Intoduction

Economic system or economic order is a set up according to which societies and government organizes means of production, resource allocation and distribution of goods and services to the society or a given geographical area.

Indian economic system is an example of the mixed economic system.

Economic System of the world

Economic system of the world can be broadly classified into the following 3 categories:

1. Capitalistic Economic System
2. Socialistic Economic System
3. Mixed Economic System

Capitalistic Economic System

Capitalist Economic System is also known as Laissez-faire, means leave me alone. (Name given by Merchandise class).

• It is also called Marketed Economic System.
• In this system, the Means of Productions are owned by Private individuals.
• Market Forces (i.e., Demand and Supply) play vital role.
• Consumer is in powerful condition (King Like condition) in this system.
• Democracy is Stronger under this system.

Criticism

• Centralization of Capital
• Possibility of negligence of Public Welfare
• Possibility of Class – Conflict between industries and labourers as their interests are different.
• Sometimes Inflation, Unemployment and Recession like macro-Economic challenges become serious.

Socialistic Economic System

Under Socialist Economic system, Means of Production, distribution and price determination is controlled by the Government.

• This system is based upon the ideology of Social-Justice and Equality.
• Since the system is too much controlled therefore it is not much popular and is adopted by very few countries of the world. i.e., China, Cuba, North Korea, etc.

Mixed Economic System

In Mixed-Economic system, both Public Sector and Private Sector run side by side.

• Generally Public Welfare production activity is controlled by the Government (i.e., Education, Health, etc) while the production of Consumer Goods is handed to Private Sector.

Indian economic system is divided into 2 phases –

1. 1948 – 1990
2. 1990 to till now

During first phase Government policies were oriented towards Socialistic views because Government was concerned about Centralisation of Capital, therefore strict rules and regulations were adopted.

The year 1990 was the year of Economic Crisis for India, that took place for the first time after Independence and it was the crisis of foreign currency (i.e., Balance of Payment (BOP) crisis)

In order to control the situation, in 1991 comprehensive economic reforms were started, which was popularly known as LPG reforms. (Liberalisation, Privatization, Globalisation) and it is still going on.

As a result the element of market become dominant in Indian Economy and Mixed Economic system has been somewhat changed and it could be better expressed as – ‘Market Oriented-Planned Mixed’ economic system.

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About 200 years ago, when industry was revolutionized and new inventions and developments were made, it brought a drastic change in the economic and political world. People who owned the industries or who were wealthy started to become wealthier day by day whereas the workers and poor started getting poorer day by day. That was the time, when a new concept, Socialismwas emerged and as the name itself suggests, it aimed at achieving equality for all of the society. This concept advocated the distribution of means of production among everyone and talked about an egalitarian society.

Definition- Socialism may be considered as a political philosophy which says that all people in a society share equal status and they shall be given equitable ownership of the means of production in the state. It is an ideology preferring shared ownership of resources over individual ownership and it believes in the collective development of society.

Types of Socialism- Socialism has been given dozens of names over the past few years, however only few of them remain to be remarkable-

• Utopian Socialism- This was the kind of Socialism that was presented before any other type of Socialism in front of the world. This type is based on a presumption that if the wealthiest agree to renounce their wealth to distribute among the poor, world will achieve the best version of Socialism. However, this is not practically possible to achieve, therefore it is coined as Utopian Socialism.
• Democratic Socialism- Democratic Socialism believes that the socialism must be achieved democratically. In simple words, it states that the means of production and economical resources should be managed by the government elected by people.
• Market socialism- This socialism advocates that the means of production must be managed by market forces instead of the government and their allocation must be done among the market itself.
• Revolutionary socialism- It says that Socialism can only be achieved after revolution. This socialism refuses to believe that equality can be achieved peacefully.
• Green Socialism- This kind of Socialism strives to protect green resources and advocates preservation of natural resources.

Advantages of Socialism- Socialism tends to benefit society in a very vast perspective. Major advantages are listed below-

1. A Society Free of Exploitation- When we talk about Socialism, we talk about distribution of resources among the society. The system of Socialism ensures that no one in the society is exploited and everyone gets a chance to speak in the economical matters. Everyone who has the portion of resources, benefits from it, therefore it helps in creating a welfare society.
2. Economic Growth- Socialism helps in rapid economic growth and economic stability in the country. The concept is to give collective growth to everyone in the society so that no one remains untouched of the wealth. Socialists divide the resources among everyone; it helps to bring stability in the economy.
3. Trustworthy- This kind of economical and political system is trustworthy because everyone participates in the decision making and it has a transparency. People tend to believe that they are getting equal say in the matters of importance and they feel motivated.

Disadvantages of Socialism- Every coin has two sides; similarly, Socialism also has some advantages with some disadvantages.

1. No Economic Freedom- The idea of Socialism depends upon a cooperative pooling of resources by many people. Now, the fact remains that people in a society feel competitiveness in respect to others; therefore, sometimes it is different for those people to show cooperativeness.
2. Lack of Recognition- When a society achieves something collectively, the credit goes to everyone collectively. The people, who contribute more than others are not given their due amount of recognition which somehow demotivates those people.
3. Lack of Authenticity- Socialism, as told before, distributes the resources among everyone. But sometimes, there are people who have negative intentions or there are people who are not so authentic in their functions, it strives lack of authenticity.

Socialism in India

In India, after Independence the makers of the constitutionchoose a socialist society model over the capitalist society model. Because India had recently gained independence from the capitalist colonialism. Also, India was extremely poverty ridden. Thus, for the welfare of the masses, the socialism was chosen.

The Constitution of India included the Directive Principles of State Policy to show the direction in which to governments to come had to work. It pointed towards the welfare socialism.

However, due to license raj and depleting forex reserves, the policy of socialism could not survive for long. And in 1991, the policy of Liberalisation Globalisation and Privatisation was adopted.

Since then, Indian governmenthas adopted a mix of socialism and capitalism. For example, there are government hospitals but there are private hospitals as well. Both work in tandem.

Conclusion

Socialism came in response to the bad repercussions of the capitalism. However, in modern times, it is seen that countries that adopted socialism faced stagnation in economy some years later. Thus, there is no single remedy for the complex nature of the society. Instead, the governments should make use of every possible theory for the welfare of the masses, especially the poorest of poor.

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About IBPS RRB Exam

The IBPS conducts Common Recruitment Process (CRP for RRBs - VIII) for eligible candidates, who aspires to join any of the Regional Rural Banks listed at (A) as Group "A”- Officers (Scale-I, II & III)and Group "B”- Office Assistant (Multipurpose). The posts covered under IBPS RRB Exam are given below:

• Officer Scale – I
• Banking Officer Scale – II
• Agriculture Officer (Grade - II)
• Law Officer (Grade - II)
• Chartered Accountant (Grade - II)
• Officer (Grade - III)
• IT Officer (Grade - II)

The exam of IBPS RRB is conducted every year to recruit candidates for various posts in Regional Rural Banks spread across the country.

Eligibility for IBPS RRB exam

A candidate must be either:

• A Citizen of India or
• A subject of Nepal or
• A subject of Bhutan or
• A Tibetan Refugee who came over to India before 1^st January 1962 with the intention of permanently settling in India or
• A person of Indian origin who has migrated from Pakistan, Burma, Sri Lanka, East African countries of Kenya, Uganda, the United Republic of Tanzania (formerly Tanganyika and Zanzibar), Zambia, Malawi, Zaire, Ethiopia and Vietnam with the intention of permanently settling in India,

Provided that a candidate belonging to categories 2, 3, 4 and 5 shall be a person n whose favour a certificate of eligibility has been issued by the Government of India.

IBPS RRB Exam Pattern

Under IBPS RRB Exam, for the posts of Officers Scale-I and Office Assistant (Multi-purpose)the Online Examination is held in two phases:

• Preliminary Examination
• Main Examination
• Interview (Only for Officers Scale-I)

For the post of Scale II (Generalist and Specialists) and Scale III,

• Single Online Examination
• Common Interview

The scheme of IBPS PO exam is: Preliminary Examination and Main Examination

Important things to Remember

• Candidates can opt either 4a or 4b.
• There is penalty of one fourth of marks assigned to that question for every wrong answer marked.
• The score obtained by candidates will be normalized.
• For the post of Office Assistant (Multipurpose) marks obtained in the Main Examination will be considered for the final merit listing.
• For the post of Officers Scale-I marks obtained in the Main Examination will be considered for Interview & final merit listing.
• Total marks for Interview: 100
• The relative weightage (ratio) of Online Examination and Interview will be 80:20 respectively for the Officers cadre.

Syllabus for the IBPS RRB Exam

Quantitative Aptitude for IBPS RRB Exam

• Simplification
• Average
• Ratio and Percentage
• Mixture & Alligation
• Profit & Loss
• Simple and Compound Interest
• Partnership
• Mensuration
• Geometry
• Number System
• Quadratic Equations
• Permutation & Combination
• Probability

General Awareness for IBPS RRB Exam

• Current Events
• Indian Economy
• Banking Awareness
• Financial Awareness
• RBI
• Books & Authors
• Sports
• Agriculture
• History of Banking
• Awards and Honours
• Indian History
• Indian Culture
• Indian Geography

Reasoning Aptitude for IBPS RRB Exam

• Verbal and Non- Verbal Reasoning
• Syllogism
• Seating Arrangement
• Directions
• Ordering and Ranking
• Data Sufficiency
• Blood Relations

Computer Aptitude for IBPS RRB Exam

• Internet
• Memory
• Keyboard Shortcuts
• Computer Abbreviation
• Microsoft Office
• Computer Hardware
• Operating System
• Computer Terminologies

English Language for IBPS RRB Exam

• Reading Comprehension
• Vocabulary
• Verbal Awareness
• Cloze test
• Error Correction

Hindi Language for IBPS RRB Exam

• Grammar
• Spelling Checks
• Fill in the Blanks
• Reading Comprehension

Remember that you would clear a government exam only when you know everything related to its syllabus pattern and requirements and no coaching institute can help you in that. You don’t need to join a coaching institute for the preparation, but you must definitely take a test series or mock series so that you are in charge of your preparation. And you will be able to know that whether you need to improve in any subject or are you going well. There are many free online learning sites that provide good quality questions to solve.

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