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Supplementary Text A
Todays Mixed Economies
Today, the mixed economy an economic system that has elements of traditional, command, and market economies is the most common type of economic system.
Even the most strongly market-based modern economies have some elements of central planning. Similarly, market influences have penetrated all of todays command economies to some extent. Traditional production methods are still followed in some areas of both market and command systems. And traditional economies everywhere are experiencing greater government involvement and growing pressure from market influences.
Although all modern economies are mixed, they often emphasize one type of system or another.
Many European countries have a more even mix of market and command economies. France, for example, tried to find a middle way between socialism and capitalism. In the years following World War II, its economy emphasized the command system with government ownership of core industries. In the 1980s, however, many people expressed dissatisfaction with the performance of government-owned industry. As a result, the French government pulled back from its ownership role in the economy, privatizing several industries, most notably banking and insurance. Even so, it still has a controlling share of ownership in a number of industries, including energy, automobiles, transportation, communications, and defense.
Sweden, while also a mixed economy, has much greater government involvement.
The Swedish government and government-related organizations own about one third of all Swedish companies.
Each country has its own distinct balance of economic types. Namibia, for example, has a large number of people engaged in subsistence farming, following traditional production methods. Since the early 1990s, however, the Namibian government has been encouraging a more market-driven approach, including foreign investment in farming and other businesses. The countrys leaders hope that these efforts will help the economy to grow and provide more economic opportunities for all Namibians.
Describe the French and the Swedish economies. What is specific for the Namibian economic model? Why are mixed economies so often found in the modern world? Which economic model does Ukrainian economy correspond to, in your opinion?
