Most of the countries in the present day economy are working based on Capitalism. Is Capitalism leading the human community on the right track? Is it distributing the world resources equitably among the people? Are we leading towards a real growth in world economy? These are the questions which are popping up after the serial failures of economies, particularly western, in the recent couple of years.
In simple terms Capitalism means private ownership of means of production. It enables creation of goods and services for profit in a competitive environment. There is no doubt that competition always leads to better productivity and efficiency. But, the recent serial failures clearly demonstrate that the profits are encashed by the capitalists and when losses occur governments are bailing out these big corporate giants with public money. It is increasing the burden on the common man and increasing the gap between the rich and poor.
Early economic thinkers objected to capitalism due to exploitation of labor for profit of some limited persons. In simple terms, the capitalists generate the economic output such as goods and resources with the use of scarce world resources but, the fruits are enjoyed by these limited capitalists. World scarce resources are for the benefit of whole mankind but, due to the loop holes in the world economic systems these are being reaped by a few persons by exploiting the general labor force. Karl Marx has coined the Communism in mid 19th century but, it got its momentum during the early 20th century with the Russian revolution. This theory emphasizes on nationalization of all resources and distribution of the same in the community. It has taken different shades such as Leninism, Maoism etc and spread across various countries. Due to the set backs in this system too, it could not sustain for long. Following the revolutions of 1989 most of the countries have leaned back to capitalism.
In the past few days we are coming across the strong revolution in many countries, such as in USA, Europe and Asia pacific, about the corporate greed. Protestors argue that Capitalism is associated with the unfair distribution of wealth and power. It bestows economic inequality, unemployment and economic instability. Capitalism is working without the concern of exploiting the labor and environment. Inequality in the world has increased; the environment is exploited in the process of making profit. People are asking the relationship between world trade and environment. State policies are biased towards the capitalists.
Nearly one billion people, one out of seven, are deprived from adequate food and nutrition. By 2050, the global population will surpass nine billion, and demand for agricultural products is expected to double. At the same time, the world’s agricultural systems will be increasingly challenged by water scarcity, climate change and volatility, raising the risk of production shortfalls. Agriculture all over the world has a shortfall of investments and production due to a lack of high rich returns to the capitalists as compared to other sectors. What kind of solution does the capitalist economic system provide if it could not provide food security; the basic need and right of human being?
The inequality in the system tends to persuade the deprived towards worlds terrorism. This will hamper growth and demises the existence of human kind on this earth.
Today the world has GDP worth around 63 trillion dollars; all countries are running the race of growth in GDP by ignoring the brutal implications of the system such as food scarcity, inequality and environmental exploitation. The world is leading towards the false growth in mankind.
The world should understand the basic objective of existence of mankind to lead life happily. (Map showing countries shaded by their position in the Happy Planet Index - 2006. The highest-ranked countries are bright green; the lowest are brown.) Happiness should be the yardstick to measure human growth. Happy and long life by safeguarding the mother environment and equal distribution of scarce resources should be the goal of human kind.