North Korea is practising the command system.
Command system is also known
as socialism and communism where the government answered all the basic questions. Basically,
the government determines what goods should be produced, how much should be
produced and at what price the goods will be offered for sale. The government assumes that they owns the capital, labour and
natural resources. Government will decides what is
good for the economic and the market forces or firm have no control of it.
Because
of that, someone feel that North Korea is notorious for its utter disregard of
basic human rights.
Currently, The North Korean government’s
release is titled, “We will destroy Imjingak, in its entirety,” The North Korea
threatens to kill human rights group just because of attempt to launch
balloons full of supplies from South Korea into North Korea on Saturday.
In my opinion, the advantages of practising command system are more public goods will be provided, high level of savings and capital accumulation, distribution of
wealth is equal and so on. The disadvantages are high cost in planning and no
incentive to innovate.
