Capitalistic-Communism

As a management student I should embrace capitalism and link it to the very nature of human existence. I should feel or people like me should feel that entire living organisms exist in a naturally made capitalistic society where competition for all sort of resource exists. But there are some rules which every living being obeys in order to allow a peaceful society and here comes the role of government that formulate the rules. This is true not only among human societies but also among other living beings, they all follow a set of rules framed by their genomes because of their fear of life to break them, but still there are extremes everywhere but their fate is out of scope here.

But sometimes my conscious says that the very evolutionary advantage humans have over other living beings is our immense capability to group and cooperate. Individuals cooperate so that many a times the functional interdependence generate explicit benefit for all, but there are exceptions where free riders also get along smoothly with the existing system . Communist ideologies seeped into the minds of the masses in many parts of the world when the feudalistic minority reaped the benefits of work done by a majority who were denied a fare share of the benefits. But the existence of feudalists were natural consequence of competition. But the dominion was so strong that the one who got dominated could never rise up even after generations. This can again be attributed to cooperation but here it plays a villains role where cooperation between feudal families and the so called gundas (free riders) undermine the efforts of workers. Lack of rules can also be one cause that didn’t allow a fare game in the struggle of life.

At such a juncture the only option for the worker class people to create a fair world is to revolt and break the existing systems of class in the society. A powerful drive to consider every citizen equal happened and it brought in a concept of equal rights for all on the resources, independent of the type of work or capability. But does it seems to be another extreme where we create a society of no competition, where nobody is getting recognized for their specialty/capability. Here the number of free riders increases and they undermine the entire individual capabilities. Both extremes, one with only competition and another with no competition started conflicting and need for a third solution where both capitalism and communism can collaborate, emerged.

In an idealistic communist society all the members did a share of the total work and all get equally compensated. It is a classless society where all are equal. But it is against the basic concept of competition and in a capitalistic society it is cut throat competition and it goes against our ability to work in a group. So how can we combine it?, and the way is making small groups where in inside each group there is a communist setup where people share their work and share their compensation equally, since the size of the group is small compared to a state or a country, members can make sure that free riders don’t exist in their group. This can work as a capitalistic model also when each of these groups compete with other groups around.

And probably this is what has happened in microfinancial institutions where many similar groups compete in the market place but within each there is equality irrespective of the type of work the members perform. Even though similar models like cooperative societies were tried earlier most of them were failures because of the lack of competition due to over protectionism by local governments. But microfinancial institutions fared better in this regard due to existence of both cooperation and competition.

Though microfinancial institutes were not designed as a combined model it was just a natural consequence of "Cooperate Within & Compete Outside". Isn't it Capitalistic-Communism.