First I want to differentiate between the government system ( monarchy , dictatorship, democracy( with its variations)) and the economic system.
For the economic system, I only want to consider two :
- Capitalism - where the means of production are in the hands of private firms who retain the profits.
- Socialism - where the means of production are owned collectively and ( at least in theory) the profits are distributed among the population.
No country has 100% of its activities in the hands of private firms as a bare minimum government has to carry out some activities to sustain the three powers ( or single power in the case of capitalist dictatorships). And to maintain the rule of law.
Indeed, most countries are considered to be mixed economies
In most countries, other activities are also carried out by public institutions: education, firefighters ,postal services. It is also common to have part of the highways and railway systems as well as water reservoirs managed by public institutions.
Some countries go further and have financial institutions, oil production and electricity production and distribution within the public sector. In most European countries the healthcare sector is managed by the state.
At what point can a country be called socialist? Can this be expressed as a percent of GDP ( e.g when more than 40% of the GDP is in the hands of the public sector) or as a set of sectors that must remain in private hands?
For the economic system, I only want to consider two :
- Capitalism - where the means of production are in the hands of private firms who retain the profits.
- Socialism - where the means of production are owned collectively and ( at least in theory) the profits are distributed among the population.
No country has 100% of its activities in the hands of private firms as a bare minimum government has to carry out some activities to sustain the three powers ( or single power in the case of capitalist dictatorships). And to maintain the rule of law.
Indeed, most countries are considered to be mixed economies
Mixed Economic System: Characteristics, Examples, Pros & Cons
A mixed economic system is one that features characteristics of both capitalism and socialism.
www.investopedia.com
Some countries go further and have financial institutions, oil production and electricity production and distribution within the public sector. In most European countries the healthcare sector is managed by the state.
At what point can a country be called socialist? Can this be expressed as a percent of GDP ( e.g when more than 40% of the GDP is in the hands of the public sector) or as a set of sectors that must remain in private hands?