Group 4

SOCIALIST ECONOMIC SYSTEM

 GROUP 4
 Siti Nurhaida binti Mohammed Shah ( C1H018047)
 Muhammad Ananta Maulana ( C1G017005 )
 Dandi Hamdani ( C1G017020 )
 Dhea Amalia Juta ( C1G017023 )
 Fanisha Apriliana Dewi ( C1G017024 )
 Nisa Rosanis ( C1G017028 )
 Nida Fauziah Islansari ( C1G017036 )
 M Rizky Ridho ( C1G017041 )
 Dewi Rahmasani ( C1G017044 )
Socialism or socialist refers to several things that
relate to ideology, economic system, and
country. This term began to be used since the
beginning of the 19th century as a manifestation
of the reaction of liberalism which then
emerged new ideas called socialism. In English,
this term was first used to refer to Robert Owen's
followers in 1827. The use of the term socialism
is often used in a variety of different contexts by
various groups, but almost all agree that this
term originated from the upheaval of industrial
workers and agricultural workers in the 19th
century to the beginning of the 20th century
based on the principle of solidarity.
 The Socialist Economic System is an
economic system that gives considerable
freedom to everyone to carry out economic
activities but with government
intervention

The explanation dan The The Socialist Economic System holds that
principle of Socialist individual prosperity can only be achieved
Economic System if it favors shared prosperity. As a
consequence, individual mastery of
economic assets or factors of production is
largely social ownership

Socialist economics has three basic

principles, namely:
1. the authority of a country to control all
community assets
2. economic equality
3. political discipline
 Factors
The existence of an
The rise of the
bourgeoisie that
industrial revolution
(employer) and the
proletariat affecting
(workers)
the
socialist
The emergence of
new thoughts that
There are demands
for the enactment economic
system
are more educated, of democracy from
and more rational the results of the
towards human life French
and society. Revolution socialist
 The characteristics of Socialist
Economic System
Prioritizing togetherness (collectivism)

There is no recognition of the rights of individuals (individuals) in the socialist

system because the socialist system considers that there is no individual ownership
but is shared

The role of the government is very strong

The government acts actively from planning, implementing to monitoring of the

economy in that country

Human nature is determined by the pattern of production

The pattern of production (assets controlled by the community) gives rise to
awareness of collectivism (socialist society) The pattern of production (assets
controlled by individuals) gives birth to an awareness of individualism (capitalist
society).
The impact of the application of
the Socialist Economic System

Impact on
producers

Impact on
Impact on
economic
consumers
growth

Impact on Impact on
wages labor
 The strengths of Socialist
Economic System

1. Supply of basic needs

2. Based on State planning
3. Production is managed by the State
4. The government is easier to control inflation, unemployment and
other economic problems
5. The domestic goods market runs smoothly
6. The government can intervene in terms of price formation
7. Relatively easy to make income distribution
8. There is no economic crisis
The weakness of Socialist
Economic System

Difficult to
make
transactions

Ignoring
Limit
moral
freedom
education
A Country that adheres to a Socialist
Economic System

North
China Vietnam Cuba
Korea
SOCIALISM ECONOMIC
SYSTEM IN MALAYSIA
Federal Land Development Authority (FELDA) is a Malaysian
government agency that was founded to handle the
resettlement of rural poor into newly developed areas and
to organise smallholder farms growing cash crops. In this
programme, the government gave an incentive to all
settlers in terms of debt disposal, incentive payment,
housing incentive, scholarship and many more.

In the economic system of Socialism only ensures economic

efficiency for society and in addition it can increase economic
efficiency to the country has emphasized equality of income
with equitable distribution of wages in order to build a strongly
armed militias so that the government can control every aspect
of society. In fact that, Malaysian government have induced a
minimum rate of wage or income to labour that cost RM 900 per
month. This amount of payment does not include the allowance,
over time and other benefit like KWSP and SOCSO that the
labour will get.
 CONCLUSION
Sistem ekonomi sosialis merupakan sistem ekonomi yang
menempatkan pemerintah sebagai pusat dalam mengendalikan dan
mengatur semua kegiatan ekonomi.
Pemerintah memilih kekuasaan penuh dalam merencanakan, mengambil
keputusan, dan menentukan semua kebijakan-kebijakan yang
bertujuan untuk pemerataan kesejahteraan sosial dan memberikan
kesamaan dalam memperlakukan semua individu baik kaya maupun
yang miskin.
Dalam konsep sistem ekonomi sosialis pemerintah memiliki peran
yang sangat besar dalam kegiatan ekonomi dan menghilangkan
kebebasan hak individu dalam memiliki sumber daya produksi.
Dengan keterlibatan penuh pemerintah maka akan lebih mudah dalam
mengawasi dan mengatur kegiatan ekonomi, selain itu pemerintah
dapat menghindarkan segala persaingan tidak sehat yang berakibat
pada kesenjangan sosial.