In 1995, the 200 most powerful multi-national corporations controlled approximately one third
of the world GNP The turnover of these companies sometimes exceeds the GNP of some
countries: one example is General Motors which with a turnover of 132 billion dollars surpasses
the GNP of Indonesia. Confronted with the power of these companies, one must acknowledge
their importance in international relations, in the context of a capitalist world economy.
Capitalism is an economic system in which all or most of the means of production and
distribution are privately owned and operated in a relatively competitive environment through
the investment of capital to produce profits . Since the collapse of communism following the
fall of the Berlin wall in 1989, capitalism has become the hegemonic ideal and the dominant
economic trend. Criticism of this ideology however, has not ceased, considering that nearly half
the world's population (2.8 billion people) live on less than US$2 per day. This raises the
question of whether capitalism is a positive force in international relations and what are its
consequences for both developed and third world countries.
[...] Not only is capitalism imposed on countries, which often suffer worse economic conditions, and are dependent on developed countries, it is also a threat to international stability and world security. As Marx wrote the society where the capitalist mode of production prevails, anarchy in the social division of labour and despotism in the manufacturing division of labour mutually condition each other.” Many international tensions have arisen in parallel with the spread of capitalism. First, the development of capitalism has to a certain extent been responsible for the phenomenon of imperialism and more specifically Imperialism”, or the phase which lasted from 1870 to 1914 approximately. [...]
[...] Capitalism is established, regardless of other schemes of production that might have existed previously and of possible contradictory values or culture of a country. Although liberal capitalism and free trade has been little by little attained a “common sense” status, through the promotion of mutual benefice, it nonetheless profits the hegemonic western powers more than anyone else. There are three main reasons why the neo-liberal project and its capitalistic aims: development of free trade, privatization of companies, less state intervention . [...]
[...] Although capitalism in theory should be a positive force in international relations, assuring the material well being and route to progress to unified capitalist civilisations, in practice it seems like this system advantages richer countries at the third world countries' expenses. Dependency, misery, exploitation are all terms associated with the capitalistic economy. Furthermore this is responsible for tensions in international relations, notably due to competition between developed countries, and opposition to the system. BIBLIOGRAPHY: 5 Brown, C., Development and dependency in International relations : a handbook of current theory by Light and Groom, A. [...]
[...] In the prospect of international proletarian unity, imperialism is thus a negative force, opposing workers throughout the world. Lenin also worked on the concept of imperialism in his work Imperialism: the Highest State of Capitalism, written in 1916, which would later form the foundations of communist explanation for war. According to Lenin, war is the result of imperialist competition between powers seeking monopolistic capitalism, and thus having confronting interests in the scramble for colonies. Lenin believed rivalry in spheres of influence or possession of territory was responsible for the First World War, between the rival imperialist European countries. [...]
[...] According to the theorist, liberal capitalism is the end point of political and economical development and of human progress in general. Supporters of capitalist ideology defend its capacity to enhance progress and development. Capitalism and free trade promote exchanges which help the development of every country involved. With the spread of capitalism, the technological advances of the industrial revolution 1 and of the capitalist mode of production were made accessible to all. This has been multiplied with the process of globalization. [...]
using our reader.