Role of Capitalism in Developing Countries ?

R

Rekha

New Member
Hi,

Though we have different schools of thought on the role of capitalism, globalization, and neoliberal economics in transforming developing countries, I strongly believe that this goes against the welfare of the poor in developing countries.

More often the developed countries are trying to push their policies in the name of helping the third world countries, but the results fail to show that progress is being made in terms of the development of poor.

From 2005 to 2007 India has fallen from 124th position to 132nd position in Human Development Index.

The 9% annual growth of GDP in India is not benefiting the poor.

I would like to know how others feel about the role of capitalism and opening up of markets in countries like India.
 
Developmental goals

Capitalism calls for huge capital investment. Industrialization is necessary if developmental goals are to be achieved. Thus there needs to be a shift from the traditional measures of income generation i.e. agriculture to more capital intensive measures like heavy industries. Put by Marx and other economists a country cannot develop without going through capitalism. Thus it calls for huge investments.
 
capitalism does play an important role in developing countries as there needs to be consistent growth which can only achieved through capitalism. moreover, it also allows settlement of a business or entrepreneurship in short period without much risks involved or competition, considering the market yet to be growing.
 
capitalism does play an important role in developing countries because it is the investing money what they need to start small business. countries like india are short of small scale industries which are the major contributors to a nations economy, take america for example which has surplus small scale industries
 
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