Capitalism, Socialism and the Evolution of Global Power

The Rise of Capitalism and Socialism

Capitalism was a dominant system. With the end of the Second World War, capitalism emerged as the leading force.

Socialism designates those theories and policies that advocate for a political and economic system based on the socialization of production systems and state control, whether partial or complete. The aim of socialists is to create a classless society, free from the divide between rich and poor.

The Three Worlds Model

The terms 1st, 2nd, and 3rd world were used to categorize nations into three broad areas, though focus primarily remained on the first and third.

1st Group: Industrialized Nations

This group included the United States, Canada, Japan, France, Germany, England, and Italy. They were considered significant because they were the most industrialized countries.

3rd Group: The Bandung Conference

A key moment for this group was the Bandung Conference (Bandung, Indonesia, 1955). The Bandung Principles include:

• Respect for human rights, objectives, and principles of the UN Charter.
• Respect for the sovereignty of all nations.
• Recognition of equality between races.
• Abstaining from intervening in the internal affairs of another country.
• Respect for the right of individual and collective self-defense.
• Non-use of collective defense arrangements to serve the interests of any great power.
• Refraining from threats or acts of aggression.
• Peaceful settlement of all international conflicts.
• Promotion of mutual interests and cooperation.
• Respect for justice and international obligations.

The Non-Aligned Movement (NAM)

The Non-Aligned Movement (NAM) established an administration designed to allow all member countries to participate in global management.

The Unipolar World

Following the Cold War, capitalism became the primary system, marked by two major events: the fall of the Berlin Wall and the disintegration of the USSR.

The Fall of the Berlin Wall

On November 9, 1989, the Berlin Wall fell. Germany, previously divided into the Federal Republic and the Democratic Republic, was reunified in 1990, creating an integrated economic, monetary, and social state.

The Disintegration of the USSR

The collapse occurred through two primary streams: perestroika and glasnost.

• Perestroika: An attempt to reduce military spending and redirect funds toward social practices.
• Glasnost: Introduced transparency to the government and society.

Key figures during this era included Mikhail Gorbachev and Margaret Thatcher, known as The Iron Lady.