Definition of the Term “Asset”

“Asset” is a concept that combines both economic and legal aspects. Economically, it refers to ownership and control over property; legally, it refers to the rights to possess, use, and manage that property.

 Legal and Economic Aspects of Assets

1. The economic aspect of assets is based on the relationships that arise through ownership, control, and use of property.
2. The legal aspect of an asset is based on the fact that the subject has the opportunity to own, manage, and use the property.

Both of these concepts are inextricably linked.

Types (Forms) of Asset in International Practice

The classification of asset types refers to the different forms of ownership and usage rights recognized in various legal and economic systems. The modern market economy is multifaceted and individual, and each country may have its own forms of asset.Let’s consider one of the classifications, according to which all types of asset can be conditionally combined into four general groups:

• Publiс assets.
• Mixed assets.
• Private assets.
• Other forms of asset.

Each of these groups includes other subgroups, for example, private property includes the property of a citizen and legal entities.Equity-based, joint, and cooperative forms of ownership are generally classified as mixed assets.Public assets typically include state-owned property, collectively held family property, and communal resources managed by local or indigenous communities.

Interesting Facts

John Locke (17th century) played a huge role in the development of property theories, whose views were mainly based on modern political thinkers such as William Hutt and Richard Pipes. The former, accordingly, encouraged Locke’s theory, noting that he formulated the “quintessence of individualism” in defining an asset and its role. Pipes, on the contrary, criticized him, noting that Locke “weakened individualism” and that his theory was “weak”.