Ghana, the mixed capitalist Essay

Gold Coast, now gold coast had his independence in 1957 by and by a long struggle with our colonial masters, the British by Kwame Nkrumah and others who helped in diverse ways such as the Big Six and others. colonised by the British, Ghana has gone by a lot of outlines of arrangement Monarchical, autocracy and now democracy. So is with stinting systems which go with any contour line of governance system. Currently there are about four (4) scotch systems in the world which are sociableist, capitalist, mixed thriftiness (Socialist and capitalist) and Islamic sparing jurisprudence. The frugal SystemsAll these are economic systems and it is defines those who controls and owns the economic resources which gradations the means in economics. Every economy is measured by the usage of its means and the temper of the means owners determines the kind of economic system the country runs. Socialist system of economy is a one that has its resources highly controlled by the central politics. E. g. USSR (Russia, Ukraine, Yugoslavia etc), the Capitalist economy is that whose resources is highly owned and controlled by private item-by-items or a body other than the government. E. g. USA, UK, transgress of Europe etc.The Mixed economy is that which combines both the left and the capitalist economic systems to run the countrys economy. In that, the central government controls part of the economy opuss the other part is controlled by private participation. Functions of the Economic Systems There are multiple components to economic systems. Their interaction may be coherent or result in instability. stopping point-making structures of an economy determine the use of economic inputs (the factors of production), distri thation of output, the level of centralisation in decision-making, and who makes these decisions.Decisions might be carried out by industrial councils, by a government agency, or by private owners. Every economic system represents an attempt to sol ve three fundamental and interdependent problems What goods and work shall be produced and in what quantities? How shall goods and services be produced? That is, by whom and with what resources and technologies? For whom shall goods and services be produced? That is, who is to enjoy the benefits of the goods and services and how is the total product to be distributed among individuals and groups in the society.E. g. the reliable load management by the VRA and the ECG. Thus every economy is a system that allocates resources for exchange, production, distribution and consumption. The system is stabilized through a compounding of threat and trust, which are the outcome of institutional arrangements. An economic system possesses the avocation institutions Methods of control over the factors or means of production this may implicate ownership of, or property rights to, the means of production and therefore may give rise to claims to the proceeds from production.The means of product ion may be owned privately, by the deposit, by those who use them or be held in common. A decision-making system this determines who is eligible to make decisions over economic activities. Economic agents with decision-making powers can enter into binding contracts with one a nonher. A coordination mechanism this determines how knowledge is obtained and used in decision-making. The two dominant forms of coordination are mean and markets planning can be all de-centralized or centralized, and the two coordination mechanisms are not mutually exclusive and often co-exist.An motivator system this induces and motivates economic agents to choose in productive activities. It can be based on either material reward (compensation or self-interest) or moral suasion (for instance, cordial prestige or through a democratic decision-making process that binds those involved). The incentive system may encourage specialization and the division of labour. Organizational form there are two basic forms of organization actors and regulators. Economic actors include households, work gangs and production teams, firms, joint-ventures and cartels.Economically regulative organizations are represented by the declare and market authorities the latter may private or world entities. A distribution system this allocates the proceeds from productive activity, which is distributed as income among the economic organizations, individuals and groups within society, such as property owners, workers and non-workers, or the state (from taxes). A public choice mechanism for law-making, establishing rules, norms and standards and levying taxes. Usually this is the responsibility of the state but other means of collective decision-making are possible, such as workers councils.The Ghanas Economy Ghanas economy is stringently a mixed type with the resources sharply divided between the public and private participation. The service sector is highly controlled by the government while the production sector is dominated by private and group participation. Decision making, which determines the focus of the economy and the type system, is done a lot of the times, through consultations with stakeholders of the economy. Example when the power and water companies wanted to review utility tariffs to a certain percentage, there was a lot of consultations thereby getting the footstep we have now.Ghana, before the independence was purely capitalist. After independence, the then government focused on turning the economy into a communist/socialist system. They invested so much in agriculture which was the only sector controlled by the government and also reached out to industrialize the economy. Currently, Ghana is well-endowed with congenital resources and agriculture accounts for roughly one-quarter of GDP and employs more than than half of the workforce, mainly refined landholders. The services sector accounts for 50% of GDP. Gold and cocoa production and individual remittances ar e major sources of foreign exchange.Oil production at Ghanas offshore Jubilee field began in mid-December, 2010, and is expected to boost economic growth. Finally, I may agree with the statement but require more facts to completely justify its truth. Ghana is a mixed economy but capitalist oriented on the face assessment value of the versatile sectors. But can justify, if all percentages of public/private participation of the economic sectors are well defined. This will couple with the clear policy direction of the present governments which has state on record as being social democrats and has manifestoes seeking to provide a lot for the people.