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. Undoubtedly, the major political issue revolves around the issue of the role and responsibilities of government. Basically, in a capitalistic system, the role and responsibilities of government are to provide for the fullest development of business and industry with a minimum of rules and regulations. While this basic tenet of capitalism is still regarded as valid, even in a democratic political system, governments are no longer mere spectators. Rather, they are active participants in establishing via a variety of policy decisions the parameters through which economic, political, and social developments will occur.