How to Improve the Quality of The Third World's Economy

Anastasia Febriana B. XIIA4 - 05

One from four people in the world, their income are just less than $1 for each day. But now, only one from 20 people in the world who has no money. This change occurs because of one thing, entrepreneur. This is validated by the notion of capitalism. Capitalism is the paramount economic system because it provides limitless opportunity, encourage innovation and has not been proved inferior (lower rank) to alternative economic system.

First, capitalist economic system provide limitless opportunity for each individual. Capitalism is the only economic system which allows every individual an equal chance of success, regardless of social class difference. The guaranteed chance of success provided by capitalism inspires hard work, perseverance and hope.

Moreover, capitalism result in the overall increase of innovation and economic growth. In a capitalist driven economy system, consumer make decision on preferences for products and services. The provider of goods and services are therefore motivated to create the best product to win the consumer. The competition result directly in pressure or encourage for the producer to continually increase equality of product while maintaining the price. Without capitalism, innovation is not a priority. In addition, to expanding markets innovation also further increases efficiency.

Similarly, capitalism is considered by many people to be the best economic system by default due to simply to the absence of a more successful model. Free people and free markets are drives a force behind the success of the capitalist model. No other economy model provides limitless opportunity and power to each individual. The temptation of success and power drive the economy for every forward creating exponential growth unprecedented among any other economic systems attempted today.

This economic system supports the one of the developed country or the third world's objective which is to make their economic condition to be better, referring to the first world. The major things to make a country wealthier is the economic power because based on economic aspects, it influences the other aspects, almost all of sectors to make an advance country.

For me, the countries of the third world or developing country can join the capitalism if possible to improve the economy condition for their country. But, not all countries of the third world agree with the existence of capitalism. There are countries which even strongly opposed the existence of capitalism because of the basic rules from each country mainly with socialist or democracy concept which the same thing of those concept is  prioritize welfare of many people, not only individual. So, all entrepreneurs in its country are bound by rules made by the state, so anything that they produce can fulfill the welfare of many people. Therefore, those countries do not allow capitalism in their country because it is only give benefit for people who are entrepreneurs or rich people who have capital, while others will not get the impact at all (poor people will stay poor and rich people will get richer).

But in other hand we should face capitalism with a wise perception. When it is coming out uncontrollably, it can make such a great inequality which is mean social gap. It can make the rich become richer and the poor become poorer so that we need government to take a part in controlling markets and trades, just in case. We must find the middle ground between capitalism and socialism or democracy. We need to adapt a few way how socialism work, how their government get involved in. There is a sentence said, “Capitalism is the only way. It is what moves our country forward. It is what makes America great and England okay, and French terrible.” From this sentence, we can conclude that whatever your concept for the country, it depends on how you react to it wisely, not too much or less.

And, to face the challenge of the third world, I will try to change the concept from democracy or socialist to capitalist if it is possible. Maybe, it sounds so difficult for a country to change the concept which already built since very long time by important people, to another concept, but if it is really urgent, there is nothing wrong that we replace the socialist or democracy concept become capitalist because it is also changed for the goodness for economy of a country although it will make a such a big social class difference and the government also must be responsive to this problem.

While, if the country is not possible to change the concept to capitalist, I will try to make the entrepreneurship rate at a country increase (capitalist is closely related with entrepreneurship because entrepreneurship is the basic of capitalist country) at least 20% (that is the ideal number of entrepreneurship existence in capitalist country) because majority the entrepreneurship rate in developing country, for example in Indonesia is still around 5%. And I will continue to try develop it again and again until the economy of developing country (third world) no longer depends on other countries.

And, for the legacy that I want to leave for the next generation is make an entrepreneurship community that carries out many things related to entrepreneurship. For example, by training people who interested to become good and innovative entrepreneur soon and routinely giving some material on how to bring out unique and useful new innovations for many people so what we produce will be successful. Then, I will build many schools that free of charge with good quality education so that poor people can go to school there and they can get a good quality of education and finally they can work at companies with good quality. Also, I will try to build many companies so it can make the unemployment rate in a country decrease. So, this is my opinion about capitalism is important for a developed country although there are still many effects that harm certain (poor) people, but this can be used as a first step to change from “The Third World” to “The First World”.