Capitalism is an economic system which is used in the world currently. It tells that all the means of production and distribution and industry are owned by privately owned and all the decisions regarding the economics is made by the market owners rather than government. The period between the 16th and 18th century is described as mercantilism. Some scholars regard mercantilism as the early stages of capitalism but according to Polanyi Capitalism as a social system was established in 1984 when a competitive labor market was established in England. However, this term is an Enlightenment European term used to describe European practices; so the term "capitalism" means more than just a body of social practices easily applied across geographical and historical distances, it is also a "way of thinking," and as a way of thinking does not necessarily apply to earlier European origins of capitalism or to capitalism as practiced in other cultures. In modern world, Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned. Under capitalism the state is separated from economics (production and trade), just like the state is separated from religion. Capitalism is the system of of laissez faire. It is the system of political freedom. Capitalism as a way of thinking is fundamentally individualistic, that is, that the individual is the center of capitalist endeavor. This idea draws on all the Enlightenment concepts of individuality: that all individuals are different, that society is composed of individuals who pursue their own interests, that individuals should be free to pursue their own interests (this, in capitalism, is called "economic freedom"), and that, in a democratic sense, individuals pursuing their own interests will guarantee the interests of society as a whole. Capitalism as a way of thinking is fundamentally based on the Enlightenment idea of progress; the large-scale social goal of unregulated capitalism is to produce wealth, that is, to make the national economy wealthier and more affluent than it normally would be. Therefore, in a concept derived whole-cloth from the idea of progress, the entire structure of capitalism as a way of thinking is built on the idea of "economic growth." This economic growth has no prescribed end; the purpose is for nations to grow steadily wealthier. Notable critics of capitalism have included: socialists, anarchists, communists, technocrats, some types of conservatives, Luddites, Narodniks, Shakers and some types of nationalists. Marxists advocated a revolutionary overthrow of capitalism that would lead to socialism, before eventually transforming into communism. Marxism influenced social democratic and labour parties, as well as some moderate democratic socialists. Many aspects of capitalism have come under attack from the anti-globalization movement, which is primarily opposed to corporate capitalism. Many religions have criticized or opposed specific elements of capitalism. Traditional Judaism, Christianity, and Islam forbid lending money at interest, although methods of banking have been developed in all three cases, and adherents to all three religions are allowed to lend to those outside of their religion. Christianity has been a source of praise for capitalism, as well as criticism of it, particularly for its materialist aspects. Indian philosopher P.R. Sarkar, founder of the Ananda Marga movement, developed the Law of Social Cycle to identify the problems of capitalism Critics argue that capitalism is associated with the unfair distribution of wealth and power; a tendency toward market monopoly or oligopoly (and government by oligarchy); imperialism, counter-revolutionary wars and various forms of economic and cultural exploitation; repression of workers and trade unionists, and phenomena such as social alienation, economic inequality, unemployment, and economic instability. Capitalism is regarded by many socialists to be irrational in that production and the direction of the economy are unplanned, creating many inconsistencies and internal contradictions.

freedom of political expression. Italy. religious and economic circumstances. and Asia turned to strong-man rule or dictatorships. and most of the countries of Europe. and freedom of the press are essential so that citizens are informed and able to vote in their personal interests. revolutions. Cuba. but the Great Depression brought disenchantment. as well as nondemocratic regimes in the Baltics. The term comes from the Greek: δημοκρατία – (dēmokratía) "rule of the people". then a branch of the system of rule could accumulate power thus become undemocratic. . The philosopher Plato contrasted democracy. with the alternative systems of monarchy (rule by one individual). Spain and Portugal. some of which provide better representation and more freedoms for their citizens than others. Italy. but without governmental or constitutional protections of individual liberties. The successful democratization of the American. Even though there is no specific. such as the separation of powers. 20th century transitions to liberal democracy have come in successive "waves of democracy. However. decolonization. and Japan. and secondarily the assembly of all the citizens. Latin America. in the middle of the fifth-fourth century BC to denote the political systems then existing in some Greek city-states. Brazil. every vote has equal weight.which was coined from (dêmos) "people" and (Kratos) "power". and the freedom of its citizens is secured by legitimized rights and liberties which are generally protected by a constitution. originally it had two distinguishing features: first the allotment (selection by lot) of ordinary citizens to government offices and courts. and French sectors of occupied Germany (disputed). in a representative democracy. freedom of speech. Austria. British. An essential process in representative democracies is competitive elections that are fair both substantively and procedurally. The "majority rule" is often described as a characteristic feature of democracy. Fascism and dictatorships flourished in Nazi Germany. Furthermore. and the occupied Japan served as a model for the later theory of regime change. World War I and the dissolution of the Ottoman and Austro-Hungarian empires resulted in the creation of new nation-states from Europe. For example." variously resulting from wars. most of them at least nominally democratic.Democracy: Democracy is a political form of government in which governing power is derived from the people. These principles are reflected in all citizens being equal before the law and having equal access to power. if any democracy is not carefully legislated – through the use of balances – to avoid an uneven distribution of political power. the Balkans. among others. notably Athens following a popular uprising in 508 BC. the system of "rule by the governed". In the 1920s democracy flourished. either by direct referendum (direct democracy) or by means of elected representatives of the people (representative democracy). There are several varieties of democracy. no restrictions can apply to anyone wanting to become a representative. China. The term democracy first appeared in ancient Greek political and philosophical thought. it is possible for a minority of individuals to be oppressed by the "tyranny of the majority". universally accepted definition of 'democracy'. oligarchy (rule by a small élite class) and timocracy (ruling class of property owners). Although Athenian democracy is today considered by many to have been a form of direct democracy. equality and freedom have been identified as important characteristics of democracy since ancient times. World War II brought a definitive reversal of this trend in western Europe.

many people have put forward the idea that democracy is undesirable for a developing country in which economic growth and the reduction of poverty are top priority. headline grabbing protests and harsh criticism from the mass media are often enough to force sudden. believe that democracy results in the people's distrust and disrespect of governments or religious sanctity. for example between a parent and a child. . For this reason. especially relating to economics. They base this on their premise of the irrational voter. More recently. As governments are frequently elected on and off there tends to be frequent changes in the policies of democratic countries both domestically and internationally. Economists since Milton Friedman have strongly criticized the efficiency of democracy. The distrust and disrespect pervades to all parts of society whenever and wherever there is seniority and juniority. in particular that of Confucian and Islamic thought. Their argument is that voters are highly uninformed about many political issues. especially relating to economics. They base this on their premise of the irrational voter. Even if a political party maintains power.Economists since Milton Friedman have strongly criticized the efficiency of democracy. unexpected political change. a teacher and a student. Frequent policy changes with regard to business and immigration are likely to deter investment and so hinder economic growth. democracy is criticised for not offering enough political stability. and have a strong bias about the few issues on which they are fairly knowledgeable. Their argument is that voters are highly uninformed about many political issues. vociferous. Traditional Asian cultures. and have a strong bias about the few issues on which they are fairly knowledgeable.

Socialist models and ideas espousing common or public ownership have existed since antiquity. some criticisms presented in this article will only apply a specific model of socialism that may differ sharply from other types of socialism. . as well as the political and social implications of such a system. and later the classical Greek philosophers Plato and Aristotle espoused a form of communism. He advocated the creation of a society in which each person was ranked according to his or her capacities and rewarded according to his or her work. socialist political parties or existing socialist states. instituted communal possessions and advocated the public good. Saint-Simon. Utopian socialists such as Robert Owen (1771–1858). and in Britain to Robert Owen in 1827. so that these values were compatible with the then-emerging industrial society. the modern concept of socialism matured in response to the development of industrial capitalism. The key focus of Simon's socialism was on administrative efficiency and industrialism. tried to found self-sustaining communes by secession from a capitalist society. distribution of surplus. through coordinated planning of investment decisions. Modern socialism originated in the late 18th-century intellectual and working class political movement that criticised the effects of industrialisation and private property on society. to Pierre Leroux. Socialism is a set of social and economic arrangements based on a post-monetary system of calculation. The English word socialism (1839) derives from the French socialisme (1832). Henri de Saint Simon (1760–1825). others hold that certain historical examples exist and that can be criticized on practical grounds. their efficiency and feasibility. Some critics consider socialism to be a purely theoretical concept that should be criticized on theoretical grounds. Saint-Simon was fascinated by the enormous potential of science and technology and advocated a socialist society that would eliminate the disorderly aspects of capitalism and would be based upon equal opportunities. Because socialism is a broad concept. Count Henri de Saint-Simon is regarded as the first individual to coin the term socialism. and the means of production. the mainstream introduction of which usage is attributed. and to Marie Roch Louis Reybaud. Friedrich Engels and Karl Marx advocated the creation of a society that allows for the widespread application of modern technology to rationalise economic activity by eliminating the anarchy of capitalist production. In a socialist economic system. Criticism of socialism refers to a critique of socialist models of economic organization. in France. who coined the term socialisme. energy units or calculation-in-kind. a Persian communal protosocialist. production is carried out by a free association of workers to directly maximise use-values (instead of indirectly producing use-value through maximising exchange-values). The first advocates of socialism favoured social levelling in order to create a meritocratic or technocratic society based upon individual talent. Mazdak. father of the cooperative movement. However. at least for the factors of production. but are directed toward the socialist movement.[9][10] They argued that this would allow for economic output (or surplus value) and power to be distributed based on the amount of work expended in production. such as labour time. advocated technocracy and industrial planning.Socialism: Socialism is an economic and political theory advocating public or common ownership and cooperative management of the means of production and allocation of resources. and a belief that science was the key to progress. Early socialism was seen as an extension of classical liberalism by extending liberty and rights to the industrial economic aspect of life. Some criticisms are not directed toward socialism as a system.

Economic liberals. cooperatives and economic planning as infringements upon liberty. . which are central to their conceptions of freedom and liberty and thus perceive public ownership of the means of production. pro-capitalist Libertarians and some classical liberals view private property of the means of production and the market exchange as natural and/or moral phenomena.

and a transitional period of a bourgeois democratic regime would be required to replace Tsarism with a socialist and later communist society. such as how a revolutionary party should be organised. one where decisions on what to produce and what policies to pursue are made in the best interests of the collective society with the interests of every member of society given equal weight in the practical decision-making process in both the political and economic spheres of life. however. and the communists are merely professors who help frame struggles in terms of class struggle. Communist theory generally states that the only way to solve the problems existing within capitalism is for the working class. usually as additions or interpretations of various forms of Marxism. seized state power. Underlying the work of Plekhanov was the assumption that Russia. less urbanized and industrialized than Western Europe. The assumption of state power by the Bolsheviks generated a great deal of practical and theoretical debate within the Marxist movement. or the stage in history after socialism. Pure communism. who is the main producer of wealth in society and is exploited by the capitalist class. had many years to go before society would be ready for proletarian revolution to occur. Marx fervently denies that this plan is to be carried out by any specific group or "class". communal ownership of the means of production and the end of wage labour inevitably arises due to contradictions and class conflicts existing in capitalism. Russian Marxism developed a distinct character. In the late 19th century. Marx lays out a 10-point plan advising the redistribution of land and production to achieve his social ideals. Trotskyism is Leon Trotsky's conception of Marxism and Maoism is Mao Tse Tung's interpretation of Marxism to suit the conditions of China at that time. as a prelude to attempting to achieve the final stage of communism.Other socialists also believed that a Russian revolution could be the precursor of workers' revolutions in the West. however. communism avoids the contradiction of creating a new class to replace the old one. The first major figure of Russian Marxism was Georgi Plekhanov. Russia. The exact definition of communism varies and it is commonly used interchangeably with socialism. According to Marx. Marxism-Leninism is the synthesis of Vladimir Lenin's contributions to Marxism. A variety of different forms of communism have developed. the 1917 October Revolution was the first time any party with an avowedly Marxist orientation. (EB) In Russia. In the communist manifesto. each based upon the ideas of different political theorists. stateless society. referred to as the proletariat. called socialism. communist theory contends that socialism is just a transitional stage on the way to communism. to replace the bourgeoisie as the ruling class to establish a society without class divisions. However. in this case the Bolshevik Party. Marx predicted that socialism and communism would be built upon foundations laid by the most advanced capitalist development. as well as some other communist philosophers. was one of the poorest countries in Europe with an enormous. purposely never provided a detailed description as to how communism would function as a social system. as explained in theories such as surplus value. Karl Marx. . refers to a classless. Marx had explicitly stated that Russia might be able to skip the stage of bourgeoisie capitalism. the collective philosophies of Karl Marx. In this way. largely illiterate peasantry and a minority of industrial workers.Communism: Communism is a sociopolitical movement that aims for a classless society structured upon communal ownership of the means of production and the end of wage labour and private property.

In Nepal. . By the beginning of the 21st century. states controlled by communist parties under a single-party system include the People's Republic of China. Vietnam. In South Africa. its social and political effects. reduced prosperity. and. feasibility. Czechoslovakia. and informally North Korea. Communist parties. The People's Republic of China runs Special Economic Zones dedicated to market-oriented enterprise. free from central government control. Laos. or their descendant parties. Some scholars are specially focused on their human rights records which are claimed to be responsible for famines. Bulgaria. Mikhail Gorbachev became leader of the Soviet Union and relaxed central control. since then. communists lead the governments of three states. in accordance with reform policies of glasnost (openness) and perestroika (restructuring). China has managed to bring down the poverty rate from 53% in the Mao era to just 6% in 2001. In India. Laos. The People's Republic of China has reassessed many aspects of the Maoist legacy. The Council of Europe in Resolution 1481 and international declarations such as the Prague Declaration on European Conscience and Communism and the Declaration on Crimes of Communism have condemned some of the actions that resulted in these deaths as crimes. Economic reform in the People's Republic of China started in 1978 under the leadership of Deng Xiaoping. and Hungary all abandoned Communist rule by 1990. remain politically important in many countries. Several other communist states have also attempted to implement market-based reforms. the Communist Party is a partner in the ANC-led government. In 1991. the Soviet Union itself dissolved. Cuba have reduced state control of the economy in order to stimulate growth. East Germany. Cuba. Romania. to a far lesser degree. Part of this criticism extends to the policies adopted by one-party states ruled by Communist parties (known as "Communist states"). but the country is not run under single-party rule. and the People's Republic of China. Vietnam. reduced incentives. The Soviet Union did not intervene as Poland. communists hold a majority in the parliament. President Dimitris Christofias of Cyprus is a member of the Progressive Party of Working People. Some of the primary criticisms of socialism and by extension communism are distorted or absent price signals slow or stagnant technological advance. with a combined population of more than 115 million. purges and warfare resulting in deaths far in excess of previous empires. including Vietnam. capitalist or other regimes.In 1985.

Nationalism emphasizes collective identity . or the belief that one state is naturally superior to all other states. people were generally loyal to a city or to a particular leader rather than to their nation. and other symbols of national identity are often considered sacred. Cultural heritage is not the same thing as national identity". Nationalism is sometimes reactionary. He argues that "there is no country on earth which is not home to more than one different but usually coexisting culture. race or religion but rather socially constructed by the very individuals that belong to a given nation.Precisely where and when nationalism emerged is difficult to determine. A nation is a cultural entity. It is also used to describe a movement to establish or protect a homeland (usually an autonomous state) for an ethnic group. i. a nation. coincide. Philosopher A. Often. national anthems. and not necessarily a political association. contrast nationalism and patriotism. it is the belief that an ethnic group has a right to statehood or that citizenship in a state should be limited to one ethnic group. nationalism as a phenomenon had ceased to exist.C. united. but its development is closely related to that of the modern state and the push for popular sovereignty that came to a head with the French Revolution and the American Revolution in the late 18th century. The term nationalism was coined by Johann Gottfried Herder (nationalismus) during the late 1770s. whose purpose is to serve the interests of its nation alone. nationalism might also be portrayed as collective identities towards imagined communities which are not naturally expressed in language. or why a nation should be the only legitimate unit of political rule. Fascism. "their boundaries drawn in the blood of past wars". nationalism has become one of the most significant political and social forces in history. Deep emotions are aroused." Before the development of nationalism.Gellner and Breuilly. Grayling describes nations as artificial constructs. Conversely. other historians point specifically to the ultranationalist party in France during the French Revolution. calling for a return to a national past. is a form of authoritarian civic nationalism which stresses absolute loyalty and obedience to the state. or that multinationality in a single state should necessarily comprise the right to express and exercise national identity even by minorities.although nationalists argue that the boundaries of a nation and a state should. nor is it necessarily linked to a particular territorial area .e. perhaps most notably as a major influence or postulate of World War I and especially World War II. However. and sometimes for the expulsion of foreigners. Since that time. It can also include the belief that the state is of primary importance. Encyclopedia Britannica identifies the movement's genesis with the late-18th century American Revolution and French Revolution.a 'people' must be autonomous.Nationalism: Nationalism involves a strong identification of a group of individuals with a political entity defined in national terms. in Nations and Nationalism. some nationalists stress individualism as an important part of their own national identity. as if they were religious rather than political symbols. National flags. calling for the establishment of an independent state as a homeland for an ethnic underclass. "If the nobler word 'patriotism' then replaced 'civic/Western nationalism'. as far as possible. Critics of nationalism have argued that it is often unclear what constitutes a 'nation'. . and express a single national culture. Other forms of nationalism are revolutionary. In some cases the identification of a national culture is combined with a negative view of other races or cultures.

That has developed into several forms of anti-nationalism in the western world. there was an ideological critique of nationalism. The classic nationalist movements of the 19th century rejected the very existence of the multi-ethnic empires in Europe. Much of the early opposition to nationalism was related to its geopolitical ideal of a separate state for every nation. The Islamic revival of the 20th century also produced an Islamic critique of the nation-state. and gives elites or political leaders potential opportunities to manipulate or control the masses. Even in that early stage. however. emphasizing an individual's identification with their own nation.Nationalism is inherently divisive because it highlights differences between peoples. . The idea is also potentially oppressive because it submerges individual identity within a national whole.

: 6555 Section: Wednesday 15:00-18:00 Date: 09/29/2010 Teacher: Mr Shahnawaz Ali Assignment # 1 .Iqra University Cross Cultural Management Name: Raza Naseem Reg No.

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