Are economic modernization and capitalism one and the same thing? modernization and capitalism is one and the true is this statement in regard to the argument for industrialization in third world countries  

Expert Answers

An illustration of the letter 'A' in a speech bubbles

I don't think that state-sponsored capitalism is a contradiction in terms, at least not from a historical standpoint. Capitalism has flourished in those areas where capitalists were able to get governments to pass favorable legislation. In the United States, the country most associated with laissez-faire capitalism, the federal government has long supplied cheap (or free) land for railroads, favorable contracts, and subsidies to capitalists in order to stimulate economic activity. And of course, when capital faced off against labor, the US government, at least before the New Deal, inevitably sided with capital. I think we confuse capitalism with free enterprise, and the two, esepcially in the modern age, are not the same thing. 

Approved by eNotes Editorial Team
An illustration of the letter 'A' in a speech bubbles

I do not think what China is doing is capitalism.  You might call it economic modernism.  I have read recently that China is in transition, but that its economy is still a pale imitation of capitalism.  State-sponsored capitalism is a contradiction in terms.  I am not sure how far China can go before it hits the inevitable wall and realizes that to grow more it needs real capitalism.  The government cannot control everything.  Right now China is a helicopter parent (ok, a "tiger mom" I guess).  Someday it is going to need to let its little economy grow up.

Approved by eNotes Editorial Team
An illustration of the letter 'A' in a speech bubbles

It appears that these are not necessarily one and the same.  At least, it is not necessary to have a purely market economy with capitalism in order to have economic growth.  Our main evidences of this come from Asia where China and Singapore have experienced economic growth while having economies that were more toward the command economy side of the spectrum.

Approved by eNotes Editorial Team

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial