Differentiate between the capitalist and the socialist models of development.

there are two models of development :

a. Socialist model: in this model of development the government is the key player in development. In this model, the goods are produced as per the need of the society. The government here itself assumes the needs of the people. the government decides how and where the goods are to be produced. In this model, there is no private property.

b. Capitalist model: in this model of development, the goods are produced not as per the need of the society but as per the purchasing capacity of the people. Here private companies are the key players.