c”.
Within the handbook of the political economic system revealed underneath discount of V. A. Medvedev the next definition is given: “credit score, as a cheap class, expresses the created relations between the society, labour collective and staff throughout formation and utilization of the mortgage funds, underneath the phrases of paying current and returning, throughout transmission of sources for the temporal utilization and accumulation”.
Credit score is mentioned within the following means within the earlier education-methodological manuals of political economic system: “credit score is the system of cash relations, which is created within the strategy of utilizing and mobilization of quickly free money technique of the state price range, unions, manufactures, organizations and inhabitants. Credit score has an goal character. It’s used for offering widened additional manufacturing of the state and different wants. Credit score differs from funds by the returning character, whereas financing of manufactures and organizations by the state is fulfilled with out this situation”.
We meet with the next definition if “the course of economic system”: “credit score is a cheap class, which represents relations, whereas the separate industrial organizations or individuals transmit cash means to each-other for temporal utilization underneath the circumstances of returning. Creation of credit score is conditioned by a historic strategy of fulfilling the economical and cash relations, the type of which is the cash relation”.
Following scientists give barely totally different definitions of credit score:
“Credit score – is a mortgage within the type of cash or commodity, which is given to the borrower by a creditor underneath the circumstances of returning and paying the proportion charge by the borrower”.
Credit score is giving the temporally free cash sources or commodity as a debt for the outlined phrases by the worth of fastened proportion. Thus, a credit score is the mortgage within the type of cash or commodity. Within the strategy of this mortgage’s motion, a particular relations are fashioned between a creditor (the mortgage is given by a juridical of bodily particular person, who offers sure money as a debt) and the debtor.
Combining each definition named above, we come to an thought, that credit score is giving cash capital of commodity as a debt, for sure phrases and materials provision underneath the worth of agency proportion charge. It expresses particular economical relations between the members of the method of capital formation. Necessity of the credit score relations is conditioned, from one facet, by gathering stable amount of quickly free cash sources, and from the second facet, existence of requests of them.
Although, on the similar time we should distinguish two resembling ideas: mortgage and credit score. Mortgage is characterised by:
o Right here, the dialogue might contact upon transmission of cash and in addition issues type one facet (loaner) to a different (borrower): a)underneath the proudly owning of the borrower and, on the similar time, b) underneath the circumstances of returning similar quantity or similar amount and high quality of the issues;
o The loaning of cash might bear no curiosity;
o Any particular person might participate in it.
With the distinction with mortgage, credit score, which is by some means a non-public event of the mortgage, represents:
o One facet (loaner) offers to the second (borrower) solely cash, and _ for temporal utilization;
o It might not bear no curiosity (if the task does not foresee one thing);
o In it creditor isn’t any particular person, however a credit score group (on the first place, banks).
So, a credit score is the financial institution credit score. To our thoughts, it isn’t right to make use of “credit score” and “mortgage” because the synonyms.
Banking crediting is the union of relations between financial institution (as a creditor) and its borrower. These relations contact upon:
a) Giving a sure amount of cash to the borrower for particular function (although, we meet with the so-called free credit, goals and objects of crediting should not appointed within the task);
b) Its opportune returning;
c) Getting proportion charge from the borrower for utilizing the sources underneath his/her disposal.
The important basis of the credit score essence and its essential factor is existence of belief between the 2 sides (in Latin “credo”, from which comes the phrase “credit score”, means “belief”).
From the place of circulation of cash kinds (within the abstraction, historic strategy of formation economical relations and social price range and banking techniques expressed by them) evaluating totally different definitions of funds and credit score, the paradox conclusion seems: credit score is the non-public event of funds. And actually, from the place of motion of the cash kinds, funds symbolize the method of formation and utilization of the funds of money means. Fairly often such actions are fulfilled with out returning, however generally, it’s potential to offer loans from the price range for the funding tasks of different wants. Additionally, when a manufacture or companies use their money funds and we imply the funds of commercial topic, such utilization could also be realized as contained in the manufacture or company (there isn’t a topic about returning or not returning of the utilization), so free of charge underneath circumstances of returning. This newest known as industrial type due to transmitting the sources to others, however even on this event, it’s the factor of monetary system of the manufacture and company.
From the purpose of money means motion, important character of credit score is the method of formation and utilization of the funds of money means underneath the circumstances of returning and, as a rule, taking the value-percentage. If gating the credit score worth does not happen (even within the distinctive events), based on the motion type, credit score turns into a non-public event of funds, as from the web monetary funds (consequently from the state price range) the loans which bear no pursuits could also be used. If gating credit score worth takes place, by the looks type, credit score is mentioned to be monetary modification.
From the historic viewpoint, funds (particularly within the kind of the state price range) and credit score (starting with usury, later industrial and banking) had been growing in a different way for contemplating credit score to be the a part of funds. Although, from the genetic-historical viewpoint, earlier loaners, earlier than giving mortgage, wanted gathering the everlasting capital not returning, that’s the web monetary basis. The banks analogously wanted focus of the essential personal capital for influxing the customers’ means and for getting larger proportion charge underneath the circumstances of returning. Herewith, precisely on the monetary foundation, within the kind of monetary fund (which later partially turns into mortgage fund) a part of the financial institution capital seems to be the reservation (insurance coverage) a part of the fund, which by nature is monetary and never mortgage. So however the important distinctions between funds and credit score type the genetic-historical viewpoint, credit score seems to be fashioned from funds and symbolize their modification.
From the important place of expressing economical relations of funds and credit score, we meet with cardinal distinctions between these two classes. Which largely expressed by the excellence of the motion kinds however they’re returnable or not. Funds categorical relations within the features of distribution and redistribution of social product and a part of the nationwide wealth. Credit score expresses distribution of the suitable worth solely within the part of proportion given for mortgage, whereas based on the mortgage itself, a solely a temporal distribution of cash sources takes place.
Herewith, there’s a whole lot of widespread between the funds and credit score as from the important viewpoint, so based on the type of motion. On the similar time, there’s a important distinction between funds and credit score as within the essence, so within the type too. In line with this, there should be a form of usually economical class, which can contemplate funds and credit score as a complete unity, and within the bounds of this class itself, the separation of the precise essence of the funds and credit score would happen.
Funding of the money means is widespread to the researched economical classes. It takes place in any separate system of funds and credit score, which have been touched upon through the analyses of defining funds and credit score. Phrase mixture “funding of the money sources (fund formation)” displays and defines precisely essence and type of economical class of extra basic character, these of funds and credit score classes. Although within the in economical texts and observe, it is vitally uncomfortable to make use of a termini, which consists of three phrases. Additionally, “unloading” with an info hardens significantly its influxing into the circulation even within the circumstances of its strict substantiation and thoroughness.
Within the discussing context we contemplate:
1) large and slim understanding of economical class of the funds;
2) discussing funds in slim understanding underneath basic conventional that means;
3) discussing funds, as funding of the money means, in large understanding, which considerations funds – in slim that means and credit score – in full that means.
Termini “funding” and its equal “fund formation” are utilized by us because the purposeful structuring of money means, which relies on two poles – accumulation of cash sources (gathering) and its utilization for particular function in the way in which of financing and crediting.
We have now established a brand new termini – “finance-investment sphere” (FIS). Analyses about interrelation of funds and credit score made by us give us a chance of proving, that within the given termini, the phrase “monetary” is used with the that means of funding money sources, its purposeful structuring. On this course of we contemplate on the similar time monetary, credit score and investments’ economical classes.
Let’s sum up center outcomes of discussing new idea – “finance-investment sphere” and talk about its funding consisting elements.
The idea “investments” was introduced into the native economical science from the West. Within the Soviet economical science they for a very long time used within the place “investments” the termini “capital placement”, which expressed the utilization of the economic components within the sphere of actual industrial actions throughout realization of capital tasks. From one look, this termini in its idea is equivalent to the “investments”, consequently it’s potential to make use of them as synonyms. Although the termini “investments” and “investing” have the benefit in the direction of the termini “capital placement” from linguistic and philological factors of view, as a result of they’re expressed with one phrase. This isn’t solely economical and comfy within the strategy of working with the termini “funding” itself, but in addition it offers a chance of termini formation. Extra concretely: “funding course of”, “funding area”, “finance-investment sphere” – all these termini are way more acceptable.
Altering native economical termini with international ones is purposeful, if it actually issues (by holding parallel utilization of the native termini for the inheritance). Although we should not change native economical termini into international ones all collectively, when by ordinal conventional language straightforward to clarify non-public and slim concrete processes and parts get their very own termini. The “motion” of those termini is authorised within the slim skilled bounds, however their “spitting out” into the economical science might flip economical language into the tangled slang.
Let’s talk about termini – “funding” and “capital placement’s” utilization within the economical literature.
Investments are placement of funds into the primary and circulation capital for the aim of getting revenue. “Investments in materials belongings – are the placements of funds into the cell and actual property (land, buildings, furnishings and so forth). Investments in monetary belongings are the placements of funds into the securities financial institution accounts and different monetary devices”.
We do not meet with the termini “investments” within the earlier economical dictionary, however we meet the mixed termini “funding coverage” – the union of the economic selections, which assure important instructions of the capital investments, the actions of their focus within the determinant suburbs, on which the reaching of deliberate charges of growth of the society manufacturing is depended, balancing and effectiveness, getting increasingly manufacturing and revenue of the nationwide earnings for each misplaced Ruble”. For at the moment, in probably the most precise definitions, the capital investments are bounded solely by monetary means, when not solely monetary, but in addition the funding of pure, material-technical and informational sources takes place. Labour sources take an precise place within the funding course of. They themselves fulfill this or that funding course of.
A optimistic facet of the mentioned definitions is that they join funding coverage and capital placements (investments):
– economical growth based on the important thing instructions to the focus;
– offering excessive charges of economical progress;
– elevating a cheap effectiveness, which is expressed:
a) by rising the throw off of the manufacturing and nationwide earnings for each misplaced Ruble;
b) by fulfilling the department construction of the investments;
c) by bettering their technological construction;
d) by optimization of their additional manufacturing construction.
In contrast with such definition of the investments (capital placement) the definition of investments within the dictionary attaching the “Economics” appears to be unimproved: “investments – the bills of gathering manufacturing and industrial means and rising materials reserve”. On this definition present bills (manufacturing bills) are blended with the funding (capital) expense. Additionally, not the funding bills however (although the investments are adopted by the suitable bills) precisely advancing. It differs from the bills by that the means (means) are put by returning the superior values, additionally, underneath the circumstances of progress, to which the concept-advanced capital is corresponding. the advancing could also be realized within the cash, natural-material and informational kinds.
Besides the termini “investments”, there are two extra termini associated with the funding. They’re proven under.
“Human capital funding” – any exercise supplied for rising the employees labour productiveness (in the way in which of rising their qualification and growing their skills); on the bills of bettering the employees’ training, well being and elevating the mobility of the working forces”. It is extremely helpful to make use of the talked about termini, although it wants one correction: the human capital investments don’t concern solely staff, but in addition the servants, representatives of each form of labour.
“Funding commodity, capital items – a capital.”
Within the official manuals of political economic system of the reformation time the capital investments are mentioned as “bills for creating new important funds and widening, reconstruction and renewing the lively ones”. On this definition the investments (capital placements) throughout separation of the kinds (sorts) of additional manufacturing of the primary funds are bounded solely by important funds (with out will increase of the circulation funds and insurance coverage reserves):
a) creating new ones;
Additionally, the idea of the economic gathering seems, on the bills of widening of fundamental, circulation funds and in addition insurance coverage reserves takes place”.
You may meet under the definitions of investments from “the course of economic system”: the investments are referred to as “placements of fund into the fundamental capital (fundamental technique of manufacturing), reserves, additionally different economical objects and processes, which request long-termed influxing of fabric and money means. “In line with the division of capital into bodily and cash kinds, the investments too should be divided into materials and money investments”.
They apportion funding commodity, to which belong industrial and nonindustrial constructing objects, automobiles purposed for altering or widened technical park and the furnishings, rising reserves and others.
“They name the overall investments of manufacturing an funding product, which is directed in the direction of holding and rising the fundamental capital (fundamental means) and reserve. Whole investments include two elements. Certainly one of them known as the depreciation; it represents essential funding sources for compensation of renewal until the extent of earlier than industrial utilization, carrying out and repairing of the fundamental means. Second consisting a part of the overall investments is represented by web investments – capital investments for the aim of accelerating fundamental means”. Depreciation shouldn’t be a compensation useful resource of carrying the fundamental funds out, however it’s the purposeful monetary supply of such sources.
Human capital funding is “a particular form of investments, largely in training and well being safety”.
“Actual investments are the investments within the economical branches and in addition, they’re sorts of economical actions, which give influxing the will increase of actual capital, that’s rising materials values of the economic means”. We are able to agree with such definition with one specification that materials and nonmaterial values too belong to the true capital (wealth), consequently science-researching experimental-construction outcomes, numerous info, training of he staff and others. Such service as group of the excitable video games, additionally the service of redistribution social wealth from one non-public particular person to a different (besides charity).
“Monetary investments symbolize placement of funds into the shares, obligations, promissory notes, different securities and devices. Such investments, in fact, don’t give will increase of the true materials capital, however they assist getting revenue, consequently on the bills of adjusting the course of the securities within the time of hypothesis, or distinguishing the course in other places of promote and buying”. We share wholly such definition, therefore it follows that monetary investments (if it isn’t adopted by actual investments in consequence) don’t improve actual materials wealth and actual nonmaterial wealth. In line with this context, the expression under is essential: “we should distinguish monetary investments, which symbolize placement of the funds within the methods of promoting and buying the securities for the aim of getting revenue and monetary investments, which turn into money and actual, moved to actual bodily capital.”
Within the “economical course” quoted earlier than lengthy and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or extra” investments. If we get such conditioned standards, that we will name the investments which overcome the phrases of some months, long-termed ones, which may be very uncertain and we do not agree with it. An extended-termed character of the fund placement is a big characteristic of the investments (short-term does not mix with the idea of investments). Principally, it could be higher to level out fast compensative, center termed compensative and long-termed compensative investments:
– much less then 6 months – fast compensative;
– from 6 months as much as the yr and a half – center termed compensative;
– extra then the yr and a half – lengthy termed compensative.
We stopped on the definition of the investments within the capital work “economical course” for the particular function, as, in it the creator tried to debate the idea of investments systemically and fairly utterly, herewith the e-book is revealed simply now.
We’ll return to the dialogue the definition economical class of “investments” in numerous publications within the following chapter. The definitions given listed below are fairly sufficient for having a notion of the extent of lighting up the given class within the economical literature.
What conclusions could also be made in accordance the definition of the talked about economical class within the revealed works, besides the made notions and specs?
There may be fairly deeply, concretely and completely outlined the idea of “investments”, totally different definitions within the economical literature; however largely in each works in regards to the investments mentioned by us till now, there’s not opened the essence of investments as a cheap class. In each monograph , even when it has a title funding, as a cheap class , there’s given solely the definition, idea of investments. However, because the Academician Vasil Chantladze explains, “an idea is a dialogue, which proves one thing in regards to the distinguishing characteristic of the researched object. An idea out of a lot important attribute options represents just one, and important in it’s only – definition”.
However the classes are a lot wider; it’s “a key, probably the most basic idea of each science”. Economical classes theoretically symbolize actual, objectively existed productive relations. A class is the defining of events of existed characters, connections, relations of the target world. Usually, any instructional course of is fulfilled by the classes, which give alternatives for dividing the processes and events semantically, for expressing the definitions of a topic and notice their particular peculiarities and economical relations of a cloth world.
Our objective is strictly to substantiate investments – as a cheap class and in addition, as a monetary class within the slim understanding.
Right here we apply for one more handbook thesis made by the academician Vasil Chantladze: “each monetary relation is a cheap one and each monetary class is and economical one, however not each economical relation and economical class is monetary relation and monetary class”.
Within the strategy of defining the investments, you will need to soak up thoughts the perimeters of sources, bills and incomes, as a result of funding, from one facet, is the results of the manufacture’s exercise, and, from one other one, – part of earnings, which, on this case, shouldn’t be used for utilization.
One other event: it’s advisable to debate investments in two features: as a class of reserve and movement, which can replicate precisely the connection between “placement of funds” and “investments”.