What About Third World Countries?

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What About Third World Countries?

The great difference in economic organization is between the rich countries and the poor countries.

The poor countries, because they are poor, are primarily concerned with the necessaries of life: food, clothing, shelter.

These are mostly produced by small firms with a simple structure - one man, a family.

Being small, the individual producer is without power.

The firms being numerous, he is much more subject to the impersonal forces of the market.

Producers in the poor countries also have fewer needs from the state, and government services play a smaller part in living standards.

In all everyday discussion we exaggerate the differences in economic structure of the United States and the Soviet Union.

And we greatly underestimate the differences between the economic systems of, say, the United States and India or of France and her former African colonies.

Learn More About Production

What About Planning?

The socialist economies are planned.

The need for materials and components is foreseen and related to the is-tended production of finished goods.

The aggregate of income is related, if imperfectly, to what there will be to buy, time of this being as simple as it sounds.

But there is also much planning in the non-socialist countries - by corporations to ensure the supply of steel and components for the automobiles they will produce; by their marketing men to ensure that consumers will want the new automobile design when it appears; and by the government to provide highways on which... see: What About Planning?

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