Theoretical Analysis of Dominant Economic Systems: A Conceptual Rejoinder

Abstract

Different countries of the world faced with the challenges of national development have toggled in the dilemma of which economic system is more efficient and effective. While the liberals argued that the profit-oriented capitalism is a preferable alternative economic system to promote sustainable national development because it encourages high productivity through competitions; the radicals aver that socialism is a better option given that it is more people-oriented unlike the exploitative capitalism. Although no doubt is expressed with respect to the potentials of the two economic systems to steer sustainable national development, some of the associated merits and demerits that may make or mar economies were identified. Essentially, it is observed that the concept of mixed economy is not necessarily an economic system different from socialism and capitalism, but a synthesis of the values adapted from, but not limited to, the two major contending ideologies. It is submitted that the efficacy of any of the economic systems to promote national development depends more or less on the extent to which its operations can adequately harness the resources available in the society.