Is capitalism a positive or negative force in International Relations?
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international relations
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published 20/07/2006
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SummaryIn 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.
Table of Contents
- The theory of capitalism and the benefits promoted, notably progress
- The negative reality of its effect on state relations and world order in general
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