Economics Presentation

Members
1.Nikki Cheng Li Shan
2 . Ta n g J i e Yi
3 . M a s o n Ye o h
4 . I v a n Po r
5. Isaac Huang

Total Command
Economy Countries
~ N o r t h Ko re a
~Cuba
~Burma
~Laos
~Libya
~ Tu r k m e n i s t a n

Mixed Economy Countries

~United States
~ Fr a n c e
~Germany
~Italy
~United Kingdom
~ H o n g Ko n g
~Malaysia
~Singapore

L a i s s e z Fa i r e C o u n t r i e s

~Switzerland
~Sweden
~New Zealand
~Iceland
~Ireland

Advantages of Command
Economy
1.Command economies can prevent mass
unemployment
Example
In the year 2000 of Cuba, public sector
employment was 76% and private sector,
mainly composed by personal property,
employment was 23% compared
to the 1981 ratio of 91% to 8%

Advantages of Command
Economy
2. Enables the government to overcome inequality and create a
society that maximises social welfare rather than maximises
profit.
Example
Burma embarked on a major policy of reforms including anticorruption, currency exchange rate, foreign investment laws
and taxation.

Advantages of Command
Economy
3. The country is able to provide every citizen a job.
In a total command government, they give various careers to
the people, ranging from agriculture, professions and business
careers.

Example - Economy of North Korea

And an in-depth look into its economy.

North Korea's economyisacentrallyplannedsystem,yettheroleof

marketallocationschemesislimited.Althoughtherehavebeenscatteredandlimited
attemptsatdecentralization,asof2014,Pyongyang'sbasicadherencetoarigid
centrallyplannedeconomycontinues,asdoesitsrelianceonfundamentallynonpecuniaryincentives.Therehavebeenreportsofeconomicliberalisation,particularly
afterKimJong-unassumedtheleadershipin2012,butrecentreportsconflictoverwhat
ishappening.
Thecollapseofcommunistgovernmentsaroundtheworldin1991,particularly
NorthKorea'sprincipalsourceofsupport,theSovietUnion,forcedtheNorthKorean
economytorealignitsforeigneconomicrelations,includingincreasedeconomic
exchangeswithSouthKorea.
NorthKoreahadasimilarGDPpercapitatoitsneighborSouthKoreafromtheaftermath
oftheKoreanWaruntilthemid-1970s,butwithaGDPpercapitaoflessthan$2,000in
thelate1990sandearly21stcentury,NorthKorearemainsasoneoftheworld'spoorest
andleastdevelopedcountries,insharpcontrasttoSouthKorea,whichhasoneofthe
largestandmostdiversifiedeconomiesintheworld.
*GDP = Gross domestic product

Size of its economy

EstimatinggrossnationalproductinNorthKoreaisadifficulttaskbecauseof
dearthofeconomicdataandtheproblemofchoosinganappropriaterateof
exchangefortheNorthKoreanwon,thenonconvertibleNorthKorean
currency.TheSouthKoreangovernment'sestimateplacedNorthKorea's
GNPin1991atUS$22.9billion,orUS$1,038percapita.Incontrast,South
KoreapostedUS$237.9billionofGNPandapercapitaincomeofUS$5,569
in1991.NorthKorea'sGNPin1991showeda5.2%declinefrom1989,and
preliminaryindicationswerethatthedeclinewouldcontinue.SouthKorea's
GNP,bycontrast,expandedby9.3%and8.4%,respectively,in1990and
1991.

In Conclusion..
People are equal.
Every citizen can keep a job
There is an internally stable
economic system
Strong social communities are established
Efficientdistributionof resources.
Competitiondoesn't exist