Collapse of Communism & Rise of Capitalism

Socialism and Communism have collapsed under the burden of their own follies. External factors were also important. Jihad in Afghanistan was the final stroke. Russian withdrawal (1979) from Afghanistan marked the end of the Soviet era and the final disintegration of the Soviet superpower. The liberation of the Eastern European countries, and the collapse of the Soviet Empire, are major events of our time. However it would be fair to suggest that most definitely it were the internal contradictions and failures of the system, political, social, moral and economic, that lead to their final downfall. As a consequence of the fall of Communism, Capitalism and Liberalism are deemed to have emerged as the only dominant systems of the world. Yet the real problems of human society, which gave rise to the search for alternatives to Capitalism, and the emergence of Socialism and Fascism, are very much there. The contradictions of Capitalism remain unresolved. All the prattle about the ‘end of history’ and ‘superiority of liberal capitalism’, have remained empty claims without real substance. The ugly face of global capitalism is becoming more and more offensive and popular resentment against it is becoming more and more articulate. Seattle, Washington, Prague, Davos, Kayto, Quebec and the latest 9/11 terror streak in New York are becoming symbols of popular rebellion against global exploitation by the few. The stability of the system is at stake. Waves of recession are rising in different parts of the capitalist world. Monetary meltdown is becoming a recurring phenomenon. Unemployment is rising to menacing proportions even in many developed countries. The future is not as bright as it was predicted.

Source: Contemporary Economic Challenges and Islam, Khurshid Ahmed. Republished with permission.