The Non-Capitalist Way of Development (NCWD) or The Non-Capitalist Path or The Non‐Capitalist Road is a

development theory Development theory is a collection of theories about how desirable change in society is best achieved. Such theories draw on a variety of social science disciplines and approaches. In this article, multiple theories are discussed, as are recent ...

which was proposed by theorists from the

socialist bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...

, as an alternative

political economy Political or comparative economy is a branch of political science and economics studying economic systems (e.g. Marketplace, markets and national economies) and their governance by political systems (e.g. law, institutions, and government). Wi ...

capitalist Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...

and

imperialist Imperialism is the maintaining and extending of power over foreign nations, particularly through expansionism, employing both hard power (military and economic power) and soft power ( diplomatic power and cultural imperialism). Imperialism fo ...

development strategies.

Background

After

World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...

, a wave of

decolonization Decolonization is the undoing of colonialism, the latter being the process whereby Imperialism, imperial nations establish and dominate foreign territories, often overseas. The meanings and applications of the term are disputed. Some scholar ...

led to the emergence of many newly independent nations that faced

poverty Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse Biophysical environmen ...

underdevelopment Underdevelopment, in the context of international development, reflects a broad condition or phenomena defined and critiqued by theorists in fields such as economics, development studies, and postcolonial studies. Used primarily to distinguish s ...

, and the challenges of

Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...

politics. While these countries sought to

modernize Modernization theory or modernisation theory holds that as societies become more economically modernized, wealthier and more educated, their political institutions become increasingly liberal democratic and rationalist. The "classical" theories ...

, they were wary of adopting Western capitalist models, fearing this would reinforce economic dependency and

neocolonialism Neocolonialism is the control by a state (usually, a former colonial power) over another nominally independent state (usually, a former colony) through indirect means. The term ''neocolonialism'' was first used after World War II to refer to ...

. This skepticism grew as many of these nations adopted non-aligned stances, avoiding alignment with either the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

or the

Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

. NCWD was therefore originally promoted by the Soviet Union during the Cold War as an alternative development path for these newly decolonized countries to

without fully embracing capitalism or immediately transitioning to

socialism Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...

. It primarily prioritized state-led modernization from the top over popular uprisings or

grassroots A grassroots movement is one that uses the people in a given district, region or community as the basis for a political or continent movement. Grassroots movements and organizations use collective action from volunteers at the local level to imp ...

socialist revolutions from below (see revolution from above). From 1954 to 1979 the USSR provided an estimated $18 billion in economic aid and $47 billion in military aid to 76 countries across

Africa Africa is the world's second-largest and second-most populous continent after Asia. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 20% of Earth's land area and 6% of its total surfac ...

Asia Asia ( , ) is the largest continent in the world by both land area and population. It covers an area of more than 44 million square kilometres, about 30% of Earth's total land area and 8% of Earth's total surface area. The continent, which ...

, and

Latin America Latin America is the cultural region of the Americas where Romance languages are predominantly spoken, primarily Spanish language, Spanish and Portuguese language, Portuguese. Latin America is defined according to cultural identity, not geogr ...

India (1947 - 1964)

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

, under

Jawaharlal Nehru Jawaharlal Nehru (14 November 1889 – 27 May 1964) was an Indian anti-colonial nationalist, secular humanist, social democrat, and statesman who was a central figure in India during the middle of the 20th century. Nehru was a pr ...

, became one of the most prominent examples of this development strategy. Although India remained non-aligned during the Cold War, it accepted substantial Soviet aid, particularly due to its

industrialization Industrialisation (British English, UK) American and British English spelling differences, or industrialization (American English, US) is the period of social and economic change that transforms a human group from an agrarian society into an i ...

strategy to substitute

import An importer is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. Import is part of the International Trade which involves buying and receivin ...

s, which aimed to produce domestically what had previously been imported. A major symbol of Soviet-Indian cooperation was the Bhilai Steel Plant (currently a subsidiary of

Steel Authority of India Limited Steel Authority of India Limited (SAIL) is an Indian Public sector undertakings in India, public sector steel manufacturing corporation based in New Delhi. It is the largest Government of India, government-owned steel producer, with an annual pr ...

), built in the late 1950s with Soviet funding and expertise. Bhilai became a symbol of India's industrial aspirations and played a central role in Nehru's vision of a

mixed economy A mixed economy is an economic system that includes both elements associated with capitalism, such as private businesses, and with socialism, such as nationalized government services. More specifically, a mixed economy may be variously de ...

, balancing private enterprises with state-owned industries in India.

Egypt (1956 - 1970)

After the 1956

Suez Crisis The Suez Crisis, also known as the Second Arab–Israeli War, the Tripartite Aggression in the Arab world and the Sinai War in Israel, was a British–French–Israeli invasion of Egypt in 1956. Israel invaded on 29 October, having done so w ...

Egypt Egypt ( , ), officially the Arab Republic of Egypt, is a country spanning the Northeast Africa, northeast corner of Africa and Western Asia, southwest corner of Asia via the Sinai Peninsula. It is bordered by the Mediterranean Sea to northe ...

, under

Gamal Abdel Nasser Gamal Abdel Nasser Hussein (15 January 1918 – 28 September 1970) was an Egyptian military officer and revolutionary who served as the second president of Egypt from 1954 until his death in 1970. Nasser led the Egyptian revolution of 1952 a ...

, shifted towards non-capitalist development, seeking support from the Soviet Union. One key result of this alliance was the construction of the

Aswan High Dam The Aswan Dam, or Aswan High Dam, is one of the world's largest embankment dams, which was built across the Nile in Aswan, Egypt, between 1960 and 1970. When it was completed, it was the tallest earthen dam in the world, surpassing the Chatug ...

, completed in 1970 with Soviet help. The dam symbolized Egypt’s modernization, boosting energy production and agricultural output through

hydroelectric power Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...

and improved

irrigation Irrigation (also referred to as watering of plants) is the practice of applying controlled amounts of water to land to help grow crops, landscape plants, and lawns. Irrigation has been a key aspect of agriculture for over 5,000 years and has bee ...

. It also reinforced Nasser’s Arab socialist policies, combining state control of industries with strong

nationalism Nationalism is an idea or movement that holds that the nation should be congruent with the state. As a movement, it presupposes the existence and tends to promote the interests of a particular nation, Smith, Anthony. ''Nationalism: Theory, I ...

. However, the dam also caused environmental issues, including the displacement of the Nubian community and changes to the

Nile The Nile (also known as the Nile River or River Nile) is a major north-flowing river in northeastern Africa. It flows into the Mediterranean Sea. The Nile is the longest river in Africa. It has historically been considered the List of river sy ...

's ecosystem.

Literature

* *

References

{{DEFAULTSORT:Non-Capitalist Way of Development Economics Socialism Capitalism Imperialism Development economics Development in Asia Development in Africa Soviet Union Cold War

Background

India (1947 - 1964)

Egypt (1956 - 1970)

Literature

See also

References