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economic system applied in south Africa
economic system applied in south Africa
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Introduction
An economic system is a manner of approach which is used at solving the three main questions which are: What goods and services should be produced and the amount? How much of the scarce resource should be utilised and how will the goods and services will produced? For whom should the diverse goods and services be produced for and where will the production take place? Economic systems don’t always work accordingly but often so vast and complicated but on the contrast its working out just so marvellously. The four main economic systems are: Traditional, Command, Market and Mixed
South Africa has come a long way since the days of apartheid, from being a country living within sanctions to evolving to a mixed economy. It has become too diverse that citizens are liberated into certain economic activities of their choice. Everyone is entitled to their own private freedom, combined with centralized with economic planning and government regulation.
Traditional Economy
The traditional system is based on ancient methods of solving the central economic questions. It is based on beliefs, customs and traditions which shape the goods and services. Individuals living in traditional economic systems tend to direct their activities toward meeting their own and their families basic needs, rather than generating a surplus and trading it for unnecessary consumer products. This is known as a subsistence economy. Although one would think of subsistence as the state of barely making a living laboriously, it is also an orientation which sees the act of meeting basic needs as sufficient in itself, rather than a mere step toward having enough resources to acquiring merchandise. Countries that evolve develop their economies past the traditional ...
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...ut none the less progress is being made and as compared to the past 20 years we do see a drastic change that is empowering the people. Working hard and empowering each other as country with the mixed economic system we can only get better just as the late
Nelson Mandela once sais “A fundamental concern for others in our individual abd community lives would go a long way in making the world a better place we so passionately dreamt of.”
Bibliography
Websites http://www.shmoop.com/economic-systems/types.htmlhttp://www.wisegeek.org/what-is-a-traditional-economy.htm http://www.ask.com/question/traditional-economic-system http://mg.co.za/article/2013-01-12-zuma-emphasis-mixed-economy-interventionist-state-and-development-plan http://www.britannica.com/EBchecked/topic/127708/command-economy
http://sitemaker.umich.edu/seminar.497.2010.southafrica/economy_and_security
Economic systems are affected by the two opposing systems of Capitalism and Communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized.
Every society should answer three economic questions, which are what to produce? , how to produce? , for whom to produce? The reason why a society should choose what to produce is because a product of one society’s choice is not necessarily the choice of the other choice. A society should decide how to produce goods, it is due to the fact that not all societies have the same resources, some societies may have a lot of people in them so, if they want to produce a good, they can use their human resources to accomplished their task, in the other hand societies with a low populations but a high amount of machines, can use their resources to finish their task. Some countries may be able to provide items that other countries can not, because their economy is better than those countries.
Basically, life of individuals in a society are based on economic principles. This means the political institution, education, religion, science and etc, depending on the availability of economic resources for survival, it also means that these institutions can not develop within ways that are contrary to the demands of the economic system.
A traditional economic system is when is when every new descendant preserves the economic situation of their parents and lineages. Customary markets depend on the notable victories of shared practices. One of the advantages of a traditional economic system is that the positions are clearly outlined.
The Economic System is made up of four systems: Capitalism, Socialism, Communism and Mixed Economy, each unique in their way. Every country and their government choose the fittest system to meet their requirements, thus the distribution of resources, trade goods, and services.
The South African’s future economy cannot be considered from the point of its interior causes and dynamics alone , for South African cannot get away the act upon of the world economy or its place in the Southern Africa region. On the other hand the new economic system has to be resilient sufficient to adjust to changes in world markets.
In conclusion, South Africa’s background, International Trade and Finance, and their Policies were good topics to research because they were different from what we usually see here in America; because of this difference, the research we have done has opened our eyes to how other parts of the world operate.
Supporting fact two: The economy of the country continued to grow, despite the sudden change of power. South Africans salaries increased: there used to be 12% of workers payed 2$ a day and after the abolishment of the apartheid, it went down to 5%. (http://www.bbc.com/news/business-23041513)
Any attempt at explaining recent South African economic history must begin with a discussion of apartheid. Beginning around the middle of the 20th century and ending in 1990, the ruling government of the National Party (NP) engaged in the systematic oppression of non-white South Africans, in what became known as the apartheid system. To understand the net economic consequences of apartheid, consider the graph in the lower right hand corner of Figure 1 which shows real GDP per capita in constant PPP US dollars from 1980 until 2008. Looking at the graph, we see that, despite a few infrequent growth spurts, the South African economy generally suffered negative growth in per capita income between 1980 and 1993.
In 1910, it became one of the first countries to declare its political independence from Europe. But, the racial tensions and segregation kept South Africa from becoming a truly free country. Because of the past heavy colonial power, Southern Africa was home to 250,000 white residents who did not want to hand their power back over to the Africans. An official policy called apartheid, implemented by the Afrikaner’s National Party in 1948, was established. Apartheid was a series of laws to encourage separation between white, coloured, black and Indian. Under these laws, South Africa became the only African state dominated by whites. The blacks and minorities were discriminated against and given very few privileges, even though they wer...
South Africa remains one of the most unequal societies in the world, but the constitution’s transformative nature aims to eradicate this inequality. The constitution supports substantive equality with the focus on social reconstruction. Substantive equality takes into account that some groups have previously experienced disadvantage, and that measures should be put in place to right the wrongs of the past by bringing these groups on t...
A market economy may therefore also be known as a free market economy. It is a type of economic system in which the trading and exchange of goods, services and information takes place. The phrase is normally applied to countries or management regions that follow this approach. It functions primarily depending upon the forces of the market, namely demand and supply. Every commodity allocates and distributes based on the principle of “price”. Generally, price of a commodity shoots up when its demand exceeds supply and when the reverse occurs.
...ellent policies, 5) the Constitution had come into existence through the working together of various groups that had composed South Africa, 6) South Africa's political and economic institutions are well established, 7) and that South Africa is by far the most developed country in Africa. However, there are still avenues that can impede further progress, more so economically then politically. Primarily the lack of foreign investment, especially when South Africa's gold and diamond reserves are emptied as other parts of economy are not as developed. Secondly, the economic gap between whites and blacks that was stretched during the time of apartheid needs to be tightened or else it could become dangerous to the stability of the political system. However, due to the leadership of Nelson Mandela, South Africa’s current government structure exists to solve these issues.
The economic system is a type of system where one can exchange the goods produced in order to gain profit. This has been existing for quite a while now and, even though the aim for this system is still the same in the majority of other cultures, the way it’s done is quite different. An example of this system can be seen in both tribal and peasant
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.