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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lling structure in Prosperia is feudal in character. Huge plantations continue to exist, and most attempts at meaningful land reform is met by resistance from the land owners. The minister argued further that the structuralist model of economic development attributes under development to structural deficiencies in a country's economy (Gudeman 121). These structural deficiencies are most often defined in the contexts of the need for land reform, problems associated with single-crop or single-resource economies, and problems associated with an excessive concentration of wealth and income within a country. The minister also cited dependency theory, which relies on an analysis of peripheral development within an international capitalist economic order (Wallerstein 101). The general dependency model holds that underdeveloped countries are controlled economically by developed countries. The general model further holds that under development is not an original state, contemporary under development resulted from the economic imperialism of developed countries, the economic surplus in developing countries is drained to developed countries, and multinational business activity is the means of perpetuating dependency. The Prime Ministe
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Approximate Word count = 2077
Approximate Pages = 8 (250 words per page)

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