ABSTRACT

This chapter examines the different types of successfully developed economic systems in the world and offers some case studies of each type. It describes the characteristics of Market Dominated Economies, Social Market Economies, and State Dominated Economies. The chapter analyses the characteristics and functioning of a Market Dominated Economies such as the United States, a Social Market Economies such as the Nordic countries, and a State Dominated Economy such as China. It explains the difference between socialism, communism, and capitalism. The chapter explores the strengths and weaknesses of a market capitalist approach, a guided market approach, and a central planning approach to economic development. One of the important reasons for US economic success was its access to human and natural resources. Welfare and unemployment benefits are also less generous, and the United States provides very little in the way of job training.