A social science that instructs us to make optimal usage of bare and scarce resources is known as Economics. The economic system embraced and acquired by several countries can be socialism, mixed economy and capitalism. Basically, each and every economic system has to aim and take 3 main economic considerations i.e. what to develop, how to develop and for whom to develop? Let’s start with socialism. In a socialist economy system, these three important economic decisions are brought up by state government, channelized by communities, public and social welfare. In a capitalist economy system, such essential economic decisions are conducted by private enterprises, led by profit motives. Along with this, the mixed economy system i.e. the combo of capitalism as well as socialism has the determined and focused goal to draw profits for both the economic systems and annihilate their failings. The success and growth of a capitalist economy system entirely depends on competition and contention between varied economic entities. In fact, in the absence of challenges and a spirit of competition, capitalist economy can turn non-competitive and head towards victimization of consumers.
Currently, we are experiencing and living in such a world economy system that is qualified by globalization, privatization and liberalization. There are few international economic establishments which are intended to make international trade clear and transparent, along with removing and carrying off tariff and non tariff obstacles in the international trade. In addition, certain international economical formations are aiding developed as well as less developed economies to enforce economic development and social welfare curriculum. The ultimate aim of such programmers are to wipe out poverty, hunger and illiteracy, encourage environmental friendly prolong and sustainable development, improvise standards of living, raise production and international trade, and addition in employment opportunities.
Though, after attempting extremely for such noble goals, it has been seen that developed economies are facing big problems due to inadequate distribution of wealth and income. The rise in price of basic commodities like goods, food items etc. have impacted their savings and decrease their living standards. So, try to raise the production of food grains, adopt advanced farming techniques and irrigation facilities, cut down black marketing, speculation, hoarding and adulteration. In short, it is extremely important for economic development to get equal importance as of economic growth.