Introduction
An economic system is a manner of approach which is used at solving the three main questions which are: What goods and services should be produced and the amount? How much of the scarce resource should be utilised and how will the goods and services will produced? For whom should the diverse goods and services be produced for and where will the production take place? Economic systems don’t always work accordingly but often so vast and complicated but on the contrast its working out just so marvellously. The four main economic systems are: Traditional, Command, Market and Mixed
South Africa has come a long way since the days of apartheid, from being a country living within sanctions to evolving to a mixed economy. It has become too diverse that citizens are liberated into certain economic activities of their choice. Everyone is entitled to their own private freedom, combined with centralized with economic planning and government regulation.
Traditional Economy
The traditional system is based on ancient methods of solving the central economic questions. It is based on beliefs, customs and traditions which shape the goods and services. Individuals living in traditional economic systems tend to direct their activities toward meeting their own and their families basic needs, rather than generating a surplus and trading it for unnecessary consumer products. This is known as a subsistence economy. Although one would think of subsistence as the state of barely making a living laboriously, it is also an orientation which sees the act of meeting basic needs as sufficient in itself, rather than a mere step toward having enough resources to acquiring merchandise. Countries that evolve develop their economies past the traditional ...
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...ut none the less progress is being made and as compared to the past 20 years we do see a drastic change that is empowering the people. Working hard and empowering each other as country with the mixed economic system we can only get better just as the late
Nelson Mandela once sais “A fundamental concern for others in our individual abd community lives would go a long way in making the world a better place we so passionately dreamt of.”
Bibliography
Websites http://www.shmoop.com/economic-systems/types.htmlhttp://www.wisegeek.org/what-is-a-traditional-economy.htm http://www.ask.com/question/traditional-economic-system http://mg.co.za/article/2013-01-12-zuma-emphasis-mixed-economy-interventionist-state-and-development-plan http://www.britannica.com/EBchecked/topic/127708/command-economy
http://sitemaker.umich.edu/seminar.497.2010.southafrica/economy_and_security
The first type of economic system that they movie shows is a traditional system. A traditional economy is an economic system in which the allocation of scarce resources and other economic activity is the result of ritual habit or customs. In other words a traditional economy is a barter or trade system, everybody decides WHAT WHEN and FOR WHOM. When the video first starts the Mochans had to trade all over the island to acquire what needed. After a while they had enough of trading the chief decided to switch to currency instead of trade.
Economic systems are affected by the two opposing systems of capitalism and communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized. Capitalism is all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land.
Throughout history, many different types of economic models and theories have been developed. These different philosophies of business often were an important and integral part of a government’s basic structure. For example communist countries like China and the Soviet Union practiced a type of socialism. While, democratic nations like the United States and Canada practice forms of capitalism. Also within these economic models exists different theories as well such as Keynsian economics and laissez faire economics. To understand how these types of economies work in the world today, it is important to study and define a variety of economic systems. Researching such economic systems as capitalism and socialism, and also looking at the ideas of laissez faire and the Keynsian economics, a person will start to have a better understanding of how business works in the world today.
Imagine a system in which everyone can gain wealth in a free market. A place where hard work actually pays off. Where freedom of speech actually allows unreserved opinion. This is a Capitalism. Resolution: Capitalism is the most basic form of economic system.
South Africa was positively affected in the way that before the Dutch and British, South Africa had been split up into many different tribes, who though they were free were not united. Through the centuries of hardship South Africa came out of apartheid very strong and the ANC has maintained a popularity of 60% popularity for all the elections since 1994. Economically South Africa has blossomed and is the 2nd largest economy in all of Africa and has managed to triple its GDP even though it has been less than 30 years since it has left apartheid, established democracy and freed itself from many international sanctions. South Africa’s economy still has many issues though for it is still an underdeveloped country which suffers from lack of education, employment, and crime. Socially South Africa remains strong as it is united under one goal of making its nation once again great, and it has maintained its heritage and culture. In fact, a quick look at a South African site will show many articles and memorials, of days in the past remembering the struggle for freedom. Politically, South Africa has remained strong and united with the ANC still carrying the vast majority of the votes and uses a governmental system quite similar to ours with a separation of powers and a thriving democratic system. Luckily, political diversity has also started to appear with many other groups appearing making the most out of South Africa’s democracy and all of which pledge freedom and are led by native
Basically, life of individuals in a society are based on economic principles. This means the political institution, education, religion, science and etc, depending on the availability of economic resources for survival, it also means that these institutions can not develop within ways that are contrary to the demands of the economic system.
In 1990, South Africa became a totalitarian state. Apartheid is still in full effect. There is extensive racial violence in the streets. The country is economically suffering from sanctions from many other countries in protest of Apartheid.
One person cannot tackle the vast amount of issues of today and change the world. With so many injustices that occur in today’s society we can’t help but feel overwhelmed as to what people, as citizens of the world, can do to make the world an exceptional environment. Many believe the task is either too large and intimidating to face head on, or they don’t want to face the possibility of failure and criticism. We have the idea of taking on enormous tasks and expect change almost immediately, however, it’s not the anticipated outcome. Real change starts when one contributes to their community; the smallest of impacts generate the biggest changes in the long run.
Supporting fact two: The economy of the country continued to grow, despite the sudden change of power. South Africans salaries increased: there used to be 12% of workers payed 2$ a day and after the abolishment of the apartheid, it went down to 5%. (http://www.bbc.com/news/business-23041513)
...ellent policies, 5) the Constitution had come into existence through the working together of various groups that had composed South Africa, 6) South Africa's political and economic institutions are well established, 7) and that South Africa is by far the most developed country in Africa. However, there are still avenues that can impede further progress, more so economically then politically. Primarily the lack of foreign investment, especially when South Africa's gold and diamond reserves are emptied as other parts of economy are not as developed. Secondly, the economic gap between whites and blacks that was stretched during the time of apartheid needs to be tightened or else it could become dangerous to the stability of the political system. However, due to the leadership of Nelson Mandela, South Africa’s current government structure exists to solve these issues.
Introduction Economic systems are organized ways in which a state or nation allocates its resources and apportion goods and services to the national community. An economic system is slackly defined as a country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectation of this type of economy is that all major decisions related to the construction or production, distribution, commodity and service prices are all made by the government.
As mentioned above, South Africa has been working on improving the lives of people. The Reconstruction and Development Program is one of the many that have been implemented that work on improving the life styles of people in South Africa. This is one of the strategies that has been very successful and is still standing as is. It is through this program that the lives of the many South Africans living in rural areas will be made
First, what exactly does a traditional society entail? A traditional society has many distinguishable traits. A big difference is the rate of illiteracy in these societies. Since everyone in the family is working together to survive, no one has the time or energy to learn how to read and write. Education is considered an indulgence in traditional societies. Farming is the main career - low urbanization and more rural communities fill these areas. Farming is not meant to bring profit, like in a modern society; it means survival for these people.
According to Collier & Dollar, (2001) economic growth is normally dependent on the nature and quality of economic policies that a country implements. In South Africa, soon after apartheid the government have tried to wrestle with the multiple objectives which are namely to reduce poverty, increase employment, increase international trade as well as increasing the rate of economic growth. According to Mohr et al, (2015) the macroeconomic objectives are used to assess the performance of the economy. The five macroeconomic objectives that will be discussed in this assignment are firstly the economic growth, full employment, price stability, balance of payments and equitable distribution of income. The assignment will then evaluate each of the objectives of macroeconomic growth and asses where South Africa as a country is performing on each of these respective points.
Apartheid was considered a necessary arrangement in South Africa, as the Afrikaner National Party gained a strong majority political control of the country after the 1940’s and the economic dependence on their fertile natural resources, such as diamond and gold mines and other metals such as platinum. This required intense labor and the white dominant control over the repressed black majority allowed for an