If a country economic system is strong that can solve their problems easily. Afghanistan has also its own economic system. Some people think Afghanistan economic system is referred to socialism, but in my point of view it is pure capitalism or we can call it free market. In free market we know that all economic decisions are made
Planned Economy 3. Classless society 4. Socialism provides equal opportunity 5. Non-existence of competition and Limited choice of consumer products 6. Pricing mechanism Capitalism Capitalism, economic system in which private individuals and business firms carry on the production and exchange of goods and services through a complex network of prices and markets.
In mixed economics, buyers and sellers use money to exchange their goods and services while government played an important role to collect taxes and produce services. On the other hand, pure capitalism is more to economic individualism in which everything will be decided by individual. They can do what they think is best for their own production and produce anything that they like. Furthermore, the role of government is limited only to produce law and as mediator to control the
The bourgeoisie has control of industry, or the economic engine of society, but also because those within this class seized state power by creating and controlling the post-feudal political system. Consequently, Marx and Engels explain, the state (or, government) reflects the world views and interests of the bourgeoisie class the wealthy and powerful minority and not those of the proletariat, who are actually the majority of
a) Public Sector In this nationwide, every countries must have a government that control every bit of their country. Although each country have their own way of managing the economy, basically public sector is the same, it provides good and services without generating profits. Public sectors are companies that managed or operated by the government or higher authorities to provide good and services to the public. The government must have several special departments to balance the country economy and relationship inside out of the country such as central government and local government. The aim and goal of public sector is to provide the public with the good and services for free and some of them are charge by paying taxes which is still not profitable.
Part of what defines a society is the economic system their country chooses to adopt. In modern times most countries have chosen capitalism. However, the opposite of capitalism, communism, has been attempted by multiple countries but has never worked nearly as well as its divergent. In capitalism “ most of the means of production are privately owned and production is guided and income is distributed largely through the operation of markets” (Editors of Encyclopaedia Britannica). Whereas communism represents and idealistic doctrine that “aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production and the natural resources of a society” (Dagger and Ball).
Not states but capitalism had the control of the every aspect of the human domains by creating individuals(homoeconomicus) that seeking only their self-interest in every moment of the their life. Individuals became self interested not only in their market relations which is directly connected with money, they are also self interested when money is not the issue. For instance, they count the likes of their instagram posts, retweets of the twits, they value their country based on GDP, GNP not based on equality, peace, individual rights, and rule of law. In short, neoliberalism is mutant extension of liberalism that hollows out the basic principles of liberalism such as democracy, speech, participation etc. It means that capitalism eviscerates liberalism and creates neoliberalism which is technical rationality for its own purposes.
Part of what defines a society is the economic system their country chooses to adopt. In modern times most countries have chosen capitalism. However, the opposite of capitalism, communism, has been attempted by multiple countries but has never worked nearly as well as its divergent. In capitalism “ most of the means of production are privately owned, production is guided and income is distributed largely through the operation of markets” (Editors of Encyclopaedia Britannica). Whereas communism represents an idealistic doctrine that “aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production and the natural resources of a society” (Dagger and Ball).
CORPORATE SOCIAL RESPONSIBILITY Introduction Free market theory was a dominant theme of the 1780s propagated by economists such as Adam Smith. Amongst other things was its exclusive resolve that there should be minimal government involvement in the business of the economy if any at all. It was the era of the industrialization concerned with maintaining of internal advantages for the succession of competition within local markets therein maximizing profits for its shareholders (as its sole and ultimate objective) (Bakan, 2004). Proponents of this model argued that the market, in the absence of government control, would naturally adjust itself into a state of equilibrium by matching the aggregate demand to the aggregate supply for demanded commodities;
This system is a combination of both the planned and free economy. The public and the private sector both decide on how to use the economic factors of the country. Belize and Mexico both have a mixed economic system. Advantages that come with this type of economic system include that businesses can choose what to produce and consume, but production and consumption of harmful products are restricted. The government also controls the price for certain goods ans services, this is a major advantage so that customers can get their basic needs at a fair price.