ORGANISING AN ECONOMY

One issue which has affected the civilised history of mankind the most and

has been a point of contentious is how the production process in an economy should be organised. Should production should be the sole responsibility of the state/government or should it be left altogether to the private sector? Again, will it be better to carry on production with a joint effort—a mixture of state and private enterprises?

Depending upon the dominant view of the time in a particular country, different forms of production patterns evolved and different economic systems finally came up, providing alternative ways of organising an economy. The three models of economic system which evolved in the course of human history are basically the different stages in the evolutionary process of the experiments to define a better way of organising an economy. We must have a concise overview of this evolutionary process: