Table of Contents
Capitalism Socialism Communism Fascism
The various –isms are social, political, economic and philosophical ideologies that
have defined the modern world
Important to understand world history and contemporary politics
CAPITALISM
Capitalism is a social and economic system based on private ownership of the means of production and free market system of trade-their operation is for profit Means of production- Farm-land, Factory any other resource
CHARECTERISTICS
Private ownership
Wage labour
Capital generation
Competition
Origins
Breakdown of serfdom and feudal systems in England led to development of free markets and capitalism
Now labour was paid wages
Surplus produce from farms – markets/trade
Better product- more money – innovations
Industrial Capitalism
Advent of Industrial revolution in mid 18th century led to development of mainly two classes in
society
Capitalists – owners of means of production
Workers/Labour
Clerks/engineers – small middle class
Consequences
Horrific conditions of workers-housing ,health
Income inequality
Child labour
Hunger
Population increase
Rapid Urbanization
Pollution
While Capitalism has also led to this
Adam smith
1776- The Wealth of Nations
‘’Supply and Demand’’
Who is he?
• State intervention in economy
• Cycles of boom and bust
• Fiscal and monetary policies
• Influenced the Bretton woods system
SOCIALISM
• An Umbrella term – a number of variations
• Population collectively owns and controls means of production. The distribution of results is proportional.
• Welfare state
• It emphasises on providing same set of opportunities despite coming from different class-rich or poor.
• Ex: College education in Nordic countries vs. College in USA
• Socialism began in mid 19th century (1830- 1860) when many thinkers described a state of ‘Utopia’ – ideal society.
• From socialist thought arose communism. Socialist principles also mixed with capitalist elements in modern nation states.
COMMUNISM
Social, economic and political system which aims to establish a communist society – where means of production are owned by the people and not any group/class
Characteristics
• Classless and division less society
• No state or government
• No money based economy
MARXISM
Karl Marx (1818-1883)
The Godfather of Communism/Marxism
Fredrick Engels and Karl Marx developed the philosophy with their works.
Highlights of Marxism
Class – Proletariat- Workers Bourgeoisie – Capitalist/owners
Conflict and class struggle
Revolution
No money or concept of private ownership
Capitalism –Socialism– Communism
The Russian Rev. & Leninism
The philosophy of Marx was brought to life by the Russian revolution of 1917 under the leadership of Vladimir Lenin
He propagated the idea of a vanguard party to establish a communist state via socialism .
Party system – leader of the people/workers
‘’Dictatorship of the proletariat’’
Practical ideology ,not utopian
• Nationalisation- State ownership of property State capitalism
• Socialisation- Ownership by people (idealist)
Downfall of Communism/USSR
Great vigour and success initially
In practical implementation it could not succeed in the long run.
No incentives to work harder
No innovations
Collectivization and state ownership led to low morale of farmers and workers
Variations of Communism
- *Communism is part of Socialism but not vice versa
- Broadly two types of communism
- 1.Orthodox
Marxism
Leninism – USSR
Marxism Leninism – Cuba , CPI ML (India)
Maoism – PRC ,Laos, Vietnam - 2.Social Democracy (mix of capitalism and socialism) France Sweden Norway and many other countries
The single party communist states today People’s Republic of China – Maoism (peasant
revolution)
Cuba –
Laos
Vietnam
North Korea – Juche (Self reliance)
The boundaries are blurred
No Country is purely socialist/communist/capitalist
USA – Medicaid ,social security
USSR- huge development of industry – capital generation
Russia – Very poor socialist welfare schemes
China – Partially a free market
India – State control of heavy Industries, Planning
Nordic – heavy Social welfare + free market enterprise
FASCISM
NAZI -National Socialist German workers party National Fascist Party – Italy Argentina Spain
Main Characteristics
- Believed that egalitarian democracy will lead to crises
- One party dictatorship
- Total control of state and people –TOTALITARIANISM
- Strong society – no weakness
- Use of Violence to remove weak links
- Cultural purity – one group and one race – NATIONALISM
Economically –
No Marxism No Capitalism
Unions Volkswagen(for state)
Self reliance
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By Dr. Mahipal Singh Rathore
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