During the Cold War, the capitalist country of the United States of America opposed the socialist state of the USSR. The confrontation between the two ideologies and the economic systems built on their basis developed during the years of conflict. The collapse of the USSR marked not only the end of an era, but also the collapse of the socialist model of the economy. The Soviet republics, now formerly capitalist countries, albeit not in their pure form.
Scientific term and concept.
Capitalism is an economic system based on private ownership of the means of production and their use for profit. The state in this situation does not distribute goods and does not set prices for them. But this is an ideal case.
The USA is a leading capitalist country. However, even she has not applied this concept in its pure form in practice since the Great Depression of the 1930s, when only harsh Keynesianism measures allowed the economy to start after the crisis. Most modern states do not trust their development solely with the laws of the market, but use strategic and tactical planning tools. However, from this they do not cease to be capitalist in nature.
Transformation Background
The economy of the capitalist countries is built on the same principles, but each of them has its own characteristics. The degree of market regulation, measures of social policy, obstacles to free competition, and the share of private ownership of factors of production vary from one state to another. Therefore, there are several models of capitalism.
However, one must understand that each of them is an economic abstraction. Each capitalist country is individual, and features change over time. Therefore, it is important to consider not just the British model, but the variety, which, for example, was characteristic of the period between the First and Second World Wars.
Stages of formation
The transition from feudalism to capitalism in Western countries took several centuries. Most likely, it would have lasted even longer if not for the bourgeois revolution. So the first capitalist country appeared - Holland. There was a revolution during the war of independence. We can say so, since after the liberation of the Spanish crown from oppression, the country was headed not by the feudal nobility, but by the urban proletariat and the commercial bourgeoisie.
The transformation of Holland into a capitalist country significantly stimulated its development. The first financial exchange opens here. For Holland, it was the 18th century that became the zenith of its power, the economic model left behind the feudal economies of European states.
However, capital outflows to England soon begin, where a bourgeois revolution is also taking place. But there a completely different model is used. Instead of trading, the emphasis is on industrial capitalism. However, most of Europe remains feudal.
The third country where capitalism wins is the United States of America. But only the Great French Revolution finally destroyed the existing tradition of European feudalism.
Fundamental features
The development of capitalist countries is the story of making more profit. How it is distributed is another matter entirely. If the capitalist state manages to increase its gross product, then it can be called successful.
The following distinguishing features of this economic system can be distinguished:
- The basis of the economy is the production of goods and services, as well as other types of commercial activities. The exchange of labor products does not occur under duress, but in free markets where competition laws apply.
- Private ownership of the means of production. The profit belongs to their owners and can be used at their discretion.
- The source of vital goods is labor. Moreover, no one forces anyone to work. Residents of capitalist countries work for a monetary reward with which they can satisfy their needs.
- Legal equality and freedom of enterprise.
Varieties of capitalism
Practice always makes adjustments to theory. The nature of the capitalist economy varies from one country to another. This is due to the ratio of private and state ownership, the volume of public consumption, the presence of factors of production and raw materials. The imprint is left by the customs of the population, religion, the legislative framework and environmental conditions.
Four types of capitalism can be distinguished:
- Civilized is characteristic of most countries of Western Europe and the United States.
- The birthplace of oligarchic capitalism is Latin America, Africa and Asia.
- Mafia (clan) is characteristic of most countries of the socialist camp.
- Capitalism mixed with feudal relations is common in Muslim countries.
Civilized capitalism
It should be noted right away that this variety is a kind of standard. Historically, just civilized capitalism appeared first. A characteristic feature of this model is the widespread adoption of the latest technology and the creation of a comprehensive legislative framework. The economic development of the capitalist countries that adhere to this model is the most sustainable and planned. Civilized capitalism is characteristic of the states of Western Europe, the USA, Canada, New Zealand, Australia, South Korea, Taiwan, and Turkey.
It is interesting that China introduced precisely this model, but under the clear leadership of the Communist Party. A distinctive feature of civilized capitalism in the Scandinavian countries is a high degree of social protection of citizens.
Oligarchic variety
The countries of Latin America, Africa and Asia seek to inherit the example of developed countries. However, in reality it turns out that several dozen oligarchs own the capital. And the latter do not at all strive to introduce new technologies and create a comprehensive legislative framework. They are only interested in their own enrichment. However, the process is gradually going on, and oligarchic capitalism is gradually beginning to transform into civilized. However, this takes time.
The development of capitalism in post-Soviet countries
After the collapse of the USSR, now free republics began to build the economy according to their own understanding. Society needed a deep transformation. After the collapse of the socialist system, everything had to be started anew. Post-Soviet countries began their formation from the first stage - wild capitalism.
In Soviet times, all property was in the hands of states. Now it was necessary to create a class of capitalists. During this period, criminal and criminal groups began to form, the leaders of which would later be called oligarchs. Using bribes and political pressure, they seized a huge amount of property. Therefore, the process of capitalization in post-Soviet countries was characterized by inconsistency and anarchy. After a while, this stage will end, the legislative framework will become comprehensive. Then it will be possible to say that clan capitalism has grown into civilized.
