Capitalism - A need based development

With end of cold war and, communism proving to be defunct, capitalism was left with no rival. Yet, most of capitalizing attempts in non-western world in post cold-war scenario proved to failure at best and disaster at worst. The term failure term is subjective but looking at south-American continent, south-east Asian countries and host of African countries and Russia, capitalisms definitely failed in its attempts to lift the ‘rising economies’ to the new level. Increasing income gap in India and China its effect on their respective societies is sure to provide new case study of Capitalism. I am just praying that at least in case of these two countries capitalism should succeed because more than one-third of humanity is in peril.

Capitalism basically lets people to decide about their consumption as democracy lets people to decide their choice of government. The concept looks fairly enticing and workable. Yet, capitalism almost always ends up failing. No wonder the dissent against capitalism is growing through out the world and left wing parties are coming to the power at alarming rate.

Actually, it is not entirely capitalisms fault per se, at least not in the theory, the enforcers that is, western countries and the implementers that is, local government are both at equal fault. As in case of democracy, the forceful sowing of capitalism is a bad strategy itself. It has to grow according to the local needs, according to the local mindset, according to the local ethos and work culture. If it fails to become local then it defeats the very purpose of capitalism.

Capitalism is successful in western countries because the model developed according to the needs of the people. The theory itself developed as the demands of the people developed. Thus, the tool developed as the need was felt, and then those tools were used to build a new structure where new needs were felt. The cycle continued with each wheel of the capitalistic machine seamlessly fitting into one another forming a efficient, self-correcting economic system over the period of time.

With all such developed theories, economic models, western countries go into non-western, non-developed countries and try to apply this economics and hope for wonder. And in a sense, the wonder does happen, albeit for western countries. They are able to earn profit out of non-western countries leaving almost nothing for the natives. With no knowledge of economics, technology, no known infrastructure, no skilled labor, not skilled for modern machinery; corrupt political class, and western educated elite class that has no understanding of local environment, the capitalism is bound to fail.

The knowledge base should be home grown. The elite class that usually rules the country should understand their country more in order to rule. And most importantly, western country should give rising economies space to breath. With constant spanking by IMF and World Banks, they (western countries) are not exactly portraying capitalism in good light.

Capitalism is definitely mantra of success. But the procedure to go down the capitalistic path needs to be studied and molded according to the need. Wrong chanting of ‘mantras’ always leads to adverse effects.