Ir 1945

Name: Tawheedullah Jalal
Sap Id: 70129299

Assignment topic: Capitalism and communism
Subject: IR since 1945
Submitted to: Ma’am Eqra Javed
Capotalism & Communism
Capitalism & communism are two different political and economic

ideology that has been existing in the global history for a long time.
They are two separate approaches that are used to organize the social,
economic and political method of distributing resource and wealth.
While pure capitalism in a country represents a free market economy,
the elements of communism are easily seen in command economies.
Furthermore, capitalism motivates entities to work hard and innovate to
make a profit, whereas communism does not emphasize or focus on
providing an incentive to trigger hard work.
Capitalism is an economic system in which private individuals or

businesses own capital goods. The business and industries operate with
the aim of making profit. This system depends on the market forces of
demand and supply to fix the product prices, where the main criteria is
consumer choice and their willingness to pay for the products available
in the market. Due to high competition, the factors concentrate on
improvement of efficiency and innovation. However, this often leads to
disparity in income and wealth.
where private individuals and businesses own and control the means of
production and operate for profit. It’s characterized by private property
rights, free market competition, and minimal government intervention in
economic activities. In capitalism, the prices of goods and services are
determined by supply and demand in the market.
In a capitalist economy, government intervention will be minimal, hence
the production of goods and services is driven by supply and demand. It
creates an environment that promotes individualism, innovations,
competition, efficient allocation of resources, the efficiency of
the private sector, presenting consumers with better choices, and
improving living standards. capitalism vs communism.
capitalism is often blamed for favoring the rich. The opponents of the
system advocate that in capitalism, the rich get richer and the poor get
poorer instigating the unequal distribution of wealth and inequality,
creating social division. Moreover, in the wake of producing profit, the
capitalist model exploits the workers, and unfair competition can also
lead to the emergence of monopoly in specific sections. All these
disadvantages communicate the need for the reformation of capitalism.
Example of capitalism. In a capitalist system, individuals and private

businesses own and control the means of production. An example of a
capitalist country is the United States, where private ownership,
competition, and the pursuit of profit drive the economy.
Advantage: In a capitalist system, there are several advantages. One

advantage is the potential for economic growth and innovation. Since
individuals and businesses have the incentive to maximize profit, they
are motivated to develop new ideas, products, and services. This can
lead to technological advancements and overall economic progress.
Additionally, capitalism promotes individual freedom and choice,
allowing individuals to pursue their own interests and entrepreneurial
endeavors.
Disadvantage: is that it can lead to income inequality, where the gap

between the rich and the poor widens. This can result in social and
economic disparities, as some individuals may have more opportunities
and resources than others. Additionally, capitalism can prioritize profit
over social and environmental well-being, which can have negative
consequences for society and the planet.
Communism is a political and economic ideology that refered common

ownership or property and is the abolition of private property all
property is owned by the community and each person contributes and
receives according to their ability and needs.
there is a classless society where the factors are commonly owned and
allocated as per the ability and need of consumers. There is no private
ownership at all and there is no reliance in demand and supply because
everything is fixed by the government. However, even though there is
equality in the resource distribution, It is not based on individual
contribution.
And also advocates for the collective ownership of resources and the
means of production, aiming for a classless society where wealth and
resources are distributed equally among all members. In theory, it seeks
to eliminate social inequality and create a stateless, moneyless society.
And focuses on replacing private ownership and introducing state-
owned organizations, projects, resources, and properties, ensuring
economic equality and fairness. Such economies work towards
achieving social development, the welfare, and the overall development
of all the citizens of a nation.
Example: let me give you an example of communism. Imagine a
society where all resources and means of production are collectively
owned by the community. Everyone would have equal access to goods
and services, and decisions would be made collectively. It's like a big
family where everyone shares everything for the benefit of all.
an example of a communist country. The Soviet Union, which existed
from 1922 to 1991, is often cited as an example of a communist country.
It followed the principles of communism, with a centrally planned
economy and collective ownership of resources.
Some other countries including China, Cuba, North Korea, and Vietnam.
Each of these countries implemented their own variations of
communism based on their unique historical and cultural contexts.
Advantage: there is a focus on equality and the distribution of resources

based on need. This can lead to a more equitable society where everyone
has access to basic necessities. Additionally, a communist system aims
to eliminate class divisions and exploitation of labor. However, it's
important to note that the implementation and effectiveness of a
communist system can vary in practice.
Disadvantage: of a communist system include limited individual
freedom and the lack of incentive for innovation and entrepreneurship.
In a communist system, the government typically controls the means of
production, which can lead to a lack of economic diversity and limited
choices for consumers. Additionally, central planning can sometimes
result in inefficiencies and resource misallocation. It's important to
consider that these are general observations and the actual outcomes of a
communist system can vary in practice.
Mutual Example
China has long been a significant example of a communist government

where the government-controlled major resources, funds, products, and
services, but later due to certain other aspects, has started implementing
some elements of capitalism to grow business and take advantage of
trade opportunities. Similarly, it has been observed that many nations
turn their heads toward capitalism to obtain more opportunities,
attain industrialization, and reap the benefits of globalization hence
strengthening the capitalism vs communism debate.
Primary differences
 The primary difference between capitalism and communism
emerges from the ownership of factors of production. In
capitalism, it is owned by individuals, whereas in a communist
nation, the ownership lies in the hands of the government.
 Capitalism exhibits private ownership, profit motive, minimal
government intervention, competitive market, capital
accumulation, class system, etc.
 Communism exhibits common ownership, central planning, no
competition, classless society, etc.
 socialism and communism oppose capitalism and stand to attain
collective ownership and equal distribution of resources.
Furthermore, socialism additionally allows individuals to own
properties, unlike communism.
 Capitalism To make and maximize profit using democracy and the
free market.
 Communism To follow a planned economy and establish a
communist society.
Capitalism & communism based on religion
Communism and capitalism are economic and social systems, not

inherently based on religion. However, religions have sometimes
influenced or been influenced by these systems. For example, some
religious teachings may align with principles of communal ownership
and social equality, which are characteristic of communism. On the
other hand, capitalism's emphasis on individual ownership and free
market principles may align with certain interpretations of religious
doctrines that value individual initiative and prosperity. But it's
important to note that neither system is explicitly based on any single.
The End!!!

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Name: Tawheedullah Jalal

Sap Id: 70129299

Capotalism & Communism

Capitalism & communism are two different political and economic

Capitalism is an economic system in which private individuals or

Example of capitalism. In a capitalist system, individuals and private

Advantage: In a capitalist system, there are several advantages. One

Disadvantage: is that it can lead to income inequality, where the gap

Communism is a political and economic ideology that refered common

Advantage: there is a focus on equality and the distribution of resources

China has long been a significant example of a communist government

Capitalism & communism based on religion

Communism and capitalism are economic and social systems, not

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