The first capitalist country. former capitalist countries. Economic development of capitalist countries

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

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 resulted in years of conflict. The collapse of the USSR marked not only the end of an entire era, but also the collapse of the socialist model of the economy. Soviet republics, now former ones, are 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 the ideal case.

USA is the leading capitalist country. However, even she does not apply thisconcept in its purest form in practice since the Great Depression of the 1930s, when only tough Keynesian measures allowed the economy to start up after the crisis. Most modern states do not trust their development solely to the laws of the market, but use the tools of strategic and tactical planning. However, this does not stop them from being capitalist in essence.

Prerequisites for transformation

The economy of the capitalist countries is built on the same principles, but each of them has its own characteristics. From one state to another, the degree of market regulation, social policy measures, obstacles to free competition, and the share of private ownership of factors of production vary. Therefore, there are several models of capitalism.

However, you need to understand that each of them is an economic abstraction. Each capitalist country is individual, and features change even with the passage of time. Therefore, it is important to consider not just the British model, but a variation that, 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. This is how the first capitalist country, Holland, appeared. A revolution took place here during the War of Independence. We can say so, because after the liberation from the yoke of the Spanish crown in the country duringthe head was not the feudal nobility, but the urban proletariat and the merchant bourgeoisie.

The transformation of Holland into a capitalist country greatly stimulated its development. The first financial exchange opens here. For Holland, it is the 18th century that becomes the zenith of its power, the economic model leaves behind the feudal economies of European states.

However, capital outflow to England soon begins, where the bourgeois revolution is also taking place. But there is a completely different model. Instead of trade, the emphasis is on industrial capitalism. However, much 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 established tradition of European feudalism.

Fundamental features

The development of capitalist countries is a story of getting more profit. How it is distributed is a completely different question. If a capitalist state manages to increase its gross product, then it can be called successful.

The following distinctive 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 products of labor does not take place under compulsion, but in free markets where the laws of competition operate.
• Private ownership of the means of production. Profits belong to their owners and can be used according to theirdiscretion.
• The source of life's blessings is work. And no one is forcing 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 character of the capitalist economy differs from one country to another. This is due to the ratio of private and state property, the volume of public consumption, the availability of production factors and raw materials. The customs of the population, religion, legal framework and natural conditions leave their mark.

Four varieties of capitalism can be distinguished:

• Civilized is typical for most countries of Western Europe and the USA.
• The birthplace of oligarchic capitalism is Latin America, Africa and Asia.
• Mafia (clan) is typical for most countries of the socialist camp.
• Capitalism with an admixture of 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 introduction of the latest technologies and the creation of a comprehensive legislative framework. Economic developmentcapitalist countries that adhere to this model is the most stable and systematic. Civilized capitalism is characteristic of the states of Western Europe, the USA, Canada, New Zealand, Australia, South Korea, Taiwan, Turkey.

Interestingly, China implemented this particular model, but under the clear leadership of the Communist Party. A distinctive feature of civilized capitalism in the Scandinavian countries is the high degree of social security of citizens.

Oligarchic variety

The countries of Latin America, Africa and Asia are striving to follow the example of developed countries. However, in reality, it turns out that several dozen oligarchs own their capital. And the latter do not at all strive for the introduction of new technologies and the creation of a comprehensive legislative framework. They are only interested in their own enrichment. However, the process is still going on gradually, and oligarchic capitalism is gradually beginning to transform into civilized capitalism. However, this takes time.

The development of capitalism in post-Soviet countries

After the collapse of the USSR, the now free republics began to build the economy according to their understanding. The society needed deep transformations. After the collapse of the socialist system, everything had to be started anew. The post-Soviet countries began their formation from the first stage - wild capitalism.

During the Soviet era, all property was in the hands of the states. Now it was necessary to create a class of capitalists. In this periodcriminal and criminal groups begin to form, the leaders of which will then be called oligarchs. With the help of bribes and exerting political pressure, they took possession of a huge amount of property. Therefore, the process of capitalization in the post-Soviet countries was characterized by inconsistency and anarchy. After some time, this stage will end, the legislative framework will become comprehensive. Then it will be possible to say that crony capitalism has grown into civilized capitalism.

In Muslim society

A characteristic feature of this variety of capitalism is to maintain a high standard of living for the citizens of the state through the sale of natural resources, such as oil. Only the extractive industry receives wide development, everything else is purchased in Europe, the USA and other countries. Industrial relations in Muslim countries are often built not on objective economic laws, but on the commandments of Sharia.