Are economic modernization and capitalism one and the same thing?modernization and capitalism is one and the samething.how true is this statement in regard to the argument for industrialization in...

Are economic modernization and capitalism one and the same thing?

modernization and capitalism is one and the samething.how true is this statement in regard to the argument for industrialization in third world countries

 

Expert Answers
rrteacher eNotes educator| Certified Educator

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. 

litteacher8 eNotes educator| Certified Educator

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.

pohnpei397 eNotes educator| Certified Educator

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.

etotheeyepi | Student

Modernization should mean using more efficient technology. That might include things like using clay instead of stone, papyrus instead of clay, sheep skin instead of papyrus, paper instead of sheep skin, or computers instead of paper.

Capitalism should mean people own tools which they use to produce goods.  

Nothing about capitalism is modern.  A reading of the Code of Hammurabi suggests that people have used capital to make good for a long time.