WELCOME

TOPIC

ECONOMIC SYSTEMS
AND ECONOMIC
POLICIES
 INTRODUCTION
An Economic system is a system of production ,
resource allocation and distribution of goods and
services. Within a society or a given geographic
area. It includes the combination of various
institutions, agencies, entities, decision making
processes and pattern of consumption that
comprise the economic structure of a given
community. As such as , an economic system is a
type of social system.
 Economic
System

CAPITALIST MIXED
ECONOMY ECONOMY
SOCIALIST
ECONOMY
 CAPITALIST ECONOMY
CAPITALISTS ECONOMY IS THE
ECONOMY IN WHICH THE OWNERSHIP
OF MEANS OF PRODUCTION IS WITH
PRIVATE INDIVIDUALS WHO WORK
WITH THE MOTIVE OF MAKING
PROFITS.
FEATURES OF CAPITALIST ECONOMY

 PROFIT MOTIVE
 RIGHT TO PROPERTY
 CONSUMER SOVEREIGNTY
 FREEMARKET WITH NO CONTROL OVER
PRICE
 TRANSFER OF WEALTH TO LEGAL HEIR
 SOCIALIST ECONOMY
It is an economic system in which the
means of production are owned by the
public sector. This economic system works
on centralised planning .
FEATURES OF SOCIALIST
ECONOMY
 ACTIVITES AIMED AT SOCIAL
WELFARE.
 ABSENCE OF PRIVATE
ENTERPRENUER.
 ECONOMIC EQUALITY.
 MIXED ECONOMY

MIXED ECONOMY IS THE

ECONOMY THAT HAS CERTAIN
FEATURES OF BOTH THE CAPITALIST
ECONOMY AND SOCIALIST ECONOMY.
FEATURES OF MIXED ECONOMY

 EXISTENCE OF BOTH PRIVATE AND PUBLIC

SECTORS.
 ECONOMY WORKS ON THE PRINCIPLE OF PLANNING.
 IMPORTANCE TO WELFARE ACTIVITIES.
 EXISTENCE OF BOTH FREEDOM OF PRIVATE
OWNERSHIP OF WEALTH AN ECONOMIC CONTROL.
 CHANGING ECONOMIC POLICIES

The India used to maintain a strong public

sector and controlled foreign trade of late, the
economic policies have undergone a change. Measures
to attract foreign capital and to strengthen
foreign trade have been taken. The measures which
starting officially in 1991 that is liberalisation,
privatisation and globalisation.
RESULT OF LIBERALISATION

 Relaxation of control in setting up

industry
 Reduction of import Tariff and Tax.
 Changes in foreign Exchanges rules.
 Abolition of Market control,
 Permission of foreign Investment in
Many Sectors.
 PRIVATIZATION

Many Public sector Enterprises

have been privatized since 1991.They
were traded and handled by the
department of disinvestment under the
ministry of finance.
 GLOBALIZATION

Globalisation is the integration

and interdependence of nations as a
result of free flow of capital, Labour
goods and services and exchanges of
technology irrespective of boundaries.
 ARGUMENTS IN NEW ECONOMIC
POLICIES
FAVOUR AGAINST
 Availability of wide varieties
of products in the market.
 Availability of use the most
advanced technology.
 Increase in exports.
 Increase in national income.
 Entry of companies into
foreign trade.
 Increase in economic
disparities.
 Excess exploitation of natural
resources.
 Import leads to fall in
practice of domestic
products.
 Job security declines.
THANK YOU
PRESENTED BY,
SIJI SIMON
ROLL NO :49
SOCIAL SCIENCE