Communism And Capitalism Analysis

Decent Essays

The fall of the Soviet following the victory of capitalism over the Cold War brought an end to the era of legitimized communist government. Although there were states remaining in communist ideologies these states found themselves converting to a more capitalistic society to completely cutting themselves off from the world, as seen with North Korea.

The cold war was more than just a fight between two countries it was a war on ideologies. Like the space race, the cold war was a race to see who can globalize the fastest and the most efficiently. Communism and Capitalism, the only contenders, never fought one another directly, but instead participated in proxy wars, by supplying various nations with support. The end of USSR was the end of the …show more content…

Hong Kong, one of the Four Asian Tigers, is a prime example of how a place under communist ruling could adapt to the free market, by implementing export oriented policies along with strong developmental policies. This was unique in that it allowed for rapid growth while keeping an equal income distribution. Unlike Russia the people of Hong Kong were urged through incentives to invest in the market allowing the economy to grow. This was a flaw within the USSR, it lacked the ability to incentive its people to invest within the market. The personal incentives for workers to go above and beyond in their jobs was too weak. Workers knew that they would be paid regardless of the work that they put forth. This created an immense amount of stagnation, and did not allow them to grow. Hong Kong’s rapid industrialization allowed them to develop into a more sophisticated society, able to keep up with the free …show more content…

North Korea is a prime example of this occurrence. After the Japanese surrender of World War II the United States occupied South Korea, while the USSR occupied the Northern Portion. North Korea became a puppet communist government under the USSR. After the collapse of the USSR North Korea isolated themselves from the world choosing to stay communist. This isolation from the markets transformed North Korea into a communist dictatorship. Those who live within North Korea are impoverished. The lack of supplies and industry has been detrimental to their growth. Communism with the context of North Korea and the USSR paints a failing picture pertaining to the ideals of a communist government. This form of government is unable to sustain growth within the open

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