Its Vital Role In The Global Economy example essay topic

Capitalism Is In The Forecast Our generation is experiencing an extraordinary historical phenomenon; it is reshaping culture, welfare, and prosperity at a global magnitude. The tyrannizing bounds of social contract, which have restrained us from freely trading and interacting, from acting as human beings in their state of nature, are now being torn off successively, and, most importantly, the change is being spearheaded at the government echelon. One after another, the countries that make up the world's financial system are making the shift to a market-based economy. The fairly revolutionary trend of democracy, capitalism, and globalization, has been gaining momentum and storming the earth continent at a time; it will continue to do so in the foreseeable forecast. People of all tongues are coming to the realization that prosperity is a mutually dependent element, to reach it, we must plug in to the livewire of global trade and awareness.

The barriers to entry are moderately low, the rewards are often abundant, immediately felt, and forerunners are vast. Thailand, China, and Poland are just three countries that have flirted with concepts of privatization and foreign trade; the rewarding effects were proven to be generous and relatively instant, as we shall now demonstrate. Until about 1985 Thailand's economy was virtually closed to direct foreign investment. The only outside assistance that the country has benefited from was received at the government level. Outside aid flowed primarily from other governments, for private enterprises did not find the needed incentive to invest in Thailand's industries. As the year turned 1985, Thailand lowered its barriers to foreign direct investment; it came pouring in with great enormity, irrigating and stimulating its economy at almost every level.

The effects were astounding. By 1990, exports have grown by 15%, foreign trade doubled, and unemployment declined by an astonishing 75%. By 1995 the population's per-capita income had skyrocketed by 3000% since reforms in 1985. By simply allowing the private sector to freely transact, by allowing humans to interact with others in remote places, by plugging a population into the globalization super system, the State of Thailand has greatly benefited. But Thailand's economic success may be seen as microscopic and insignificant compared to that of The Peoples Republic of China.

China, a country once known for its stark opposition to capitalism's private economy, the country that spearheaded the communist movement alongside the Soviet Union in the 1950's, today, spearheads the thrust of the global economy. At present, China's manufactories pump the life-giving blood into the channels of global trade. Its vital role in the global economy provides it with economic development no less vital to the social advancement of its population. Since China's 1978 debut in the global economy, its GDP has been quadrupled, income levels are 1000 times higher on a per-capita basis, and, China boasts the earth's largest economy second to only the US. The improvement in the social facet of Chinese life has been no less impressive as illiteracy has fallen by 50%. Echoes of China's success have reverberated to every corner of the earth-countries understand more and more with every passing day that a free-market is a natural phenomenon; it is human commerce at its state of nature.

Governments will follow this chain of success, ring by ring, and continue to privatize. The responsibilities of the social contract are rapidly evolving. As we look to the future we can expect the government's role to decrease in its interference in industry and consumer goods, but an increase in mediating ties and forging relationships with other nations; governments that strive provide their citizens with new favourable trade policies. We can expect less socialism but more social progress and awareness. On the horizon, a future focused on private industry and progressive prosperity awaits our arrival.