You can help by adding to it. February The gold standard formed the financial basis of the international economy from to Capitalism was carried across the world by broader processes of globalization and by the beginning of the nineteenth century a series of loosely connected market systems had come together as a relatively integrated global system, in turn intensifying processes of economic and other globalization. Industrialization allowed cheap production of household items using economies of scale while rapid population growth created sustained demand for commodities. Globalization in this period was decisively shaped by 18th-century imperialism.
Original Citation Western people have, over the past three centuries, confidently applied their own understandings and forms of organisation to the rest of the world.
They have done this in the sure knowledge that these represent the most advanced, developed and sophisticated of all forms of understanding and organisation available to human beings.
To introduce those forms to non-Western people has been to start them on the road to development, short-cutting the historically long and thorny route taken by Western Europeans in achieving their advanced state of organisation and understanding.
Amongst the important influences on governments and people in Third World countries have been the reification of 'the state' and 'the people' in most discussion of Third World nations and peoples and the formulation of governmental policies based on that reification.
This reorganisation has usually been undertaken as an exercise in 'modernising' non-Western communities.
The modernisation thesis, 2 espoused in various forms and with various emphases by most development specialists over the past fifty years, has been an optimistic one.
It has assumed that, for those nations which genuinely and consistently implement the necessary social, political and economic changes, transformation into modem industrialised countries is inevitable.
The state has been assumed to be a self-existent entity, separate from the communities which it controls, and able to impose necessary changes, however radical, on its populace. Important responsibilities placed on new nation-states by these specialists have included establishing those institutions necessary to economic development, and providing the social and political climate necessary to stimulate self-interested, competitive material accumulation, leading, it is assumed, to an inevitable 'take-off into self-sustained economic growth' cf Rostow Because most political and economic theorists and practitioners believe that 'traditional' societies are being transformed into modern societies, with traditional features destined for oblivion, Third World communities have been regarded as transient.
Problems encountered by 'traditionally orientated' individuals and communities are assumed to be, in large measure, consequences of this shift to modernity. So, rather than focusing on the social problems of such communities, one needs to step up the pace of modernisation.
Third World governments, it has been believed 3 should, therefore, in the face of the breakdown of law and order and social cohesion in traditional communities, more rigorously implement those measures which will transform them into industrialised communities, with all the advantages of such a transformation.
The dissolution of the old is a necessary precursor and concomitant of modernisation and the state should keep its eyes firmly fixed on that goal, not deviating to attend to problems which are inevitable, but transient consequences of moving toward it.
Various solutions have been proposed to combat underdevelopment.
Central to these solutions is the role assigned to the state as the 'engine of development'. Until recently, it was thought that an authoritarian state could better perform 'developmentalist' tasks. In recent years, the state has been invested with the capacity to move toward democracy, which presumably will lead to socioeconomic development.
The belief in the state is reinforced by the call to 'bring-the-state-back-in', according to which the state and its policies reflect almost autonomous institutions and the actions of those occupying these institutions.
As Max Weber claimed of Western government, relationships are transformed into objective, instrumental, depersonalised forms. Politicians are not directly responsible to and identified with the people they represent and not directly in control of the impersonalised institutional bureaucracies through which government policies are carried out.
In the Third World, these presumptions are difficult to sustain.
Political activity is not separate from other forms of activity, and those with political power exercise it personally. That is, government, both in formulating policy and in the delivery of services is personalised. And, for people who live in communities where it is both natural and proper for leaders to be personally connected with their followers, this personalisation is unexceptional.
Government is not separate from the people, and politicians access the administrative departments of government through networks of patron-client relationships which link not only the administrative bureaucracy and politicians, but also politicians and their constituents.
Inevitably, when such personalised systems of government and leadership are judged aginst the standards assumed in places where depersonalised government is the norm, they are found to be 'riddled with corruption'.INCONVENIENT TRUTHS "You can either be informed and be your own rulers, or you can be ignorant and have someone else, who is not ignorant, rule over you.".
By L. Randall Wray *I’ll return to my series on the role of taxes in MMT later this week. Meanwhile, here’s a short post on MMT. Modern Money Theory (MMT) seems to confuse two groups of otherwise sympathetic economists.
The reason that the United States' economic system is considered to be a mixed system is because the government is involved in the regulation and . Understanding Capitalism Part IV: Capitalism, Culture and Society. By - February 4, The impact of capitalism on culture and society has been a matter of great debate ever since its emergence in Europe as an economic system in the late s.
May 02, · Opinions expressed by Forbes Contributors are their own. We cover social entrepreneurship. Share to facebook Share to twitter Share to linkedin Editor's Note: Richard McGill Murphy is the managing.
In general, capitalism as an economic system and mode of production can be summarised by the following: Capital accumulation:  production for profit and accumulation as the implicit purpose of all or most of production, constriction or elimination of production formerly carried out on a common social or private household basis.