Capitalism and Its Struggle in Developing Countries

The economic freedom is measured on 10 variables: Business Freedom, Trade Freedom, Fiscal Freedom, Government

When one thinks of Capitalism, the first country that comes to mind is the United States of America. (“US”) In fact, the concept of Capitalism is so intertwined with the US’s culture and government that it is part of its strategy of “exporting democracy” to other countries. A classic example was the administration of Ronald Regan. During President Ronald Reagan’s two terms in the 1980’s, he began a policy of deregulation, tax reductions and increased defense spending that helped to accelerate the collapse of the Soviet Union and effectively ended the Cold War. Since then, traditionally Communist countries such as Russia and China have adopted Capitalistic policies as well.

Economic growth is fundamental for sustainable development. It is not possible, for a developing country, to ameliorate the quality of life of its growing population without economic growth. The relationship between government expenditure and economic growth has continued to generate series of debate among scholars. Government performs two functions- protection (and security) and provisions of certain public goods (Abdullah, 2000) and (Al-Yousif, 2000). Protection function consists of the creation of rule of law and enforcement of property rights. This helps to minimize risks of criminality, protect life and property, and the nation from external aggression. Under the provisions of public goods are

One of the most popular economic systems in the world is the capitalistic society. Most countries in Europe, The United States of America, Japan, Canada and a number of other countries in the world use capitalism. Capitalism is based on the free market ideas of people such as Adam Smith. This is why MR. Adam Smith considered the father of modern economics. Capitalism has led to wealth creation in most of the world. In a capitalistic system most of all factors of production and distribution like railroads, stores, land, and factories are owned by individual people and not the government. In capitalism the business people get to decide what the get to produce the government does not tell them what to make. Also how much they are going to make

In contrast, the economy within societies based on tradition lies on procedures designed in the past and maintained by shared customs and beliefs which are extremely powerful (Helibroner 8). For a society based on commands, there is always an imposed authority or an economic command. The economic problems are solved according to the commander’s decisions (Helibroner 10). This is the very first time in human beings’ history that economy is run by markets, making the transformation to market society appear to be unprecedented (Polanyi 43).

There are three main economies in the world today, market economies, traditional economies, and command economies. Comparing these three economies shows the major differences between them. Each one has its own advantages and disadvantages. They all have different ideas about who controls and owns all resources. They all have very good ideas and maybe some areas that need

When we think about capitalism, most of us think of the financial markets of Wall Street, but a couple of hundred years ago when capitalism was in its developing stages, it was different in some ways. Many social and economic changes have influenced the development of capitalism, for example, early capitalism did not allow African Americans to benefit from upward mobility as significantly as their white counterparts. One aspect that they do have in common though is that they both benefit from laborers who are worked in slave-like conditions and paid very little money. This is because slavery played a key role in the rise of capitalism.

With the risk of generalizing, I will give a brief overview of the major economic systems. Capitalism applies a method based on selfishness; it operates under the assumption that if there is no incentive than nothing will be done. Communism’s basis is equality;

People can use economic systems to build empires and destroy civilizations. The society 's featured in the books 1984 by George Orwell and Fahrenheit 451 by Ray Bradbury did just that. Both took advantage of some form of an economic system to achieve their respective goals. Whether it be the command economy of Oceania, or the overly consumerist economy of the dystopian United States, they both employed economics to their benefit. Economics is the science of scarcity. Scarcity is when you have a population with unlimited wants coupled with limited resources. Economics deals with the production, distribution, and consumption of goods and services. An economic system is how a society deals with these factors. The three main questions that an economic system is supposed to answer are what will we produce? how will we produce it? who gets it? Answer these questions and you have an economic system (Hettige). This report will cover the two main economic systems, capitalism and socialism.

Those three economic freedom concepts are corruption freedom, freedom for investing and financial ease of freedom. Looking at Chile’s high levels of efficient operations, monetary freedom and business freedom has improved efficiently as well. Chile is considered worldwide leader in economic freedom. It continues to go by the concept of limited government through public financial management. Through this concept Chile has been successful in keeping its finance debts and deficits under control. Chile has actively participated in Trans-Pacific partnership negotiations and this further shows that it has been steadily committed to its trade and business relations.

The current issues of Capitalism in America is a grave concern to Americans. There is even a declared democratic socialist running for the Democrat nomination right now and garnering a lot of support. Specific issues this candidate is discussing that are facing Americans are issues of income inequality where the top .01 percent makes an average of 27 million per household whereas the bottom 90 percent makes an average of 31,000 a year, free college, and relations with harmful countries. This could all be related to the ideas of Karl Marx in the communist manifesto like a class struggle, or whom should own means of production, or relations with horrid countries.

There are 2 economic systems which are commonly used world-wide. There are: the free market system in which the role for the government is limited and the planned system where the government takes viturally total control. In both of these systmes

For many nations, it is essential to choose a system of organization that successfully and thoroughly meets the needs of all the people. While some countries have supported the idea of communism and strong government intervention in the economy, others have limited the role and power of their governing body in the marketplace. For instance, in the United States, the government has a small role in the planning and monitoring of their economy. Individuals compete heavily against one another to receive the maximum profit for themselves in an sufficient manner. The former USSR, on the other hand, used large amounts of government control to restrict competition and control the output and distribution of the goods

In the last three decades the concept of economic freedom have dominated the economic theories as the best way to economic development, Many economists and politicians believe that economic freedom displays a significantly positive effect on economic growth, while others believe that the increased freedom will have a negative effects on economic growth. In addition, all of the international organizations such as the World Bank and the International Monetary Fund (IMF) encourage developing countries to follow the freedom economic policies. “Basically, the myth is that America has been founded on the free market; the government has done very little; it has thrived under free trade. But actually, if you look at the history, this is actually the country that has succeeded most with protectionist policies” Ha-Joon. Consequently, some countries achieved good results and could improve their economies. However, others became in the terrible situation. This casts some doubts about the economic freedom as the perfect way to improve economic activities.

There have been economic transitions across the world, characterized by various changes in industrialization, trading methods and policies. These changes are normally controlled by political systems. Capitalism is the most common system in the current world economy. As defined by Bhattacharya (2015), capitalism is a political and economic system in which the industry and trade of a country are controlled by private profit oriented owners instead of the state. Prior to revolution of capitalism, pre-capitalist modes of production dominated the economy in most of the world countries. The pre-capitalist modes of production were chattel slavery and feudalism. As argued by Marx (1867), primitive accumulation led to the transformation of pre-capitalist to capitalist modes of production. According to Bhattacharya (2015), there are two types of capitalism. They are liberal and neoliberal capitalism. Liberal capitalism is a type of capitalism in which economic and political policies favor freedom of individuals, governments and non-governmental organizations, social and economic institutions, promoting individual rights and civil liberties, and unrestricted development in all spheres of human endeavor. Neoliberal capitalism is a modified form of liberal capitalism in which the political and economic