Economic Organization and Economy


This research considers the appropriate form of economic organization for Prosperia, a newly independent country with an agriculturally-based economy. Prosperia is a low-income developing economy according to World Bank (248) criteria, in which 60 percent of the agricultural laEcd is owned by a multinational corporation (MNC) that is based in the country that once colonized Prosperia. Life expectancy and literacy rates are below world means, and free, universal education is not provided. The population is divided along both ethnic and religious lines.

Appropriate Economic Organization: An Analysis

In considering the appropriate economic organization for Prosperia, the Prime Minister will consider the advice offered by three cabinet members. These cabinet members represent diverse political and economic orientations, consistent with the diversity found within the country.

The Advice of the Free Market Capitalist Minister

The advice from the free market capitalist cabinet member was to promote the activities of the MNC that currently controls 60 percent of the country's agricultural land. This minister pointed-out that governments of industrial countries, as well as most international organizations assisting development in such countries as Prosperia, tend to favor the flow of investment funds to "capital-intensive projects undertaken by large firms" (Dooley a



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