Outline fundamental differences between a LIBERAL DEMOCRACY and CAPITALIST ECONOMY Liberal democracy as a form of political and social

governance, capitalism as a form of economic governance. Crisis of overproduction in Europe led to the spread of capitalism in the world perpetuated during colonialism led to international division of labor Going to explain as to how the Dependency Theory can actually be used to counter the arguments of capitalism being the end form of economic governance for a country Outlook at an international sense international capitalism where developed countries are the proletariat, developing countries are the bourgeoisie Dependency theory outlines how economic growth in developing countries does not necessarily lead to economic growth in underdeveloped countries due to the flow of goods highly processed value-added goods (sourced from high technological labor) v low-processed cheap goods (sourced from manual labor) due to comparative advantage in the other country It has already since been divided in the past, and this can be clearly seen in countries such as China v USA USA supplies value-added technological goods Apple iPhones etc. at USD500 per piece, Philippines sugar at USD0.15 per pound This entraps late developing countries into a vicious cycle of debt, where the country has to take loans from developed countries, entrapping them in a chronic balance of trade deficit (where money outflows > money inflows) deeper debt Fundamentally, resources are being used but not in a way that will benefit the state itself underdevelopment position Example of Philippines where there is 1.3% growth in the agricultural sector from 2012 to 2013, 30% of the children still remain malnourished There is ALSO a fundamental difference between economic growth and economic development which can be seen when we take the example of a capitalist country. For example, Singapore, which has seen rapid economic growth within the past few decades is capitalist, and many economists have argued that Singapore is an example of a late developing country which actually benefited from the capitalist system, compared to if Singapore were to adopt a socialist system. However, average income ratio richest 10% of people compared to poorest 10% of people in a country Vietnam Socialist country planned market economy 6.9 Indonesia Active government intervention 7.8 Singapore Capitalist 17.7 highest inequality within OECD countries

Which leads me to believe that capitalism MERELY A SOURCE OF LEGITIMACY OF GOVERNANCE and a module for the state to facilitate the affairs of the bourgeoisie

I personally am for communism, and believe in the Marxs five stages of historical evolution where a classless utopia where all humans are equal should be the final form of governance but my friend Alison has something to say about it

Internal issues, such as cronyism and patrimonialism also occur as an effect of capitalism because there is a class society- those sitting at the top of the hierarchy will manipulate its power to offer tenders/jobs to people who they derive benefit from due to the blurred division between public and private sectors - such as Ferdinand Marcos in Philippines - US proponent - led to his overthrowing in the People's Power Revolution (1986), Najib Razak in Malaysia