Political systems Socialism with market characteristics
Many people have a strong opinion that communism is bad and that it has failed as a system of government. If any matter goes badly wrong, they use the phrase communism to describe it.

I share this conversation with a friend.

Friend - Communism is bad. Tell which which country practiced communism and has succeeded?

Me - China? Vietnam?

Friend - Ah. They only succeeded after they adopted capitalism.

Me - they adopted capitalism at the micro level. China described it as "socialism with market characteristics". At the national level, they practiced socialism in deciding on national policies and in letting the state own the means of production, such as infrastructure, utilities, manufacturing, construction.

Friend - I agree, Even the banks are state owned. They adopt central planning. I do not want the state to tell me what my daughter should be studying.

Me - Central planning failed in the past due to corruption and bureaucracy. We are in a different world today. With the use of big data and technology, we can use central planning to help people to make their optimal choice. Companies adopt corporate planning. At the national level, we need the state to adopt planning, but it has to be effective.

Friend - My daughter wanted to study medicine. The govt (and he is referring to Singapore) said tht they only needed a certain number of doctors, so she does not get a place. Now, many years later, we find that we are short of doctors. This is the bad result of central planning.

Me - You have shown an example of bad planning. A good planning system is responsive. When the demand changes, it should feed back into the planning system and adopt different goals. A planning system cannot be rigid.

He agreed with my point.

Me - Take a look at what happens with an unplanned system. Many young people wants to get a degree. If they cannot enter the local universities, they enroll in foreign universities. Many of these graduates cannot find a job after getting their degree. It is a big waste of resources.

My view is that a country should adopt social policies at the national level, market characteristics at the micro level and have a responsive central planning system.

Tan Kin Lian

Vote - do you agree that socialism with market characteristics is a good system of governing a country?

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