Economic ideologies

Liberalism

This ideology postulates the idea that freedom is central to the realisation of human personality. 

Laissez-faire

A variant of liberalism is the laissez-faire ideology. Here the bourgeoisie in their quest for power appropriated liberalism as its ideology and gave it a narrow interpretation. Its central notion was the natural right to private property and economic freedom that is based on it. 

Capitalism

It is often considered to be an off-shoot of liberalism. Capitalism is an ideology that is based on private ownership of means of production. It is characterised by a multitude of competing producers, non-interference of government in the economy and the market being a regulator of competition

Imperialism

This means the highest and last stage of capitalism, when ‘free competition gives way to the dominance of monopolies and finance capital is established; the export of capital has acquired pronounced importance; the division of the world among the international trust has begun; the division of all territories of the globe among the biggest capitalist powers has been completed (Lenin, 1985).

Socialism

Communism

This refers to the highest stage of socialism where people receive their income on the basis of their needs. It refers to a system of total control of social life by selfappointed elite (Mark, 1973).

Mixed Economy

A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.

Economic Systems

The Pure Market Economic System

In a pure market or capitalist economic system the emphasis is on private ownership and control of resources, production and distribution process. There is complete decentralisation of everything. Competition is the key element in a capitalist economy and this is presumed to reinforce efficiency.

The Developed Market Economic System

In this system, government provides for the planning and policy framework of operation to direct the economy and subsequently participate in economic functioning of the society. 

The Centrally Planned/Socialist Economic System

In a centrally planned economic system, the ownership of resources is vested in and centrally controlled by the state. In other words, production and distribution of activities are purely those of government.

 The Mixed Market Economic System

In the mixed market economic system, the private ownership of resources is complemented with a substantial public sector ownership and participation in the production of economic activities. In a mixed economy, the prices of public goods are not often market determined but statutorily fixed in some cases to allow for economic development. The degree of mix varies from one country to another; the capitalist ideology dominates in some instances while the socialist tendencies are more prominent in others. Mixed economic system provides a form of compromise ground between capitalism and communism

The Market Socialist Economic Systems

This is a form of mixed economic system characterised by the adoption of the price mechanism feature. The private sector ownership is jettisoned in favour of public ownership to reflect what is known as ‘The Market Socialist Economy’.