09
Jun
09

The Success of Capitalism

Shortly after the collapse of the Soviet Union, Fidel Castro commented “They talk about the failure of Socialism, but where is the success of Capitalism in Africa, Asia, or Latin America?”.

This is the topic that will be explored here.

At first, it would seem that Castro’s comment- made in 1991- is now outdated. After all, in Asia Capitalism seems to be doing extremely well. Japan has become a world superpower, China (a semi-Capitalist, semi-Socialist country) has one of the highest export levels on earth, and Thailand and much of South-East Asia has made massive profits off of tourism. All in all, it would appear that Capitalism has done wonders for Asia.

Or has it?

Japan, as the world’s second largest economy, has done very well for itself. In almost every respect, Japan has benefitted from Capitalism, depending on one’s definition of what is and is not beneficial- a question that will be addressed later. However, when compared with most other Asian countries, one might very well be led to conclude that Japan’s success is an isolated phenomenon.

Take China, for instance.

As previously mentioned, while China claims to be a Communist country, in reality China could be best described as a semi-socialist dictatorship with high levels of privatization. Quite simply, modern China, despite it’s cultural and political heritage, is Capitalist. And Capitalism has not been kind to China, as is clearly evidenced by the rampancy of sweatshops, child labor, and questionable marketing techniques (such as the notorious poisoned milk scandal in 2008, or lead-painted toy exports in 2007). While one might argue that this not due to Capitalism but to a lack of government regulations however one must keep in mind that Capitalism- pure Capitalism- is one without regulation, as repeatedly argued by Smith, Freidman, Rand, and so on.

And it’s not just China.

Sweatshops and child labor are present in most countries (though to varying degrees), but it doesn’t end at mere repeats of Dickensian nightmares. Though present in every country on earth, the sex trade is particularly bad in South East Asia, most notably Thailand. As described in the previous post, Capitalism is defined as the buying and selling of goods or services for profit- the emphasis on services being key here. Both voluntary and forced, prostitution is a widespread “industry”, for lack of a better term. While some might argue that prostitution is the “oldest trade in the world”, one must still question whether or not this makes it right. After all, it was once Roman practice to leave unwanted children out under bridges, but the fact that was practiced for hundreds of years doesn’t justify it. Or perhaps a person could argue that the sex trade isn’t a result of Capitalism, but if it isn’t, what is? Would these women be selling themselves for free? Would brothel owners auction off women and girls without the incentive of profit? Capitalism’s point is capital– profit. With the profit taken away, there’s not point in buying or selling goods or services- sex included.

And this is only Asia.

In Africa and South America, colonialism, or rather “neocolonialism” is still present, though in far more subtle ways. While sweatshops and sex-trade are present in both Africa and Latin America, Capitalists seem to be less interested in the profits they could make in the countries so much as the profits from what they take out of the countries. Ivory from Kenya, diamonds from Sierra Leone, minerals from Peru, wood from Brazil, and so on in an almost endless list. Corporations, mostly Western, suck Africa and South America dry of its resources in exchange for nominal pay. A person in the DRC could work in a mine for coltan ore in dangerous conditions for long hours and receive less than a dollar for his work- enough to keep him alive, but not enough to allow him to find better work. These conditions, if imposed on Western workers, would lead to riots, but in South America and Africa, corporations are capable of taking advantage of poor living conditions to create a almost limitless workforce of unskilled laborers and bleeding these countries of their natural wealth. An advocate of Capitalism could argue that a coltan miner being paid a dollar is better than the same person being paid less- that these countries are still better off with neocolonialism than without. To this I must ask whether a child is better off prostituting herself than starving. Just because a person, country, or continent is marginally better off doesn’t mean that its treatment is in any way justifiable.

While the world can talk of the “fall of Socialism”, I suggest that one cannot speak of the success of Capitalism either.

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