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Capitalism is an economic system in which the means of production are mostly privately owned, and capital is invested in the production, distribution and other trade of goods and services, for profit in a competitive free market. These include factors of production such as land and other natural resources, labor and capital goods. Various theories have tried to explain what capitalism is, to justify, or critique the private ownership of capital, and to explain the operation of markets and guide the application or elimination of government regulation of property and markets. (See economics, political economy, laissez-faire.)

Capitalist economic practices became institutionalized in Europe between the 16th and 19th centuries, although some features of capitalist organization existed in the ancient world. Capitalism has emerged as the Western world's dominant economic system since the decline of feudalism, which eroded traditional political and religious restraints on capitalist exchange. Since the Industrial Revolution, capitalism gradually spread from Europe, particularly from Britain, across global political and cultural frontiers. In the 19th and 20th centuries, capitalism provided the main, but not exclusive, means of industrialization throughout much of the world.

The concept of capitalism has limited analytic value, given the great variety of historical cases over which it is applied, varying in time, geography, politics and culture. Some economists have specified a variety of different types of capitalism, depending on specifics of concentration of economic power and wealth, and methods of capital accumulation (Scott 2005). During the last century capitalism has been contrasted with centrally planned economies. Most developed countries are usually regarded as capitalist, but some are also often called mixed economies due to government ownership and regulation of production, trade, commerce, taxation, money-supply, and physical infrastructure.

Etymology

See also: Definitions of capitalism

According to Webster's Third New International Dictionary, the root word, capital, derives from the Latin word capitalis, which ultimately comes from caput, meaning "head." The 'head' being referred to was that of cattle (and is partially why contempoary captilistuse the symbol of a bull when speaking of a strong market). The Oxford English Dictionary cited its first use of the word capitalism in 1854, and capitalist in 1792. Marxist writers originally popularized the term "capitalism" (or its equivalents in other languages, such as Kapitalismus) although Marx tended to speak of the "capitalist mode of production" or "bourgeois society." Nevertheless, the term has been widely adopted across the political spectrum, though employed in many different ways (Burnham).

Perspectives on the characteristics of capitalism

consumption, by taking risks, and by organizing production.

History of capitalism

Private ownership of some means of production has existed at least since the invention of agriculture. However, in feudal society much of this property was considered to be inalienable and so capital markets were not established. Some writers see medieval guilds as forerunners of the modern capitalist concern (especially through using apprentices as a kind of paid laborer); but economic activity was bound by customs and controls which, along with the rule of the aristocracy which would expropriate wealth through arbitrary fines, taxes and enforced loans, meant that profits were difficult to accumulate. By the 18th century, however, these barriers to profit were overcome and capitalism became the dominant economic system of much of the world.

In the period between the late 15th century and the late 18th century the institution of private property was brought into existence in the full, legal meaning of the term. Important contribution to the theory of property is found in the work of John Locke, who argued that the right to private property is one of natural rights. Since the Industrial Revolution much of Europe underwent a thoroughgoing economic transformation associated with the rise of capitalism and levels of wealth and economic output in the Western world have risen dramatically.

Over the course of the past five hundred years, capital has been accumulated by a variety of different methods, in a variety of scales, and associated with a great deal of variation in the concentration of economic power and wealth (Scott 2005). Much of the history of the past five hundred years is concerned with the development of capitalism in its various forms, its defense and its rejection, particularly by socialists.

Mercantilism

The earliest stages of modern capitalism, arising in the period between the 16th and 18th centuries, are commonly described as merchant capitalism and mercantilism (Burnham; EB). This period was associated with geographic discoveries by merchant overseas traders, especially from England and the Low Countries; the European colonization of the Americas; and the rapid growth in overseas trade. The associated rise of a bourgeoisie class eclipsed the prior feudal system.

Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist production methods (Scott 2005). Noting the various pre-capitalist features of mercantilism, Karl Polanyi argued that capitalism did not emerge until the establishment of free trade in Britain in the 1830s.

Under mercantilism, European merchants, backed by state controls, subsidies, and monopolies, made most of their profits from the buying and selling of goods. In the words of Francis Bacon, the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of the soil; the regulation of prices…" Similar practices of economic regimentation had begun earlier in the medieval towns. However, under mercantilism, given the contemporaneous rise of the absolutism, the state superseded the local guilds as the regulator of the economy.

Among the major tenets of mercantilist theory was bullionism, a doctrine stressing the importance of accumulating precious metals. Mercantilists argued that a state should export more goods than it imported so that foreigners would have to pay the difference in precious metals. Mercantilists asserted that only raw materials that could not be extracted at home should be imported; and promoted government subsides, such as the granting of monopolies and protective tariffs, were necessary to encourage home production of manufactured goods.

Proponents of mercantilism emphasized state power and overseas conquest as the principal aim of economic policy. If a state could not supply its own raw materials, according to the mercantilists, it should acquire colonies from which they could be extracted. Colonies constituted not only sources of supply for raw materials but also markets for finished products. Because it was not in the interests of the state to allow competition, held the mercantilists, colonies should be prevented from engaging in manufacturing and trading with foreign powers.

Industrial capitalism and laissez-faire

Mercantilism declined in Great Britain in the mid-18th century, when a new group of economic theorists, led by Adam Smith, challenged fundamental mercantilist doctrines as the belief that the amount of the world’s wealth remained constant and that a state could only increase its wealth at the expense of another state. However, in more undeveloped economies, such as Prussia and Russia, with their much younger manufacturing bases, mercantilism continued to find favor after other states had turned to newer doctrines.

The mid-18th century gave rise to industrial capitalism, made possible by the accumulation of vast amounts of capital under the merchant phase of capitalism and its investment in machinery. Industrial capitalism, which Marx dated from the last third of the 18th century, marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and the routinization of work tasks; and finally established the global domination of the capitalist mode of production (Burnham).

During the resulting Industrial Revolution, the industrialist replaced the merchant as a dominant actor in the capitalist system and affected the decline of the traditional handicraft skills of artisans, guilds, and journeymen. Also during this period, capitalism marked the transformation of relations between the British landowning gentry and peasants, giving rise to the production of cash crops for the market rather than for subsistence on a feudal manor. The surplus generated by the rise of commercial agriculture encouraged increased mechanization of agriculture.

The rise of industrial capitalism was also associated with the decline of mercantilism. Mid- to late-nineteenth-century Britain is widely regarded as the classic case of laissez-faire capitalism (Burnham). Laissez-faire gained favor over mercantilism in Britain in the 1840s with the repeal of the Corn Laws and the Navigation Acts. In line with the teachings of the classical political economists, led by Adam Smith and David Ricardo, Britain embraced liberalism, encouraging competition and the development of a market economy.

Finance capitalism and monopoly capitalism

In the late 19th century, the control and direction of large areas of industry came into the hands of financiers. This period has been defined as "finance capitalism," characterized by the subordination of process of production to the accumulation of money profits in a financial system. Major features of capitalism in this period included the establishment of huge industrial cartels or monopolies; the ownership and management of industry by financiers divorced from the production process; and the development of a complex system of banking, an equity market, and corporate holdings of capital through stock ownership. Increasingly, large industries and land became the subject of profit and loss by financial speculators.

Late 19th and early 20th century capitalism has also been described as an era of "monopoly capitalism," marked by the movement from the laissez-faire phase of capitalism to the concentration of capital into large monopolistic or oligopolistic holdings by banks and financiers, and characterized by the growth of large corporations and a division of labor separating shareholders, owners, and managers (Scott 2005).

By the last quarter of the 19th century, the emergence of large industrial trusts had provoked legislation in the U.S. to reduce the monopolistic tendencies of the period. Gradually, the U.S. federal government played a larger and larger role in passing antitrust laws and regulation of industrial standards for key industries of special public concern. By the end of the 19th century, economic depressions and boom and bust business cycles had become a recurring problem. In particular, the Long Depression of the 1870s and 1880s and the Great Depression of the 1930s affected almost the entire capitalist world, and generated discussion about capitalism’s long-term survival prospects. During 1930s, Marxist commentators often posited the possibility of capitalism’s decline or demise, often in alleged contrast to the ability of the Soviet Union to avoid suffering the effects of the global depression.

Capitalism following the Great Depression

The economic recovery of the world's leading capitalist economies in the period following the end of the Great Depression and the Second World War — a period of unusually rapid growth by historical standards — eased discussion of capitalism's eventual decline or demise (Engerman 2001).

In the period following the global depression of the 1930s, the state played an increasingly prominent role in the capitalistic system throughout much of the world. In 1929, for example, total U.S. government expenditures (federal, state, and local) amounted to less than one-tenth of GNP; from the 1970s they amounted to around one-third (EB). Similar increases were seen in all industrialized capitalist economies, some of which, such as France, have reached even higher ratios of government expenditures to GNP than the United States. These economies have since been widely described as "mixed economies."

During the postwar boom, a broad array of new analytical tools in the social sciences were developed to explain the social and economic trends of the period, including the concepts of post-industrial society and welfare statism (Burnham). The phase of capitalism from the beginning of the postwar period through the 1970s has sometimes been described as “state capitalism”, especially by Marxian thinkers.

The long postwar boom ended in the 1970s, amid the economic crises experienced following the 1973 oil crisis. The “stagflation” of the 1970s led many economic commentators politicians to embrace neoliberal policy prescriptions inspired by the laissez-faire capitalism and classical liberalism of the 19th century, particularly under the influence of Friedrich Hayek and Milton Friedman. In particular, monetarism, a theoretical alternative to Keynesianism that is more compatible with laissez-faire, gained increasing support in the capitalist world, especially under the leadership of Ronald Reagan in the U.S. and Margaret Thatcher in the UK in the 1980s.

Globalization

Although overseas trade has been associated with the development of capitalism for over five hundred years, some thinkers argue that a number of trends associated with globalization have acted to increase the mobility of people and capital since the last quarter of the 20th century, combining to circumscribe the room to maneuver of states in choosing non-capitalist models of development. Today, these trends have bolstered the argument that capitalism should now be viewed as a truly world system (Burnham). However, other thinkers argue that globalization, even in its quantitative degree, is no greater now than during earlier periods of capitalist trade.

After the abandonment of the Bretton Woods system and the strict state control of foreign exchange rates, the total value of transactions in foreign exchange was estimated to be at least twenty times greater than that of all foreign movements of goods and services (EB). The internationalization of finance, which some see as beyond the reach of state control, combined with the growing ease with which large corporations have been able to relocate their operations to low-wage states, has posed the question of the 'eclipse' of state sovereignty, arising from the growing 'globalization' of capital.

Economic growth in the last half-century has been relatively strong. Life expectancy has almost doubled in the developing world since the postwar years and is starting to close the gap on the developed world where the improvement has been smaller. Infant mortality has decreased in every developing region of the world. Income inequality for the world as a whole is diminishing. Many other variables such as per capita food supplies, literacy, child labor, and access to clean water have also improved.

Political advocacy

Proponents of capitalism

Some theorists and policy makers in predominantly capitalist nations, have emphasized capitalism's ability to promote economic growth, as measured by Gross Domestic Product (GDP), capacity utilization or standard of living. This argument was central, for example, to Adam Smith's advocacy of letting a free market control production and price, and allocate resource. Proponents argue that the rapid, and largely consistent, worldwide increase in economic measures since the industrial revolution is due to the emergence of the modern capitalist. While the measurements are not identical, proponents argue that increasing GDP (per capita) is empirically shown to bring about improved standards of living, such as better availability of food, housing, clothing, health care, reduction of working hours, and freedom from work for children and the elderly. Proponents also believe that a capitalist economy for more opportunities for individuals raise their income through new professions or business venture than do other economic forms. To their thinking, this potential is much greater than in either traditional feudal or tribal societies or in egalitarianism/socialist societies.

Some supporters of capitalism believe that it can organize itself into a complex system without an external guidance or planning mechanism. This phenomenon is called self-organization. In process of self-organization the profit motive has important role. From transactions between buyers and seller price system emerge, and prices serve as a signal on what are the urgent and unfilled wants of people. The promise of profits gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. In such way the activities of millions of people, each seeking his own interest, are coordinated.

This decentralized system of coordination is viewed by some supporters of capitalism as one of its greatest strengths. They argue that it permits many solutions to be tried, and that real-world competition generally finds a good solution to emerging challenges. In contrast, they argue, central planning often selects inappropriate solutions as a result of faulty forecasting. However, in all existing modern economies, the state conducts some degree of centralized economic planning (using such tools as allowing the country's central bank to set base interest rates), ostensibly as an attempt to improve efficiency, attenuate cyclical volatility, and further particular social goals. Proponent who follow the Austrian School argue that even this limited control creates inefficiencies because we cannot predict the long-term activity of the economy. Milton Friedman, for example, has argued that the Great depression was caused by the erroneous policy by the Federal reserve.

Critics of capitalism

Main article: Criticisms of capitalism, Anti-capitalism

Capitalism has met with strong opposition throughout its history, largely from the left, but also from the right; and from religious elements. Many 19th century conservatives were among the most strident critics of capitalism, seeing market exchange and commodity production as threats to cultural and religious traditions.

Prominent leftist critics have included socialists and anarchists, such as Karl Marx, Pierre-Joseph Proudhon, Mikhail Bakunin, Franz Fanon, Vladimir Lenin, Leon Trotsky, Peter Kropotkin, Mao Zedong, Noam Chomsky, and others. Movements like the Luddites, Narodniks, Shakers, Utopian Socialists and others have opposed capitalism for various reasons. Marxism has influenced the creation of social democratic and labour parties, which seek change through existing democratic channels instead of revolution. These parties believe that capitalism should be heavily regulated instead of abolished. Many aspects of capitalism have come under attack from the relatively recent anti-globalization movement.

Some religions criticize or outright oppose specific elements of capitalism. Some traditions of Judaism, Christianity, and Islam forbid lending money at interest, although methods of Islamic banking have been developed. Christianity has been the source of many criticisms of capitalism, particularly its materialist aspects. The first socialists drew many of their principles from Christian values (see Christian socialism), against the "bourgeois" values of profiteering, greed, selfishness and hoarding. Many Christians do not oppose capitalism entirely, but support a mixed economy in order to ensure adequate labour standards and relations, as well as economic justice. There are many Protestant denominations (particularly in the United States) who have reconciled with — or are ardently in favour of — capitalism, particularly in opposition to secular socialism.

Some problems claimed to be associated with capitalism include: unfair and inefficient distribution of wealth and power; a tendency toward market monopoly or oligopoly (and government by oligarchy); imperialism, various forms of economic exploitation; and phenomena such as social alienation, inequality, unemployment, and economic instability. Near the start of the 20th century, Vladimir Lenin claimed that state use of military power to defend capitalist interests abroad was an inevitable corollary of monopoly capitalism. Some environmentalists claim that capitalism requires continual economic growth, and will invevitably deplete the finite natural resources of the earth, and other resources utilized broadly. Some environmentalists, such as Murray Bookchin, have argued that capitalist production passes on environmental costs to all of society, and is unable to consider its own effects on sensitive ecosystems and species.

Democracy, the state and legal frameworks

The relationship between the state, its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in a formal property system where ownership and transactions are clearly recorded. This is the process which transforms physical assets into capital which may be then be used in many more ways and much more efficiently in the economy. A number of economists have argued that the Enclosure Acts in England, and similar legislation elsewhere, were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to the developement of capitalism.

Many theorist of capitalism say that capitalism needs a legal framework for optimal function, and that monopoly and other perceived market failures, such as pollution, can be prevented by appropriate regulations. Inequality can be reduced by progressive taxation, wealth taxes, inheritance taxes, land value taxes, and welfare. Today, almost all developed nations have such regulations, although the desirable degree is still debated.

The relationship between democracy and capitalism is a contentious area in theory and popular political movements. The extension of universal adult male suffrage in 19th century Britain occurred along with the development of industrial capitalism, and democracy become widespread at the same time as capitalism, leading many theorists to posit a causal relationship between them, or that each affects the other. However, in the 20th century, according to some authors, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, monarchies, and single-party states (Burnham). While some thinkers argue that capitalist development more-or-less inevitably eventually leads to the emergence of democracy, others dispute this claim. Research on the democratic peace theory further argue that democracies rarely make war with one another and have little internal violence.

Some commentators argue that though economic growth under capitalism has led to democratization in the past, it may not do so in the future. Under this line of thinking, authoritarian regimes have been able to manage economic growth without making concessions to greater political freedom.

In response to criticism of the system, some proponents of capitalism have argued that its advantages are supported by empirical research. For example, advocates of different Index of Economic Freedom point to a statistical correlation between nations with more economic freedom (as defined by the Indices) and higher scores on variables such as income and life expectancy, including the poor in these nations. Some peer-reviewed studies find evidence for causation.

Notes

1. See http://concise.britannica.com/ebc/article-9359742/capitalism "Capitalism"] in Britannica Concise (EB), "Capitalism" in MSN Encarta, "Capitalism" by Robert Hessen in The Concise Encyclopedia of Economics, "Capitalism" by John Scott and Gordon Marshall in A Dictionary of Sociology Oxford University Press 2005. Oxford Reference Online. Oxford University Press.
2. "Capitalism." Encyclopædia Britannica. 2006. Encyclopædia Britannica Online.
3. "Capitalism" A Dictionary of Sociology. John Scott and Gordon Marshall. Oxford University Press 2005. Oxford Reference Online. Oxford University Press.
4. Case, Karl E., Fair, Ray C., Principles of Macroeconomics, Chapter 22 Globalization, Prentice Hall (2004)
5. Peter Burnham "Capitalism" The Concise Oxford Dictionary of Politics. Ed. Iain McLean and Alistair McMillan. Oxford University Press, 2003. Oxford Reference Online. Oxford University Press.
6. Quoted in Sir George Clark, The Seventeenth Century (New York: Oxford University Pres, 1961), p. 24.
7. Stanley L. Engerman "Capitalism" The Oxford Companion to United States History. Paul S. Boyer, ed. Oxford University Press 2001. Oxford Reference Online. Oxford University Press.
8. Cite error: The named reference state capitalism was invoked but never defined (see the help page).
9. Doug Henwood is an economists who has argued that the heyday of globalization was during the mid-19th century. For example, he writes in What Is Globalization Anyway?:

   Not only is the novelty of "globalization" exaggerated, so is its extent. Capital flows were freer, and foreign holdings by British investors far larger, 100 years ago than anything we see today. Images of multinational corporations shuttling raw materials and parts around the world, as if the whole globe were an assembly line, are grossly overblown, accounting for only about a tenth of U.S. trade.

   (See also Henwood, Doug (October 1, 2003). After the New Economy. New Press. ISBN 1-56584-770-9.)

10. For an assessment of this question, see Peter Evans, "The Eclipse of the State? Reflections on Stateness in an Era of Globalization," World Politics, 50, 1 (October 1997): 62-87.
11. Guy Pfefferman, “The Eight Losers of Globalization”
12. David Brooks, “Good News about Poverty”
13. Robert E. Lucas Jr. "The Industrial Revolution: Past and Future". Federal Reserve Bank of Minneapolis 2003 Annual Report. Retrieved August 30. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help) and J. Bradford DeLong. "Estimating World GDP, One Million B.C.–Present". Retrieved August 30. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
14. Clark Nardinelli. "Industrial Revolution and the Standard of Living". Retrieved September 04. {{cite web}}: Check |url= value (help); Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
15. Herbert Walberg, Joseph Bast. Education and Capitalism, Hoover Institution Press (2001) p. 87-89 ISBN 0-8179-3972-5
16. e.g. The Roman Catholic Church has condemned, "in the practice of 'capitalism,' individualism and the absolute primacy of the law of the marketplace over human labor."Catechism of the Catholic Church, §2425
17. Vladimir Lenin. "Imperialism: The Highest Stage of Capitalism". Retrieved June 29. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
18. Hernando de Soto. "The mystery of capital". Retrieved September 06. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
19. The basis for this claim largely draws from Marx: Karl Marx. "Capital, v. 1. Part VIII: primitive accumulation". Retrieved September 04. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help). One later historical analysis is N. F. R. Crafts (1978). "Enclosure and labor supply revisited". Explorations in economic history (15): 172–183. {{cite journal}}: Unknown parameter |month= ignored (help).
20. For example, see James Lee Ray. "Does democracy cause peace". Retrieved September 06. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help) and Håvard Hegre ...; et al. "Towards a democratic civil peace? : opportunity, grievance, and civil war 1816-1992". Retrieved September 06. {{cite web}}: Check date values in: |accessdate= (help); Explicit use of et al. in: |author= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)
21. Bruce Bueno de Mesquita, George W. Downs, “Development and Democracy”, Foreign Affairs, September/October 2005. Joseph T. Single, Michael M. Weinstein, Morton H. Halperin, “Why Democracies Excel”, Foreign Affairs, September/October 2004.
22. http://www.ratioinstitutet.nu/pdf/wp/nb_efi.pdf

See also

• Anarcho-capitalism
• Capitalism and related political ideologies
• Capitalist mode of production
• Crony capitalism
• Emergence of early capitalism
• History of economic thought
• Late capitalism
• Liberal capitalism
• Spirit of capitalism

Sources and further reading

• Tom Bottomore Theories of Modern Capitalism (1985)
• Fernand Braudel. Civilization and Capitalism : 15th - 18th Century 3 vols.
• Peter Burnham "Capitalism" The Concise Oxford Dictionary of Politics. Ed. Iain McLean and Alistair McMillan. Oxford University Press, 2003. Oxford Reference Online. Oxford University Press.
• H. Doucouliagos and M. Ulubasoglu (2006). "Democracy and Economic Growth: A meta-analysis". School of Accounting, Economics and Finance Deakin University Australia.
• James Fulcher Capitalism (2004)
• Milton Friedman, Capitalism and Freedom (1952, rev. ed. 1981)
• J. K. Galbraith, American Capitalism (1952, repr. 1982)
• David Harvey. "The Political-Economic Transformation of Late Twentieth Century Capitalism." In Harvey, David. The Condition of Postmodernity. Cambridge, MA: Blackwell Publishers, 1990. ISBN 0-631-16294-1
• R. L. Heilbroner and L. C. Thurow, Economics Explained (1987)
• Karl Marx, Capital: A Critical Analysis of Capitalist Production, 3 vol., 1886–1909; first published in German as Das Kapital: Kritik der politischen Oekonomie, 1867–1894.
• Ludwig von Mises, Capitalism versus Socialism – chapter from Money, Method, and the Market Process
• Ludwig von Mises, The Noneconomic Objections to Capitalism – excerpted from The Anti-Capitalistic Mentality
• George Reisman (1996). Capitalism: A Treatise on Economics. Ottawa, Illinois: Jameson Books. ISBN 0-915463-73-3
• Stephen Resnick & Richard D. Wolff (1987). Knowledge & Class: a Marxian critique of political economy. Chicago: University of Chicago Press.
• Rostow, W. W. The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press, 1960.
• J. A. Schumpeter, Capitalism, Socialism, and Democracy (1983)
• John Scott Corporate Business and Capitalist Classes (1997).
• Adam Smith. An Inquiry into the Nature and Causes of the Wealth of Nations, 1776.
• Hernando De Soto (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books. ISBN 0-465-01614-6
• Susan Strange, Casino Capitalism (1986)
• Wallerstein, Immanuel: The Modern World System.

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