A Capitalist or Democratic Government: Which One is Better?

Governance means ‘to direct,’ ‘guide’ or ‘take charge.’ The world we live in is a complex society, which makes it important to have a structured system of operation. If there is no existing system of governance in Nigeria, chaos will definitely suffice.

Under various umbrella of operations, governance can be carried out, but we would be limiting this post to two types namely; democratic government and capitalist government.

What do these two systems of governance entail? What are their advantages and disadvantages? Which is better and how best can they be applied? We will find out soon.

Table of Contents

What is a Capitalist Government?

This system of government operates based on the tenets that an economy is guided by individuals who have autonomous control and influence on factors of productions due to their large business control. They can influence the forces of demand and supply which dictates the market prices that is beneficial to the larger society.

For instance, if Nigeria is a capitalist society, Dangote group of company will be a typical business that dictates market pricing completely.

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Advantages of a Capitalist Government

It gives room for individuals to thrive unhindered by government rules. It allows for innovation and healthy competition that affects market price positively.
Demands for goods and services allows incentives for efficiency due to the fact that cost is minimized and wastage is avoided.

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Disadvantages of a Capitalist Government

Its prolific nature allows for exploitation of its citizens. Leveraging on its workers to amass wealth thereby widening the inequality gap and class disparity of the rich and poor.
It rules by how wealthy an individual is and its anti-democratic nature imposes on its people, leaders and they influence the factors of production.

What is a Democratic Government?

In most countries around the world, democratic system of government is accepted as the structural system of governance. Democratic governance is a system that operates based on the choice of its citizens. Democracy was an ideology pronounced in Athens, the ancient Grecians in 5BC.

Though there were pockets democratic system practiced in earlier primitive era, the Greeks were credited to have created democracy in a more advanced level. In Nigeria, according to the tenets of Human Rights law, democratic governance helps ensures individual rights is upheld through inclusion, equality, fundamental level of freedom and diversity.

To illustrate democratic governance in a lay man’s language, democracy is all about the people of a particular region or country. Democracy charts the course of free and fair electoral processes, multi political party system, rule of law (constitutional guidance), power separation (legislative, executive and judicial arms of government), public and private enterprises, etc.

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Advantages of Democratic Government

Democratic government allows for equality in the distribution of resources. It aims in alleviating poverty and provide an improved standard of living for its people.
Leaders are accountable to their citizens, since they are elected into office by the people.
Individuals are empowered to make their choice of who and who not to lead them.

Disadvantages of Democratic Government

Leaders are elected for a period of time. These constant changes could hamper developmental progress.
This system is susceptible to corruption and violence due to the rivalry of contending parties.

Democratic Vs Capitalist Government: Which is Better?

There has been argument on what system of government is better, democratic or capitalist. For more comprehensive understanding, let’s delve into few different aspects of an economy:

Politics

The operating stance of both democracy and capitalism differs when it comes to politics. Capitalism runs through, a few wealthy individuals who have access to means of production. The wealth they wield gives political power to influence market prices, government and its citizens in a free and non-regulated setting, to encourage and lift their status in the society.

Democracy, on the other hand, is accountable to citizens. Government comes into power through its citizens. They are elected into power and are expected to elevate the living standards of its citizens.

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Allocation of resources

The distribution of resources in a capitalist setting is done primarily through the pricing mechanism. This implies that the force of demand and supply determines the price of a commodity and in turn the extent such product can be produced and invariably consumed.

For instance, if the demand for Milo as a beverage is high, production will also be high. But in some instances, to make more profit, scarcity of Milo can be created (low production) in the midst of high demand which will shoot its price up.

Democratic governance distributes resources via many routes, such as its public and private sector, market or pricing mechanism and basically through budget allocation. For instance, in Nigeria and some other countries running democratic system of governance, resources are distributed to combat certain issues.

A notable instance was the allocation of funds to the different states, to further distributes food in form of palliatives in combating the shortage of food as well as the hike in food stuffs.

Human rights

People should have the right to make decisions, give opinions, express individual ideas, vote, own properties, choice, etc. In both democratic and capitalist economy, the practice of the principles of human rights is inherent.

There are instances under the guise of human rights, where some individuals in both structures of governance amass wealth for themselves with the exploitation of the citizens and natural resources.

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Conclusion

Democratic government is widely accepted, although, it is more expensive to run when compared to capitalist governance. It, however, preaches the tenets of equality, inclusion and freedom of expression for everyone.

There are elements of a capitalist society imbedded in a democratic society. These include freedom of individuals to own property, evidence of price mechanism and the deregulations of certain industry, that is, the downstream sector.

Furthermore, democratic government enhances individual’s perspective regarding their country. The sovereignty to choose leaders of their choice encourages the morale of the people, giving them a sense of belonging. From a general overview, democratic system is better than capitalist system.