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| Home » Types of Economy » Socialist |
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Socialist Economy |
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Socialist economy is one of the types of economy. In socialist economy the means of distribution and production are decided by public sector. In todays world socialist economy has a broader meaning. All the economic activities are carried out by public enterprises. Government takes active part in this type of economy. Large number of countries are following the trend of free market system. Economy is a major concerned in todays world. World is developing in a fast pace and so is developing the economy of the world. In the old times most of the countries in the world had relied on this type of economy. But as technology started blooming many countries adopted capitalist economy.
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India is still maintaining the socialist type of economy. Even in china there is a socialist economy. One of the important characteristics of socialist economy is that it is a centrally planned economy. He main objective of socialist economy is to have a social gain. Socialist economy offers better distribution of income and wealth. The rules and regulation for economic activities are laid by government. The base of socialist economy goes back to old days. The main aim of this type of economy is to provide material need to the society. Karl Marx and Adam Smith had given a broader meaning to the economy. All the elements and concepts of the economy are developed by these two socialist. Socialist economy has helped to achieve many social needs.
Not many countries have socialist economy as more and more countries are moving into privatization. The world economy is becoming more and more dynamic. Technological advances are leading the world into new phase. Many economist have said that socialist economy is an integral part of the structure of the economy. It aims at providing greater ownership in the means of production. Giving equality is also one of the main aim of the socialist economy.
Some of the western countries experimenting experimenting socialist economy have also took over measures like minimum wage measures, nationalization, distribution of wealth among the poor, etc. The practice of socialist economy is changing. The corruption in socialist economy is increasing day by day. Looking into this many countries have adopted capitalist economy. Socialist economy is able to allocate and distribute the resources of the country grounded on the forces of demand and supply.
In China they practice socialist economy as socialist free market economy. This system of economy has many advantages which is why many countries are still following this type of economy. |
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