Question

It is frequently argued that socialist economic reform is driven by poor economic performance and, in particular, by slackening rates of economic growth. Using the evidence on growth presented in the text, assess this proposition.

Answer 1

When the ownership of the means of production is with the society that type of economy is known as a socialist economy. Here the production of goods is solely for using the goods rather than accruing profits from the production process. The socialist economic system aim at reducing the gap between the rich and poor.

A pure socialist economy may find it difficult to achieve economic growth but a socialist market economy will always have a way to flourish. This is because a pure socialist economy don't aim to amass wealth.

Appropriate changes in the programmes and policies has paved the way for economic growth in pure socialist economy. China being an example. There should be a balance between the concepts of capitalism and socialism.