Economic System In South Africa

South Africa’s economy is the largest in Africa ahead of Nigeria, it accounts for 24% of its GDP in terms of purchasing power value, and is ranked as an upper – middle income economy by the WORLD BANK; placing the country amongst the top four countries in Africa for this category.

According to official estimates, a quarter of the population is unemployed, however, South Africa has comparative advantages in the production of agriculture, mining and manufacturing products relating to these sectors.

LITERARY REVIEW

TYPES OF ECONOMIC SYSTEMS:

a) COMMAND ECONOMIC SYSTEM:

A system where the government determines what goods should be produced, how they should be produced, how they should be produced, how much should be produced and the price at which will be offered for sale. This system is unable to efficiently allocate resources due to the central planner’s inability to discern how much of a good should be produced. Surpluses and shortages are a very common consequence of a command economy.

b) MARKET ECONOMIC SYSTEM:

An economic system where decisions and the pricing of goods and services are influenced by the entire interactions of a country’s citizens and businesses. This system does not have a lot of government intervention. This system works on the assumption that market forces, like demand and supply, are the best determinants of what is right for a country’s well-being. Recently most developing countries are classified as having mixed economies are most of the time said to have market economies since they allow market forces to drive most of their activities.

c) MIXED ECONOMIC SYSTEM:

The system features characteristics of both capitalism and socialism. The system allows a bit of private economic freedom in the ...

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...additional 35 billion to GDP, according to MR PRAVIN GORDHAN, South Africa’s FINANCE MINISTER.

RECOMMENDATIONS:

South Africa has done well for its self economically. The South African government is determined to address its key challenges through the economic integration of its previously disadvantaged majority. South Africa’s mixed economy is suitable for our economic conditions and is working effectively. The country is currently working towards a better future for all economically and so far so good compared to where ewe come from.

CONCLUSION:

After all has been said and done, South Africa’s mixed economy continues to grow regardless of the fact that a quarter of our population is unemployed, such challenges are currently being dealt with. Our modern infrastructure supports the efficient distribution of goods throughout the southern African region.