Curse_Of_Capitalism

Curse Of Capitalism Douglas North delineates the role of institutional structure and change in economic development. North analysis implicitly recognises the fact that something is inherently wrong in the developing world institutions as all the negative features of institutions have been well-entrenched with Path Dependence towards economically ineffective lock-in effects. This paper attempts to postulate on why this is so. It critiques the colonial capitalist institution that imposes alien formal constraints in the background of sustainable indigenous informal institutions which gives rise to contradictions within such an economically distorted socio-economic milieu. It is this manipulation of the socio-economic system that re-defines the relations of domination and submission for the most effective expropriation of indigenous capital from the collective indigenous structure to the centralised capitalist extortion machinery. The market forces entrenched in the third world have thus subjected labor supply ‘freely’ sold under private (instead of collective) ownership of socially produced property that subjects any ‘freedom’ to the ‘force’ of capital. The reason why capitalism is a success in the developed world is identified by Macarlane (1978) . He points out that for the west, the informal individualistically oriented set of attitudes are complemented by an array of formal rules (such as property rights). capitalist, institutional, capitalism, world, production, indigenous, through, formal, colonial, structure, institutions, socio-economic, informal, forces, change, economic, developed, thus, relations, means, market, exchange, constraints, capital, underdeveloped, system, surplus, state, society, modes, developing, dependence, control, class, between