What is the economic system of Bermuda? The economy of Bermuda is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.
In Bermuda, the economy is composed of a private sector, consisting of individuals and businesses that make autonomous decisions based on self-interest, and a public sector, where the state determines the production and distribution of certain goods and services. No country is purely capitalist or purely communist.
The Link Between Public Sector Employment and the Economic System of Bermuda
An indicator of the extent to which the State is involved in the economy is the number of public sector employees. In Bermuda, according to ILOSTAT, the number of public sector employees as a percentage of the total workforce is 12.1% (2012). In the country’s mixed economy, the number of public sector employees as a percentage of the total workforce varies based on the specific policies and practices adopted by the State. Some economic activities are left to the private sector while others are under government control. The bigger the public sector the closer is the economy to being a command economy.
What does the biggest company in Bermuda say about the country’s economic system?
The biggest company in Bermuda should also be looked at, as well as whether it is a state-owned or private company. In this case, Marvell Technology Group is a mixed private-public company from Bermuda. It is owned by both private and public shareholders, allowing it to benefit from the advantages of both sectors.
The historical factors that have influenced the economic system of Bermuda
The mixed economy of Bermuda in the last century was caused by a combination of factors, including increased global trade, the development of new technologies and industries, and the growth of the tourism industry. These factors combined to create a more open and competitive economy that allowed for greater economic freedom and opportunity. This has allowed Bermuda to benefit from increased foreign investment, increased employment opportunities, and a more diversified economy.