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African History Essay

1694 words - 7 pages

The economic and social developments in countries have been undertaken by approaches. Some countries developed using the Marxism theory and late switch to capitalism while others maintained either capitalism or socialism. In this paper I will explain in detail the two approaches and recommend one approach as the right way to human development according to my opinion.
Karl Marx has the most honored place. He is regarded as the founder of communism which had taken deep roots in many countries of the world. He is one of the intelligent man who influenced the masses with his writing and teaching. The great man’s works are significant from the point of view even in economics. His teachings became ...view middle of the document...

Industrial revolution and other changes took place at the same time. In this atmosphere, a new class of workers who were referred to as proletariat emerged against the class of capitalists.
The relations of production relate the class structure of a society is unique and is characterized by the following;
* The organization of labour as a scheme of division and corporation, the skill of labour and the status of labour in the social context with respect to degrees of freedom or servitude.
* The geographical environment and the knowledge of the use of resources and materials.
* Technical means and processes and state of science generally.

According to Marx, every society class structure consists of the propertied and non-propertied classes. Since the mode of production is subject to change, a stage comes in the evolution of a society when the forces of production come into clash with the societys class structure. The existing property relations “turn into fetters” on the force of production then comes the period of social revolution. This leads to the class struggle between the haves and the have not’s, which ultimately overthrows the whole social system. Under Marxism theory, the means of production are owned by public enterprises or cooperatives. The individuals are compensated based on the principle of individual contribution. (Allan E 2010 Page 88)
There is equal opportunity for all. Large scale industries are cooperative efforts and the returns from these industries must be returned to and benefit society as a whole.
Economic activity and production are planned by the central planning authority and based on human consumption needs and economic demands.
Socialists believe economic inequality is bad for society and the government is responsible for reduced programs that do not benefit the poor. Under this approach there is absence of monopolistic practice. There is great effience and great social welfare. There is also business fractuation.
Capitalism is the port of economic system where production are owned and managed by private individuals and institutions. It is the econ0mic individualism where individuals are the ones to decide what and how much to produce and distribute.
Capitalism means the production and distribution of goods (Land, Factories, Technology, Transfer system) are owned by a small minority of people. We refer to this group of people as the capitalist class. The majority of the people must sell their ability to work in return for a wage or salary.
In this economic theory, the state is to take care of only internal and external security of the country. Normally, the activities related to defense, police, administration and courts of justice are controlled by the government. This is a private enterprise economy characterized by the existence of business fluctuations and considerable unemployment. In capitalism there will be considerable ups and downs swing of the business cycle with the inevitable repercussions on the...

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