Every country faces the problems of making decision on what to produce, how to produce, for whom to produce, etc., all of which constitute the basic Economic problems of a nation. In West African countries, these problems are exacerbated by the kindergarten nature of their economies, each of these countries has to decide the kind and number of Economic goods and services that should be produced within its territory, the method of their distribution and uses among different groups.
These countries will go further in their Economic decisions in deciding whether the items to produce and distribute should be organised under private or public ownership of the means of production. Also, whether what is produced should be distributed either for private consumption and investment or public consumption and investment. In arriving at these Economic descitions there is the need to determine the type of Economic System a country should adopt.
In the present day, there are two major Economic systems, Capitalism and Socialism, and they are backed by two great nations, United States and China respectively. Private and public ownership of means of production and allocation of resources according to prices signals and according to needs of production are the primary distinctions of capitalism and socialism. The common question being asked by many people today is: are there other Economic systems apart from the above two? The answer is yes. They are as follows:
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