Lessons 14 · 1 lessons · E. Sariqov, B. Khaydarov. Foundations of Economics, Grade 8. “Huquq va Jamiyat” Publishing House, Tashkent, 2019
14
Property and privatisation
Textbook: pp. 64–67
GoalDistinguishes property, owner, objects and subjects of property, forms of property (personal, collective, state, private), intellectual property, and privatisation versus nationalisation.
New words
property: anything that belongs to someone – things, land, money, inventions · mulkprivate property: property of one or several individuals, used to earn income · xususiy mulkintellectual property: the product of mental work, with ownership protected by law · intellektual mulkprivatisation: turning state property into private property · xususiylashtirish
Explanation
Anything that belongs to someone – an object, land, money or an invention – is property, and the person it belongs to is the owner. The right of ownership consists of three powers: possessing (the thing is held by its owner), using (getting benefit from it) and disposing of it (deciding its fate: selling, exchanging, giving it as a gift). Objects of property are land, buildings, machines, money, securities, inventions; subjects of property are an individual, a family, a group, the state. Property is personal (a toothbrush, a bicycle), collective (a refrigerator belonging to the whole family), state (the property of state bodies and institutions, the budget) and private. Private property differs from personal property by bringing its owner income (for example a shop or a rented-out flat). Intellectual property is the product of mental work (a book, a program, an invention): using it without the owner's permission is forbidden by law. Turning state property into private property is privatisation, and turning private property into state property is nationalisation. After independence many enterprises, shops and homes in Uzbekistan were privatised; today the principle is that state assets are sold through open sale in a transparent way. The Constitution and laws protect property rights.
Worked examples
A neighbourhood seamstress's sewing machine is private property because she earns income with it. Her own dress is personal property. The benches and fountains in a city park are state (local) property: everyone uses them, but nobody can take them as his own or sell them.
Rent: if a person rents out a shop for 3 000 000 so‘m a month, he receives 12 · 3 000 000 = 36 000 000 so‘m of income (rent) in a year. If a state facility is sold in an open auction starting at 1 800 000 000 so‘m and rises by 5 000 000 so‘m at each step, after 6 steps the price is 1 800 000 000 + 6 · 5 000 000 = 1 830 000 000 so‘m.
Class activity
“Whose is it?”: the teacher names things (a school, a pupil's notebook, a neighbourhood park, a book's copyright, a private shop). Teams name the form of property.
Practice
1
Name the three components of the full right of ownership.
Possessing, using and disposing (selling, exchanging, gifting).
2
If a person rents out a house for 2 500 000 so‘m a month for 12 months, how many so‘m of rent does he receive?
30000000
3
Sort into forms of property: a pupil's pencil, a neighbourhood park, a private café, a washing machine belonging to the whole family.
Pencil – personal; park – state (local); café – private; washing machine – collective (family).
4
Why may intellectual property not be used without the owner's permission? Explain using an “unlicensed program” as an example.
Because a program is the product of its author's mental work and the law gives him ownership; copying without permission wastes his work and takes away his income.