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Capitalist Vs Socialist


The capitalist development model is the primary approach used by the "First World" based on modernist theory of comparative politics, which seeks to understand political systems within and across countries.

According to this model, Third World governments are expected to provide financial assistance for private industry expansion, transitioning from agriculture to urban industrialization. The model calls for reduced government involvement post-transition to allow industries to grow freely, potentially leading to economic growth and improved living standards.

The socialist model of development emerged in the 1960s as a response to capitalist models, based on the dependency theory. It advocates for the elimination of private property and a state-led economy to improve living conditions. While emphasizing industrialization and fair distribution of goods, the collapse of the Soviet Union in 1991 undermined the credibility and momentum of the socialist model of development.

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