my reflection on economic system

Villegas (2010) states that as long as the principles of natural law- based on God’s law- are not violated, a country may adopt any form of government most appropriate to local conditions. I agree. Though different countries suffer any losses, still, they recover after all, with their different types of economic system and following the principles of natural law. Loss is an inevitable thing. Right technique or system must be used to solve it and gain achievements. In same manner, the government of South Africa experienced it too. During the inflation, South Africa turns down. But because the government has the strength and perseverance to rise again, it produces a progressive country in the present. In which, I recognize the way the administration governs the society. People in the administration of South Africa serve as economists who think deeper for the better of the country. In like manner, this country plays a big role in the continent of Africa. As what I have researched states that is the economic powerhouse of the continent. Using mixed market capitalistic economy system and with its high rate of Gross Domestic Product (GDP), it is obviously appreciable that South Africa contributes a lot which provides helping hands for those trembling tummies suffer from famine. Wherein, despite of stated problem given in the article yet South Africa’s economy is growing strongly. In some other way, there is a country that from the start, its economic status really booms. By using the free market system or socialism plus good governance, this country puts a mark in the global industry. I appreciate how the government drags the rate of unemployed from 11% to 5%. This simply explains how the administration runs the society in a good condition. For me, running a country is difficult but because ordinary people and government coordinate, this country deserves to be rank in the first five developed countries in the world. Though there are different taxes being imputed, still, individual and businesses response in paying taxes. In addition, the country’s economic system speaks and acts through the years which help to develop the country. However, the said country is the Australia. It is been a good destination in Canada. Some of us wonder to be there. It is because this country has a stable community. From the type of government being applied, Canada ranks by the “Economist” as the third most democratic nation in Democracy Index. Thru this, Canada surpasses their crisis during 2008 to 2009. Facing the consequences of financial crisis is tricky. Handling it may lose your control. But, the government of Canada is doing it prudently. Line with the market- oriented system, Canada becomes largest US foreign supplier of energy. This contributes to the financial status of Canada especially during the crisis. Hence, in my own perception, Canada emphasizes how individuals are important and also how a government balances in times of difficulties. South Africa, Australia and Canada are an example of democratic government. These countries describe how a common type of government attains the stability of economy. Thus, these are just only three of the top model countries in the world which you will really amaze how their economy work thru the years.

University of Mindanao Tagum College
Arellano Street, Tagum City

Economic System and Type of Government of a Country

Donna Khryss Legaspi
Bachelor of Science in Accounting Technology

In Partial Fulfillment of the Requirements
In Economics 1

Prof. Regi Aaron

September 23, 2013
CANADA
As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela. https://www.cia.gov/library/publications/the-world-factbook/.../2116.htm. Political conditions
Canada is considered by most sources to be a very stable democracy. In 2006 The Economist ranked Canada the third most democratic nation in its Democracy Index, ahead of all other nations in the Americas and ahead of every nation more populous than itself. In 2008, Canada was ranked World No. 11 and again ahead of all countries more populous and No. 1 for the Americas. (In 2008, the United States was ranked World No. 18, Uruguay World No. 23, and Costa Rica World No. 27.). http://en.wikipedia.org/wiki/Politics_of_Canada AUSTRALIA Free market is the main characteristics of the economic system of Australia. The growth of the economy of Australia is phenomenal and this country is among the first five developed countries of the world. The four main components of the Australian economic system are trade, manufacturing, services and finance. In the beginning of the 21st century the Australian government had taken a pledge to further reform its economy. The standard of living of Australia has risen significantly in the last fifteen years and it is just below United States now.

Industrialization, private enterprises, large scale productions, high technology and natural resources are Australian economic system. Small businesses also play an important role in the economy of this country. The unemployment rate in this country speaks for its developing economy as 11% unemployment rate in 1992 has come down to just 5%.

The growth of the Australian economy began in the middle of the 19th century with woolen industry and the gold rush. The gold rush was also responsible for the population growth of the country which was very much needed by Australia at that point of time. The second phase of economic boom began during the Second World War and it continued till 1970.

The fundamentals of the Australian economy were further changed at the beginning of the new millennium. A new improved tax system was started which was favourable both for the individual and the businesses. The government is also striving towards building a more adaptable labour market and augmenting the living standards. Some major business sectors are also partially privatized. In the first decade of the new millennium it is expected that the growth would be around 3.5%. One of the most significant achievements is that in 2000 the labour productivity growth has even moved past United States.

The integral part of the economic system of Australia is the Australian Securities Exchange or ASX. The name of Australian Stock exchange was changed to Australian Securities Exchange only in December 2006. This stock market trades from 10 in the morning to 4 in the afternoon.

Taxation in Australia can be divided mainly in to two parts, federal taxation and state taxation. The taxes are not uniform all through out the country. The most important of all the taxes are income tax and business tax. Apart from these two taxes there are taxes like Goods and Services tax, Social Security Levy, Municipal tax, excise duties and Capital Gains tax. The main reason behind the phenomenal growth of the Australian economy is its stable government, healthy politics and huge natural resource. The knowledge based industries has evolved as another factor which has contributed to the exceptional growth of this country currently. At least twenty five thousand Information Communication and Technology companies are present in Australia currently.

International trade both export and import has contributed greatly to the development of the economy. http://www.australiaonnet.com/economy-business/economic-system.html SOUTH AFRICA
South Africa is a regular mixed market capitalistic economy system and is the economic powerhouse of Africa, with a gross domestic product (GDP) four times that of its southern African neighbours and comprising around 25% of the entire continent's GDP. The country leads the continent in industrial output (40% of total output) and mineral production (45%) and generates most of Africa's electricity (over 50%). Its major strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism, higher value-added manufacturing and service industries. South African banking regulations rank with the best in the world. The sector has long been rated among the top 10 globally. There are 55 locally controlled banks, 12 foreign-controlled banks and five mutual banks. Some of the world's leading institutions have announced their intention to enter the local banking sector through mergers and acquisitions. The JSE Limited is the 18th largest exchange in the world by market capitalization (some R3.3-trillion as of September 2005). The JSE's rules and their enforcement are based on global best practice, while the JSE's automated trading, settlement, transfer and registration systems are the equal of any in the world.
Four main metropolitan areas dominate economic activity within the country: Johannesburg and its surrounds (Gauteng province), the coastal Durban/Pinetown areas (KwaZulu-Natal), the Cape Peninsula (which includes Cape Town), and the Eastern Cape's Port Elizabeth/Uitenhage area. The financial and industrial sectors are concentrated in Gauteng province, which on its own accounts for over 30% of the country's GDP.
South Africa's economy has been in an upward phase of the business cycle since September 1999 - the longest period of economic expansion in the country's recorded history. During this upswing - from September 1999 through to June 2005 - the annual economic growth rate averaged 3.5%. In the decade prior to 1994, economic growth averaged less than 1% a year. According to the South African Reserve Bank, there is no sign of this period of expansion coming to an end. Gross domestic product (GDP) growth was running at an annualized 4.8% in the second quarter of 2005 (compared to 3.7% in 2004 and 2.8% in 2003). Consumer inflation has been on a downward trend since 2002, when consumer prices increased to an average 9.3% following the September 11 tragedy in New York. Consumer inflation averaged 6.8% in 2003 and 4.3% in 2004 - compared to 9.8% in 1994. At the same time, prudent fiscal management has seen South Africa's budget deficit come down from 5.1% of GDP in 1994 to 2.3% of GDP in 2004. In the first quarter of 2005, this figure fell to 1.6%, with the SA Revenue Service collecting nearly US$3.5-billion more than expected. The source of the revenue windfall was not higher individual or corporate taxes - both have fallen since 1994 - but the performance of the economy, consumer confidence, and a dramatic increase in the number of registered taxpayers, from 2-million in 1994 to more than 5-million in 2004.
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The country leads the continent in industrial output (40% of total output) and mineral production (45%) and generates most of Africa's electricity (over 50%). Its major strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism, higher value-added manufacturing and service industries. South African banking regulations rank with the best in the world. The sector has long been rated among the top 10 globally. There are 55 locally controlled banks, 12 foreign-controlled banks and five mutual banks. Some of the world's leading institutions have announced their intention to enter the local banking sector through mergers and acquisitions.
A decade of comprehensive institutional reform and sound economic management have also been rewarded with solid credit ratings, implying less risk for investors and cutting the cost of capital for the country's public and private sector borrowers. In August 2005, Standard & Poor's raised South Africa's long-term foreign currency credit rating, citing the country's improved economic stability, reduced vulnerability to external shocks, a moderate debt burden, and strong and stable political institutions. The agency upgraded SA's long-term foreign currency sovereign rating from BBB to BBB+ - equal to that of Poland and Thailand, and a notch above Mexico - and the local currency rating from A to A+.

The International Monetary Fund (IMF), in its 2005 annual country assessment, commends South Africa's authorities for the remarkable economic progress achieved since democracy in 1994. "The economy is now growing strongly, inflation has been lowered and has become more predictable, public finances have been strengthened, and the external position has improved markedly," the IMF said. "The expansion in economic activity has created additional jobs. At the same time, the IMF's directors noted that serious economic challenges remain: persistent high unemployment, poverty, large wealth disparities and a high incidence of HIV/Aids. But they came out in support of the SA authorities' approach to these problems, with policies aimed at raising economic growth in a stable economic environment and initiatives to reduce unemployment and improve social conditions. The IMF said this strategy could be bolstered by labour market reforms and further trade liberalisation. Key to overcoming the challenges identified by the IMF will be the economic integration of South Africa's previously disadvantaged majority.
South Africa's economy has a marked duality, with a sophisticated financial and industrial economy having developed alongside an underdeveloped informal economy.
While SA's financial and industrial "first economy" has an established infrastructure and economic base with great potential for further growth and development, its informal "second economy" presents both untapped potential and a developmental challenge for the country. http://www.answers.yahoo.com/question/index?qid=20071130154703AADue0o