Socialism
- State Ownership of Means of Production : All important means of production are owned by the Government. Private ownership is nominal and the State exercises control over all the means of production.
- Central Economic Planning : The central Planning Authority takes all the strategic decisions concerning the economy (e.g. what to produce, how to produce, for whom to produce). The Authority replaces the price mechanism. It formulates policies, lays down priorities and sets targets of production. The Authority prepares Five-year which are implemented by various agencies and organs of the Government.
- Social Welfare : The socialist economic system works for the benefit of the whole society rather than merely for the private benefit of individuals. These is absence of profit motive and the ultimate objective is to maximise social welfare.
- Equality of Opportunity : Every member of the society is given equal opportunity to rise in life. Education and training facilities are made available to all The State providers health care and educational facilities to those who cannot afford themselves.
- Classless Society : Socialism is based on a classless society. There are no classes of capitalists and labour due to the absence of the institution of private property.
- Absence of Competition : Since the State owns all the major means of production , there is no competition between the different production units . These units are made to supplement each other.
