Reverse Capitalism | What Is Reverse Capitalism?
What Is Reverse Capitalism?
What is capitalism? In capitalism, the capitalists and entrepreneurs make the investment of capital, ideas, and efforts and try to earn more and more profit. The accumulation of more and more wealth by corporations is the basic characteristic of capitalism.
Then, what is reverse capitalism? It is just the reverse of capitalism. In reverse capitalism, the corporations and its owners are donating more and more wealth to society instead of accumulating it.
We find many incidences of reverse capitalism in the USA and western developed countries. For example, Warren Buffet, the renowned billionaire investor of Berkshire Hathaway, had pledged to donate 99 percent of his wealth to the Melinda and Bill Gates Foundation.
It does not mean that developing countries like India do not have big philanthropists. We also have the examples of Mr Aziz Premji, owner of software giant Wipro Ltd and Shiv Nadar, owner of HCL Technology. But these are a few examples.
So the question is raised, why do we find more examples like Warren Buffett in western countries and not in India? The answer to the above may lie in the nature of society.
Western society is a more achievement-based society. Society encourages individuals to achieve something in life and feel proud of it. Here the status of a person is determined by his / her achievement in life. So, parents encourage their children to achieve their own strengths. As they earn on their own, they have the courage to donate it.
On the other hand, Indian society is a more ascribed-based society. In ascribed society, status is not achieved on the basis of merit or skills but on the inheritance of wealth, caste, and family background. So, we find a few incidents of Warren Buffet here.
To conclude, the nature of society defines the nature of philanthropic activities.