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SOCIALISM

MANY COUNTRY CIUNTRIES OF THE WORLD,


LIKE CHINA, CUBA ETC. HAVE THEIR ECO.
BASED ON SOCIALISM. PRIVATE PROPERTY
STAND ABOLISHED INN THESE EC. MSAIN RC.
ACTIVITIES ARE REGLATED BY THE GOVT. IN
THE INTREST OF THE WELL-BEING. THE
CONCEPT SOCIALISTIC ECO. PROPOUNDED BY
KARL MARX AND FREDRIC ENGLES IN 1848.

MEANING OF SOCIALISM

IT IS DIFFICULT TO GIVE ANT\Y PRECISE


DEFINITION OF SOCIALISM. DIFF. WRITERS
HAVE GIVEN DOFF. DEFINITIONS OF
SOCIALISM. PRO. JOAD WRITES, “SOCIALISM, IN
SHORT, IS LIKE A HAT THAT HAS LOST HIS
SHAPE BECAUSE EVERYBODY WERAS IT.
AMONGH THE DIFF. FORMS OF SOCIALISM,
TWO ARE MOST IMPORTANT.

1. DEMOCRACTIC SOCIALISM
2. TOTALIITARIAN SOCIALISM
DEFINITIONS

IN THE WORDS OF LEFTWITCH, “ IN SOCIALISM


THE ROLE OF STATE IS CETRAL. IT OWNS THE
MEANS OF PRODUCTION AND DORECT ECO.
ACTIVITY.”

IN GEN., “SOCIALISM IS A KIND OF SYSTEM


UNDER WHICH THE ECO. SYSTEM OF THE
COUNTRY IS CONTROLLED BY THE GOVT.”

MAIN FEATURES OF SOCIALISM

1. CENTRAL PLANING AUTHORITY

UNDER THE ECO. SYSTEM, GOVT APPOINT A


CENTRAL PLANING AUTHORITY THAT TAKES
ECO. DICISION, WHAT IS PRODUCE, HOW TO
PRODUCE AND FOR WHOM TO PRODUCE.

2. SET OBJECTIVES
IT IS NOT A PURPOSELESS ECO. RAHTER IT IS
SET OBJECTIVE ALSO. THESE OBJECTIVES ARE
FULLY ENDORSED BY THE SOCITY AND AFFORT
ARE MADE TO ACHIEVE THEM ACCORDING TO
PLANS.

3. ECONOMIC PLANNING

IN ORDER TO ACHIEVE THE GIVEN OBJECTIVE


AND PROPER THEN THE FORMULATED. THE
PLAN IS FORMULAED ON THE BASED OF THE
SURVEY OF COUNTRY’S PHYCIAL AND MAN
POWER RESOURES.

4. GOVT. CONTROAL

PLANS ARE FOMULATED AND ENFORCED


STRICTLY UNDER TGE GOVT. CONTROAL.
CENTRAL PLANING AUTHORITY FORMULATEC
THE PLANS AND FORWARDS IT TO THE GOVT.
OF IMPLEMENTATION.

5. LACK OF COMPETITION

STATE BEING THE ENTERPRENEUR THERE IS


LACK OF COMPETITION. THERE IS NO CUT
THORAT COPRTITION AS FOUND UNDER
CAPITALISTICT ECO.

MERITS OF SOCIALSN

1. BEST UTILAZATION OF ECO. RESOURCES

ECO. RESOURCES ARE UTILIZED IN AN


ORGNIED MANNER. NO DOUBT RESOURCES
ARE USED OPTIMALLY UNER THE FREE
INTERPRICES ECO. BUT PRODUCTION IS BASED
ON SELF-INTRECT AND PROFIT MOTIVE.

2. BETTER SOLUTON T BASIC PROBLEMS

THIS SYSTEM OFFERS BETTER SOLURION OF


SUCH BASIC PROBLEMS AS WHAT IS PRODUCE
AND HOW MUCH PRODUCED. IT DISCARDS
SELF-INTREST OF PROVATE ENTERPRIESE AS
REFLECTED IN PROFIT MOTIVE.

3. NO WASTFUL ADVERTISMENT

UNLIKE FREE INTERPRIES ECO, THERE ISNO


WASTFUL ADVERTISMENT UNDER SOCIALSM.
GOODS AND SERVICES ARE PRODUCED IN
ACCORDANCE WITH THE ACTUAL NEEDS OF
THE PEOPLE.
4. NO CLASS STRUGGLLE AND
EXPLOATATION OF LABOURES.

THERE IS NO CAPITALIST CLASS. AS A MATTER


OF FECT IT IS A CLASSES LESS SOCIETY AND
ALL ITS MEMBERS WORKS SHOLDER TO
SHOLDER. CONSEQUENTLY, THERE IS NO FEAR
OF CLASS STRUGGLLE.

DEMERITS OF SOCIALISM

1. END OF CONSUMER’S SOVEREIGANTY

CINSUMER’S SOVEREIGANTY COMES TO AN


END.WHAT, HOW MUCH AND WHAT TO
PRODUCE, ALL THESE IMPORTANT ECO. THE
PLANNING AUTHROITY ACC. Takes DICISION TO
ITS DISRECTION.

2. NO IMPORTANCE OF PERSONAL EFFICIENCY


AND PRODUCTIVITY.
EVERT ACTIVITY IS DETERMINED BY THE
STATE. SKILL OR EFFICIENTY OF A PERSON
DOEN NOT EVOKES ANY APPRECIATION.

3. LACK OF ECONOMIE FREEDOM

MANY ECO. ARE OF THE VIEW THAT THIS


SYSTEM RESULTS INTO AN END OF ECO
FREEDOM OF THE PEOPLE. THE ENTIRE ECO.
AND POLITICLE POWER IS CONCENTATED IN
THE HANDS OF GOVT.

4. NO PROPER BASIS OF COST CALCULATION

THE SEVERL CRTISIAM OF THIS SYSTEM IS


THAT IT IS A VERY DIFFCULT TO FIND OUT THE
BASIS OF CALCULATED UNDER COST IT.
WITHOUT THIS BASIS NEITHER THE ECO. Do
not CAN FUNTION EFFICIENTLY NOR CAN THE
RESORUSES BE UTILIZED IN PROPER MANNERS.

CONCLTION