The United States and China are usually juxtaposed when considering their economic systems. Is that a fair analysis? (image: CC0 public domain)
So who ranks the strongest when evaluating countries for capitalism? The results might surprise you.
1. Germany
Germany (image CC BY SA 3.0 Arnaud333 via Wikimedia Commons)
Germany tops our list of one of the most capitalist countries in the world. Capitalism in Germany is found in its institutions such as banking and educational systems. German industries have prospered because the country has made it a priority to train its labor force to succeed in various industries. These various systems have worked together to make a robust capitalistic market for the country. The German model of prosperity supports allowing local entrepreneurs to develop and initiate new industries which help the people to communicate better with the world and to meet their needs in becoming current world players in the technology industries. The flow of goods exported from Germany are grouped into sectors, and Germany has the dominant role in exporting for markets which specialize in goods which are the result of patents, niche markets and new innovations and inventions within the country. For example, in the media industry, prosperous subsectors would be: film, radio, television, teleservices, advertisement, printing and publishing houses, and data processing software.
2. United States
The United States (image CC0 public domain)
Americans are known to be risk takers and capital makers. In the US it is possible to begin a business of humble means and expand it to grow into a conglomerate business model for people wanting to start a new business. Imagine a tiny dry cleaner who adds space in strip malls and soon owns over twenty businesses. This is the epitome of wealth and capitalism in the US. Capitalism in the US has no color and welcomes anyone willing to work hard, market a product and to bring it to fruition. Americans are said to be moved by their fear of failure and their greed for monetary success. Capitalism allows private ownership to spur production of goods and allows the private owner to keep and track profits for what sells. This allows exclusive rights and patents to the production of modern technology and boosts the social economy. Groups within industries shape the model for success in agriculture, commerce, service industries, technology and other industries. There are allowances for monopolies in financing, international trade, commodities, banking, insurance and commerce. Some of these monopolies are family run companies which are leaders in their industries and who have good will in the community which breeds loyalty for their products and services among competitive markets and the masses.
3. China
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China (image: Public Domain by Daderot via Wikimedia Commons)
China has focused in the last fifty yearscapi on educating the masses and the effort has paid off. Adult literacy in China has risen to almost 95% and is steadily rising. China is placing a priority on the development of its human capital and offers it workers more on the dollar to produce goods for export. China reformed its economy and began to see economic growth as a result the GDP doubled and the government allowed a pro-business and market attitude to rule in the country as a whole. China focused on exporting goods and developed a new economy as a result. Its new focus on manufactured products created over a hundred million jobs for the Chinese which supported capitalism in the country and offered a higher quality of life for the residents. China is also a large global exporter, along with Germany and the United States. But is China really a capitalistic country? In a way, yes. The Chinese government allows entrepreneurship as long as it is done with the permission of the government.
4. India
Indian children running with their national flag (image CC BY 2.0 Sean Ellis via Flickr)
India is beginning to realize its potential economically as it encourages capitalism throughout the country. The infrastructure is limited by the human capital available to take jobs offered by the companies poised to hire qualified candidates as corporations globally look to India for offshore needs (call center and telemarketing, etc.). Between India and China, they both account for the world’s population at almost 40% all tolled. The Indian government realizes the potential of capitalistic growth as it struggles to overcome an outdated caste system. India has a problem with its distribution of income and access to free markets, since many of its residents are poor and have no way out of poverty. Most residents of India are Hindus, and although they either worship Shiva or Vishnu, India still struggles with the caste system ranking humans in inherited socioeconomic classes. For this reason, a person is either born rich or born poor and has no way to reverse that status going forward. With the idea that much of its population is considered “untouchable,” dalit or unclean, it should be difficult for the country as a whole to prosper. But in fact, the rich get richer despite these internal issues. In the early part of the century, the caste system hampered India’s development, but today, lower castes are demanding to be reclassified and given full paying jobs which allow them to qualify for benefits, privileges and the chance at a higher quality life which was not possible in years past. Although many Indian residents are still illiterate (though Indian literacy rates are improving), they are realizing that it is possible to pull themselves out of poverty by any means possible. At the upper levels of education, India excels and produces very highly qualified graduates who go on to study and work in other countries around the world.
5. Japan
Japan (image CC BY SA 3.0 user MJ-bird via Wikimedia Commons)
The Japanese economy has rebounded from it’s near collapse in the 1990s and has prospered with Keiretsu networks. Japan has a state-led economic machine, which keeps the country in healthy economic shape. Japan has been interested in reform in a few major areas such as: labor relations, bank relations, corporate governance and supplier relations. Reform in Japan has included the country allowing more of the US management style of capitalism with restructuring to lay off workers when production is a the lowest cycles. Japanese companies also have learned to focus on specialization instead of going into too many business areas which are diversified. By focusing on a few key industries they are able to capitalize on gains and become industry leaders in many fields such as in high technology for mobile telephones and other communications components. Japan has continued with a hierarchy system which rewards loyalty and long-term employment with the same organization by the employees. By stressing a seniority-based pay system, the Japanese have encouraged employees to stay at one company for their entire lives.
81 Comments
[…] The Five Most Capitalistic Countries in The World: 1. Germany Capitalism in Germany is found in its institution… […]
China??? The third most capitalist country in the world. Whoever made this list must be severely mentally disabled.
hahahah i thought the same thing
China is not a capital country it is considered a communistic
I thought China was a communist as well ….
China claims itself as the biggest communistic power in the world, however its rising economy and growth of the middle and lower class has allowed capitalistic businesses and a business-related social classes to come form. China’s government does not distribute money equally anymore, like usual communism. Communism was supposed to be good for those in poverty, however since there is less poverty now, China has become more capitalist. However, they still economically control the departments of the country with ultimate power, so they are still kinds communist. Lets just say, they “evolved” their communism.
Communism is a form of government. Capitalism is an economic structure. Capitalism can be compared to socialism, but not communism… China is very capitalistic now. That says very little about their government except that it allows free trade…
I guess you argue the rank order here but there’s no question China is a capitalistic country. Nobel Prize–winning economist Ronald Coase and Professor Ning Wang just published a book on the transformation of the Chinese economy: “How China Became Capitalist.” It’s long been predicted that China would successfully transition out of it’s particular version of Marxist-Leninism unlike the former U.S.S.R. which was predicted, for almost the opposite reasons, to fall into chaos after its fall from communism. Check out “How China Became Capitalist.” It’s a great read.
Wow,this is the world we live in today. We are all products of capitalism. One side or the other . If you want it….capitalism….if you make it (work for someone) capitalism. ….. welcome.to the real world.
Hi There,
Thanks for the book recomendation. So you definitely agree then that china is a capitalistic country.
If you check out the list of billionaires in various countries on wiki http://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires the first 5 on the list are pretty much the same as the list in this article. China is number 2, after the U.S. The ability to become a billionaire kind of shatters the viewpoint that China is strictly communist, communism being an economic pattern dedicated to making the wealth evenly distributed. One of the U.S. top exports is trash: scrap metal, paper fiber, etc that is shipped to China and processed and sold back to the U.S. The reason that this is, is because the Chinese govt doesn’t impose the environmental restrictions that the U.S does, in reprocessing recyclables – reprocessing metals and paper causes environmental damage if done in a less controlled way – The U.S govt, in order to protect the environment has made it too expensive to process, so it’s shipped to China and their country is turning into a wasteland. That is a much more capitalist approach, that China has, chasing a buck at all costs, even if you can’t breathe, or go outdoors
China??? They’re the peoples republic which is a communist party. How could you call that the 3rd most capitalist country in the world
You are a big ignorant wondering when you see PRC as a capitalistic country…good morning!!! helllooo…. have you heard of Deng Xiaoping? Where did you think your smartphone comes ?
You may not be well acquainted with the idea of a free market, which serves as the foundation of a capitalist system. China’s market (for better or worse) is less regulated than our own. It is a mixed economy, but capitalism is more prevalent there than you probably realize.
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In China, you can put everything(Yes, everything.) in the demand -supply diagram. For instance, school seats, human organs,children labour, or even your girlfriend. So China cannot be the third. It should be the first. It’s even more capitalist than any other countries on earth.
LOL……#LIKE#
If you know anything about china will you know it is hugely capitalist. I disagree about germany though, they have much more socialist policies than any of the other countries. (unlimited free higher education, free healthcare, strong welfare, very high taxes, etc)
Hi John,
I am currently a student sturdying business management. I could use a lot of different opinions for my assignments, so i hope you dont mind me asking. What would you say is the top 5 or however many capitalist countries?? And why??
Please feel free to email me i could really use the opinions.
nique.mkuhn@gmail.com
Hope to hear from you soon!!
China?? Obviously this guys doesn’t understand capitalism-
cap·i·tal·ism:
an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.
In China all land is state-owned. Individuals and firms may only own and transfer long-term leases that are subject to many restrictions. Intellectual property rights are not protected effectively, and infringement of copyrights, patents, and trademarks is common. Various forms of corruption severely affect banking, finance, government procurement, and construction.
The overall regulatory framework is complex, arbitrary, and uneven. Completing licensing requirements costs over three times the level of average annual income. The state imposes price controls on a wide range of energy, raw materials, and other basic goods.
http://www.heritage.org/index/country/china
In terms of economic freedom it rank 136.
lol yes honey its china and im not mentally disabled
Accually john china is probably more capitalist than the US they have close to no regulation on there market the dicatorship is just called communist they abandoned the path of socialism in the 70’s
This list is incorrect and should be taken down, china ????, let alone the US being a TOP 5 captilist country, were’s australia. America is on the borderline of communism and captilism. More of which is capitlism becasue the fact of being a first world country. But his list is incorrect, entirlery.
Exactly, they were really stupid. China is like the opposite of a capitalistic nation.
That’s unbelieable. US now our elected officials in charge and their friends are anti-capitalistic. Now you have freedom not to work,
so sad…
if you have ever set foot in china you will soon find out just how idiotic your reply is.
China is slowly changing in to Capitalist country with the blanket of communist principles. Don’t go by text book scripts, even after 1000 yrs it will say the same thing. Communist principles are the best one but who follow’s it. which communist country follows. Because of Globalization, all are tending to bend their rules.
Even I agree….. On Wikipedia china is the fourth most socialist country! 🙂
China’s economy is one of the most capitalistic economies out there. Just because a country was communist 30 years ago, doesn’t mean that it is now. After the death of Mao Zedong, the communist dictator of China who caused the deaths of 60 million people by his policies built on his interpretation of Marxism, called Maoism, China shifted through a more capitalistic economic model with the help of another dictator, Deng Xiaoping.
Altough Deng Xiaoping has never become the president of China, he ruled China, transformed it from a country of peasents unable to accomplish anything to the modern manufacturing powerhouse of the world. Today China has wage labour, private property rights, foreign investment, right to start up a business, free floating exchange rates, stock markets, free trade, banks lending money with interest and other capitalistic features. Altough the government still plays a huge role in the economy, China is definetly a capitalist economy and it is embracing more and more of the traditional capitalistic values each pasing day.
the person how made the list is a dum ass
Agreed!
China is changing from all read. Hopefully this is so as less than a decade ago 300 million Chinese were drinking polluted water, and 20 of the 30 cities with the most polluted air were in China.
Lol u r right brotha lol lel l,fao
Not only china. India is also not capitalist country. It is socialist.
india is mixed economy
You are an idiot.
economic growth does not mean a country is capitalist. China made special economic zones for develepmont, but most of rural china is commununist. Once again, economic growth does not mean capitalism. China has a lot of goverment intervention into their economy. And it is also ruled by the communsit party.
I certainly agree with Christopher. China is definitely a capitalist country, very much so, in fact. Many of the lesser educated people who still view China as communist are simply just buying into whatever they come across online or in the school system. In fact, I would say that in many regards China deserves to be ranked even higher than the USA in terms of capitalist structure. The same could be said about India, to a lesser extent. Singapore is one clear country that was somehow left off of this list, while Japan and USA are questionable to include in the top 5.
How can you call someone “lesser educated: when you have no clue what you are talking about?! China has capitalist zones and the rest is communism. China higher than US in terms of capitalist structure? How is being split into mostly communist and partially capitalist a stronger capitalist structure. You hear one thing and you think you know everything. Sure China is on it’s way, but get a brain before you start accusing other, actually intelligent people, of being stupid.
please can someone put up the correct info!
how can china be a capitalist country and a social country
then its mixed if hv both??
I wrote the bokk, “The Robinhood Lies.” so my grand kids would learn of the atrocities of Socialism. Yet to be honest, since Tenneman Square China is more Capitalist than the US, but central planners still own much of private industriess.
Since the auto bailout and Obama care we are less Capitalist than China.
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How exactly is america a capitalistic country? We hardly produce much of anything we own. Building a monopoly results in prison time, and on top of that the I.R.S. cut wage garnishments to those not selling enough merchandise to keep their company running effectively. we are not a capitalistic country, we are to far in debt. In 1900’s we were,. Eli whitney, ford, crop growers ( which i don’t at all agree with slavery by any means) but i use it as an example because we grew into a free enterprise country, and fell into a hole because, now india owns our tobacco companys. germany, china, and. russia, even itali. they own our cars imports. china makes clothes for us. About the only thing we own is our own food production plants, And metal industry. can you people not see this country is falling. build a union, built on morals values and integritu. Not heroin addicts and meth dealers. we are the few, and the proud we are marines. We are americans.
China is a socialistic and India is a mixed economy. The details provided here are wrong.
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If you call India a capitalist country major junk of the people who are poor would be deprived of quality of life.
It is not dazzling at all to describe china as a capital state,in fact that is not arguable,this fact can be backed by various hard facts,such as that the private sector capital contribute more than 65% of the country`s GDP…….China has embarked on its move to transform its economy to be capital(inoerder to address the then socio-economic crisis)from 1979 when Deng Xiapeng took the office…..however the rulling political party at China is communist party,but they have adopted and implementing the capital principles such as the introduction of of SEZ Aand the pro-market driven policies…..recently China has recorded an icrease in their private ventures compare to a decline in state owned ventures
China ?? United States ?? Japan ?? India ?? Germany ?? .. No Hong Kong ?? no Singapore ?? LOOOL… is this blogger dizzy ?
WOW. Look at all the stupid people in the comments who think that China isn’t a capitalist country. *_*
For fucks sake it’s one of the fastest growing economies for over a decade, with massive income disparity. Goldman Sachs even said that China’s economy was predicted to overtake the US’s by size in 2040.
For god’s sake people.
Sorry, but you are incredibly stupid. It’s amusing how you call other people stupid when you are the one who doesn’t even know what capitalism means. Capitalism doesn’t mean that the economy grows fast. The truth is that China is mixed. It has certain zones for capitalism, and the rest is communism. And actually there is little income disparity. The GDP per capita in China is a slither of that of the US. China succeeds, but its people are very poor. And you think you are so smart because you heard that China is growing. Before you reply please read up on the issue.
yes,max i m agree with you……..
China is no doubt one of the most capitalist countries in the world, but with a lot of corruptions. China’s capitalism economy is mainly running or controlled by one boss only, the communist party. Remember: the China Communist party isn’t communism, even though they say they’re socialism, you all got this wrong.
good stuff
this is one of the awsamest websites
China is definitely a capitalist country, their economic reforms during Deng Xiaoping demonstrate this. Just because they’re “communists” doesn’t mean they can’t have capitalist attributes. They strive for economic growth. The thing that doesn’t make china the most capitalist country is primarily because there is no competition. The US, Germany, and Japan have many different companies per sector so there is constant innovation, while in China you don’t see that much often. But that doesn’t mean that China doesn’t belong in this list. If anything, they should replace India with Singapore and Japan should be #3.
US
Germany
Japan
China
Singapore
CHINA?? Wel, Letz Say Am Just Passin By…
India? That is ridiculous. Completely ridiculous.
China doesn’t follow capitalism but it follows communism…??
China is communist, not capitalist lol.
I teach macroeconomics at a local college. I encourage posters to go take or read up on the basics of global economic systems. The USA is closer to socialism than capitalism, and china is closer to capitalism than socialism. I think posters are arguing over traditional false perceptions and politics more than current economics. Also remember EVERY economy is some form of a mixed system. Lastly, calling someone “stupid” because you have a different opinion does not constructively contribute to the discussion, it only creates artifical “haters”, and we certainly need fewer of those in the world… happy learning.
China is an Oligarchy! Means of production are mostly controlled or sanctioned by the state. To say that China has a free market is none since. China has a tyrannical system of government. China denies the worlds largest genocide from 1958-1969 with a low estimate of 45 mil to a high of 70mil lives. China my work as a capitalistic nation amongst other nations. That dose not make its citizens free to benefit from Capitalism. China is corrupt and the definition of Oligarchy fits like a glove.
Germany is socialist.
This is a very interesting debate. Suprisingly, i was also surprised to learn that China is ranked as one of the key capitalist countries. Having said that, i also feel that they are having a mix of both capitalism and communisim.
well guys i dont really need your comments i just need 2 examples of capitalist countries dont ask me why i have 9 years and its homework
I would like to say that China is more likened unto a Socialist country not Communist and certaintly it is not like a Capitalist country. I have found that this website is full of misguided information and should not be used for any papers or opinionated arguments.
I think china is not a capitalistic country, it is a communist country.
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China is virtually the definition of laissez-faire economics
Just a question for you all, how old are you and did you or did you not pay any attention in your history class? yes there are some people hear who know what they are talking about, but still. just leave it there and accept china as the 3rd capitalist country out of 5.
WTF Germany may be capitalist for european standards but is in no way one of the most capitalist countries in the world.
I also dont understand why you put Japan a country that has very low Gini coefficients in this list.
But also China can be considered in no way as a capitalist country(many economic interventions).
I guess you mix up economic strenght and capitalism.
In this way you manage it to misconnonate capitalism positively.
No china is a communist not among the capitalst
Yeah I agree China is the most capitalist country after US and it growing very fast..
Yeah i agree China is the most capitalist country after US and it growing very fast …..
hello, everyone it,s intresting thing shared over i, m not totally agreed with this artical but,it,s good.
You should add Bangladesh to your list. Open market, no minimum wages, full profits for big business… Bangladesh is a capitalist paradise.
you dum dum dum peple????? how? is? china? capatalist???????????????? THAT MAKE NO SENCE??????????? THYRE THE MOST COMMUNIST PEPLE IN THE WRLD???????? I MAKE 3 DOLLA THERE AND I GET 1 BACK CUZ 2 DOLLA GO TO PEEPLE ON BENEFITS AND SHIT
Globalization has forced economies around to ultimatley compete with each other, yes many moons ago china was strictly communist but with the already emerged global market that is “free trade”it is evident that the communism in china is just a blanket political paradigm. China is making massive strides in iys economy using capitalist principles but because of corruption and greed,many politicians disregard the word capitalism and hide behind communism while they exploit the poor for fat bank accounts.