Capitalism In Modern States

State is so much everywhere around us that it seems invisible to us. It is just like a fish (we) in water (state). To make it visible and to study it, we need to study its historical formation. Modern states, being superior to all states of the past at this point of time, were developed mainly in Europe and were established principally due the historical events that materialized in Europe. “Globalization meant western globalization. Key features of the modern states system-the centralization of political power, the expansion of administrative rule, the emergence of mass standing armies, the deployment of force which existed in Europe in embryo in the sixteenth century were to become prevalent features of the entire global system.” Societies,

The states with the best economic system are known as being ‘developed’ and the rest are still ‘developing’. The concept of Capitalism is simple - use wealth to create more. It all started from the barter system and today, it has extended to a level where people invest money in a number of businesses in return for a profit. The beginning of Capitalism lies in the middle ages. In the 13th century, merchants in Italy and Netherlands started the countrywide trading of goods. In the following century, the system of banking was invented by Flourence. Jacques Coeur, with his skillful investment in the foreign merchandise, rapidly accumulated plenty of wealth, resulting in his popularity. At that time, State Capitalism was very uncommon. People relied only on individual investment. It was a collection of these individual merchants who started enterprises in the 15th century. As the colonialism period of 16th century came, expeditions to distant and dangerous places become common which involved lots of potential risks for the sailors. To promote their exertion, Chartered Company was established whose purpose was to provide special services and profits to the merchants risking their fortunes. For those company owners, large sums of money were invested with no surety of profit. This resulted into the formation of the Joint Stock Enterprise where many investors funded the ventures and shared the profits. The first company of this type, ‘Mascory Company’, inaugurated in 1555 and later ‘East India Company’ instituted in 1600. Based on the above principles, incorporated companies were found in the 17th century whose purpose was to allow investors having no personal links with the company owners thus initiating the formal sense of civil societies. This led to the emergence of the concept of brokers whose work was to arrange meeting between buyers and sellers and taking