No, Switzerland is not a socialist country.
The principal of socialism propagates the equal distribution and ownership of the means of production, distribution, and exchange in the society irrespective of the economic status, race or gender. Socialism is understood differently across the globe; Leftism, Fabianism, Syndicalism, are just some examples of interpretation.
Officially known as the Swiss Confederation, Switzerland consists of 26 cantons. It extends from the south to the north of the Alps, establishing itself as a top-notch tourist attraction. It occupies an area of 15,940 square miles. Despite having very strong social welfare programs, it is still, in essence, a capitalist economy. A capitalist economy is the one that focuses on private ownership of trade and commerce for maximum profits. This system tends to spend less attention on the state while operating.
Retaining its top position in 2017, according to the 2018 Best Countries Report, Switzerland tops the list this year as well.
Switzerland is ranked as the eighth wealthiest country in GDP per capita terms and is one of the most powerful economies in the world. Though the democracy of Switzerland is direct, its economy is not. Direct democracy is that form of democracy where people decide on policy initiatives directly.
“The Best Countries report speaks to the effect a nation’s brand can have on its economic prosperity and perceived standing in the world,” said David Reibstein, professor of marketing at the Wharton School. Switzerland is indebted to its manufacturing sector for the strengthening of its economy. Major leaders of the manufacturing sector consist of; the production of specialist chemicals, health and pharmaceutical goods, scientific and precision measuring instruments and musical instruments. The largest exported goods are chemicals (34% of exported goods), machines/electronics (20.9%), and precision instruments/watches (16.9%). Exported services amount to one-third of exports.
It was during the 1940’s and 50’s that Switzerland developed a powerful modern economy and became a part of General Agreement on Tariffs and Trade (GATT), the international trade organization replaced in 1995 by the World Trade Organization (WTO). It also became a member of the Organization for European Economic Cooperation (1948), the European Free Trade Association (1959), and the Council of Europe (1963).
Following data represents the 2017 economic composition in Switzerland-
- household consumption: 53.7%
- government consumption: 11.5%
- investment in fixed capital: 24%
- investment in inventories: -0.7%
- exports of goods and services: 67.5%
- imports of goods and services: 56%
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