Up until this point, this paper has discussed a particular instance in which State Intervention in the economy exerted negative outcomes on industrialization. Henceforth, this paper will now look at the circumstances in which State Intervention can wield beneficial outcomes on industrialization for a developing country. The Neopatrimonial State, which sits on one end of the spectrum in terms of the effectiveness of State Intervention, means that the Cohesive Capitalist State is typically the polar opposite and in turn, can experience positive results from State Intervention.
As described by Kohli, Cohesive Capitalist States are economist states that penetrate deep into society by “prioritize[ing] rapid industrialization as a national goal”
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As noted in the previous paragraph, when considering industrialization, State Intervention in the economy can create positive results when there is a State capable of doing so, like in the case of a Cohesive Capitalist State. However, in terms of social justice and the impact on the population’s quality of life, State Intervention cannot be the most apparent answer to the question of ‘how does a State increase its industrialization’. In a Neopatrimonial State, essentially all State Intervention is unable to contribute to long-term and sustainable economic development. The poorly structured bureaucracy, corrupt and personalistic leaders, and absence of a cohesive national goal, all ensure that the general population does not experience any positive benefits invested in the economy. In the case of a Cohesive Capitalist State, because the government needs to ensure that the entire population stands squarely behind its national goal, it will frequently employ repressive tactics. To do this, Cohesive Capitalist States systematically discipline and restrict the labor force through brutal and repressive measures, inevitably creating an obedient labor force that is willing to work in poor conditions for little to no pay. When taking into account the quality of life that citizens are forced to endure in a Cohesive Capitalist State, it becomes much more difficult to suggest State Intervention as a completely worthwhile and beneficial endeavor. Because of this point, a serious consideration between the human rights violations and the positive benefits resulting from economic growth is needed before a definitive conclusion can be made on behalf of State Intervention as it affects everything, not just relation to
The Industrial Revolution began in England during the late 1700s, and by the end of its era, had created an enormous amount of both positive and negative effects on the world in social, economic, and even political ways. The revolution began to spread across the world, raising the standard of life for the populations in both Europe and North America throughout the 1800s. However, even with all of its obvious benefits, its downsides are nonnegotiable, forcing workers into horrendous living and working conditions, all inside of unkempt cities. While some might argue that Industrialization had primarily positive consequences for society because of the railroad system, it was actually a negative thing for society. Industrialization’s
In the 19th century, Russia and Latin America responded similarly to industrialization in the formation of a growing middle class, in a “boom” in exports and new economic ties, in urbanization, and in similar acts of revolutionary disobedience against a dictator. Latin America, as a result of industrialization, created a small market for manufactured goods unlike Russia’s vast industrial market powered by foreign investments. Also, there were long-term effects to Russia’s revolution in which a socialist political party was created as a result of industrialization, unlike Latin America which was immobilized with regional conflicts and factionalism.
...conomically beneficial trade and technology development. In this regard the Epilogue uses sound logic to plausibly answer the wealth question. On the other hand, Mr. Diamond uses the same "national competition" thesis to purport that Asia's large, centralized governments were conspicuously growth-inhibitive. This argument would not seem to pass muster given what we have learned about the role of governments. Professor Wright's slides state that "Centralization may limit predation and even allow for growth" as "centralized predation = incentives to maximize the haul " This clearly refutes Mr. Diamond's argument that centralized, monopolistic Asian governments impaired societal advances. Thus, Guns, Germs, and Steel can scantly explain why China and the Middle East remain emerging markets while Western and Northern Europe enjoy significantly larger national wealth.
Industrialization provided many benefits for the nation but however, it also created serious problems that required action by the government. Most of the factories owners treated their employees unfairly and unequal. They made them work large amount of hours for underpaid wages. Most of the people even children, worked 16 hours for 25 cents a day. Their employees had to deal with unsafe machines that sometimes were extremely dangerous. If they got injured they didn’t have any financial aid or any kind of compensation that helps them to get better. Instead they were kicked out from their job. If a machine caught fire, they didn’t have safety measures such as fire drills or emergency exits that make the exit of the building such an easy task. Most of food factories, didn’t force their employees to wear gloves, masks and hair nets while they were working and manipulating the products. This lack of hygiene measures brought a large amount of diseases that easily spread out around the country through the food these factories sold. Sometimes costumers could find hair or even eat meat where someone had sneezed on it. Because of the excess of power that monopolies had believed they could treat their employees however they wanted. To achieve better hours, better wages, and better working conditions the government passed several laws th...
With the removal of an authoritarian rule, the transnational oriented elites rose to power and have been given “ the opportunity to reorganize the state and build a better institutional framework to deepen neoliberal adjustments” (Robinson 180). Politically, the program changes the control of the political system to less direct coercive rule. Economically, it eliminated state intervention in the economy; this allowed the adjusting of local economies to serve the global economy instead of their
In an article entitled “Resisting and reshaping destructive development: social movements and globalizing networks”, P. Routledge describes neoliberal development, “Contemporary economic development is guided by the economic principles of neoliberalism and popularly termed ‘globalization’. The fundamental principal of this doctrine is ‘economic liberty’ for the powerful, that is that an economy must be free from the social and political ‘impediments,’ ‘fetters’, and ‘restrictions’ placed upon it by states trying to regulate in the name of the public interest. These ‘impediments’ - which include national economic regulations, social programs, and class compromises (i.e. national bargaining agreements between employers and trade unions, assuming these are allowed) - are considered barriers to the free flow of trade and capital, and the freedom of transnational corporations to exploit labor and the environment in their best interests. Hence, the doctrine argues that national economies should be deregulated (e.g. through the privatization of state enterprises) in order to promote the allocation of resources by “the market” which, in practice, means by the most powerful.” (Routledge)
In States vs. Markets, Herman Schwartz presents two economic development strategies that have been employed by late industrial developers in order to either take advantage of existing comparative advantages or facilitate rapid industrial growth through state intervention and provision in order to gain a competitive foothold in world markets. Schwartz demonstrates how China was able to employ elements of these development strategies to generate capital from an abundant rural labour supply in order to pursue industrial development and attract foreign investment through economic reform starting in the late 1970's.
The foundation for the New Right theories is nineteenth century liberalism which has been deemed as the free market within Capitalist economies as it is the best foundation for organizing society. Similar to their nineteenth century liberal equals the New Right theorists suggest that unnecessary state intervention in the economy has to be prevented. The state shouldn’t act to redistribute resources and restrict the mechanisms of the free market. This is done with the aim to weaken economic productiveness. Disorganisation worries were presented by the government unnecessarily using up the resources. The New Right theory suggests that state intervention could possibly cause individuals to lose motivation for them to be productive. New Right theorists
The latter part of the nineteenth century was teeming with evolved social and economical ideas. These views of the social structure of urban society came about through the development of ideals taken from past revolutions and the present clash of individuals and organized assemblies. As the Industrial Revolution steamed ahead paving the way for growing commerce, so did the widening gap between the class structure which so predominantly grasped the populace and their rights within the community. The development of a capitalist society was a very favorable goal in the eyes of the bourgeoisie. Using advancing methods of production within a system of free trade, the ruling middle class were strategically able to earn a substantial surplus of funds and maintain their present class of life. Thus, with the advancement of industry and the bourgeoisie's gain of wealth, a counter-action was undoubtably taking place. The resultant was the degradation of the working-class, of the proletarians whom provided labour to a middle-class only to be exploited in doing so. Exploitation is a quarrel between social groups that has been around since the dawn of mankind itself. The persecution of one class by another has historically allowed the advancement of mankind to continue. These clashes, whether ending with positive or negative results, allow Man to evolve as a species, defining Himself within the social structure of nature. Man's rivalry amongst one another allows for this evolution! through the production of something which is different, not necessarily productive, but differing from the present norm and untried through previous epochs.
Our lives are greatly affected by our culture, ecological environment, political environment and our economic structure. The overarching method of organizing a complex modern society relies heavily on the founding economic theories regarding method of production, method of organization, and the distribution of wealth among the members of. This paper, specifically deals with the views and theoretical backgrounds of two dominant theories of the past century, Keynesianism and Neo-liberalism. Our social economic order is product of the two theories and has evolved through many stages to come to where it is today. The two ideologies rely on different foundations for their economic outcomes but both encourage capitalism and claim it to be the superior form of economic organization. Within the last quarter of the 20th century, neo-liberalism has become the dominant ideology driving political and economic decisions of most developed nations. This dominant ideology creates disparities in wealth and creates inequality through the promotion of competitive markets free from regulation. Neo-liberal’s ability to reduce national government’s size limits the powers and capabilities of elected representatives and allows corporations to become much larger and exert far greater force on national and provincial governments to act in their favour. Hence, it is extremely important at this time to learn about the underlying power relations in our economy and how the two ideologies compare on important aspects of political economy. In comparing the two theories with respect to managing the level of unemployment, funding the welfare sates, and pursuing national or international objectives, I will argue that Keynesianism provides far greater stability, equ...
If one looks at liberty and individual freedom, it is evident that command economies tend to oppress their citizens. Therefore, socialism, which allows for basic needs to be met and personal freedoms to be upheld, is the best economic system for all of a country’s citizens. Market economies, as a whole, inherently and inevitably lead to poverty and a large class disparity. In a capitalist society, the ones who supply labor, the ones who work the hardest, are the ones who are paid the least. The owners, who are already rich, receive most of the profit and accumulate large masses of wealth.
They control the supply and prices of products. On the other hand, he state is tasked with the responsibility of providing security in the country. The capitalists control the financial sector and indirectly control the power. This is because the government’s policies have to be made in such a way that they conform to the capitalistic views.
Capitalism is a very complex system that is discuss by many authors, scholars and economists. Robert Heilbroner is a famous American economist who creatively discusses the system of capitalism in Twenty First Century Capitalism. He reveals the abstruse capitalism system and its role in society. Heilbroner begins by comparing traditional society with modern capitalist society and differentiate capital with wealth, which facilitate the reader to understand the basic definition of capitalism. He then illustrates the most crucial aspect of capitalism, that is, the two realms of capitalism. According to Heilbroner, the two realms of capitalism are state and economy or government and business. The relation between these realms is interesting in its nature, because one aspect of their relationship make them beneficial for society and another aspect turn them into dysfunctional in society. Realm of the state and the economy are beneficial when they rely on each other, as they support each other they results in peaceful state and economy of a society. At the same time, they have power to proceed independently. As soon as they split, they are dysfunctional for society because state might block the path of the economy to grow freely and economy can independently survive without supporting the government resulting in weak society. Western societies are the living example of capitalism. They present very languish condition of moral and social values, however, they proudly presents their materialistic life. This unbalance situation is because of the contribution of capitalism in modern society. The insatiable feature of capitalism results into accumulation of capital, which diminish the value of the human being and enhance the value of money an...
Development originated in the colonial era, when Europeans constructed domestic and imperial government systems and concentrated within the emerging national states as industrial system fueled by the products of colonial labor regimes (McMichael, p. 2). In the 19th century, development was understood philosophically as the improvement of humankind. European political elites interpreted development practically, as a way to socially engineer emerging national societies (McMichael, p. 3). In the post WWII, United State was concerned how to shape the future of the newly independent states in ways that would ensure that they would not be drawn into the communist Soviet bloc. Motivated by this concern, the United States enlisted its social scientists
Shawki, Ahmed, Paul D’Amato (2000), “Briefing: The Shape of World Capitalism,” International Socialist Review, [http://www.isreview.org/issues/11/world_capitalism.shtml], accessed 19 May 2012.