Capitalism refers to an economic and political system where the trade, industry and even profits of a country are under the control of private individuals who aim to make a profit.
They own and control property in favour of their interests, hence set market prices freely. Governments have limited intervention; the system alienates the masses as market forces, not workers who work for capitalists to produce the products for the market, determine the way things are done.
Capitalists have the leeway to accumulate capital. The system has the effect of even busting economic circles, causing market failures and even leading to inequality. Its founding was based on private property, self-interest, competition, market mechanism, freedom of choice and limited government role.
The extent of operation of these pillars determines the type of capitalism. With free markets, market operations have little or no regulation. In mixed economies, markets are the main players with some government regulation. For mixed capitalism, markets and the government are the major players.
The origin of capitalism is unknown but it is believed to have roots in the 16th Century, upon the collapse of British systems of power after the Black Death (a plague that led to the death of more than half of Europe’s population).
New merchants emerged to trade with foreign countries with a focus on exports, thus affecting economies through dictating production and pricing of goods and spreading colonialism, slavery and imperialism.
African capitalist nations portray a free market, where prices and production are dictated by private entities and corporation in competition with holding private property, economic growth, choice of freedom and limited government intervention.
But is it so? Why do we have pro- and anti-capitalism groups? Peasants still seek favours through offering cheap labour to survive (even as squatters on their master’s land) while governments collaborate with capitalists to set minimum wages, displayed during Labour Day celebrations, and portray to be assisting workers. Is it modern feudalism?
Therefore, capitalism can only make sense based on an individual—whether worker or investor. To investors, it is sensible since it improves their resources by camouflaging it through the supply and demand gimmick while the investor becomes king.
For it to be meaningful to the worker, resources should be extended to them. This is the biggest problem among African capitalists as workers are subdued to continue serving them, hence the genesis of inequality, whether economic or social.
Capitalism in Africa, embraces greed, thus influencing profits towards innovations and product development to avail more choices for those who can afford with little regard to those who cannot. It is exploitative and embraces divisions in society, favouring the haves. Its supporters have selfish interests to gain political freedom through economic freedom, to access political protection and subdue the have-nots, arguing that there no alternatives. Really?
How do you argue that competition among firms is to the benefit of consumers by making goods more affordable while allowing a man-eat-man society to motivate people to work harder?
Poverty in Africa is a gimmick amid plenty forced upon the poor through unreasonable profits precedent and slavery wages, leaving them with no choice but trade their labour, and social alienation.
Capitalism in Africa is anti-democratic, inhuman, exploitative and unsustainable and should be abolished to allow governments to spur development. Investors, mostly foreign, hold power over workers and accumulate more as their capital surges. BY DAILY NATION