Essay Example on World's Economic Systems

Published: 2021-07-09
450 words
2 pages
4 min to read
George Washington University
Type of paper: 
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Over the last couples of decades, the globalization has led to the narrowing of the world market creating the possibility of trade across countries. The different nations so incorporated in business, making it almost impossible to realize how the different countries have different economic systems, namely capitalism and communism, working in them. Although these two economic systems are different in formation, the world market has been able to incorporate them and made trade virtually possible; similarities include the attainment of economic boom, while differences include individualism and cooperation, democracy and totalitarianism, and their origin.

While there two economic systems are different in formation, then have a similarity, and that is in their objective. It is evident that the goals for both economic systems are economic bloom. However, it is fascinating how both systems seek to achieve this goal by using completely different approaches.

In their differences, for capitalists, the idea focuses on the notion that individual will work better when they are free, and thus people, given the privilege of individualism. Communists, however, believe that maximization of economic development can only be achieved when individuals work together. Unlike capitalism where individuals are allowed to own their personal property, communism on the other extreme have the entire society owning the same properties, and the benefits gained from the resources are divided evenly among the people.

Apart from economic freedom, these two systems are also associated with two entirely different political ideologies. While capitalism is associated with democracy, a system through which leaders are chosen by the people and are mandated with the representation of the interests of the citizens, communist countries are on the other associated with totalitarian systems of government, where the leaders are not chosen by the people, and the laws that they enforce are not really in interest of the people but are supposed to work for all individuals.

Though these systems have spread across the globe, and though communism is gradually fading out, it is interesting to realize how these two systems also originated from different parts of the world, with capitalism being an idea from the West and communism an idea from the east. Capitalism and communism however spread around the globe during the cold war periods as the two hegemonic powers at that time spread their ideologies.

While the two world economic systems seem to be diverse in practice and even how they project themselves, it is absorbing and fulfilling that actually, the world market has been able to incorporate them and made trade virtually possible.


Capitalism Vs Communism (1969, December 31). In retrieved 11:36 July 09 2017 from Tajvan Pettinger: Capitalism Vs Communism economies (March 20, 2013) 2016 retrieved 12:20 July 9, 2017, from

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