What is the economic system of Burkina Faso? The economy of Burkina Faso is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.
In Burkina Faso, the economy comprises 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.
What do the freedom indexes tell about the economic system of Burkina Faso?
Now, to determine if a country is mostly a market economy or a planned economy, it is useful to examine some economic indexes. For instance, according to the 2022 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Burkina Faso is ranked 100th globally and 13th in Sub-Saharan Africa indicating that the country has a mostly unfree economy.
In a similar way, the 2022 Freedom House index evaluates the state of political rights and civil liberties globally. Generally, market economies tend to align more with democracy and freedom, while command economies tend to be characterized by greater state control and fewer democratic and civil liberty protections. Burkina Faso gets a score of 53/100, which qualifies it as Partly Free. Burkina Faso is considered to have a government that does not control what people do, and people can make their own economic decisions, but it is only considered an electoral democracy, lacking full liberal democratic protections.
What does the biggest company in Burkina Faso say about the country’s economic system?
The biggest company in Burkina Faso should also be looked at, as well as whether it is a state-owned or private company. In this case, SEMAFO Inc. is a private sector company from Burkina Faso. It is not a mixed private-public company, nor is it part of the public sector.
The historical factors that have influenced the economic system of Burkina Faso
The mixed economy system of Burkina Faso in the last century has been shaped by the combination of colonial rule, post-independence economic policies, and global economic forces. A colonial rule introduced a market-based economy, while post-independence policies focused on state control of the economy and increased investment in infrastructure and education. Global economic forces have also had an impact, with globalization increasing trade and foreign investment, as well as access to capital. The result is a mixed economy in which the state plays an important role, but private enterprise also has a significant presence.