QUE: “Ghana is a mixed but capitalist oriented economy.” Critically examine this statement.
Gold Coast, now Ghana had his independence in 1957 after a long struggle with our colonial masters, the British by Kwame Nkrumah and others who helped in diverse ways such as “the Big Six” and others. Colonized by the British, Ghana has gone through a lot of systems of governance; Monarchical, autocracy and now democracy. So is with economic systems which go with any form of governance system. Currently there are about four (4) economic systems in the world which are; socialist, capitalist, mixed economy (Socialist and Capitalist) and Islamic economic jurisprudence. The Economic Systems
All these are economic systems and it is defines those who controls and owns the economic resources which forms the “means” in economics. Every economy is measured by the usage of its means and the nature of the “means” owners determines the kind of economic system the country runs. Socialist system of economy is a one that has its resources highly controlled by the central government. E.g. USSR (Russia, Ukraine, Yugoslavia etc), the Capitalist economy is that whose resources is highly owned and controlled by private individuals or a body other than the government. E.g. USA, UK, part of Europe etc. The Mixed economy is that which combines both the socialist and the capitalist economic systems to run the country’s economy. In that, the central government controls part of the economy whiles the other part is controlled by private participation. Functions of the Economic Systems
There are multiple components to economic systems. Their interaction may be coherent or result in instability. Decision-making structures of an economy determine the use of economic inputs (the factors of production), distribution of output, the level of centralization in decision-making, and who makes these decisions. Decisions might be carried out by industrial councils, by a government agency,...
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