Capitalism and Socialism Capitalism has been characterized differently by various historical and contemporary individuals and groups. Capitalism, in its purest form, is associated with minimal government services. Capitalists typically view private sector players as more efficient and productive than government providers. Capitalist countries are in the minority of nations. Most countries today subscribe to some form of socialism.
Socialism advocates larger role of government than does capitalism.
Socialism encompasses a variety of perspectives, ranging from democratic socialist countries like Canada to Sweden to extreme ones like the People's Republic of China or North Korea. The continent of Europe is home to a variety of socialist governments. Lesser developed countries often profess and practice some degree of socialism. Socialism advocates a larger, more intrusive style of government than does capitalism. Implications for Political Processes, Economic Development, and Social Structures Political Processes When analyzing the differences between capitalism and socialism, significant political issues arise.