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Capitalism is seen as an economic system or market economy was there is free allocation of
market resources and free private participation in economic activities. The capitalist concept is
manifested in the early 19th century, the period of industrial revolution. Since this period to the
present date, capitalism has controlled the economic of some developed countries and the
undeveloped ones, such countries include Europe, South Africa, America, Israel, Japan, and
Nigeria. Despite the effort of the government to help these countries to regulate the excess of

In the wake of the excesses of capitalism, which resulted, the suffering of the poor

masses, co-operative emerged. The co-operative concept tends to oppose the capitalists mod of
business practices. Co-operative is a movement, which aims at bringing better living to the poor
by returning to them the best economic power and dignity of laboure. This they lost through the
shrewd influence of capitalism.
There are different economic systems, which exist in the world economy. Among these
systems, three types are prominent namely, Socialist, capitalist, Mixed Economic system. The
socialist system is seen as a type of economy where all the activity and sector of the economy are
controlled by the government. This implies that there is government ownership on every
investment in the system. Today, socialism is giving in to other type of economic system in that
most countries of the world that practice socialism are losing their holds in the economy of their
respective country. The union of soviet socialist republic (U.S.S.R) is a good example of such
dwindling socialist country.
Capitalism on the other hand is a reserve of what is obtainable in a socialist economy. This is
because capitalism is seen as an economic system whose individual controls the economic
activities of the country. It is characterized by an interplay of the market force , E.I. force of
demand and supply, cut the throat competition and indiscriminate like in the price of goods and
A mix economy is an economic which comprises the features of the socialist and the
capitalist economy. In a mixed economic system, there is joint ownership of the factors of
production by the government and private entrepreneurs. The private interprise takes count of the
key service, which is special to the masses. It is too exhurbitant to procure or reserve for the

social class. The government therefore takes charge of the administration. Statutory service in a
mixed economy system. The individuals on the other hand exercises the legal right of embarking
on any type of business enterprise as the demands.
Nigeria Economy
Nigeria is a middle income, mixed economy and emerging market, with expanding financial,
service, communications, technology and entertainment sectors. It is ranked 2nd largest economy
in Africa, behind South Africa and on track to become the largest economy in Africa in 2014, and
also becoming one of the 20 largest economies in the world by 2020. Its re-emergent, though
currently underperforming, manufacturing sector is the third-largest on the continent, and
produces a large proportion of goods and services for the West African region. Previously
hindered by years of mismanagement, economic reforms of the past decade have put Nigeria
back on track towards achieving its full economic potential. There are three types of economic
systems in Nigeria. Nigeria Practises the mixed type of economy, Mixed economy is an economy
that mixes one type of philosophy with another. Some decisions are taken by the government and
some by the private sector.
Nigeria presently is underperforming as said earlier, therefore we need to ask the question, Is
the mixed type of economy suitable for Nigeria, if yes, why? If not, then what economic system
is suitable and what makes it so?
In my own opinion, I think we need to consider the capitalist economic system, Capitalism is an
economy that is also known as the free-enterprise economy that is characterised by the private
ownership of all productive assets, there is freedom of choice, entrepreneurs are free to establish
new business enterprise. Below is a table comparing the mixed type of economy and capitalism.


A mixed economy is an economic system variously defined as containing a mixture of

markets and economic planning, in which both the private sector and state direct the economy; or
as a mixture of public ownership and private ownership; or as a mixture of free markets with
economic interventionism. Most mixed economies can be described as market economies with
strong regulatory oversight and governmental provision of public goods. Some mixed economies
also feature a variety of state-run enterprises.
In general the mixed economy is characterised by the private ownership of the means of
production, the dominance of markets for economic coordination, with profit-seeking enterprise
and the accumulation of capital remaining the fundamental driving force behind economic
activity. But unlike a free-market economy, the government would wield indirect macroeconomic
influence over the economy through fiscal and monetary policies designed to counteract
economic downturns and capitalism's tendency toward financial crises and unemployment, along
with playing a role in interventions that promote social welfare. Subsequently, some mixed
economies have expanded in scope to include a role for indicative economic planning and/or
large public enterprise sectors.
There is not one single definition for a mixed economy, with it defined variously as a mixture
of free markets with state interventionism, or as a mixture of public and private enterprise, or as
a mixture between markets and economic planning. The relative strength or weakness of each
component in the national economy can vary greatly between countries. Economies ranging from
the United States to Cuba have been termed mixed economies. The term is also used to describe
the economies of countries which are referred to as welfare states, such as the Nordic countries.
Governments in mixed economies often provide environmental protection, maintenance of
employment standards, a standardized welfare system, and maintenance of competition.
As an economic ideal, mixed economies are supported by people of various political
persuasions, typically centre-left and centre-right, such as social democrats or Christian
democrats. Supporters view mixed economies as a compromise between state socialism and freemarket capitalism that is superior in net effect to either of those. Around the world, the most

prosperous countries with the highest average standard of living tend to have mixed economic
systems with democratically elected governments.


Capitalism is an economic system in which trade, industries, and the means of production are
largely or entirely privately owned and operated for profit. Central characteristics of capitalism
include private property, capital accumulation, wage labour and, in many models, competitive
markets. In a capitalist economy, the parties to a transaction typically determine the prices at
which assets, goods, and services are exchanged.
The degree of competition, role of intervention and regulation, and scope of state ownership
varies across different models of capitalism. Economists, political economists, and historians
have taken different perspectives in their analysis of capitalism and recognized various forms of
it in practice. These include laissez-faire capitalism, welfare capitalism, crony capitalism and
state capitalism; each highlighting varying degrees of dependency on markets, public ownership,
and inclusion of social policies. The extent to which different markets are free, as well as the
rules defining private property, is a matter of politics and policy. Many states have what are
termed capitalist mixed economies, referring to a mix between planned and market-driven
elements. Capitalism has existed under many forms of government, in many different times,
places, and cultures. Following the demise of feudalism, capitalism became the dominant
economic system in the Western world.
Capitalism was carried across the world by broader processes of globalization such as
imperialism and, by the end of the nineteenth century, became the dominant global economic
system, in turn intensifying processes of economic and other globalization. Later, in the 20th
century, capitalism overcame a challenge by centrally-planned economies and is now the
encompassing system worldwide, with the mixed economy being its dominant form in the
industrialized Western world.
The essential feature of capitalism is the investment of money in order to make a profit.
In a capitalist economic system capital assets can be owned and controlled by private
persons, labor is purchased for money wages, capital gains accrue to private owners, and the

price mechanism is utilized to allocate capital goods between competing uses. The extent to
which the price mechanism is used, the degree of competitiveness, the balance between the
public sector and the private sector, and the extent of government intervention in markets are the
factors which distinguish several forms of capitalism in the modern world.
In free-market and laissez-faire forms of capitalism, markets are utilized most extensively
with minimal or no regulation over the pricing mechanism. In mixed economies, which are
almost universal today, markets continue to play a dominant role but are regulated to some extent
by government in order to correct market failures, promote social welfare, conserve natural
resources, fund defense and public safety or for other reasons. In state capitalist systems, markets
are relied upon the least, with the state relying heavily on state-owned enterprises or indirect
economic planning to accumulate capital.
Capitalism and capitalist economics is often contrasted with socialism, though the meaning
of the word socialism has changed over time. The original meaning of socialism was social
ownership of the means of production and co-operative management of the economy.
The movement of Nigeria from a mixed economy to capitalist economy
The Nigeria economy is said to be a mixed economy. This means that there is joint ownership
of production resource by the government and the private entrepreneurs. Nigeria was a country
under the British colony, having being under the British administration for years since her
independence in 1960. as a result of this, Nigeria came under the western influence and most of
her socioeconomic and political background are fashioned out of the western culture.
The Nigerian capitalist concept is that of advance or developed market economy unlike the
ideal prototype of a pure capitalist economy, which ensures a total private ownership, and use of
resources and decision making by individual private economic unites. As modern in his book
Economic of that first work (1955) opened the developed market economy as presently practiced
by some of the first or developed capitalist market economies (those of north America, western
Europe, Israel, south Africa, Australia, News land and Japan) are both mixture of private and
public economic decision making. Over the years, Nigerian government, just as the government
just as the government of this first world country have assumed increasing control over aggregate
economic activity not only through the use of the so-called monetary and policy, but also through

their growing and direct participation in economic activities in the form of privet industries,
public enterprises and public investment programs. From the above, it can be said that the
Nigerian economy is not the pure capitalist system given government participation in the
economy. Government ownership of some key industries in the economy makes the Nigerian
economy tends to shift towards that of a mixed economic system. These key industries
commonly called statutory organization are organizations by statutes or decrees to take full
control of the important sector of the economy. These sectors, if left in the hands of private
businessmen would amount to the general public being exploited before their services from this
sector reach them. Such sector where there is full government control includes
Telecommunication, which is in full control of the Nigerian Telecommunication Limited.
{NITEL} The Federal Government of Nigeria has privatized electric services, which come under
NEPA {National Electric Power Authorities} both NEPA and NITEL. Despite the government
interference in some strategic sector of the economy, the private sector participation is not totally
left out. Private ownership of production factor is a major characteristic of a capitalist system. In
Nigeria, the federal government has taken stapes in ensuring adequate participation of the private
sector in the growth of nations economy. Recently the federal government embarked on
privatization and commercialization programme and some statuary organization. This is aimed at
ensuring equity participation of the private of some these government owned enterprises. This
inturn increases the private sector participation in the nations economy thereby increasing the
capitalist nature of the Nigerian economy. Some known features of capitalism, which includes
the following, characterize the private sector participation in the Nigerian economy.
One of fundamentals of capitalist concept in Nigeria is the competition in Nigeria. Individual
who engage in private enterprise do so for many reasons of which the maximization of profit is
the high priority. Private businessmen in their bid to maximize profit engage themselves in cot
throat competition. Their believe is rooted in the spirit of survival of the fittest
Hence these businessmen to displace one another in this business deals put all the effort and
machinery in place.

Adulteration of goods
Also in their bid to maximize profit, the business indulge in some middle viscose activities
like adulteration in quality and the quantity of goods. The Nigeria market has for the past
decades witness an increase in the rate of adulteration of goods. Our market has been flooded
with fake or imitation goods all in the bid to make money. This has necessitated in setting up
some quality control organ to check the incessant adulteration of goods in the nations market.
The national agency for food, drug administration and control (NAFDAC) is a good example of
control organization set up by the federal government to check the activity of bad businessmen.
NAFDAC as it is popularly has for the past years and recently dictated and destroyed low
standard goods worth million of Naira which found there way into the Nigeria but which is not
good for the human consumption.
Hike in the price of goods
The consumer protection agency in their article journals of consumer protection (1995)
opined that the Nigeria economy is such that there is no proper system of control measure. Price
of goods is left to be determined by the forces of demand and supply. The private businessmen
capitalize on these opportunities to increase the price of goods and service at their own
description. This business in their bid to archive their aim of profit maximization creates artificial
scarcity by hooding of commodities thereby creating increase in the price of goods, which
eventually leads to artificial inflation.
Capitalism offers prosperity to any nation that practises it, but in return they suffer the
consequences, the consequences however, can be easily solved. The mixed economy depends on
an individuals prejudice on good and bad. This individual could be bad to achieve good for
self-interest, or be good for the sake of being good. Nigeria is a country in whom corruption has
eaten into deeply, most people are doing thing for their selfish purposes. Consequently, while
they pursue this selfish purposes the community around them benefits from them. In his book,
Adam smith said,The individual, pursuing his SELF-INTEREST, will bring on general benefits
to society.

The demerits of a mixed economy of the are not so acute that they cannot be overcome, if the
administrative machinery is efficient, sincere and honest, the defects of the public sector can be
removed. Given proper control, the private sector can work more efficiently, also by adoption of
fiscal, monetary p01olicies, economic fluctuations can be eliminated. The defects of capitalism
have led the west to modify this system by regulating and controlling the institutions of private
property and freedom to serve the best interest of the community at large. The word if is a
conditional statements, the amount of ifs to the mixed economy is more than capitalism, and
capitalism doesnt need an if to prosper. The only if needed in capitalism is to check the
excesses of the economic system. Finally, I think the capitalist economic system is suitable for

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