Comparing the Economic Performance of South and North Korea

1487 Words6 Pages
Introduction An economic system of a county is a system for producing, distributing as well as consuming goods and services. It includes a combination of various agencies, institutions, entities and consumers, which constitute the economic structure of a particular community, or society. Both North and South Korea have different economic systems. Collectivist Economy Collectivist economy is a type of economy which advocates for collective control over production, as well as distribution. It puts a lot of emphasis on collective action rather than individual action. Another name for collectivist economy is communism economy. Apart from North Korea, other collectivist economies include Japan and Indonesia. Economic System in South Korea The economic system of South Korea is a capitalist economy. This is where the economy is characterized by free markets, as well as the absence of government intervention with regard to the country's economy. One of the key characteristic of a capitalist economic system is the ability of firms and private individuals to accumulate capital and property in the economy of a country. In reality, capitalist economic system will require some government intervention, mainly to protect private property. Capitalist economic system in South Korea is a self supporting and does not need government intervention and implementation. This is because of the private sector and private ownership running the economy. This system enables the participating
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