Question

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What are the major policies associated with communist/socialist approaches to development?

Answer 1

Socialism/Communism are a range of economic and social system intended to develop social ownership of the means of production and worker's 'Self Management'. The theory of social ownership can be public, cooperative and citizen ownership of equity.

It is a system of social format that proposes a classless society, without hierarchy, without currency, without personal property, people work in harmony, problems are resolved with friendly discussions, production of enough goods and services and there is a contribution of each individual up to his capabilities and receive the remuneration of the work done. The ultimate goal of communist society is to maintain humankind in each format of life.

Socialist System are divided into Non Market and Market Forms -

1. The Non Market socialism involved substitution of market factors and money closely associated with engineering and technological advancement based on calculation performed in-kind. This further results into an economic mechanism functioning according to the different Economic Laws. Non-Market communism aims to reduce the inefficiencies and crisis traditionally associated to Capitalist Economy.
2. The Market socialism use the monetary prices, factor markets, profit motives with respect to the operation of socially owned enterprises and proper allocation of capital goods between them. The profits are controlled by the workforce involved in producing to benefit society at large in the form of a Social Dividend.

The major policies associated with Communist/Socialist Development -

1. Socialist economy devised and economic system whereby production is organised in a way to directly produce goods and services for their Utility.

2. Market Socialism caters to different economic theories and systems that utilize the market mechanism to an organised production and to allocate factors of input that are distributed into socially owned enterprises. The economic surplus is distributed in the form of dividend.

3. Market Socialism include liberalized policies, classical economic base.

4. The ownership of Production is based on direct ownership by the users of the productive property. The workers acting as cooperative society or self help groups manage all the productive utility. Commonly owned by all with proper management and control delegated to those involved in operational activity.

5. In a socialist form of organization there is less controlling hierarchies so that only technical knowledge base hierarchy is available. The achievement of goals are carried out by the technical specialists who further develops plans for the work community.

The various forms of Socialist/ Communist economy -

1. Planned Economy - It is a type of economy with a mixture of public ownership on the means of production and again coordination and distribution through proper economic planning. The planning can be decentralized or it can be centralized planning. This model is based on perfect computation techniques. The example of planned economy was the Economic system of The Soviet Union.
2. Self Managed Economy - It is a decentralized economy having autonomous self-regulating economic units and decentralized mechanism for allocation of resources and decision making. The self managed economy eliminate exploitation with reduced alienation. Productive resources are legally owned by cooperatives.
3. State Directed Economy - In this type of economic system the ownership of the means of production is controlled by the state. It is a format where Technical specialists administer and manage the enterprises on behalf of the society.
4. Market Socialism - It is a cooperative owned economic system where the ownership of production is managed and controlled with social contribution. The system utilizes the market and monetary prices for proper allocation and accounting of the means of production with retention of capital.

Advantages of Socialism -

1. Workers are not exploited as of they own the means of production.
2. Equitable profit distribution among all the workers.
3. The cooperative system supports also those who can't work.
4. The basic needs of the society as a whole is addressed.
5. This system eliminates poverty.
6. Each individual works to the best.

Disadvantages of Socialism -

1. It relies on the cooperative nature of humans to work.
2. Ignores Competitiveness.
3. It doesn't reward entrepreneurship.
4. The Government is the main controller.