Capitalism is a political system that economically allows and promotes individual or private ownership and control of the means of production and distribution of wealth. Simply put, it is a political system in which individuals are allowed to own the major means of production, distribution and exchange. Examples of countries that practice capitalism are the United States of America, Japan, France and Nigeria.

The Characteristics of Capitalism

Capitalism is associated with the following characteristics:

1. Private ownership of the means of production, distribution and exchange.
2. Competition among the various owners of the means of production.
3. It is driven by the profit motive
4. Society is divided into classes
5. Minimal or zero government intervention.
6. It encourages innovation.

The Merits of Capitalism

The following are the merits of capitalism as a system of government:

1. Healthy competition brings out the best in the society
2. Specialization is encouraged as people tend to shift emphasis to areas they are familiar with
3. There is freedom of choice, since there are varieties of goods and services.
4. The growth of industries is enhanced and this further increases employment

The Demerits of Capitalism

The following are the demerits of capitalism:

1. It encourages exploitation of the lower class
2. It leads to unhealthy competition.
3. It decreases democratic values because of the limited government control
4. It widens the gap between the rich and the poor.
5. The ownership and control of the means of production may eventually lead to ownership and control of government.

EVALUATION

1. Define capitalism.
2. State five characteristics of capitalism.
3. Highlight five merits and five demerits of capitalism.

SOCIALISM

1. Meaning of Socialism
2. The Features of Socialism
3. The Merits of Socialism
4. The Demerits of Socialism
5. Comparison of Capitalism and Socialism

Meaning of Socialism

Socialism is a political and economic system in which all or a large part of the means of production and distribution are collectively owned and controlled by the state. Karl Marx a German scholar was the founder of modern socialism. The basic reason why the government has the possession of the wealth of the society is for its redistribution in a way that the gap between the haves and the have-nots (capitalism) would be bridged. The system has been practiced at one time or the other by countries such as the former Soviet Union, Cuba, Poland, China, etc.

The Features of Socialism

The following are the features of socialism:

1. State ownership and control of all or greater part of means of production and distribution.
2. It is democratic in nature because it allows for greater participation of citizens in decision making process as regards production and distribution of goods and services in the country.
3. Labour is not a marketable commodity since all citizens are guaranteed gainful employment so as to ensure full utilization of both human and non-human means of production.
4. Profit making is not the major motive.
5. There is equitable distribution of income.
6. Existence of one-party system.

The Merits of Socialism

The following are the merits or advantages of socialism:

1. It leads to equitable distribution of resources.
2. There is absent of economic rivalry.
3. It bridges the gap between the rich and the poor.
4. There is job security
5. It brings about stability in government.
6. It is democratic in nature.
7. Certain evils of capitalism such as hoarding, discrimination, etc. are not allowed to flourish in a socialist state.

The Demerits of Socialism

The following are the demerits or disadvantages of socialism:

1. It suppresses individual initiatives.
2. It does not encourage faster economic development.
3. Absence of economic competition tends to lower the quality of goods and services produced.
4. It does not encourage specialization.
5. It does not encourage invention.
6. There is no freedom of choice.
7. The existence of one-party makes the government of socialist states to become oppressive and dictatorial.

Comparison of Capitalism and Socialism

EVALUATION

1. Define socialism.
2. Outline 4 features of socialism.
3. State 6 merits of socialism.
4. Highlight 3 demerits of socialism.
5. Differentiate between capitalism and socialism.

OLIGARCHY

CONTENT

1. Definition of Oligarchy
2. Features of Oligarchy
3. Types of Oligarchy

Definition of Oligarchy

Oligarchy can be defined as government by few privileged and powerful people. It is a very selfish type of government because the government is ruling for the interest of the few people in government. Also, oligarchy can be defined as a form of government in which the power to rule and direct the affairs of a society or country is vested in the hands of few people.

Features of Oligarchy

The following are the features of oligarchy:

1. Power is concentrated in the hands of a few rich or influential people.
2. It is a government steered by the minority over the majority.
3. Oligarchy may take various forms such as gerontocracy, autocracy etc.
4. The system favours the rich at the expense of the poor.
5. There is no rule of law.
6. Wealth and nobleness become the main criteria for attaining to political offices

Types of Oligarchy

Oligarchy is manifested in the following systems of government where power and authority resides in a few people:

1. Aristocracy: It is a government ruled by persons of the highest social rank called nobles. It is the rule by the group considered to be the best in terms of intellectual capability. It is often referred to as a rule by the elites in the society.
2. Plutocracy:It is a government ruled or controlled by a few rich and powerful people in the society. The wealthiest class control political power. They include the industrialist, landlords as well as financiers of great business concerns.
3. Military government:This is a form of government under the control of soldiers- Army, Navy and Air force- who seize power from the civilians through force. The military rule by decrees which demand strict obedience.
4. Theocracy:It is a type of government controlled by the priest or religious leaders. In other words it is a form of government believed to have been divinely approved by God. As such obedience to rulers is tantamount to obedience to God.
5. Gerontocracy:It is a government controlled by the aged or old people. Here, age is a major criterion for determining rulers. This is done with the expectation that the aged are experienced, more faithful and accountable.
6. Diarchy:It is a government controlled by two different authorities’ e.g. Civil and military authorities. Nigeria operated this system during Ibrahim Babangida administration between 1991 and 1993
7. Autocracy:This is the absolute rule of a few individuals who consider themselves as the best in the society. Autocrats rule autocratically that is in absolute power.It is a form of government controlled by a dictator or a group wielding absolute power. Examples are fascist government in Italy and Nazist government in Germany.

EVALUATION

1. Define oligarchy.
2. State five (5) features of oligarchy.
3. List and explain five (5) types of oligarchy.

COMMUNISM

1. Definition of Communism
2. Features of Communism
3. The Origin and Development of Communism
4. The Principles of Communism
5. The Relationship between Socialism and Communism