SOCIALISM

Socialism is a political and economic system in which a large part of the means of production and distribution are collectively owned and controlled by the state. In this political system, all the non-human materials of production and distribution are controlled and operated by government on behalf of the citizens. Citizens in a socialist country work collectively for the advancement of the country, and the government on the other hand, caters for every citizen. Goods and services are produced according to the needs and are distributed according to individual’s want and contributions. Private ownership of means of production and distribution and accumulation of wealth are not encouraged in centrally-planned socialist economic system.

Features of Socialism

1.     State (government) owns and controls all or large portion of the means of production and distribution.

2.     It is democratic in nature therefore, greater number of citizens participate in taking decision on what and how to produce and who gets what, how and why.

3.     Absence of economic rivalry among producers on one hand, and consumers on the other.

4.     Goods and services are not produce for making profit, but to satisfy citizens’ needs.

5.     Equitable distribution of income, not according to people’s ability to grab, but according to their contributions and needs.

6.     Private firms play little or no role in the production and distribution of goods and services.

Advantages of Socialism

1.     It leads to equitable distribution of income and resources.

2.     Socialism caters for the interest of all citizens.

3.     It bridges the gap between the rich and poor.

4.     Socialism creates no room for hoarding.

 

5.     Socialism wipes away exploitation of the masses.

6.     It guarantees the rule of law in countries where it is adopted.

Disadvantages

1.     It suppresses individual initiative.

2.     It make people lazy and unenterprising.

3.     Socialism does not encourage faster economic development.

4.     It does not provide people with alternative choice.

5.     It does not encourage invention and innovation.

6.     It leads to state monopoly which gives rise to inefficient and ineffective production and distribution of goods and services.