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STRATEGIES
AND
ECONOMIC SYSTEMS
REPORTER NO. 6
KAREN CRES C. OSAYAN
Adaptive Strategy
• means of making a living; Productive system
• a group’s system of economic production.
• Traditional Economy
• Command Economy
• Market Economy
1. Traditional Economy
- direct economic activities of long-time
traditional occupations and practices.
Example: planting, harvesting, consuming
rice.
2. Command Economy
– planned and overseen by a central
agency; directs or guides economic activities
to what is suitable and necessary.
3. Market Economy
1. Agrarian to industrial
2. Subsistence to mechanized
3. Underdeveloped to super-develop
4. Capitalistic to socialist
5. Third-World to industrialized First-World
Different Economic Systems
• SOCIALISM
• CAPITALISM
• DEMOCRATIC SOCIALISM
• COMMUNISM
Socialism
• Places much of the means of production in
public, government-operated hands.
• producing for use or need rather than producing
profit. Production is planned and distribution
organized.
• government ownership, control by gradual
means and democratic processes.
(Gordon and Dawson, 1980)
Example:
• After World War II, British socialists
carry out three major policies
• Certain basic industries were
nationalized
• Certain important welfare services
(free medical and hospital services)
• Democratic institutions (free
elections)
• Comprehensive Agrarian Reform
Program (CARP)
Capitalism
• Characterized by:
• The existence of free markets; sellers and
buyers have free access.
• Freedom of enterprise; individuals have the
liberty to live and work and earn their
livelihood.
• The recognition of private property rights; free
use, enjoyment and disposal of all things
lawfully own by a person.
• Freedom of contract; individual has the
liberty of entering into agreements.
• Freedom in the pursuit of happiness.
Individuals are free to live in society and
freely enjoy their social life.
Example; Philippines and United States
have the capitalistic systems of economy
Democratic Socialism
• Compromise between the capitalist and
socialist models.
• Western Europe
• Very high tax rates are imposed to prevent
excessive profits or undue concentration
of wealth.
• States takes only strategic industries and
services into public ownership
(e.g., railways, airlines, mines, banks, radio,
telephone systems, medical services,
colleges and universities, and important
manufacturing enterprises)
Communism
• All factors of production are owned and
controlled by the State; uses them according
to a definite plan of economy for its own
benefit.