Capitalism and local
moral and ethical issues
• It is a social system that exists in all countries of world. It is based on
the private ownership of capital and production inputs and on the
production of goods and services. The essential feature of capitalism is
the class division.
• This means that under this system we have a group of people who
own means for production and distributing goods ( capitalist class)
and group of ppl who must sell their abillity to work in return for a
wage ( working class) ( source : Investopedia)
Capitalism must consider moral and
In this form as it is now capitalism creates more inequalities in society.
1. Developing countries can’t follow developed countries in this profit-oriented race. As a result of that we are
witnessing higher poverty rates and social inequality in the world.
2. Local and national culture does not have any space left for unique development
3. The profit motive
Its emphasis on consumption leads to unfair market competition and since capitalists need to make profit as a condition for
not losing their investment, they can’t afford themselves to invest in environment.
Developing countries are the victims of this way of working and producing since foreign capitalists are only using cheap
workforce to produce goods. New private investors didn't contribute to the fall of poverty rate , in fact the poverty
rate had rose since the 90s. Those profit oriented investors don’t reinvest their profite in production in Bosnia but
they take money out of sytem and they also caused many environmental problems
4. Wrong policy measures
In order to attract more capitalists in their business zones, policymakers at local and regional level make business plans that
don’t include protection of environment and workforce. In Bosnia and Herzegovina you will see SWOT analyses done
by local government where as a strength of their community they emphasized “cheap” work force.
5 Exploitation of natural resources and workforce in developing countries
6 Small businesses and family farms are disappearing,
Capitalism in this form leads to
and as a result we have
• Religion fundamentalism
• Ethnic nationalism
• Backlash racism
The purpose of capitalism is self-expansion and it does so by monetizing
social value and human labour.
It is widely assumed that capitalism means free market but we have different models of
Solidarity based economy
• Chilean sociologist Luis Razeto Migliaro is often credited with coining the expression
“solidarity economy” in the 1980s.
• boomed in 1990s when Latin America was facing an economic crises.
• people started to look for alternative income sources and they began to cluster into
groups and associations.
• Brazil is being hailed as an international model of social development based on
principles of solidarity economy
Solidarity based economy has different meanings in different countries. In Brazil they emphasize cooperatives while in
francophone Europe it is connected with the “social economy” and their associations.
This model may be influenced by the long history or traditional economic practices and current situation which allows this
model to create a sustainable growth for particular country,
• Democratization of the economic relations
• Co-operation instead of forced competition
• Valuing diversity. Human beings are more important than profits
• Valuing local knowledge, constant learning and training
• Social justice and emancipation
• Protection of the environment
(Source: National Secretariat of Solidarity Economy, Brazil)
Some manifestations of this model:
• Community development Banks
• Local currencies
• Community groups organized to confront some needs
Solidarity based economy
• Encourage processes of building diverse
locally-rotted and globaly-connected economies
• Creates cultural and social benefits which
contribute to the development of whole society
• Open process which is not influenced
by any political party
• Return values of workers environment
stolen by this current form of capitalism
• Explore new ways of reducing social
• There are no government incentives and
support for creationg local groups
• Access to credit is limited
• Consumer awareness is still low
Capitalism and anxiety
Set of moral and social values :
• Individualism and only individualism
• Workplace stress
Capitalism and anxiety
Personally I think that this effect of capitalism on human behaviour is one
of main drivers of high rates of unemployment. A huge presrure is
being putted on youth to be more productive and employable as well
as entrepreneurial . These are values of modern society.
Because of that everyone will rather choose to work as a stock broker in
London City even though he/she is educated to be an engineer.
We have more freedom than ever but actually we are not free. We can’t be
what we want or do what we like especially if we live in developing
countries because of the challenges that capitalism is fostering.If you
want to survive nowadays you have to work harder and faster just to
accumulate more profit.
• Bosnia and Herzegovina (BiH) is just one of many developing countries ,facing
problems of poverty and huge inequality.
• Unemployment rate 44.54 percent
• Euromonitor International forecast : by 2030. BiH will have been on the top of the
list of the oldest countries ( 10.)
• 20% of population live in capital city Sarajevo
• Rural places and small communities are disappearing
• Capitalims in this form can’t help BiH. Instead of implementing a simple strategy-
sell everything to investors ,BiH must implement new strategies with focus on moral
values and social capital within its local and rural communities.
Bosnia and Herzegovina
What government in BiH can do
• Institutional support for small enterprises
• Reduction of barriers to local groups growth
• Help build civic infrastructure by decentralizing programs
• Increase investment in rural regions and non-formal education
• Encourage real social dialogue through formal activities and implementing strategies
• solidarity economy as an integral part of strategies to develop the labour market
• Policies that promote local development
Example of solidarity based capitalism
Region : Žepče municipality ( 30 000 inhabitants) Željezno polje rural
community ( 5 500 inhabitants)
• Producers in that region gathered and formed the Raspberries Growers
• The association has 250 members and they also cover the region outside their
area.They are sellling their products not only in Bosnia but as well in rest of
the Europe. They create work and generate income for nearly 5000 inhabitants
in that province.
First production was done in 2002 together with the company from Sarajevo and
later they signed few contracts with foreign companies.
• Now their profit reaches more than 3 million per year
Beside selling their products they also:
• help younger producers in their region through workshops
• implement social projects which aim
is to improve the quality of life in their community,
• fighting against social inequality by helping returned migrants
• Implement process and use machinery
which doesn’t have bad effect on environment
• Invest in organic products from local growers and cooperants ,
• Promoting local development
They didn’t look for money outside their community instead they have found a real strength and real
values from “inside”.
This is why capitalism must consider moral and ethical values and why only int his way local
development can be sustainable ; use own resources and strengths through connection and
solidarity , seeking for investments but also reinvetsing in own community.
• At the end I am not saying that capitalism should be deleted.
Capitalism helped many countries in their growth, encouraged
people to be creative and to train their Capitalism brought new
ideas, motivated us to be better and to really use skills which they
maybe never knew they had.
• Nowadays , though, capitalism must also adjust and implement
“human”elements into its system otherwise it will make same
mistakes as other systems before.
• Economy is not anymore a mere supply-demand graph and people
are not rational beings who only think about accumulating their
• We need to rebuild our society on moral and ethical values such as
solidarity,equality and empowerment together with individuality.