Comparative Economic Systems

comparative economic systems

Although a variety of development scenarios exist and are employed by governments , foreign actors and non-governmental organizations (NGOs this essay will explore the models of development currently employed today . As such , we will explore socialist economic development , the growth and the establishment of business-orientated zones (also known as Free Trade Zones ) which blend authoritarianism , statist economic development most commonly found in socialist countries and the principles of liberalism and (relatively ) free market capitalism . These Free Trade Zones are becoming increasingly prevalent in the Asian context as officially

communist countries such as China are cautiously embracing capitalist market reforms . We will discuss which type of economic system (free market /capitalistic or socialist /communist ) will provide a more conducive form of business climate to create or start a new business . In conclusion we will determine whether some economic systems are more successful than others in stimulating economic growth and development

Capitalist Development

Capitalism is arguably the most well-known model of economic development and growth and is responsible for the globalization of international trade , foreign capital and the growth and development of much of the Western world (excluding Cuba and including Australia , which is commonly included in economic analyses of the West . Capitalism advocates free market economic principles of development and believes in deregulation , a belief in the invisible distributive hand of the markets and the promotion of a market-oriented society . From this perspective the role of the state is to promote economic development through policies which are beneficial to...