Question

How do you switch from a socialist system (marxist-lennist) to capitalism? (short answer question)

Answer 1

Socialist system is a form of economy which is mostly government controlled where the government forces determine what to produce and how much to produce a particular good. But when it comes to capitalist economy the market forces such as demand and supply tell the economy how much to produce. Vietnam is an example of socialist country while United States is an example of capitalist country.

In order to transition from socialist to capitalist economy, it is first important to understand which sectors are actually worthwhile for transferring into private sector ownership and understanding the constraints behind them. After that using strategies like bidding etc and loosening the investment constraints , you can actually allow various private individuals and entities to come forth and invest in those sectors as a result of which slowly the power in the market will shift from government to private competitiors so that slowly conversion from socialist to capitalist will take place.