Fernando Alcoforado*
This article aims to make a comparative analysis between capitalism, socialism and social democracy throughout the history of humanity from the economic, social and political point of view. Capitalism, which emerged as an economic system from the twelfth century in Italy, continues to operate globally until the contemporary era. Soviet-style socialism emerged as an economic system in the former Soviet Union in 1917 and ended in 1989, although it is currently maintained in some countries such as Cuba and North Korea. Social democracy emerged as an economic system in 1930 in Scandinavia and was also adopted in some Western European countries after World War II.
From the foregoing in this article, capitalism has failed throughout history to promote economic, social and political progress. Liberal capitalism failed in the field of economics because it was responsible for the occurrence of two major depressions in the world capitalist system in 1873 and 1929, of the escalation of colonialism and imperialism throughout the Earth, and the advent of two world wars (1914-1918 and 1939-1945). Liberal capitalism adopted until 1929 and neoliberal capitalism that has prevailed since 1990 have failed from the social point of view because they have contributed from their origins in the twelfth century to the advancement of social inequality that reached alarming levels worldwide in the twenty-first century. Liberal and neoliberal capitalism was also an instrument of degradation of the global environment. One of the characteristics of capitalism throughout history has been the abandonment of political democracy when its interests are threatened by worsening economic and social problems by supporting dictatorships and fascism. In addition, the world capitalist system is ending in the mid-21st century by placing on the agenda the need for its replacement by a new economic system that is capable of promoting economic and social progress at the levels of each country and planet Earth as a whole.
From the foregoing in this article, socialism has failed throughout its history to promote economic and political progress, despite the social advances achieved. Marxist-based socialist parties failed because the main element that led to the popular withdrawal of these parties was disillusionment, a feeling that these parties had had their historic opportunity, which had gained support based on a two-step strategy to transform the world (seize state power, then transform it), and that they had not kept their historic promise. As for the failure of the Soviet Union and the socialist countries, the three major accusations against historical socialism are: 1) the arbitrary use of state (and party) authority in which, in the worst cases, state-led terror; 2) the extension of the privileges of the Nomenclature (dominant group in the power structure of the Soviet Union and other socialist countries); and 3) extensive economic inefficiency, the result of which was restraint in increasing social value rather than promoting it.
From the foregoing in this article, Scandinavian social democracy would be the solution to promote economic, social and political progress since it would end the anarchy of production, social inequality and the threat to democracy characteristic of liberal and neoliberal capitalism and ensure economic stability, social welfare and the exercise of political democracy not achieved by liberal and neoliberal capitalism; and the exercise of democracy not achieved by socialism in the Soviet way. The Nordic or Scandinavian model of social democracy could best be described as a kind of compromise between capitalism and socialism. It is neither fully capitalist nor fully socialist, being the attempt to merge the most desirable elements of both into a “hybrid” system. In 2013, The Economist magazine declared that the Nordic countries are probably the best governed in the world. The UN World Happiness Report 2013 shows that the happiest nations are concentrated in northern Europe. Norse people have the highest rating in real GDP per capita, the highest healthy life expectancy, the greatest freedom to make life choices, and the most generosity.
In this article, therefore, it is concluded that capitalism and socialism failed to build an economically, socially and politically viable society in various countries of the world. It is also concluded that the promotion of economic, social and political progress in order to establish a civilized coexistence among all human beings urges the building of Scandinavian social democracy in all countries of the world. This requirement is imposed because Soviet-style socialism failed and ended in 1989, and capitalism, too, failed and will end in the mid-21st century.
To read the article, access the website:
* Fernando Alcoforado, 79, awarded the medal of Engineering Merit of the CONFEA / CREA System, member of the Bahia Academy of Education, engineer and doctor in Territorial Planning and Regional Development by the University of Barcelona, university professor and consultant in the areas of strategic planning, business planning, regional planning and planning of energy systems, is author of the books Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova (Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado. Universidade de Barcelona,http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of the Economic and Social Development- The Case of the State of Bahia (VDM Verlag Dr. Müller Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe Planetária (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2010), Amazônia Sustentável- Para o progresso do Brasil e combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011), Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012), Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV, Curitiba, 2015), As Grandes Revoluções Científicas, Econômicas e Sociais que Mudaram o Mundo (Editora CRV, Curitiba, 2016), A Invenção de um novo Brasil (Editora CRV, Curitiba, 2017), Esquerda x Direita e a sua convergência (Associação Baiana de Imprensa, Salvador, 2018, em co-autoria) and Como inventar o futuro para mudar o mundo (Editora CRV, Curitiba, 2019).
Site Title 