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Economic System Assignment

   

Added on  2020-04-15

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Running head: COMPARATIVE ECONOMIC SYSTEMSCOMPARATIVE ECONOMIC SYSTEMSName of Student:Name of University:Author Note:

1COMPARATIVE ECONOMIC SYSTEMSTABLE OF CONTENTPART-A: CHANGES OF ECONOMIC SYSTEMS...................................................................................2Economic System:...................................................................................................................................2Changes in economic system:..................................................................................................................2Historical Materialism:............................................................................................................................3Dialectic Materialism:.............................................................................................................................4Mainstream Economic explanation:........................................................................................................4PART-B: ECONOMIC SYSTEM OF FUTURE: COMMUNISM..............................................................5Reference:...................................................................................................................................................9

2COMPARATIVE ECONOMIC SYSTEMSPART-A: CHANGES OF ECONOMIC SYSTEMS An economic system broadly holds within it the basic operations of an economy pertaining toallocation of resources, production and distribution of goods and services within a specific geographicterritory or society. These operations are possible through inclusion and combined existence of variousinstitutions, entities, agencies or decision-making bodies. Every economic system has an in-built structurethat is solely determined by the consumption and supply pattern of the social system or given community.The modes of production, pattern of demand are derived from the basic faced by every economic system.The basic questions focuses upon what is to be produced, for whom to produce and how to ensureeveryone meets their demand.This discussion aims to present various economic systems that the human civilization experienced so farcapturing analytical factors behind transition of these systems over the period. The explanation is given inlight of Marxian and other economic theories.Economic System:Several economic systems have been evident in the human civilized societies so far, namely:Feudalism, Socialism, Capitalism and Communism. Every economic system has different explanation ofthe same economic events. There can be seen transition within the systems based on the theoreticaldifference derived from epistemological differences of the theories shaping the structural formation ofsociety.Production lies at the heart of any economic system and this makes the means of production acrucial factor. The control and ownership of this means of production is one of the distinctive features ofeconomic system. For example, they either can be held privately, collectively by state or can havecommon ownership. Decision-making is an important factor to combine and execute different economicactivities. Mechanism of co-ordination shapes up the decision making as it determines how information isobtained and synthesized in decision-making 1. Decision-making pertains to planning which can takeform of centralized or decentralized system. Moreover, market force is another component of decision-making. Organizational form comprising of two basic components: actors and regulators, which isimportant systemic feature. Next important component is distribution system that allocates the goods,1Darlington, Ralph.Syndicalism and the transition to communism: An international comparative analysis. AshgatePublishing, Ltd., 2013.

3COMPARATIVE ECONOMIC SYSTEMSservices or even income among individuals, groups and organizations. All of these components operatein their own way in every economic system, marks differences from one another, and paves the waytoward transition.Changes in economic system:The change in economic system has its root in the changes of social structure and operation. thepool of economic knowledge and studies has few theory of social changes pertaining to research of Hegel,Karl Marx. As per these economists, society reaches a new stages with new economic system and it hasbeen happening through the history with the help of struggle between social classes and conflicts amongthem that marks their fall and paves way for new system. Two such concepts historical materialism anddialectical materialism are discussed here.Historical Materialism: Economic system changes due to the presence of inner clash in every system in terms of thedifferences in outlook that exerts different impact on society. The structure of society and itsdevelopment depends upon the material means of production 2. According to Karl Marx, it is the materialmeans of production that lies at the heart of historical materialism. Materialism forms the basis of socialtransition bringing change and it is historical, as over the history and time, it has been tracing the humansocietal evolution form one stage to another stage. Society formation and transition follows a historicaltrend that has been materializing over years. The historical materialism define social superstructure basedupon the economic infrastructure that focuses on giving materialistic interpretation of history of society.Means of production is the seed of materialism that gives birth to the concept of class from the concept ofwho will own them 3. The historical materialism is the concept that traces down the unilinear evolutionthat the society pass and move from one stage to the next reshaping the economic system into a new one.The history of society suggests its stages to be primitive communism moving to slavery further moving toslavery, feudalism, capitalism, socialism and finally reach communism. Marx not only explained in termsof history of the social evolution but also carried a vision of the future that explains how every economicsystem has carried seed of its own eradication or demolition and move into new system following2 "Karl Marx Historical Materialism Materialist Conception Of History". 2017. Age-Of-The-Sage.Org. http://www.age-of-the-sage.org/philosophy/history/marx_historical_materialism.html.3Bukharin, Nikolai.Historical materialism: A system of sociology. Routledge, 2013.

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