The Sociocapitalism   For a Better World    Paulo José F. Valente        @pjvalente            2009
"Who understands love, and who                   understands works for a world better ".                           Francis...
INDEXPresentation                                                             4Chapter. I – The Natural Evolution of Capit...
Presentation                              The origin of this book  After the 70s, the world had clear signs of improvement...
And intolerance on both sides resulted in so-called "dirty wars". An "anything goes"of trying to bomb, torture, betrayal a...
I remember that time that students took a radical stance on the subject. Or werepro-capitalist or purple were pro-communis...
The big shot was the first teacher and a doctorate ineconomics João Sayad, University of Sao Paulo - USP, in the eyesof sc...
The global transformationsAfter I graduated from college in economics in 1984, much water has passed underthe bridge. The ...
The fall of the Soviet empire and the supremacy unchallenged U.S. caused an excitement in the capitalist world. It was at ...
Then, from the issues mentioned above, I started to work intensively onthe development of the model, from the ultimate con...
In the third chapter: - "The Sociocapitalism" mention the facts that indicate thatthe true sociocapitalism emerges in the ...
Chapter I                The Natural Evolution of Capitalism   Capitalism was not born overnight, it is the result of long...
Those first cities that emerged and prospered in the land, resultedin nations that used agriculture and animal husbandry a...
To worsen the situation of the poor peasants, they also needed to sustain themilitary, and they were numerous, as the more...
The story also tells us that empires do not last forever, and the Greek rule wasno exception. He was overwhelmed by the Ro...
The oppressive feudal scheme worked as follows. In exchange for permission touse the land and military protection, the ser...
which is not to say that many current capitalist not descended from those noble, forthe rich and powerful always adapt to ...
able to lead a strong army consists of more than 100,000 ex-slaves, and this wasnot all, see what the writer Plutarch ment...
The "Black Thursday" also made great havoc in Brazil, for the U.S. werebig buyers of our coffee. With the U.S. market in c...
In fact there was a combination of three factors potentially dangerous: a slowingeconomy, the weak dollar and fears of def...
Until one day the price of these shares have plummeted and caused a big crash. Itwas a messquite large. For the end of 200...
Government interventions in the U.S. and much of the developed capitalistcountries have formed a unique wave of nationaliz...
The reasons that made the stock markets in the major sources of funds thatpromote material progress are simple: first by t...
in relation to the amount paid to workers in the form of wages. In thissurplus value, Marx called "surplus value" - the ca...
The revolutionary socialists took power in Russia to change thisreality. So forcibly confiscated private property, taking ...
Overall the main negative results obtained with the nationalization of the meansof production in the former USSR and other...
Chapter II             Convergence: Capitalism and Socialism  After the Second World War the United States of America emer...
The plan went ahead because it had the support of billionaire capitalist militaryindustry, who headed a powerful political...
It is certain that these economic reforms have worked, and China beganto develop rapidly, with growth rates around 10% per...
to occupy the force in 1954. The occupation of Tibet by the "forces of materialisticChinese" was so brutal that it caused ...
Turning our attention to the "Asian success", there are other factors that alsoexplain the current boom in the region. The...
them. And this effort paid off, because the U.S. needed strengthen the regionbased on capitalism, to turn it into a import...
Another crucial factor that helped a lot in making the "miracle Japanese ", wasthe large investments made in peoples educa...
to changes in the level of jobs and salaries affected by Automation certainly causeimbalances in the circular sieve money....
evacuation of Soviet troops from Afghanistan, who then waged war useless andsilly, that it should nothave begun, for the s...
Alongside those situations belligerent, the U.S. economy walked to the bottom and hispeople did not even realize, that dom...
superpowers. So the bastard Bin Laden led surprising and devastating attacks onthe U.S., the world can watch live on telev...
It is this shared way of global economic power that is experiencing the twilight ofAmerican empire, already without the ec...
The American crisis made it clear that the potential of misguided policies put inplace by the Republicans of the Reagan an...
The wise example of Gorbachev and the End of Empires   If the U.S. had followed the wise example of Gorbachev that promote...
The collapse of American has a historical importance odd because it suggeststhat the era of empires is over. In todays wor...
The Transforming Power of Emerging Countries in the 21st Century   While U.S. power is Declining considerably, with countr...
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The sociocapitalism

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Sociocapitalism is a term that has been fallaciously stated by Peter Drucker in his book, "Post-Capitalist Society, published in 1993."

The book The Sociocapitalismo - for a better world, depicts the real economic system intuited by Drucker, the result of convergence between capitalism and socialism, now under way in the world.

The global crisis we live in is a time of adjustment and transition to this new post-capitalist economic system.

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The sociocapitalism

  1. 1. The Sociocapitalism For a Better World Paulo José F. Valente @pjvalente 2009
  2. 2. "Who understands love, and who understands works for a world better ". Francisco Candido Xavier Dedication "I dedicate this book to all workers who one way or another working for a better world”. The book The Sociocapitalism for a Better World - is a independent work. This book was translated from the original Portuguese intoEnglish automatically, with the help of Google translator. Therefore, it is natural that differences of interpretation occur and thus translation. If that hinder the understanding of the reader, I am available for any clarifications that may be necessary. Paulo José F. Valente @ pjvalante email: www.estadao.com.b 2
  3. 3. INDEXPresentation 4Chapter. I – The Natural Evolution of Capitalism 12Chapter. II – Convergence: Capitalism & Socialism 27Chapter. III – The sociocapitalism 43Chapter. IV – Sociocapitalism & Better World 76Chapter. V – Conclusion 107Annex I – Pyramid of Power 112Annex II – Sociocapitalism: The ultimate convergence of the do Capitalism & Socialism 113Annex III – Commandments of Citizen Globalized 116Annex IV – Key questions about the Funds Capital Worker – FCW 117Glossary 120Biographical references 125Bibliographies 128 3
  4. 4. Presentation The origin of this book After the 70s, the world had clear signs of improvement in its troubled politicaland social framework. U.S. president Jimmy Carter who ruled from 1977 to1981, had signed the SALT-2 treaty with the former Soviet Union and thatwas an important event because addresses the reduction of nuclearweapons between the two superpowers. The treaty was not the best of all worlds,because even nuclear weapons still exist, but the chance of the world turn todust overnight considerably reduced. Carter, against the previous Republican administrations, alsoworked extensively in support of democratic openness in Latin America.So much so that in 1977, met with General Geisel, then president of Brazil, todiscuss the democratic opening in Brazil. Later, President Geisel conservative opposition to the summitmilitary, General Figueiredo was able to impose his successor as the President ofthe Republic. Figueiredo was the military style of the time that the media loved to mock. AGeneral untimely had come to say that he preferred the smell of the horse "Smellof the people." After all, Figueiredo was really determined to make the transition todemocracy in Brazil and did so, although I do notbet a penny on it, because this was a difficult and timeunclear where the soldiers lay down and rolled, promoting disappearance ofPeople, censoring the press, abridging the freedom of expression andinhibiting economic initiatives. However this scenario black and intolerable, it was not characteristic only ofBrazil and in many other countries, especially in Latin America, the situation wassame or worse. The Latin American dictators on duty chased communists andtheir enemies "abominable" ideology as the catchases the mouse, without truce and without mercy. This absurd persecutionkilled thousands of innocent people who paid with their lives, not to mentionof so many more orphaned or traumatized. In contrast to the "left" bellicose who fought for an ideal some whatobscure, fought back practicing more terrorist attacks, kidnappings and guerrillawarfare intensified. How to throw fuel on the fire. And this picture of exaggeration 4
  5. 5. And intolerance on both sides resulted in so-called "dirty wars". An "anything goes"of trying to bomb, torture, betrayal and death of innocents. Dirt that theparties engaged and hid. In fact the "dirty wars" were chess pieces of the strategic global game of "coldwar". Somewhat ironic expression used to describe the contest wagedby nervous military hegemony between the former Soviet Union and the UnitedStates; superpowers who were always willing to start a preventive nuclear war,which could reduce the world to a ash heap. In the fall of the U.S. arms insane, who considers himself "the pillar of worlddemocracy," supported friendly dictators with weapons, money and information. Onthe other hand, the Union Soviet, which controlled and persecuted its citizens with"iron fists", did the same supporting dictatorships and socialist infiltrated dissidentgroups in capitalist countries. And as a social cancer of the damned“Dirty war" spread to the world. It was like that in Brazil, Argentina, Chileand elsewhere in the world. Well, it was foggy at the time of our history that I joined the faculty of economicsand, like all idealistic young man tried to read books that addressed the issueof social justice. After all, what was at stake on the planet at that time, was thestruggle for supremacy between the two economic systems: capitalism andcommunism, led by U.S. and USSR respectively and I wonder what would bebetter. The confrontation x capitalism communism was masked by severalother conflicts of interest, eg, the North against the South, the rich againstthe poor, the developed countries against developing countries, or evenbetween nuclear powers and non-nuclear countries. However the polarity in worldaffairs capitalism and communism was always involved. I remember that time that students took a radical stance on the subject. Or werepro-capitalist or purple were pro-communist staunch. There was no middleground. Fortunately I tried to analyze things in a more free as possible, because,for any prospect that the world was observed, it was possible to note from ills ofcapitalism or communism in politics, economics and other social aspects. So it wasalways possible to blame the enemy side by troubles in the world. 5
  6. 6. I remember that time that students took a radical stance on the subject. Or werepro-capitalist or purple were pro-communist staunch. There was no middleground. Fortunately I tried to analyze things in a more free as possible, because,for any prospect that the world was observed, it was possible to note from ills ofcapitalism or communism in politics, economics and other social aspects. So it wasalways possible to blame the enemy side by troubles in the world. To do so just check the history of time: the invasion of Czechoslovakia by theSoviet Union, the Americans committed atrocities in Vietnam and the performanceof dictatorships sponsored by the powersleaders. The story also reported the sad massacre of the people in which Cambodiancommunist dictator Pol Pot killed more than a million people between 1975and 1979. The massacre of civilians occurred in the Heavenly Square in Beijing,committed by the communist regime in 1989, was another fact that also stainedred the history of mankind. And also what about the Cuban dictatorship thatholds people captive and oppressed today? As ifnotices in these cases is impossible to separate politics fromeconomics and political economy. In Brazil, for example, was easy and convenient to blame the United States andInternational Monetary Fund by our monstrous foreign debt and for ourtardiness. However the biggest culprits were our politicianscorrupt, which unfortunately are still in the bowels of power today. Far from the passions by either radical economic system I studied some of theworlds leading economists: Keynes, Marx, Hengel, Samuelson, Milton Friedman,Joseph Stiglitz, Paul Krugman, Adam Smith, Malthus, Ricardo, Amartya Sen,among others. I studied also the father of modern management, Peter Drucker.Mostly his work - "The Post-Capitalist Society," written in 1993, which served asreference for writing this book. In fact, the idea of writing the book germinated in my mind in the first year ofcollege, more precisely on the day I participated in an event where two big shots ofthe Brazilian economy were talking about the giant Brazilian foreign debtand onthe external account imbalances the country, which by then had dismal economicperformance. Those "big shots" were renowned masters of Brazilian schools andhad different approaches of economics. 6
  7. 7. The big shot was the first teacher and a doctorate ineconomics João Sayad, University of Sao Paulo - USP, in the eyesof school students excel in "cold economy" of numbers and their results. Theother was the big teacher and also a doctorate in economics Luciano Coutinho, theUniversity of Campinas - Unicamp, an institution that takes into account the humanbeings behind the numbers on the economy. That was the big difference in oureyes. What is the economy beings humans are considered a bunch ofnumbers and figures? And what about social justice? After a barrage of numbers, diagnoses and prognoses of the Brazilian economy,opened the session of questions to students. And, intuitively sought understandingbetween the two antagonistic economic systems treading the "middle way" did thefollowing question to the panelists respond:- You diagnosed, essential and predicted numbers cited about the Brazilianeconomy, but Brazil is considered Belindia; a mixed country of Belgium developedand underdeveloped India. And I say that the government enter sand leaves thegovernment, economic policy remains the same and always serving the interests ofpart of "Belgian" in the country. I ask: what should be done to develop the partof "India" of our country? The dour Sayad understood my question as a criticism of him and refusedto answer it, saying that the issue was notraised topic of the lecture and gave thefloor to another student. However the teacher Luciano Coutinho intervened, sayingthat my question was very important. He also said that in his opinion, thegovernment was not doing much to develop the late part of Brazil. ToCoutinho government does not do enough to address the issue of poverty inwhich millions of Brazilians live up to. I was happy with the words of Professor Luciano Coutinho, yet notgetting an adequate response to what the "political-economic systemideal "to contemplate a fair social and economic development sustainable:capitalism or communism? This was the crucial issue for me. On second thought maybe the teacher could not answer Coutinho whatinterested me. For the military regime of coercion and censorship still prevailed atthe time and many people were arrested just for saying in public thingsthat displeased the government. In any case, it was from that day I endeavoredto discover the answers he sought. 7
  8. 8. The global transformationsAfter I graduated from college in economics in 1984, much water has passed underthe bridge. The world changed and changed quickly. I considered the followingyear as a positive landmark in Brazilian history and world. In our country themilitary returned to barracks and civilians took on the presidency throughdemocratic elections. Out side the Iron Curtain, was named as the former USSR byhis enemies, economic reform initiated by newly appointed Mikael Gorbachev,signaling better times come.Horever in 1987 was the fall of the Stock Exchange of New York,almost surpassing the 1929 crash, a fact indicating that shook the world somethingwas wrong with American capitalism, considered the vanguard of world capitalism.The crisis of 1987 also showed how global capitalism was interdependent and itwas so vulnerable, because a sneezein a powerful country could turninto pneumonia in a country underdeveloped. It also reveals the supremacy ofcapitalism and volatile financial over productive capital, and howdangerous this was speculative financial supremacy. These facts havemotivated manyeconomists seeking formulas to regulate international financial transactions inorder to reduce risks and avoid cascading breakers, the so-called domino effect. However not everything was bad in That year of 1987,considering that the U.S. and the USSR signed a treaty Providing forthe Reduction of Their nuclear arsenals. Although the treaty was not ideal as it bestthat would end once with all nuclear weapons, but it was agood start and humanity had this perception. Further, precisely in 1991, Gorbachev resigned from power in a crisis andthis important fact marked the dissolution of the USSR, for worldlyhappiness. Henceforth there would be only one hegemonic superpower: the UnitedStates of America. And that was not good for humanity, because the imbalance ofpower, as history shows, always whets greed and war. And that was clearlydemonstrated later with the wars in Iraq and Afghanistan, which are still inprogress. 8
  9. 9. The fall of the Soviet empire and the supremacy unchallenged U.S. caused an excitement in the capitalist world. It was at thattime so that the magician of modern management Peter Drucker launchedthe book - "The Post-Capitalist Society" where mentioned as pension funds wererevolutionizing America. Drucker aptly wrote that capitalism was in the process of"metamorphosis" and that "capitalism of the few "transformed intothe "capitalism for everyone." Across the planet, Communist China who wisely made some importanteconomic reforms in 1978, transforming its rigid "centrally planned economy,"in an "open economy and market-oriented" in order to leverage his then-stagnanteconomy. At that time was beginning to reap the fruits of success, to growwith impressive annual growth rates around 10% per year, causing envy in manycountries. In fact, the bold transfusion of "capitalist blood" into the socialist system hasenabled China to return to a giant of the world economy, we all respect andadmire. Ironically, when Communist China powers the economy, converging tothe "prescription" capitalist, implementing the "market socialism", the UnitedStates converged on the so-called "socialization market "mentionedby Drucker, indicating that there was a convergence between these economicsystems. Whats truck me with new questions in mind, imagining the future of"post-capitalist society" mentioned by him, which divide the capital amongthe workers would be commonplace and very lucrative. At the same time also imagined the profile of the "post-socialism" in Russia,China and other "communist countries", where rich became glorious.In this context I tried to study the transformations occurring in the world after thegreat cyclical financial crises, due to the globalized world; imaginethe consequences that would have on the convergence of economic systems. However lacked a theoretical model that would serve as a benchmark toanalyze these changes and explain where convergence would come. Andthe worst, I could not find any books in bookstores that dealt withthe matter. So this prompted me to develop it. 9
  10. 10. Then, from the issues mentioned above, I started to work intensively onthe development of the model, from the ultimate convergence betweensocialism and capitalism, substantiate the "post-socialism" and "post-capitalism,"as a political-economic system only one of the 21st century.To name the new political-economic system that emerges embraced theterm "sociocapitalism." Not the poor "fund socialism pension, "byPeter Drucker mentioned fallacious. But the "real sociocapitalism," which mixes thebest practices correctly of capitalism and socialism.Book Contents To display the "sociocapitalism" that appears in the world to transform our livesand contribute to a better world, tried to write this book in a clear, simpleand without many economic numbers, that we could reach a different audience:students, housewives, workers, teachers, retirees, businessmen andothers. So divide the contents of the book into five chapters In the first chapter - "The Natural History of Capitalism" approachthe development of capitalism, as a result of natural evolution of other economicsystems that took place throughout the history of humanity. Lightning also deals with the emergence of socialism that emerged inopposition to the injustices of the capitalist system. Citing the tensioncaused between these two antagonistic economic systems, e specially duringthe "cold war" and the dire consequences that resulted to the world. In the second chapter: - "The Convergence: Capitalism &Socialism" pointout the conceptual and practical changes that occur incapitalism and socialism, indicating that both converge quickly to a newpolitical and economic system called sociocapitalism. Especially after the endof American empire in 2007, which, In turn, enabledconsensus among nations that "global problems require global solutions"adopted by the UN. For all these reasonssociocapitalism certainly prevail in the 21st century global society, supportedby a United Nations New, powerful, active and fair. 10
  11. 11. In the third chapter: - "The Sociocapitalism" mention the facts that indicate thatthe true sociocapitalism emerges in the world and it will bring prosperity and socialjustice for all. Also present sociocapitalism fundamentals, which will no doubtrevolutionize the 21st century global society. In the fourth chapter: - "Sociocapitalism & Better World" aboard the positivecontribution that this system has to offer to humanity. Especially in terms ofprosperity, social justice and global sustainable development. In this chapter we also mention the crucial role that this system will for theemergence of a "new UN", more just, representative and active. Finally, the fifth and final chapter, I present the “Conclusion"on sociocapitalism and its important contribution to building the New UnitedNations, in search of a better world for everyone in the the planet. 11
  12. 12. Chapter I The Natural Evolution of Capitalism Capitalism was not born overnight, it is the result of long evolution of othereconomic systems that preceded it over the history of mankind. Therefore, theroots of capitalism today are steeped in the early days, when early humans stilllived in the darkness of ignorance and ceased to be nomads. At that time ourancestors produced obscure in their own lands all theyneeded. However, over time, this was not always possible, because theyproduced the goods were scarce, but human needs have no limits. Perhaps for thisreason that envy, quoted a cardinal sin in the Bible, is a powerful source ofdissatisfaction and unhappiness that has plagued man today. Given the limited productive mentioned, humans sought to changethe seniority of their surplus production, for desired goods that belonged tohis neighbors. This is how it came the mode of production Mankinds oldest,called barter. Those were difficult times of "barter", because the currency did not exist andthis fact severely hinder trade, generating long andtiresome disputes with respect to the values of commodities exchanged. Imaginefor example, the difficulty of exchanging grain for sheep? So to facilitate the exchange of products and commodities, the ancientshad a brilliant idea and invented the coin, which at that time meant money,because paper money was only invented in China thousands of yearsafter the appearance of it. In reality, the coin was a brilliant idea was, as well as facilitating trade,it allowed to hoard wealth for future use. Before the appearance of themwas impossible for a producer of perishable fruit or fish, for example, store it as astore of value for a very long time, inevitably rot because these products.As the currency is not practical and that can be stored for an indefinite time, itsuse became widespread. Note that money, wealth and property, which are common tools inthe present capitalist system, are not creations of this. Anyway, trade andcurrency were important for the development of ancient citieslike Babylon, Thebes, Jerusalem, Carthage, Athens and Rome, whichflourished and prospered, propelling the arts, sciences and civilization. 12
  13. 13. Those first cities that emerged and prospered in the land, resultedin nations that used agriculture and animal husbandry as basis of theireconomy. So that the fields were so important to the development ofcities, a fact summed up the popular saying: "If cities are destroyed and their fields preserved cities tore build. However, ifcities are preserved and destroyed their fields, they will not survive. " Despite the great importance of agriculture and animal husbandry at the time, inthe cities the craftsmen were producing a wide variety of utensils and tools used indomestic, military, medical, among others. What happens is that these toolsdemanded products manufactured mineral or organic that sometimes werenot found in the country and had to be imported from other nations, and this greatlyboost international trade and also the wars. To the extent that the exchange ofcommodities caused sharp conflicts of interest. Modern archeology has revealed that in ancient Egypt and Babylon,many centuries before the birth of Jesus Christ, there were veritable factories ofmass production, especially of military artifacts. And workers also receivedpayments for services performed. Just do not know for sure if there was then the"division of labor." A important part that make up the board of capitalism today.However, it is very likely that at that time there was also a "division of labor"as a craftsman always left the less important tasks for their learners and tiresome. The type of economy that prevailed in the early civilizations of the Earthwas called "Asian mode of production." Asystem that was used biblical pharaohs, emperors and kings, who representedthe power of God to the people on earth; supported by powerful armies. It wasthus in the Middle East, India, China, Africa, Europe, and evenin pre-Columbian America, especially those empires: Mayan, Aztec and Inca. That glorious time when the gods ruled the skies and powerful "protected" theemperors who ruled the earth, there were the poor peasants, retained ownershipof the lands of representatives, on a "collective servitude" that allowed them takenoff the land and their livelihood of his family. However, excess production was"taxed" by the nobility. So, so divine nothingness of social relationship, the hardwork of the people in the field supported the life of luxury and goodpriests and nobles who lived in cities. 13
  14. 14. To worsen the situation of the poor peasants, they also needed to sustain themilitary, and they were numerous, as the more famous was thecity, raise the most greedy invaders and adventurersspoils or sought to dominate the government and people, in order to receive taxes. Hence the need for wealthy nations possess powerful armies to defendthemselves. The dark side of this issue military practice is its highcost, and people need to work hard to pay it. This fact is due to a difficultproblem, the government strategists must consider. Anarmy is an underestimated danger to the survival of the nation, an army on theother hand is an overrated waste that must be avoided, because someonealways pays the bill and this one is the people, which ultimately may rebel at thesituation and overthrow the government. So the solution to this complex problem isto find the "size" of the military ideal in terms of cost, technique and efficiency,and the maintenance does not displease the people. The fact is that the "Asian mode of production", with its many agriculturalcommunities, supported the development of big cities in the past. And that madepossible the emergence of the first class societies, and the consequent tensionbetween them, as the social relationship involved exploiters and exploited,with different and conflicting interestsat stake. Centuries later the conflict between the classes of exploiters andexploited, oppressors and oppressed, was dealt with brilliantly by Karl Marx. After the Asian mode of production arose in Greece another system whosename says it all: slavery. And interestingly, there also we find anotherdeep roots of capitalism, perhaps its strongest pillar: democracy. Ironically, at the political-economic system "suis generis", "democracy"and "slavery" lived side by side. To get an idea of this aberration that history tellsus, 20,000 free citizens, those who were entitled to vote in the "democracy"dominated 400 000 slaves who had no voting rights, as well as the wives of freecitizens. Yet Greeces famous generals strategists knew very well use the power of its"democracy", joining it to the slave labor and itspowerful army. So once dominated a large part of the ancient world andcan spread their culture, which is currently one of the main pillars of Westerncivilization. 14
  15. 15. The story also tells us that empires do not last forever, and the Greek rule wasno exception. He was overwhelmed by the Roman Empire and this occurred in twostages. Rome conquered the first step in the domain of the WesternMediterranean, Carthage won, then a prosperous Phoenician city in NorthAfrica. This occurred in the third Punic War (150-146 BC). In the second step,Rome conquered the eastern Mediterranean, won successively, Macedonia,Greece, Syria, Asia Minor, Palestine and finally Egypt in 30 BC. There around the fifth century AD did another interesting productionsystem called feudalism. What contributed to its emergence was the destruction ofthe Western Roman Empire: the numerous barbarian invasions and bad economicpolicies implemented by the Roman emperors. As a result of the fall the Western Roman Empire, Europe began toexperience low population density and little urban development;arising from deaths caused by wars, disease and public insecurity in theregions weakened by poverty. Because of these factors thenoble Romans withdrew from the cities, for fear of being enslaved or robbed. Onthe trail led them to places far from their servants and goods, thus contributingto the birth of the feudal economy of the West, based on a self-sufficient economy,predominantly agriculture and low circulating coins. The backbone of that feudal agrarian society was composed of three socialgroups: the nobility, clergy and peasants. The nobility was composed of feudallords, their families and relatives, and they had considerable political power overthe other classes. For the king gave them land, considering the wealth of the time,and they in turn, in exchange, military swore loyalty to him. So the feudallords were regarded as "vassals" of the king. The clergy exercised a considerable political power because of the religiosity ofthe people. So in the name of God and the popular faith, he negotiated its supportfor the feudal lords, to discourage revolts against them, who in turn rewarded inmany ways. History shows that when the powerful confabulate; is always the peoplewho suffer and pay the bill. So the poor peasants,considered the "serfs" in the condition of virtual slavery, had to work hard to sustainthe social oppressive feudalism that required it. 15
  16. 16. The oppressive feudal scheme worked as follows. In exchange for permission touse the land and military protection, the servants were obliged to pay varioustaxes. If nothing else, they were also required to provide a service to the nobility fora few days during the year. In the feudal lords of the lands were divided into three parts. Thegentle master, for the exclusive use of the feudal lord; the meek servant -the land leased to the servants, and finally the gentle communal, that theCommons were the nobles and peasants - the pastures, woods and forests. It really was not an easy life for the people at that time because the numberof servants needed to fulfill obligations that they cost a lot of sweat and whennot, the nose. To get an idea of the size of the holding that the servants weresubjected mention some obligations that they must meet: - Compulsory labor in the land of the feudal lord some days week. - Paying for use of property of the manor as mills, kilns, barns and bridges. - Each member of the family of peasants should pay a tax to the feudal lord. - The servant should pay 10% of its production (tithe). - Free people, the so-called "villains" who lived in villages, should pay a tribute called "census." - Serfs and villains should pay to the feudal lords to be tried in the courts of the nobles. - When a noble or a relative was getting married, every servant was obliged to pay a fee to help with the wedding. - The servant was obliged to host the feudal lord and his family if necessary. With so many fees, taxes and duties, the help they received from thenoble clergy to keep the people "lamb" was understandable and useful. But evenso there was always a latent social tension between the nobles and serfs exploited. Over time, many European cities of the Middle Ages have become free from theyoke of the nobility. These cities were called "boroughs" and its inhabitants werecalled "bourgeois." Over time, the bourgeoisie began to count on the support of theking, and so they came into conflict of interest with the nobles. Later inhistory these rich bourgeoisie and began to explore large-scale labor-wagelabor. While the nobility, in turn, went into decline, 16
  17. 17. which is not to say that many current capitalist not descended from those noble, forthe rich and powerful always adapt to the cyclical situations at any time in history. Itmust be also consider that the "nobility" is still a reality in many countries in theworld today, especially in Europe, where it has very great wealth and socialprestige. Mercantilism slave allowed to accumulate wealth to Europe from the colonies inthe Americas, especially gold and silver, which boosted European prosperity andenabled emergence of capitalism due to the industrial revolution in Englandsecond half of the eighteenth century. With the English industrial revolution serving as a powerful leaven,bourgeoisie gained the top of the economic chain. And capitalism canflourish so overwhelming, promoting material progress andtechnology unprecedented in human history. Capitalism can be analyzed in different optics; capitalism commercial, industrialcapitalism and financial capitalism. In any , the search for maximum profit ispresent in any of these stores. However, the boom in stock markets seen inthe world, especially after the second world war, promoted an excessiveconcentration of wealth in the hands of financial capitalism, dominated by largeBanks. And this factor led to serious distortions in trade and productionworld. The proof is in this current global financial crisis, which has"merit" unprecedented shake up both the capitalist countries as thecountries considered "socialist." And this financial chaos was only possibleresult of the globalized world interdependence. Making very currentthe statement that "we are all in the same boat."The Crisis of Capitalism Its important to say that the economic crisis and its disorders are part of humanhistory. No economic system became immune to them, because their causes aredue to various factors such as revolutions, wars, social instability, religious riots,among others, that come with human development since time immemorial. In ancient Rome, for example, there was a great revolt against slavery, ledby origin a Thracian gladiator named Spartacus (120 BC to 70 BC), which becameknown as "war of the slaves." And this war was for real, because Spartacus was 17
  18. 18. able to lead a strong army consists of more than 100,000 ex-slaves, and this wasnot all, see what the writer Plutarch mentioned about him: "Spartacus was a man intelligent and cultured, more Hellenistic than barbaric."However, despite the unparalleled courage and greatintelligence strategist, Spartacus was defeated by the Roman imperial army andslavery continued for many centuries more. In terms of instability and crises, capitalism also does not escape rule. Fact isthat in 1873 there was the first great capitalist crisisalso called the "long depression" due to the fact that it last until the year1896. Well, this crisis occurred with the collapse of the rail industry;until then grew at a breakneck pace and provided good profits. However, when therailroad industry has consolidated, there was a breaksharp in business that brought down prices and profits, which has led manycompanies into bankruptcy. The crash in the railway sector induced ancascade that has infected other sectors of the economy, causing bankruptciesgeneralized and mass unemployment. The tragedy of the "long depression" was great. of the 364 existingrailway companies in the U.S., 84 of them failed. And the crisis is notwas restricted to American soil, the economies of England, Germany and Italywere severely affected. How disastrous consequencesof international bankruptcy, in addition to mass unemployment andnumerous bankruptcies of companies arose that monopoly capitalismtried at all costs to control to the detriment of competition consumers. Another great capitalist crisis occurred on October 24, 1929 – the called "BlackThursday" when the New York Stock Exchange crashed,causing a monstrous mess. In that fateful month the New York Stock Exchange fell40%, causing acascading bankruptcies, where thousands of companies were ruined and1 / 3 of the American population has lost their job in the following year. Later the U.S. crisis has infected Germany as they emerged from the first worldwar, with American money. France in turn, he received the Germanwar reparation, also accused the U.S. thud. 18
  19. 19. The "Black Thursday" also made great havoc in Brazil, for the U.S. werebig buyers of our coffee. With the U.S. market in crisis the amount ofcoffee exported fell and downed the price of this product. The perversecombination of the reduction in the amount of coffee exported with the pricedrop significantly affected the Brazilian economy. To combat the crisis the U.S. government of that country implemented the"New Deal", a mega economic project that sought to increase public spending tocreate jobs and solve the crisis. On the Brazilian side the government sought to buy large stocks of coffee torecover the price. So after the 1929 crisis the Brazilian state became moreinterventionist, with a strong direct presence in economy, especially afterthe creation of the National Steel Industry and Petrobras. It is worthmentioning that at that time, forced by economic circumstances, governmentintervention in the economy has become a worldwide phenomenon. Later in the timeline occurred in 1973 the famous "oil shock" when the price ofthe product shot on the international market,affecting almost all economies, since our civilization is extremely dependent onthis product. Making perverse effects side affect powerful economies like theU.S., Europe and Japan for inflation that triggered, significantly affecting tradeinternational level. As a positive development of the oil crisis in Brazil, the Braziliangovernment sought alternative sources of energy and ended up creating thepro-alcohol, which drove the Brazilian automotive industry to produce more fuel. Japan, which also relies heavily on imported oil, decided to invest in theelectronics industry, to produce high value products aggregate intended forexport, the intention to carry out foreign trade surpluses and thuspromote prosperity for its people. In 1987 came another major financial crisis in capitalism, when theDow Jones of the New York Stock Exchange recorded the largest drop in itshistory. In a single day the Dow Jones, which is very important to the globalfinancial market, tumbled 22.6%. But what caused this traumatic slump? 19
  20. 20. In fact there was a combination of three factors potentially dangerous: a slowingeconomy, the weak dollar and fears of default on bank loans. these factorscombined caused panic in the U.S. market and polluted Europe and Japan As aresult of widespread panic, Brazil broke and so was forced to suspend foreign debtpayments. So to combat this massive financial crisis, the central banks ofworld quickly lowered their interest rates for businesses back to normal, whichended up happening. No one before we leave great lesson, becauseit demonstrated the potential of rapid spread in globalized financialmarkets, hitherto neglected. A decade later, more precisely in 1997, was the Asian crisis. And it all startedwith a rapid process of capital flight, combined with a devaluation, which occurredbetween the so-called Asian tigers: Thailand, South Korea, Hong Kong, Indonesia,and Philippines. Then again entered the world market in a panic, because thatmarket was considered solid and reliable, causing the overthrow of stockexchanges around the world. However, Brazil was able to leave this crisis relativelyunscathed. Reflecting the Asian crisis, commodity prices collapsed in theworld. What profoundly affected Russia in 1998, as she was very dependent onexports of commodities such as gas oil and natural. So the Russiangovernment had been severely affected by falling international prices, itgave defaulting on its foreign debt Private short term. This drasticmeasure spooked investors international and they are avoiding emerging markets . After spending the Asian crisis without having felt its effects, Brazil was affectedin the quake filled with Russian, and had to face a serious crisis of U.S. dollardrain. But the Brazilian government acted quickly to avoid the worst, raising theinterest rate to a stratospheric level of 45% per year, in early 1999. A "remedy"bitter that the Brazilian people is feeling the side effects today. How evil nevercomes alone, the monetary authorities of the time were forced to weaken thecurrency, which until then had parity with the dollar, thus a measure traumatic forthe Brazilian public accounts. Continuing on the timeline of capitalist crises, in March 2000 broke the "Internetbubble". The history of this crisis is simple. The high-tech companies grew rapidlysince 1995 and so were the prices of their shares overvalued. 20
  21. 21. Until one day the price of these shares have plummeted and caused a big crash. Itwas a messquite large. For the end of 2000 the company had lost $ 1.7 trillion in market valueof their shares. And included in the package of the many companies that failed dueto the bursting of that "bubble" was WorldCom, the largest bankruptcy in U.S.history until then. The year 2001 was a milestone for world history, because of the terrorist attackon the twin towers of the World Trade Center and other strategic centers of theU.S.. In fact this reprehensible terrorist attack could undermine U.S. credibility inthe eyes of the world. As a direct result of this attack, sequinte week there was a decrease in the rateof violent actions of the New York Stock Exchange. Thus investors lost lots ofmoney. Some where around $ 8 trillion, or 10% of the total stock market. In 2007 came the "housing crisis in America," also called "credit crunch orliquidity." And she quickly crossed the borders of the country, and became themonster now, which is the "global financial crisis." Most have occurred after the"great depression of 1929." It is known that big fires start from small sparks, so that one component of thiscrisis was the abundant credit policy implemented by President Bush (the son), toreheat the economy traumatized by the attacks of Osama Bin Laden to the UnitedStates. What happened thereafter was a rush of Americans to borrow cheap andbuy real estate based on mortgages. And as U.S. banks have been very generousin lending, they turn a blind eye to the risks of default by customers. However thisprocedure wrong was costly to the U.S. and the world. Back in the real estate loans, U.S. law is rigid and if the borrower does not paythe mortgage, he will lose the property. And it was precisely what occurred in thatyear black mass of 2007 when real estate prices plummeted, forcing thousands ofto give Americans default on loans to banks. The wave of defaults caused widespread heavy losses on U.S. banks,culminating in the collapse of Lehman Brothers, one of the largestthat country. Thereafter, the crash of American companies soon spread in theworld market thus consolidating a crisis of "lack of confidence "in the internationalfinancial system. This catastrophic results soon appeared, when the sound banksand fearful, wiped away the money market, pushing the serious problem ofliquidity to other sectors of the economy. This fact demanded urgent governmentintervention, so that the international financial system were not for the bottom. 21
  22. 22. Government interventions in the U.S. and much of the developed capitalistcountries have formed a unique wave of nationalization in the history of moderncapitalism. To get a glimpse of this wave statist, the U.S. government owns 60% ofthe share capital of the auto company General Motors, already at Bank of Americahe has Citigrooup 50% and 36%. By now youve probably noticed that this global crisis is quite differentfrom previous crises, and that capitalism is changing the "plain sight". Then youcan even question the claim of former ministerbrazilian Delfin Neto mentioned that: "The emerging markets better and more efficient every crisis." Of course the statement of former Minister Delfin Neto is not completely true norcompletely false and, considering the magnitude of transforming the current globalcrisis is providing, to use the nationalization of strategic and trade regulations,economic and financial measures to alter the profile of capitalism forever.Anyway, despite the sad disorders caused by the capitalist financial crisis, itcertainly will improve the market because it is irreplaceable. However, goingforward it will no longer "the Almighty".The truth about the Stock Exchanges With the global crisis on the agenda of the day there are few people whocriticize the role of stock exchanges, branding it a great villainscruel game speculative capitalism, in whichmillions of investors lost fortunes overnight. And this is true, but only partly true,because the stock markets have a much more important and beyondthe alleged casino, which is to promote efficiency of markets, whether theyare productive, financial or economic. It is an essential role in the generation,accumulation, distribution and control of wealth, from which everyone benefits:Investors, borrowers, government and people. In todays world stock markets are the major sources of resources that promotethe overall socio-economic progress. Therefore, it is hard to imagine a worldwithout them, so much so that China is using the innovative "market socialism" topromote its progress. 22
  23. 23. The reasons that made the stock markets in the major sources of funds thatpromote material progress are simple: first by the fact that for the borrower offunds the cost of capital is much lower compared to banks. Second, for thelender of financial resources (the investor) is always possible that itperforms tempting profits that attractive "market game" that provide grants. Thus,these mechanisms confer attractiveness to them a special dynamic that certainlycontributes to boost the productive and social progress of those countries that haveit. It is worth noting that the "market game" is for experienced professionals, thisdoes not mean that an investor with limited resources layman and cannot participate in it, because the Internet enables access to millions of smallinvestors to the stock market. In any case they should be assisted byexperienced financial people, not to lose money. Thats all.The Birth of Socialism The industrial revolution and capitalism became the most efficient andeffective means of generating wealth and promoting prosperity in the history ofhumanity. Wherever you look, you can see inventions arising from the successfulpartnership that was the industrial revolution and capitalism: computers, light bulbs,refrigerators, television, movies, cars, planes, trains and everything. However,you know quote some important invention arising out of the socialist system,unless the satellite Sputnik? Not quite heaven and not so much land, so that the birth of capitalism,despite its material successes, it was not as glorious as you might imagine. Wemust consider the fact hat workers in the early days of capitalism werealso exploited as much as workers in other economic systems earlier. Forworking all day and gained little, their rights were limited and could not go onstrike. In plants, many of them unhealthy, even children worked, and so on. It was in this tough environment for the working classes that Karl Marx wrote in1867 a book entitled "The Capital", where he made a harsh critic of the capitalistsystem. In the book Marx makes a correct diagnosis of the problems ofcapitalism, focusing on the exploitation of working class (the workers) by thebourgeoisie (capitalists).And he was brilliant when he said that "all wealth comesfrom labor." One could refute this assertion, without God in their use argument? Sothat, according to him, capitalist exploitation is through the appropriation ofsurplus value generated by the work 23
  24. 24. in relation to the amount paid to workers in the form of wages. In thissurplus value, Marx called "surplus value" - the capitalists profit, which the workersare unfairly excluded until today, despite advancesin working conditions and labor laws. And that obviously needs to be changed.Socialism in practice The practice began in the socialist experiment in Russia through a bloodyrevolution, which took power in 1917 of Tsar Nicholas II, still in the midst of thefirst World War. In fact the armies of the Czar did not wereworking satisfactorily and that the war has generated a great populardiscontent against his government, contributing to the socialists to take power. The victorious socialist revolution in Russia in 1917 Ied Lenin, Stalinand Trostsky to power, ushering in a "one-party dictatorship" and culminatedwith the formation of the Union of Soviet Socialist Republics - the USSR.Certainly a dark period of socialist history, especially after the death of Lenin,when Stalin took power. For his rule was marked by corruption,persecution, political enemies to death, besides the citizens banned from leavingthe country. Trotsky himself had to escape this insane scheme to Mexico andthere was murdered, probably by Stalins secret agents. It is estimated thatmillions of Soviet people died black under the regime of Stalin. Because of allthat the USSR was nicknamed "Iron Curtain". The communist revolutionaries wanted to apply in practice whathe preached Marx and other socialists in theory, namely that the means ofproduction should belong to the state. Thus the relationship between exploiters andexploited, the so-called "class struggle" would be extinguished. However, theills that were occurring in the USSR and other socialist countries indicatedthat something was not right, as the saying goes: "the theory in practice isanother."But what had gone wrong?Causes of Failure of Socialism Between theory and practice there is a gap to be bridged, because the reality isnot always what we imagine. So that the sciences need evidence and logicalexplanations. So capitalism has emerged as a natural evolution of othersystems that preceded it in time, so he passed the test of practical experience, thatonly the time allow us to verify and improve. Unlike socialism emergedas an ideology that is opposed to capitalism, which began with the Englishindustrial revolution, where the rich capitalists took advantage of the laboringclasses, taking the surplus wealth produced by wage labor. 24
  25. 25. The revolutionary socialists took power in Russia to change thisreality. So forcibly confiscated private property, taking advantage of one-partydictatorship, endowed with a powerful framework repressive government,with "right" to concentration campsin Siberia, persecutionand summary executions of government opponents. The glorious socialist revolution that had begun to defend the rights of thepeople had turned against him brutally, demonstrating that in practicethe socialist government discourse was very different, whichcaused deep dissatisfaction. After the year 1917 the Soviet dictatorship was consolidated, with the farms andfactories moving to control government, which obviously caused resistance fromthe former owners. Of so that in later years that "resistance" caused the death ofmillions, and thousands were arrested and sent to Siberiaas well Solzenizin portrayed in his book "The Gulag Archipelago." Not only the violent political persecution Communists turned againstreligion. Then began to persecute religious at all the country as the devilpersecutes the poor souls. At the time retrograde and obscure, manychurches were closed or destroyed. Only the people Soviet who is very religious,never relinquished his faith, and worship continued to be conducted in secret, aswere the early days of Christianity. With the widespread nationalization the Soviet state took over all production ofgoods and services. And from there the socialist system began to show in practiceits serious defects. mainly by fact that the "overall planning" done by the dictatorialgovernment emphasized the production of weapons, rather than the products thatthe population really needed, such as foods, medicines, appliances and otheritems. So in this period was a general shortage of goods, forcing the populationto face long queues to buy something, especially if it was bread and meat. Alongside the hardships that the Soviet people lived on accountof deviations productive, the nomenklatura disproportionately enriched. To makematters worse, that class did not see an inch beyond his nose that were not theirown interests. Thus the nomenklatura pathetic accomplished the feat of replacingwith "inefficiency astonishing "the odious bourgeois class. As the sayinggoes: "there is nothing bad that can not get worse," so thatthe nomenklatura accomplished the feat of being worse for the Soviet people thanthe actual capitalist bourgeoisie of the Czarist regime. And this was the centralpoint which subsequently led to approach socialism from capitalism. 25
  26. 26. Overall the main negative results obtained with the nationalization of the meansof production in the former USSR and other socialist countries were as follows: - Inefficiency of production; - Scarcity and poor quality of products and services; - Termination of entrepreneurial dynamism; - Low production technology and scientific; - Low competitiveness in production and trade, and - Obsolescence of the industrial park.Certainly we can summarize the causes of failure have three socialist:1 - The dictatorship of a single party, which never correspond to the popularmood. Communism may have been relatively useful to take the socialistcountries of the delay of the past, but will not be useful to place them in the futureprogress.2 - The widespread nationalization was inadequate and failed to raise thestandard of living. Because of this there as subsequently a selective privatization inmany communist countries.3 - The socialist system did not resolve the conflict of classes, just changedits type. The bourgeois class that exploited workers was replaced by the worst sonomenkatura. So this kind of exploration is still in socialist countries such as China,despite its impressive "success" is finding the global political and economicscenario. Because of these failures mentioned, socialist economies haveadopted some capitalistic practices, such as stock exchanges, the private propertyand market economy. These issues will e adequately addressed in the nextchapter. 26
  27. 27. Chapter II Convergence: Capitalism and Socialism After the Second World War the United States of America emerged with thegreatest military and economic power on the planet. Of course, Europewas devastated by the war Hitlers insane. Japan was destroyed and its peoplefeeling the catastrophic effects that the two atomic bombs made in the citiesof Hiroshima and Nakasaki. A barbarity consider a holocaust of the Japanesepeople and for which the U.S. needs to apologize. Russia also had itscities destroyed and his people mourned their twenty million killed during the war. On the other hand in America had not dropped a single bomb. The Americanpeople felt the effects of the cruelties of war, when an enemyexternal destroy whole cities and kill women, children and old people ashappened in Russia, or when day and night bomb cities, such as occurred inLondon, or even in Dresden - Germany, where the Allied firebombing did morethan one hundred thousand civilian casualties in less than a week. Due to the preservation of its territory and its people, the U.S. became a havenfor world capitals. And it was not only the money that flowed there. Importantpeople and scientists, like Einstein, were also attracted, further boosting the vibrantU.S. economy. In the dirty game of war there is always a beneficiary country, and thesecond world war has clearly benefited the United States. He left her rich, strong,and as the greatest defender of the free world. For who dared openly defy theUnited States, after Hiroshima and Nagasaki?With a peaceful and prosperous built environment, U.S. companies could spread tothe four corners of the planet. The same occurred with its militarybases, power symbols of American economic maximum.In this context militarized after the war, the military radicals who move with ease inAmerican power, devised a complex and ingenious strategic plan, aimedat provoking an arms race with the USSR. The central idea of the plan wassimple. As the U.S. economically stronger, he could develop weaponsStrategic powerful and expensive. Of course the USSR would not want to fallbehind in this race, and also seek to develop other equally powerful weapons andexpensive. Until at some point, the weak economy of the USSR collapse,and further sacrifice his suffering people. Then he rose up and overthrew thecommunists from power. This was the result of planned and expected byAmericans. 27
  28. 28. The plan went ahead because it had the support of billionaire capitalist militaryindustry, who headed a powerful political lobby in Congress. And as expected theSoviet Union had taken the bait, because he U.S. leaders considered dangerousbecause they had used pumps atomic Japan killing thousands of women, oldpeople, children and everything else. Barbarities that are responsiblefor the distrust that world has about the U.S. today. Over time, the U.S. plan to use the arms race under President Ronald Reagan,if proved effective and it paid off. The Soviet economy already crippled, lostbreath in the government of Mikael Gorbachev. Then in1987 hewisely started some economic reforms to save the integrity of the USSR.But even so, things are still bad. Until the year 1991, Gorbachev resignedfrom power. And this year was a very important landmark world, it marked thedemise of the USSR and the emergence of a hegemonic superpower, the UnitedStates of America. Despite the great American economic and military progress the world worked insilence. The Japanese economy has recovered rapidly in post-war and becamethe second economy in the world. In turn, Europe has also recovered and joined toform the "economic community European "entitled to a single currency called theEuro and a common passport for their citizens. Few believed that the Europeancommunity to succeed, because of the enormous differences cultural, but itreally did. So, with the recovery of Europe and Japan, there was anintensification of the "international trade war." Fact that caused the miracle ofuniting even most Europeans against the economic might of the U.S.and Japan, especially with the entry of Eastern European countries for thecommunity European economic.Market Socialism Across the world, Communist China had prudently started major economicreforms in 1978, deploying "socialism market ", thus making a majorshift in philosophical socialist ideology, which later proved correct. For as DengXiaoping said, "no matter the color of the cat, as long as it catches the mouse";meaning that China is converging to some successful practices adoptedby capitalism, as the inclusion of the Stock Exchanges for investment andbusiness broker. She also began to accept foreign investment risk and toremit profits to the abroad. Recognized the importance of private propertyand other provisions capitalists. 28
  29. 29. It is certain that these economic reforms have worked, and China beganto develop rapidly, with growth rates around 10% per year, something unique inthe world.The success that China has achieved in the economy and politics, coupled with itslarge internal market consists of1.3 billion people, made itthe most important pole of attraction business world. Which no capitalist intendsto stay out of sight, because the progress there is so amazing,that the economic projections indicate that China will be the first economic power in2030.Vulnerabilities of socialist China Every giant has its "Achilles heel", the Chinese juggernaut is noexception. China is a giant vulnerable because it has no democracy. So youcan offend at any moment and cause major disruptions to damage his ownpeople and the international community. Dictatorial regimes like the Chinese is a heavy burden for the people, thata day may get tired of this situation and rebel, a fact that causes concern to theworld. After all dictators never have good intentions, not to his own people and notwith its neighbors. History proves this. Thinking about these issues 300 Chinese intellectuals launched the"Charter 08" on the internet, then won over 8,000 signatures. In fact itis an important manifesto as it proposes fundamental changes in Chinese policy. In practice, if these suggestions are adopted, would certainly result in theend the tyranny of the Communist Party of that country. For among the changesproposals are direct elections, political pluralism, separation of powersand freedom of religion, expression, association and expression. The "Charter 08" presents the picture faithfully the "Achilles heel" ofChina. And needless to say that its signatories werecruelly persecuted, mainly Gao Zhisheng, the lawyer who gainedfame defending members of the religious sect Falun Gong and Christians. Despitebeing persecuted by the Chinese authorities, is tipped to Zhishengwin a Nobel Peace Prize because of his correct political action.If nothing else the tyranny that the Chinese government submits its people,he does the same with the Tibetan people. For Tibet, which is a highly religiouscountry and that is embedded in the Himalayan Mountains, whichhas immense natural resources, fundamental reason for China 29
  30. 30. to occupy the force in 1954. The occupation of Tibet by the "forces of materialisticChinese" was so brutal that it caused the destruction of many Buddhisttemples and persecution of thousands of priests. Forcing the countrys topleader, the Dalai Lama fled to India, where he lives today with his court. Inthe recent words of the Dalai: "Tibet lives hell on earth under the control of Beijing."Eastern Corporate Success A pleasant surprise occurred after the Second World War, preciselybetween the 1960 and 1990, was the emergence of so-called "Asian tigers": SouthKorea, Taiwan, Hong Kong and Singapore. The word reminds Tiger "grab and aggression" and the idea is the same, sincethese countries love an aggressive stance in the industrialization and internationaltrade. To achieve its goals the Asian tigers have adopted a simple strategy aimedat leveraging their economies: cheap labor and disciplined, strong incentives toattract foreign venture capital, tax exemptions and finally, the low cost companiesto install. And it should be noted that this strategy was followed to the letter by thegovernment and entrepreneurs. This resulted in a mega success planetarium. Part of the success of the "tiger" is also explained by the Japaneseeconomy, booming and that was crucial to create a unique dynamic Asia. Thesuccess of Japan as well as leveraged as an example the development of the"Asian tigers". For Japan signed an agreement for commercial and businesspartnerships that block. Of the countries that make up the tigers, the most striking success is whathappened with South Korea, which in the 1960s was a relativelypoor. Currently South Korea is an economic giant that owns the famous economicconglomerates such as Samsung, LG and Kia, which are present around theglobe. The fact is that Japan, mainland China and the "Asiantigers" in Asia became important center of industrial production in a planetaryscale. It has attracted lots of money in venture capital from the rest of theworld, significantly altering the flow and composition of internationaltrade. However, this success is that all will in fact benefit the workers as proposedby Marx? In fact is not and will comment further on the cause. 30
  31. 31. Turning our attention to the "Asian success", there are other factors that alsoexplain the current boom in the region. The first is the existence of Centralizedstates and sometimes dictatorial, which make investments in infrastructure andeducation, to attract foreign venture capital.Another important factor to be considered in the Asian success refers todistribution of income in these countries, which is more balanced in relation toothers, and therefore attractive to international investors. It is important to note thatAsian workers have little social protection, reduced holidays, reviled and salariesare excessive workday. Factors that make up the shortage of raw materials fromthose countries, and need to be imported on a large scale. The remuneration of debased Asian workers is a clear example exploitation ofworkers by capitalists, in spite of the fact that these Industrial countries are makingprogress enviable. Continuing the analysis of the "Asian success," these countries guided theireconomies to the outside world, practicing "competitive prices" for their goods;demeaning wages of their workers, something what the French call "socialdumping". Certainly the "social dumping" and "protectionism", contain the agenda ofWorld Trade Organization - WTO with a view to the regulation and standards ofluxury international trade in the near future.Considering that it is difficult to stem the financial crisis that the worldinterdependent through if countries step up "and protectionism social dumping,"which neutralized a significant competition in international trade. So much so thatthe wise words of the leader Mahatma Gandhi summed up this spiritual question:I hate privilege and monopoly. For me, everything that can not be shared with themasses is taboo. " The humble people is certainly the Biggest Loser in the occurrence socialdumping and protectionism in the international market. That is why the issuesinvolved will be fully addressed in a future UN the next. Therefore, a better world isinconceivable to prevail protectionism and social dumping. Another important factor to explain the "Asian success" comes from the ethicalsteeped in Confucian East, crucial for the establishment of a model highsocioeconomic social balance centered in the hierarchy, discipline and nationalism.In which large corporations are seen as large families, orderly, productive andindispensable. He also noted that Asian countries have made efforts to raise awarenesscompanies and governments of the U.S. and Japan, to conduct business with 31
  32. 32. them. And this effort paid off, because the U.S. needed strengthen the regionbased on capitalism, to turn it into a important barrier against socialism. Especiallyagainst socialism China, which since 1978 had begun to gain "muscle" and thateconomic very concerned about American intelligence, as soon as China soonbecome a giant and would affect their interests in the region. Above all related toJapan, South Korea, Thailand, Indonesia and Taiwan. On the other hand, Japan had a different view on China. there are timesJapan dating to the huge Chinese market, willing to do that a country supplementtheir economy. And with this intention invested there billion, as did other promisingregions of Asia. In fact Japan and the U.S., competing fiercely for economic and political spacesin the Asian region since 1950, when the Japanese economy began its economicmiracle, betting that the Asian region would be dynamic, prosperous and profitablewithin a few decades. And the bet was correct.The Japanese Economic Miracle The so-called economic miracle of Japan was an event globally important andtherefore deserves to be analyzed. For he was shortly after World War II, whenthat country began to receive pulpy injections of U.S. capital in search of cheaplabor and educated. This fact has initiated the recovery of the industrialJapanese destroyed in the war. So the American money was crucialto recover the family business conglomerates – the Zaibatsus. On the other hand,Japan had a large merchant fleet that facilitate imports and exports of goods. The Japanese governments industrial policy instituted in 1950 was consistentand was based on markets overseas, particularly North American.As the Japanese people and hard-working and disciplined, the result did not takelong to appear. In 1980 Japan became a economic giant and reached secondplace in the capitalist world, is only surpassed by his "sponsor", the United Statesof America. Today Japan produces almost everything, establishing itself as one of theleadersworld in the field of science, technology, production of light machinery and heavyequipment, medicine and many other industrial products.It should also highlight the important contributions in Japanese high-tech areassuch as electronics, industrial robotics, optics, semiconductors andnanotechnology. Japan is the single leader of industrial robots, because their companies usemore than half of the robots in the world. Fact that gives the country a highproductivity, and allows companies to raise workers wages without causinginflation. 32
  33. 33. Another crucial factor that helped a lot in making the "miracle Japanese ", wasthe large investments made in peoples education, without the acceleratedindustrial progress which the country would not be possible.Wisely, Japan managed to educate and instruct his people, based freedom andcreativity in order to face the competitive world of today. Without that the countrywould not have gained the leadership technology. In fact, the Japanese, as well asinstructed, also values much work. So the country is so rich, though not many havenatural wealth. Japan is a collective and practical confirmation of the maxim of Karl Marxthat "all wealth comes from labor." The people and their Government know theyneed to work and study hard to produce products with high added value, which willgenerate foreign exchange to import goods needing like oil, for example.They also know that economic development policy demand high investments ineducation and strive in that direction. making the education and work greatcompetitive advantage of the Japanese people, that so greatly increases thenational wealth.The other side of the miracleIndustrial automation can intensify the class struggle The wages in Japan are relatively higher when compared with other regions ofthe world. However, Japanese workers are also exploited by the capitalists. For inthat country there is also the class struggle. And if nothing is done in the nearfuture, this struggle between exploited and exploiters tend to intensify, due toincreasingAutomation of the Japanese economy. For automation in their heyday affect thecircular flow of Japanese domestic economy. In other words, affect the ring money"among economic agents. Not is difficult to understand how this could occur. Didactically there are three economic agents participate in the flow circularinternal economic country: government, business and workers. And such amaelstrom of money works as follows: the workers receive wages or working forcompanies to government and their salaries they consume goods and servicesproduced by companies. The companies in turn pay taxes to the government andsalaries for its employees. In the end they realize profits, with which they makenew investments and remunerate its executives and investors, which in turn alsowill demand of goods and services companies and also pay their taxes to thegovernment. It is observed that in all economic agents involved in the flow circular economy,there is something in common. All they need to win money to meet their needs,spending it on goods or services they need. In other words, earn and spend moneyto each other, and any changes that these agents were to suffer, for example, due 33
  34. 34. to changes in the level of jobs and salaries affected by Automation certainly causeimbalances in the circular sieve money.That said it is then ask an extreme example of automation business in society,"companies will sell to whom and who”? Using this same reasoning, as workersand government will receive your money to spend on your needs?For this reason, the sociocapitalism fruition in the 21st century, consideringit will solve these issues raised about the circular flow domestic economy, from anexcessive and automation scenario widespread, among other important issues.What happened to the USSR?After the 1970s, while the Asian economies took off and Brazil held itsworld-renowned "Brazilian miracle", the USSR began to show clear signs that itseconomy was not going any better. The Soviet people were impoverished, theirfactories were obsolete and discouraged their workers. To make matters worseproducts Soviets were of low quality and therefore neglected in the marketinternational level. What most irritated the Soviet consumers were long lines theyhad to face when they wanted to buy something. And the reason for these queuesis always missing on the shelves of products markets and shops. A chaotic picturethat Marx never assumed that occurred in communist countries.The desperate situation of the Soviet people in the government reached its peakGorbachev, and he had to act fast to avoid a major popular revolt against thecommunist government of his country. So he defended brilliantly before the SovietCommunist Party, which was necessary reshape the Soviet Union (USSR),targeting it to thrive effectiveness and efficiency and would be respected by theworld community. Of course, Gorbachev followed, with a hint of envy, Chinesesuccess with its "market socialism" started in 1978.To the authorities of the Soviet government of Mikhail Gorbachev, the reality wasevident. The USSR was falling behind in the military and economical, and itaffected their global influence. In fact, the USSR began to falter in the early 70s,when economic indicators clearly showed a sharp drop in worker productivity andlife expectancy of the population. Finally, the Chernobyl nuclear accident, whichoccurred in 1986, demonstrated to the world and confirmed the Sovietsthemselves, how much USSR was obsolete and poor. Something must be donequickly. It was so then that Gorbachev, with the endorsement of the SovietCommunist Party, went into action with its strategic plan for restructuring based ontwo pillars: perestroika and glasnost.The Perestroika consisted of a series of economic reforms to boost the socialisteconomy, including that contained the decrease the military budget of the USSR.This resulted in drastic cuts in spending on armaments and culminated in the 34
  35. 35. evacuation of Soviet troops from Afghanistan, who then waged war useless andsilly, that it should nothave begun, for the story that no foreign power managed to dominate that country.And the Soviet Union was no exception, it lost the war and his troops wereexpelled from the country so humiliating. The disarmament policy of Gorbachev was a positive example for the world.Unfortunately the U.S. went in the opposite direction, finding to overwhelm the enemy ofthe Soviet time. However the growing U.S. weapons have raised the suspicion of the worldrelation to the purposes and aspirations of the American government, considering that onlyone superpower clearly affect the global balance.Distrust this compounded by the memory of the atomic bombs released in Japan by theUnited States, a fact which is reflected in the consciousness of humanity today. From thatpoint of view would be better for everyone and also for the recovery of the Americanimage, if nuclear weapons were eliminated from the planet. It makes some sense theUnited States continue expanding their arsenals, considering that it is by far themost powerful country militarily? Did they want to intimidate or cause theworld? Continuing the analysis of the USSR, glasnost was the governments plan BGorbachev, to give freedom of expression for the Soviet press and provide greatertransparency of government actions to the population. So the strong censure thegovernment imposed the press was withdrawal. The new situation of freedom in the USSR allowed the slowdown in she sponsoreddictatorship to other communist countries. And the result most obvious was the correctpolicy of weakening of the pact Warsaw. The wise policy of Gorbachev made the East and West to seek wayspeaceful understanding to resolve their disputes. However, as the saying goes -"What is good, lasts a long while.", then when the Bush family seized the WhiteHouse, the militarists in the government on duty gained greater power andprojection, and thus began a new period blackAmerican and world history. The international community was quite apprehensive about the return of Republicans inAmerican power, that somehow she awaited the unfortunate results that insane militaristicpolicies that damn Hawks bring. And they were not slow to appear. Rivers of money wereroasted uselessly with weapons and the U.S. engaged in two wars misleading, contrary tointernational public opinion. And as direct consequence of these dubious "wars to fightterror," which even managed to capture Bin Laden, the militaristic hawks have to intimidateforeign countries like North Korea, Syria and Iran For a new war would certainly beprofitable for these military belligerent, and further to their associates of the powerfulbillionaires U.S. defense industry. 35
  36. 36. Alongside those situations belligerent, the U.S. economy walked to the bottom and hispeople did not even realize, that dominated by the corporate media is corrupt.Currently the U.S. go through a devastating economic crisis in reason of those misguidedpolicies, especially those who encouraged the exacerbated arms race. Now Americanspay a heavy account so their costs and share with the world.The root of the current crisis in the U.S. - the arms raceThe bitter medicine of the arms race that the U.S. planned and imposed on theformer USSR, also caused a "side effect" unwanted, and it is behind the currentAmerican crisis, although the corporate media hide the fact.So watch out for the "half-truth" aired in the media regarding the mortgage crisisthat began in 2007 in the U.S., and soon spread to the world. Basically the sameas already mentioned, the U.S. crisis is direct result of misguided policies andpermissive for the U.S. military-industrial complex, after the Second World Warworld. So the root of the current crisis is the growing deficit U.S. Treasury, becauseof uncontrolled military spending, which will excessively accumulated over theyears. For this reason the U.S. have an enormous debt, something around U.S.$ 10.9 trillion, appointed on March 9, 2009 by the critic "Clock National Debt."Signaling that the American people will still pay a lot dearly for this irresponsiblehole occurred in the U.S. Treasury on behalf the arms race, which even cost himthe loss of empire.The empire of U.S. bases The aggressive foreign policy of the cold war involving American andRussians also suspicious of each other, fueled paranoia American who came tomake the U.S. the "empire of military bases in abroad, "for the happiness of hisbillion dollar defense industry. Somewhere around 1000 bases around the world, and that account for 95% ofthe total bases of all countries on the planet. Only in Germany are more than 227U.S. military bases. And all this military bases consume a mountain of moneycorresponding to $ 100 billion annually. Allied to this, it is known that the arms raceAmerican spending has exacerbated huge, something around U.S. $ 500billion a year. However the U.S. is not as safe as can beimagine. History shows us that with the fall of the USSR things seemed well to the U.S.,so the only hyper power in the world. But things are not always what they seem.Until the day September 11, 2001 the terrorist attack occurred in Al-Qaeda to theU.S., led by Osama Bin Laden, a bastard son of the cold war and cruel and policiesmisleading the world into regions sharing their influences, prepared by the 36
  37. 37. superpowers. So the bastard Bin Laden led surprising and devastating attacks onthe U.S., the world can watch live on television. After all who can forget themoment the twin towers imploded, killing thousands in a few seconds? Those Islamists did what any country able to Then, bomb the soil of America.Worse, the bombing occurred means of airliners full of passengers.These attacks were the pretext that ambitious radical ideal Americans would uselater to further increase spending military "defense". Taking advantage of thestrong popular emotion fear generalized further attacks. Then the infamous "hawks" promoted "preventive wars security "againstterrorism by attacking Iraq and Afghanistan. In Truly the "military government" and"lobbying arms" worked behind the scenes in Congress, aiming to sell weaponsand hold of the riches of those countries, especially Iraqs oil. After all the interestof the U.S. military-industrial complex is not intimately connected with the interestsof powerful oil industry by chance. It is a perfect marriage, which boosted theblatant "Blood for oil war" in Iraq. But that was waiting for international community,considering that top Bush administration was committed to the neck with the oilindustry. When President George W. Bush started those wars, he ignored considerationscontrary to it the UN itself, which demanded that the U.S. present evidence thatIraq had weapons of mass destruction, to give its approval. However, the U.S.ignored the UN and began wars, tentatively supported by some alliedgovernments, as England and Spain. Truth be told, the Iraq war was a huge fiasco, and the weapons of massdestruction that the Hawks co-opted by industry alleged arms exist, were neverfound. It was clear that the wrong war against the Muslims only benefited thecapitalist military industrial and oil, to the detriment of working poor Americans. Forthe budget of any country is as a short blanket if covers the foot finds the head andvice versa. Of so that the money that is being roasted in those wars wrong, now itis missing for the Americans, considering that the countrys economy is in financialcollapse, with millions of the unemployed. Things got so black to the U.S., everyone understood that that country alonecould not recover from the crisis, requiring emergency with "global solutions andcoordinated," on account of the whole community international law, including eventhe "socialist" countries. Otherwise the U.S. would go to the bottom and drag thewhole world with you. 37
  38. 38. It is this shared way of global economic power that is experiencing the twilight ofAmerican empire, already without the economic means and financial resources tocontinue supporting its military exacerbated called by many the "imperialism ofmilitary bases." But one thing is certain, that weight that Americans are highlypatriotic, they will have to accept the fact that the irreversible decay of his country.You can not stay forever at the top of the power and history proves it. Therefore the government of President Obama must work wisely in to negotiatethe contribution of the still important role U.S. for the construction of a new UNfairer and active. For only so world does not descend into a black future scenario ofregional wars and can promote social progress and fair to all the inhabitants ofthe planet.Radiography of the American Collapse The collapse of the U.S., the country stronger and richer world, exposes thefragility its economic model based on neo-liberal capitalism arms; that transformedthe country, then the worlds largest creditor after the second war, the worldslargest debtor. By an irony of history, the largest creditor is the current U.S. socialist China,an opponents weight, which has in its possession $ 1 trillion in U.S. Treasurysecurities issued. Without the continued funding of this "adversary", the U.S. economy once wouldhave gone into the hole. It is for this reason that the Secretary of U.S. State HilaryClinton is redoubling diplomatic efforts with the Chinese government, for it tocontinue financing the huge deficit U.S. Treasury, estimated at U.S. $ 1.75 trillion,representing 12.3% U.S. GDP, the highest since World War II. A potentially dangerous situation for both countries; mainly because the U.S.was too dependent on capital Chinese, considering that they are your majoropponentspolicy in East Asia. In turn, China runs a serious risk of a default by the government to take American andlose your money invested. Also, China depends much of its exports to the U.S. currencyas it must receive the abroad to pay its rapid economic growth. Hence occurs a veryinteresting mutual dependence, in which the giant capitalist captive giant socialist and viceversa. Interestingly, countries like China, Japan, Britain, Brazil and other Bulk buyingU.S. Treasury bonds, "finance" the misguided American policy arms colossaldeficits, for years followed. Thus extending the decline of American empirepossessed the uncomfortable and threatening military bases throughout the world. 38
  39. 39. The American crisis made it clear that the potential of misguided policies put inplace by the Republicans of the Reagan and Bush eras, if sold out. No longerworks for the government to continue on the path of excessive indebtedness tofinance the deficits of the treasure, great of them due to the heightened arms race,which only benefited some companies in the oil industry, military and banking. The same policy that served American arms to disintegrate USSR in 1991, withtime also made the U.S. into a giant with "feet of clay," mired in debt astronomical,although the people U.S. has not fully aware of this fact. However, certainly theaccount will pay the price resulting from this mistake. Once America was considered a safe haven for global capital contribute andprosper. So, at that time could be found easy financing for the deficit of U.S.treasuries, used to sustain the massive U.S. war machine. But things changed andeven Communist China by Wen Jiabao indicated that diversify their applicationsfrom the outside, in other words to say it will dramatically reduce the purchase ofU.S. Treasury Bonds, for fear of future default. This means that the "binge" U.S.military suffer a severe blow. Fortunately for the world U.S. President Barak Obama, as mentioned, saidsubstantially cut military spending to save money. A wise decision and that willforce a restructuring U.S. strategy, which will certainly have to give up its unilateralmilitary to deal with a globalized world interdependent. This fact would greatly helpin the recovery of global confidence in the country. In this case, to further increasetrust and respect world an apology for Japan detonated atomic bombs in Hiroshimaand Nagasaki, would be a good start for the Obama administration. For as thesaying goes: "before late than never". But things will not be easy for the U.S., the UN itself because studies a way todiminish the importance of the dollar in international trade. His idea is that somehard currencies serve as a reference and not just the dollar. A very interestingproposal, but that is not new. in the past Keynes had already proposed in the pastthe launch of a global currency whose value would be based on the average of thevalues of a basket of currencies strong international. China itself concerned with the melting of the mountain of U.S. dollars whichhas proposed the creation of an international currency, disconnected from a givennational currency, which is able to remain stable over time. No doubt the launch ofa new currency with acceptance universal in the international market is verycomplex because it involves many interests. However it is inevitable that thisoccurs in the near future. But one thing is certain. The proposals of the UN andChina demonstrate the as the vanished American power. But thats not bad for theU.S. and or to the world, quite the contrary. The time will confirm. 39
  40. 40. The wise example of Gorbachev and the End of Empires If the U.S. had followed the wise example of Gorbachev that promoteddisarmament, would certainly be better off than today, both in terms of economic ormilitary. Should also be better insurance against terrorism and must have hadgreater confidence world. It requires only give greater political autonomy, military and economic for theUN. And in parallel, discouraging the race arms of the national armies. With theright attitude and practice, much money would be left in the world in order to applyit in combat poverty, hunger, ignorance and corruption, which both delay promotingreal progress based on global sustainability, peace and social justice. In this context, the election of Obama had a special significance for curbing thearms race, not only for Americans, but also for the international community,considering that a world better, peaceful and everyones expectations.Obamas messages are clear in this regard: "The long-term deficit and debt we are unsustainable. Not we can continuelending (money) from China or other countries. "And he continued: "This means we are mortgaging our childrens future with more and more debt”. Finally, Obama made a statement that sums up his view of importance ofcollaboration America to have a better world: "I assume so convinced the U.S. commitment to peace and security in a worldwithout nuclear weapons". President Obama has a clear vision and objective of the arms race exacerbatedtheir country is sucking blood work and money from the American people. Becauseof this he gave way in a plan to reduce military spending, including providing for theclosure of many U.S. bases abroad. These measures taken by the U.S. government correctly portray faithfullycollapse of American Empire occurred in 2007, the year the U.S. financial crisissweeping the world and showed Americans themselves, the huge hole in the U.S.Treasury is unsustainable. Therefore, cuts in government budgets will be nextto be made, especially those with useless spending and military weapons. 40
  41. 41. The collapse of American has a historical importance odd because it suggeststhat the era of empires is over. In todays world the "global solutions" need to beshared with all countries. From now on no longer there will be more space forhegemonic powers, dictate their will to force of arms. In this sense, the U.S. wasthe last empire humanity. The list below notes the precipitous drop in timeduration of hegemonic powers, the imperial is terminated: Empires Timeline length / year Chinese 2000 BC to 1911 A.D. 3911 Egyptian 3150 BC to 30 BC 3120 Roman 753 BC to 476 A.D. 1229 Ottoman 1281 A.D. to 1918 A.D. 637 Portuguese 1495 A.D. to 1975 A.D. 480 Spanish 1519 A.D. to 1898 A.D. 379 British 1600 A.D. to 1945 A.D. 345 Soviet 1922 A.D. to 1991 A.D. 69 American 1945 A.D. to 2007 A.D. 62 In the current global context, the decline of American empire is especiallyimportant for the strengthening of the New UN. So that from now on prevail on theconsensus of countries rather than the will of a particular empire. Accordingly, nowar can be declared unilaterally, because otherwise represent an insult to the otherUN countries, and certainly the aggressor country will receive heavy retaliationthe international community. I believe that U.S. President Barak Obama is aware order that the strategicarms race necessarily result strengthening of the New United Nations, with aconsequent reduction of forces national armed. And it will help a lot in promotingsustainable and equitable global prosperity. I also believe that the presidentObama and other presidents who succeed, will spare no efforts to New help in theconsolidation of the UN. And so they help you write most important pages ofcontemporary history.The Transforming Power of Emerging Countries in the 21st CenturyWhile U.S. power is declining considerably, with country mired in a severeeconomic crisis and two wars and faces cruel; other countries stand out in theinternational arena. Are "Emerging" that belong to the G-20: China, Russia, Indiaand Brazil – the new powers of the 21st century. These countries which togetherwith South Africa South, Saudi Arabia, Argentina, Australia, Canada, South Korea,France, Indonesia, Italy, Japan, Mexico, Turkey and the United States makes upentire G-20. A group that has an economic, political and considerable cultural, itrepresents 90% of world GDP, 80% of international trade and two thirds of theworld population. a power enough to influence other countries in the rest of theglobe and New redesign the UN. 41
  42. 42. The Transforming Power of Emerging Countries in the 21st Century While U.S. power is Declining considerably, with country mired in a severeEconomic crisis and two wars and faces cruel; Other countries stand out in theinternational arena. Are "Emerging" that belong to the G-20: China, Russia, Indiaand Brazil – the new powers of the 21st century. Which Countries These togetherwith South Africa South, Saudi Arabia, Argentina, Australia, Canada, South Korea,France, Indonesia, Italy, Japan, Mexico, Turkey and the United States makes upEntire G-20. That the group has an Economic, political and Considerable cultural, itRepresents 90% of world GDP, 80% of international trade and two Thirds of theworld population. the power Enough to Influence Other countries in the rest of theglobe and New redesign UN. the other countries of the globe and New redesignthe UN.The Convergence of Capitalism & SocialismConvergence between the socialist and capitalist systems is understood easily, as"things that work in a given system, so they are exploited by another. "This is notcurrently observed permeability new in history, for the acts of copyingimprovements, concepts and inventions have always existed in mankind. It hasbeen so since the discovery of fire, metallurgy, armaments and manufacturingprocesses.History attests to the good, beautiful and functional is quickly copied byother. Strange as it may seem, this process of "copy, improve and create "isnecessary for the development of things and makes part of human ingenuity. Sothat the actual facts show that socialism and capitalism are also going through theprocess of "Creative copy" because of the adoption of "market socialism" andnationalizing banks or other strategic companies, which have necessary, especiallynow with the world in crisis.The facts show that government intervention in the economy, the countriesaffected by international crisis was a blessing. no doubt some of theseinterventions avoided the "rock bottom" for them. Hence for front, not many yearsafter the crisis passes, socialism and capitalism, now in the process ofconvergence, have formed a single system political-economic sociocapitalismcalled. And it will still take place this century. But no one sociocapitalism fallacious"fund pension "mentioned by Drucker in his book -" Post-Capitalist Society",published in 1993. But a single political-economic system resulting from ultimateconvergence mentioned above. 42

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