A socialist country is a sovereign state in which everyone in society equally owns the factors of production.
The four factors of production are labor, capital goods, natural resources and entrepreneurship.
In a socialist country, people account for individual needs and social needs. The resources of the country go to both types of needs. Social needs include things like education, healthcare, defense, transportation and the preservation of natural resources, as well as caring for people who can't contribute to production (such as children, the elderly and the disabled).
Everyone in a socialist society receives a share of the production based on his or her needs and most things aren’t bought with money because they are distributed based on needs and not on means. If a person wishes to have more goods it needs to find a way for that to become one of his basic needs.
The most socialist countries in the world include:
- North Korea
A socialist country is vastly different from countries that practice capitalism.