- Socialism believes that everything in the society is a collective result of people's effort.
- It means direct control of management of the industries and social services by the workers through a democratic government.
- Profit sharing and who runs the management should be according to people's benefit.
- The ideology of socialism is almost towards equality.
Example Countries: Armenia, Bolivia, Brazil, Germany, Finland, Denmark, Ireland, Italy, France.
- Communism also believes in economic equality but by eliminating private ownership and class system.
- It is completely against Privatization and want a common ownership of all the production and benefits.
Example Countries: China, North Korea, Laos, Afghanistan, Vietnam, Cuba.
There is a mild difference between Socialism and Communism ideologies.
- Socialism have a centralized democratic government and want equality in the society.
- Communism have no centralized government and it abolishes any form of private property to maintain equality.
- An economic system where the country's trade and manufacture are controlled by private owners for profit.
- The government plays a secondary role. It has little or no control over the economic market since almost everything is privatized.
- The production of goods and services are according to the demand in world market, not according to the benefit of own people.
Example Countries: United States, Canada, United Kingdom, Australia, Hong Kong, Singapore.
The main difference between Socialism and Capitalism is the extent of government intervention in the economy.
- Socialism wants a democratic government to take over everything so that there is fairness and equality.
- Capitalism encourages innovation and individual goals and everything is under private owners.