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125-472: The terms German Prince or German Princess are often used to refer to members of royalty that were from a German state. Today Germany is one nation, but until 1914, Germany and Central Europe were ruled over by a large number of independent states. Until World War I , the term German could have referred to peoples from areas of what is today the states Germany , Poland , Belgium , Luxembourg , Czech Republic , Slovakia , Austria , and even Croatia , and
250-489: A financial infrastructure of money and investment that makes possible credit and debt , entrepreneurship , commodification , voluntary exchange , wage labor , production of commodities and services , and a strong emphasis on innovation and economic growth . In a market economy , decision-making and investments are determined by owners of wealth, property, or ability to maneuver capital or production ability in capital and financial markets —whereas prices and
375-628: A Central European Danube Confederation to counter these countries against Germany and Russia. There were also plans to add Bavaria and Württemberg to an enlarged Austria. There were also various resistance movements around Otto von Habsburg that pursued this goal. The group around the Austrian priest Heinrich Maier also planned in this direction, which also successfully helped the Allies to wage war by, among other things, forwarding production sites and plans for V-2 rockets , Tiger tanks and aircraft to
500-549: A Geographical Term ) most Central European states were unable to preserve their political independence and became Soviet satellites . Besides Austria, Switzerland and Yugoslavia, only the marginal European states of Cyprus , Finland , Malta and Sweden preserved their political sovereignty to a certain degree, being left out of any military alliances in Europe. The opening of the Iron Curtain between Austria and Hungary at
625-477: A broader and expanding money-based economy. The system put pressure on both landlords and tenants to increase the productivity of agriculture to make profit; the weakened coercive power of the aristocracy to extract peasant surpluses encouraged them to try better methods, and the tenants also had incentive to improve their methods in order to flourish in a competitive labor market . Terms of rent for land were becoming subject to economic market forces rather than to
750-656: A buffer zone between these regions. In the early nineteenth century, the terms "Middle" or "Central" Europe (known as "Mitteleuropa" in German and "Europe centrale" in French) were introduced in geographical scholarship in both German and French languages. At first, these terms were linked to the regions spanning from the Pyrenees to the Danube, which, according to German authors, could be united under German authority. However, after
875-585: A formal property system where ownership and transactions are clearly recorded. According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the inclosure acts in England and similar legislation elsewhere were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to
1000-423: A large middle class were good for democracy. He also argued that a market economy provided a substitute for government control of the economy, which reduces the risks of tyranny and authoritarianism. In his book The Road to Serfdom (1944), Friedrich Hayek (1899–1992) asserted that the free-market understanding of economic freedom as present in capitalism is a requisite of political freedom . He argued that
1125-505: A large number of sellers nor to a market in final equilibrium . Competition is widespread throughout the market process . It is a condition where "buyers tend to compete with other buyers, and sellers tend to compete with other sellers". In offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. Similarly, sellers bid against other sellers in offering goods on
1250-631: A less protectionist policy, with the 1846 repeal of the Corn Laws and the 1849 repeal of the Navigation Acts . Britain reduced tariffs and quotas , in line with David Ricardo's advocacy of free trade . Broader processes of globalization carried capitalism across the world. By the beginning of the nineteenth century, a series of loosely connected market systems had come together as a relatively integrated global system, in turn intensifying processes of economic and other globalization. Late in
1375-474: A result of the Industrial Revolution. The accumulation of capital is the primary mechanism through which capitalist economies promote economic growth . However, it is a characteristic of such economies that they experience a business cycle of economic growth followed by recessions. The term "capitalist", meaning an owner of capital , appears earlier than the term "capitalism" and dates to
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#17327870269701500-576: A safe environment for investment and capitalism. Similarly, Suharto 's authoritarian reign and extirpation of the Communist Party of Indonesia allowed for the expansion of capitalism in Indonesia . The term "capitalism" in its modern sense is often attributed to Karl Marx . In his Das Kapital , Marx analyzed the " capitalist mode of production " using a method of understanding today known as Marxism . However, Marx himself rarely used
1625-611: A significant trade route, restoring ports and revitalising commercial activity. Before 1870, the industrialization that had started to develop in Northwestern and Central Europe and the United States did not extend in any significant way to the rest of the world. Even in Eastern Europe , industrialization lagged far behind. Russia , for example, remained largely rural and agricultural, and its autocratic rulers kept
1750-686: A small scale for centuries in the form of merchant, renting and lending activities and occasionally as small-scale industry with some wage labor. Simple commodity exchange and consequently simple commodity production, which is the initial basis for the growth of capital from trade, have a very long history. During the Islamic Golden Age , Arabs promulgated capitalist economic policies such as free trade and banking. Their use of Indo-Arabic numerals facilitated bookkeeping . These innovations migrated to Europe through trade partners in cities such as Venice and Pisa. Italian mathematicians traveled
1875-528: A social system cannot be said to have existed before that date". England began a large-scale and integrative approach to mercantilism during the Elizabethan Era (1558–1603). A systematic and coherent explanation of balance of trade was made public through Thomas Mun 's argument England's Treasure by Forraign Trade, or the Balance of our Forraign Trade is The Rule of Our Treasure. It was written in
2000-650: A static spatial one. For example, a fair share of Belarus and Right-bank Ukraine are in Eastern Europe today, but 240 years ago they were in the Polish–Lithuanian Commonwealth . Johnson's study on Central Europe received acclaim and positive reviews in the scientific community. However, according to Romanian researcher Maria Bucur , this very ambitious project suffers from the weaknesses imposed by its scope (almost 1600 years of history). The World Factbook defines Central Europe as: Austria,
2125-416: Is a fundamental threat to repressive political leaders and greatly diminishes their power to coerce. Some of Friedman's views were shared by John Maynard Keynes , who believed that capitalism was vital for freedom to survive and thrive. Freedom House , an American think-tank that conducts international research on, and advocates for, democracy, political freedom and human rights , has argued that "there
2250-649: Is a high and statistically significant correlation between the level of political freedom as measured by Freedom House and economic freedom as measured by the Wall Street Journal/Heritage Foundation survey ". In Capital in the Twenty-First Century (2013), Thomas Piketty of the Paris School of Economics asserted that inequality is the inevitable consequence of economic growth in a capitalist economy and
2375-506: Is a part of Europe composed of Austria, Belgium , the Czech Republic, Slovakia, Germany, Hungary, Luxembourg , Netherlands , Poland, Romania and Switzerland, and northern marginal regions of Italy and Yugoslavia (northern states – Croatia and Slovenia ), as well as northeastern France. The German Ständige Ausschuss für geographische Namen (Standing Committee on Geographical Names), which develops and recommends rules for
2500-798: Is alternatively placed in Southeastern Europe. Additionally, Hungary and Slovenia are sometimes included in the region. Lithuania is alternatively placed in Northeastern Europe. Capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit . The defining characteristics of capitalism include private property, capital accumulation , competitive markets , price systems , recognition of property rights , self-interest , economic freedom , meritocracy , work ethic , consumer sovereignty , economic efficiency , profit motive ,
2625-577: Is an ambiguous German concept. It is sometimes used in English to refer to an area somewhat larger than most conceptions of 'Central Europe'. According to Fritz Fischer Mitteleuropa was a scheme in the era of the Reich of 1871–1918 by which the old imperial elites had allegedly sought to build a system of German economic, military and political domination from the northern seas to the Near East and from
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#17327870269702750-588: Is governed by stable economic laws of its own. In the English language , the term "capitalism" first appears, according to the Oxford English Dictionary (OED), in 1854, in the novel The Newcomes by novelist William Makepeace Thackeray , where the word meant "having ownership of capital". Also according to the OED, Carl Adolph Douai , a German American socialist and abolitionist , used
2875-469: Is known for its cultural diversity; however, countries in this region also share historical and cultural similarities. Whilst the region is variously defined, it often includes Austria , Croatia , the Czech Republic , Germany , Hungary , Liechtenstein , Lithuania , Poland , Slovakia , Slovenia , Switzerland and Transylvania as part of Romania . From the early 16th century until
3000-477: Is no competition. A monopoly occurs when a firm has exclusivity over a market. Hence, the firm can engage in rent seeking behaviors such as limiting output and raising prices because it has no fear of competition. Governments have implemented legislation for the purpose of preventing the creation of monopolies and cartels. In 1890, the Sherman Antitrust Act became the first legislation passed by
3125-594: Is no general agreement either on what geographic area constitutes Central Europe, nor on how to further subdivide it geographically. At times, the term "Central Europe" denotes a geographic definition as the Danube region in the heart of the continent, including the language and culture areas which are today included in the states of Bulgaria , Croatia , the Czech Republic , Hungary , Moldova , Poland , Romania , Serbia , Slovakia , Slovenia and usually also Austria and Germany. The terminology EU11 countries refer
3250-422: Is no profit in making an article, it is a sign that the labor and capital devoted to its production are misdirected: the value of the resources that must be used up in making the article is greater than the value of the article itself". Socialist theorists note that, unlike mercantilists, capitalists accumulate their profits while expecting their profit rates to remain the same. This causes problems as earnings in
3375-588: Is to say the appropriation of capital by some to the exclusion of others") and Pierre-Joseph Proudhon in 1861 ("Economic and social regime in which capital, the source of income, does not generally belong to those who make it work through their labor"). Karl Marx frequently referred to the " capital " and to the "capitalist mode of production" in Das Kapital (1867). Marx did not use the form capitalism but instead used capital , capitalist and capitalist mode of production , which appear frequently. Due to
3500-469: Is used, it is referring to a member of one of the many ruling sovereign houses of the region of Central Europe . They were often used as suitable marriage candidates for royalty, simply due to the fact there were so many of them. Also, as all of the European royalty were related, it helped to use a German prince/princess to keep the marriage "in the family", so to speak, or sometimes the opposite: to broaden
3625-406: Is widely used in German education and media without negative meaning, especially since the end of communism. Many people from the new states of Germany do not identify themselves as being part of Western Europe and therefore prefer the term "Mitteleuropa". During World War II, Central Europe was largely occupied by Nazi Germany. Many areas were a battle area and were devastated. The mass murder of
3750-684: The Carolingian Renaissance , limited to the territories that practised Western Christianity at the time. "European" as a cultural term did not include much of the territories where the Orthodox Church represented the dominant religion until the 19th century. Following the Christianization of various Central European countries, elements of cultural unity emerged within the region, specifically Catholicism and Latin . Eastern Europe remained Eastern Orthodox , and
3875-740: The Christianization of Lithuania . It also resulted in the Union of Krewo , signifying a personal union between the Grand Duchy of Lithuania and the Kingdom of Poland. The union commenced an enduring political alliance between the two entities and laid the foundations for the later establishment of the Polish-Lithuanian Commonwealth in 1569. Between the 15th and early 16th centuries, the Kingdom of Croatia, which
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4000-601: The Cold War the countries that make up Central Europe have historically been, and in some cases continue to be, divided into either Eastern or Western Europe. After World War II, Europe was divided by the Iron Curtain into two parts, the capitalist Western Bloc and the socialist Eastern Bloc , although Austria, Switzerland and Yugoslavia (encompassing the territories of present-day Croatia, Slovenia and various other Balkans nations) declared neutrality. The Berlin Wall
4125-679: The Czechoslovak , Hungarian and Polish presidents was hailed at the time as a major breakthrough in Central European cooperation, but the Visegrád Group became a vehicle for coordinating Central Europe's road to the European Union, while development of closer ties within the region languished. American professor Peter J. Katzenstein described Central Europe as a way station in a Europeanization process that marks
4250-849: The Eastern Bloc countries, as its every result proved the dissimilarity of Central Europe, which was inconsistent with the Stalinist doctrine. On the other hand, the topic became popular in Western Europe and the United States, much of the research being carried out by immigrants from Central Europe. Following the Fall of Communism , publicists and historians in Central Europe, especially the anti-communist opposition, returned to their research. According to Karl A. Sinnhuber ( Central Europe: Mitteleuropa: Europe Centrale: An Analysis of
4375-605: The Frankfurt Parliament , which was established in the wake of the March Revolution of 1848, there were multiple competing ideas for the integration of German-speaking areas, including the mitteleuropäische Lösung (Central European Solution) propagated by Austria, which sought to merge the smaller German-speaking states with the multi-ethnic Habsburg Empire, but was opposed by Prussia and others. An imperialistic idea of Mitteleuropa also became popular in
4500-618: The German Empire established in 1871, which experienced intensive economic growth. The term was used when the Union of German Railway Administrations established the Mitteleuropäische Eisenbahn-Zeit (Central European Railway Time) time zone , which was applied by the railways from 1 June 1891 and was later widely adopted in civilian life, thus the time zone name shortened to the present-day Central European Time . The German term denoting Central Europe
4625-619: The Netherlands ) as its main aim. Another time, the term Central Europe became connected to the German plans of political, economic, and cultural domination. The "bible" of the concept was Friedrich Naumann 's book Mitteleuropa in which he called for an economic federation to be established after World War I. Naumann's proposed a federation with Germany and the Habsburg empire as its centre, eventually uniting all external European nations through economic prosperity. The concept failed after
4750-545: The Netherlands . From 1815 to 1860 this number was 35 separate German sovereign states (including Prussia and Austria ) plus another 4 free cities , who together formed the German Confederation . Prior to 1789 there were over 300 independent sovereign states and thousands of other bishoprics, lordships, and free cities that made up the Holy Roman Empire . When the term German Prince or Princess
4875-665: The Pan-European Picnic on 19 August 1989 then set in motion a peaceful chain reaction, at the end of which there was no longer an East Germany and the Eastern Bloc had disintegrated. It was the largest escape movement from East Germany since the Berlin Wall was built in 1961. After the picnic, which was based on an idea by Otto von Habsburg to test the reaction of the USSR and Mikhail Gorbachev to an opening of
5000-506: The Samogitians , Aukštaitians and Curonians . The Holy Roman Empire was founded at the turn of the 9th century, following the coronation of Charlemagne by Pope Leo III . At its inception, it incorporated present-day Germany and nearby regions, including parts of what is now Austria, the Czech Republic, Slovenia and Switzerland. Three decades later, Great Moravia , centred in present-day Czech Republic and Slovakia, became one of
5125-763: The World Bank and the IMF ), large institutional investors and a well-funded banking system . A significant managerial class has emerged and decides on a significant proportion of investments and other decisions. A different future than that envisioned by Marx has started to emerge—explored and described by Anthony Crosland in the United Kingdom in his 1956 book The Future of Socialism and by John Kenneth Galbraith in North America in his 1958 book The Affluent Society , 90 years after Marx's research on
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5250-536: The dissolution of the Holy Roman Empire around 1800, there was a consolidation of power among the Habsburgs and Hohenzollerns as the two major states in the area. They had much in common and occasionally cooperated in various channels, but more often competed. One approach in the various attempts at cooperation, was the conception of a set of supposed common features and interests, and this idea led to
5375-414: The gene pool . The only other area of Europe that was close to be being ruled over by so many different sovereign states was Italy which after 1815 was made up of at least 11 different states, with the rest of Europe being ruled over by large states. Central Europe Central Europe is a geographical region of Europe between Eastern , Southern , Western and Northern Europe. Central Europe
5500-410: The neoliberal global economy would have been impossible without the fall of communism . Harvard Kennedy School economist Dani Rodrik distinguishes between three historical variants of capitalism: The relationship between democracy and capitalism is a contentious area in theory and in popular political movements. The extension of adult-male suffrage in 19th-century Britain occurred along with
5625-416: The transatlantic cable , the radiotelephone , the steamship and railways allowed goods and information to move around the world to an unprecedented degree. In the United States, the term "capitalist" primarily referred to powerful businessmen until the 1920s due to widespread societal skepticism and criticism of capitalism and its most ardent supporters. Contemporary capitalist societies developed in
5750-402: The 11th and 15th centuries, not only did Christianization influence the cultures within Central Europe, but well-defined social features were also implemented in the region based on Western characteristics. The keyword of Western social development after the turn of the millennium was the spread of Magdeburg rights in some cities and towns of Western Europe. These began to spread in the middle of
5875-642: The 13th century in Central European countries, bringing about self-governments of towns and counties. In 1335, the Kings of Poland , Bohemia and Hungary and Croatia met in the castle of Visegrád and agreed to cooperate closely in the field of politics and commerce, inspiring the post- Cold War Visegrád Group . In 1386, Jogaila , the Grand Duke of Lithuania , converted to Christianity (specifically Catholicism) and subsequently became King of Poland through marriage to Queen Jadwiga of Poland . This initiated
6000-422: The 1620s and published in 1664. European merchants , backed by state controls, subsidies and monopolies , made most of their profits by buying and selling goods. In the words of Francis Bacon , the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of
6125-464: The 16th and 18th centuries. The Industrial Revolution of the 18th century established capitalism as a dominant mode of production , characterized by factory work and a complex division of labor . Through the process of globalization , capitalism spread across the world in the 19th and 20th centuries, especially before World War I and after the end of the Cold War. During the 19th century, capitalism
6250-643: The 18th-century decisively shaped globalization. After the First and Second Opium Wars (1839–60) and the completion of the British conquest of India by 1858, vast populations of Asia became consumers of European exports. Europeans colonized areas of sub-Saharan Africa and the Pacific islands. Colonisation by Europeans, notably of sub-Saharan Africa, yielded valuable natural resources such as rubber , diamonds and coal and helped fuel trade and investment between
6375-402: The 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, with the mixed economy as its dominant form in the industrialized Western world. Industrialization allowed cheap production of household items using economies of scale , while rapid population growth created sustained demand for commodities. The imperialism of
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#17327870269706500-626: The Adriatic had not been approved by the Western Allied chiefs of staff. As a result of the military situation at the end of the war, Stalin's plans prevailed and much of Central Europe came under Russian control. Following World War II , parts of Central Europe became part of the Eastern Bloc . The boundary between the two blocks was called the Iron Curtain . Austria, Switzerland and Yugoslavia remained neutral. The post-World War II period brought blocking of research on Central Europe in
6625-513: The Central European area is subject to debates. Very often, the definition depends on the nationality and historical perspective of its author. The concept of "Central Europe" appeared in the 19th century. It was understood as a contact zone between the Southern and Northern areas, and later the Eastern and Western areas of Europe. Thinkers portrayed "Central Europe" either as a separate region, or
6750-512: The Central, Eastern and Baltic European member states which accessed in 2004 and after: in 2004 Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia, and Slovakia; in 2007 Bulgaria, Romania; and in 2013 Croatia. The choice of states that make up Central Europe is an ongoing source of controversy. Although views on which countries belong to Central Europe are vastly varied, according to many sources (see section Definitions )
6875-648: The Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia and Switzerland. The German Encyclopaedia Meyers Grosses Taschenlexikon ( Meyers Big Pocket Encyclopedia ), 1999, defines Central Europe as the central part of Europe with no precise borders to the East and West. The term is mostly used to denominate the territory between the Schelde to Vistula and from the Danube to the Moravian Gate . According to Meyers Enzyklopädisches Lexikon , Central Europe
7000-453: The Czech Republic, Germany, Hungary, Liechtenstein, Poland, Slovakia, Slovenia and Switzerland. The Columbia Encyclopedia includes: Austria, the Czech Republic, Germany, Hungary, Latvia, Lithuania, Poland, Slovakia and Switzerland. While it does not have a single article defining Central Europe, Encyclopædia Britannica includes the following countries in Central Europe in one or more of its articles: Austria, Bosnia and Herzegovina, Croatia,
7125-402: The Czech Republic, Slovakia, Hungary, Lithuania and Yugoslavia. The main proposed regional definitions, gathered by Polish historian Jerzy Kłoczowski , include: Former University of Vienna professor Lonnie R. Johnson points out criteria to distinguish Central Europe from Western, Northern, Eastern and Southern Europe: He also thinks that Central Europe is a dynamic historical concept, not
7250-471: The European imperial powers, their colonies and the United States: The inhabitant of London could order by telephone, sipping his morning tea, the various products of the whole earth, and reasonably expect their early delivery upon his doorstep. Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper. What an extraordinary episode in
7375-578: The Franco-Prussian war of 1870, the French began to exclude France from this area, and later the Germans also adopted this perspective by the end of World War I. The concept of "Central" or "Middle Europe", understood as a region with German influence, lost a significant part of its popularity after WWI and was completely dismissed after WWII. Two defeats of Germany in the world wars, combined with
7500-549: The German defeat in World War I . The revival of the idea may be observed during the Hitler era . The interwar period (1918–1938) brought a new geopolitical system, as well as economic and political problems, and the concept of Central Europe took on a different character. The centre of interest was moved to its eastern part – particularly to the countries that had (re)appeared on the map of Europe. Central Europe ceased to be
7625-469: The Germans have not played an exclusively negative role in the region. Most Central European Jews embraced the enlightened German humanistic culture of the 19th century. Jews of turn of the 20th century Central Europe became representatives of what many consider to be Central European culture at its best, though the Nazi conceptualisation of "Mitteleuropa" sought to destroy this culture. The term "Mitteleuropa"
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#17327870269707750-650: The Jews depopulated many of their centuries-old settlement areas or settled other people there and their culture was wiped out. Both Adolf Hitler and Joseph Stalin diametrically opposed the centuries-old Habsburg principles of "live and let live" with regard to ethnic groups, peoples, minorities, religions, cultures and languages and tried to assert their own ideologies and power interests in Central Europe. There were various Allied plans for state order in Central Europe for post-war. While Stalin tried to get as many states under his control as possible, Winston Churchill preferred
7875-736: The Low Countries through the steppes of Russia to the Caucasus. Later on, professor Fritz Epstein argued the threat of a Slavic "Drang nach Westen" (Western expansion) had been a major factor in the emergence of a Mitteleuropa ideology before the Reich of 1871 ever came into being. In Germany the connotation was also sometimes linked to the pre-war German provinces east of the Oder-Neisse line . The term "Mitteleuropa" conjures up negative historical associations among some people, although
8000-459: The Mediterranean talking to Arab traders and returned to popularize the use of Indo-Arabic numerals in Europe. The economic foundations of the feudal agricultural system began to shift substantially in 16th-century England as the manorial system had broken down and land began to become concentrated in the hands of fewer landlords with increasingly large estates. Instead of a serf -based system of labor, workers were increasingly employed as part of
8125-500: The Soviet sphere of influence in the late 1940s–1980s. For the most part, this geographical framework lost its attraction after the end of the Cold War. A number of Post-Communist countries rather re-branded themselves in the 1990s as "Central European.", while avoiding the stained wording of "Middle Europe," which they associated with German influence in the region. This reinvented concept of "Central Europe" excluded Germany, Austria and Switzerland, reducing its coverage chiefly to Poland,
8250-412: The USA. Otto von Habsburg tried to relieve Austria, Czechoslovakia, Hungary and northern Yugoslavia (particularly the territories of present-day Croatia and Slovenia) from Nazi German, and Soviet, influence and control. There were various considerations to prevent German and Soviet power in Europe after the war. Churchill's idea of reaching the area around Vienna before the Russians via an operation from
8375-415: The United Kingdom (1979–1990). Public and political interest began shifting away from the so-called collectivist concerns of Keynes's managed capitalism to a focus on individual choice , called "remarketized capitalism". The end of the Cold War and the dissolution of the Soviet Union allowed for capitalism to become a truly global system in a way not seen since before World War I . The development of
8500-428: The United States Congress to limit monopolies. Wage labor, usually referred to as paid work, paid employment, or paid labor, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labor power under a formal or informal employment contract . These transactions usually occur in a labor market where wages or salaries are market-determined . In exchange for
8625-430: The West from 1950 to the present and this type of system continues throughout the world—relevant examples started in the United States after the 1950s , France after the 1960s , Spain after the 1970s , Poland after 2015 , and others. At this stage most capitalist markets are considered developed and characterized by developed private and public markets for equity and debt, a high standard of living (as characterized by
8750-478: The area of German aspiration to lead or dominate and became a territory of various integration movements aiming at resolving political, economic, and national problems of "new" states, being a way to face German and Soviet pressures. However, the conflict of interests was too big and neither Little Entente nor Intermarium ( Międzymorze ) ideas succeeded. Hungarian historian Ádám Magda wrote in her study Versailles System and Central Europe (2006): "Today we know that
8875-471: The bane of Central Europe was the Little Entente , military alliance of Czechoslovakia , Romania and Kingdom of Serbs, Croats and Slovenes (later Yugoslavia), created in 1921 not for Central Europe's cooperation nor to fight German expansion, but in a wrong perceived notion that a completely powerless Hungary must be kept down". The events preceding World War II in Europe —including the so-called Western betrayal / Munich Agreement were very much enabled by
9000-596: The border, tens of thousands of media-informed East Germans set off for Hungary. The leadership of the GDR in East Berlin did not dare to completely block the borders of their own country and the USSR did not respond at all. This broke the bracket of the Eastern Bloc and Central Europe subsequently became free from communism. According to American professor Ronald Tiersky , the 1991 summit held in Visegrád attended by
9125-529: The business of a third party by offering the most favourable terms". It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly valued uses and encouraging efficiency . Smith and other classical economists before Antoine Augustine Cournot were referring to price and non-price rivalry among producers to sell their goods on best terms by bidding of buyers, not necessarily to
9250-578: The development of capitalism. Private property rights are not absolute, as in many countries the state has the power to seize private property, typically for public use, under the powers of eminent domain . In capitalist economics, market competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share and sales volume by varying the elements of the marketing mix : price, product, distribution and promotion. Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure
9375-754: The development of industrial capitalism and representative democracy became widespread at the same time as capitalism, leading capitalists to posit a causal or mutual relationship between them. However, according to some authors in the 20th-century, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies and single-party states . Democratic peace theory asserts that democracies seldom fight other democracies, but others suggest this may be because of political similarity or stability, rather than because they are "democratic" or "capitalist". Critics argue that though economic growth under capitalism has led to democracy, it may not do so in
9500-634: The distribution of goods and services are mainly determined by competition in goods and services markets. Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free-market capitalism , anarcho-capitalism , state capitalism , and welfare capitalism . Different forms of capitalism feature varying degrees of free markets , public ownership , obstacles to free competition, and state-sanctioned social policies . The degree of competition in markets and
9625-549: The division of Germany, an almost complete disappearance of German-speaking communities in these countries, and the Communist-led isolation of Czechoslovakia, Hungary, Lithuania, Poland and Yugoslavia from the Western world, turned the concept of "Central/Middle Europe" into an anachronism. On the other side, the non-German areas of Central Europe were almost universally regarded as "Eastern European" primarily associated with
9750-667: The early 18th century, parts of present-day Croatia and Hungary were under Ottoman rule. During the 17th century, the empire also occupied southern parts of present-day Slovakia. During the Early Modern period, the territories of Poland and Lithuania were part of the Polish–Lithuanian Commonwealth . Meanwhile, the Archduchy of Austria , the Kingdom of Bohemia (Czech Republic), the Duchy of Carniola (part of present-day Slovenia),
9875-670: The east. However, the region encompassed a wide spectrum of additional tribes and communities. From the late 6th century to the early 9th century, the area roughly corresponding to the Carpathian Basin was part of the Avar Khaganate, the realm of the Pannonian Avars . While the Avars dominated the east of what is now Austria, its north and south were under Germanic and Slavic influence, respectively. Meanwhile,
10000-461: The economic progress of man was that age which came to an end in August 1914. From the 1870s to the early 1920s, the global financial system was mainly tied to the gold standard . The United Kingdom first formally adopted this standard in 1821. Soon to follow were Canada in 1853, Newfoundland in 1865, the United States and Germany ( de jure ) in 1873. New technologies, such as the telegraph ,
10125-399: The era of merchant capitalism and mercantilism as the origin of modern capitalism, although Karl Polanyi argued that the hallmark of capitalism is the establishment of generalized markets for what he called the "fictitious commodities", i.e. land, labor and money. Accordingly, he argued that "not until 1834 was a competitive labor market established in England, hence industrial capitalism as
10250-493: The expense of another state. During the Industrial Revolution , industrialists replaced merchants as a dominant factor in the capitalist system and effected the decline of the traditional handicraft skills of artisans , guilds and journeymen . Industrial capitalism marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and
10375-659: The first West Slavic states to be founded in Central Europe. In the late 9th Century, the Hungarian tribes , originating in the Ural Mountains and Western Siberia , settled in the Carpathian Basin and established the Principality of Hungary . The earliest recorded concept of Europe as a cultural sphere (instead of simply a geographic term) was formed by Alcuin of York in the late 8th century during
10500-412: The first discussions of a Mitteleuropa in the mid-nineteenth century, as espoused by Friedrich List and Karl Ludwig Bruck . These were mostly based on economic issues. Mitteleuropa may refer to a historical concept or a contemporary German definition of Central Europe. As a historical concept, the German term Mitteleuropa (or alternatively its literal translation into English, Middle Europe )
10625-522: The following: In free market and laissez-faire forms of capitalism, markets are used most extensively with minimal or no regulation over the pricing mechanism. In mixed economies, which are almost universal today, markets continue to play a dominant role, but they are regulated to some extent by the state in order to correct market failures , promote social welfare , conserve natural resources , fund defense and public safety or other rationale. In state capitalist systems, markets are relied upon
10750-477: The future as authoritarian régimes have been able to manage economic growth using some of capitalism's competitive principles without making concessions to greater political freedom . Political scientists Torben Iversen and David Soskice see democracy and capitalism as mutually supportive. Robert Dahl argued in On Democracy that capitalism was beneficial for democracy because economic growth and
10875-475: The idea that if all participants focus on their own goals, society's well-being will be water under the bridge, Smith maintains that despite the concerns of intellectuals, "global trends will hardly be altered if they refrain from pursuing their personal ends." He insisted that the actions of a few participants cannot alter the course of society. Instead, Smith maintained that they should focus on personal progress instead and that this will result in overall growth to
11000-696: The least corrupt, operates largely under a one-party rule. Furthermore, it does not vigorously defend freedom of expression as evidenced by its government-regulated press , and its penchant for upholding laws protecting ethnic and religious harmony, judicial dignity and personal reputation. The private (capitalist) sector in the People's Republic of China has grown exponentially and thrived since its inception, despite having an authoritarian government. Augusto Pinochet 's rule in Chile led to economic growth and high levels of inequality by using authoritarian means to create
11125-406: The least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. Adherents of the capitalist theory believe that competition leads to innovation and more affordable prices. Monopolies or cartels can develop, especially if there
11250-513: The legal development or the social, cultural, economic, and infrastructural developments in these countries. The avant-garde movements of Central Europe contributed to the evolution of modernism, reaching its peak throughout the continent during the 1920s. The Sourcebook of Central European avantgards (Los Angeles County Museum of Art) contains primary documents of the avant-gardes in the territories of Austria, Germany, Poland, Czechoslovakia, Hungary, Romania and Yugoslavia from 1910 to 1930. With
11375-403: The market mechanism is the only way of deciding what to produce and how to distribute the items without using coercion. Milton Friedman and Ronald Reagan also promoted this view. Friedman claimed that centralized economic operations are always accompanied by political repression . In his view, transactions in a market economy are voluntary and the wide diversity that voluntary activity permits
11500-428: The market, competing for the attention and exchange resources of buyers. Competition results from scarcity , as it is not possible to satisfy all conceivable human wants, and occurs as people try to meet the criteria being used to determine allocation. In the works of Adam Smith, the idea of capitalism is made possible through competition which creates growth. Although capitalism had not entered mainstream economics at
11625-434: The mid-17th century. "Capitalism" is derived from capital , which evolved from capitale , a late Latin word based on caput , meaning "head"—which is also the origin of " chattel " and " cattle " in the sense of movable property (only much later to refer only to livestock). Capitale emerged in the 12th to 13th centuries to refer to funds, stock of merchandise, sum of money or money carrying interest. By 1283, it
11750-424: The money paid as wages (usual for short-term work-contracts) or salaries (in permanent employment contracts), the work product generally becomes the undifferentiated property of the employer. A wage laborer is a person whose primary means of income is from the selling of their labor in this way. The profit motive , in the theory of capitalism, is the desire to earn income in the form of profit. Stated differently,
11875-403: The peasants in serfdom. The concept of Central Europe was already known at the beginning of the 19th century, but it developed further and became an object of intensive interest towards the 20th century. However, the first concept mixed science, politics, and economy – it was strictly connected with the aspirations of German states to dominate a part of European continent called Mitteleuropa . At
12000-484: The previous stage of mercantilism, invested capital in the East India Companies and other colonies, seeking a return on investment . In the mid-18th century a group of economic theorists, led by David Hume (1711–1776) and Adam Smith (1723–1790), challenged fundamental mercantilist doctrines—such as the belief that the world's wealth remained constant and that a state could only increase its wealth at
12125-599: The previous stagnant system of custom and feudal obligation. The economic doctrine prevailing from the 16th to the 18th centuries is commonly called mercantilism . This period, the Age of Discovery , was associated with the geographic exploration of foreign lands by merchant traders, especially from England and the Low Countries . Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist methods. Most scholars consider
12250-491: The reason for a business's existence is to turn a profit. The profit motive functions according to rational choice theory , or the theory that individuals tend to pursue what is in their own best interests. Accordingly, businesses seek to benefit themselves and/or their shareholders by maximizing profit. In capitalist theoretics, the profit motive is said to ensure that resources are being allocated efficiently. For instance, Austrian economist Henry Hazlitt explains: "If there
12375-448: The region includes some or all of the states listed in the sections below: Depending on the context, Central European countries are sometimes not seen as a specific group, but sorted as either Eastern or Western European countries. In this case Austria, Germany and Switzerland are often placed in Western Europe, while Croatia, the Czech Republic, Hungary, Lithuania, Poland, Slovakia and Slovenia are placed in Eastern Europe. Croatia
12500-435: The rest of society do not increase in the same proportion. The relationship between the state , its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary Peruvian economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in
12625-517: The resulting concentration of wealth can destabilize democratic societies and undermine the ideals of social justice upon which they are built. States with capitalistic economic systems have thrived under political regimes deemed to be authoritarian or oppressive. Singapore has a successful open market economy as a result of its competitive, business-friendly climate and robust rule of law. Nonetheless, it often comes under fire for its style of government which, though democratic and consistently one of
12750-424: The rising nationalism and ethnocentrism that typified that period. The interwar period brought new elements to the concept of Central Europe. Before World War I, it embraced mainly German-speaking states, with non-German speaking territories being an area of intended German penetration and domination – German leadership was to be the 'natural' result of economic dominance. Post-war, the Eastern part of Central Europe
12875-613: The role of intervention and regulation , as well as the scope of state ownership, vary across different models of capitalism. The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing capitalist economies are mixed economies that combine elements of free markets with state intervention and in some cases economic planning . Capitalism in its modern form emerged from agrarianism in England , as well as mercantilist practices by European countries between
13000-486: The routine of work tasks; and eventually established the domination of the capitalist mode of production . Industrial Britain eventually abandoned the protectionist policy formerly prescribed by mercantilism. In the 19th century, Richard Cobden (1804–1865) and John Bright (1811–1889), who based their beliefs on the Manchester School , initiated a movement to lower tariffs . In the 1840s Britain adopted
13125-652: The soil; the regulation of prices...". After the period of the proto-industrialization , the British East India Company and the Dutch East India Company , after massive contributions from the Mughal Bengal , inaugurated an expansive era of commerce and trade. These companies were characterized by their colonial and expansionary powers given to them by nation-states. During this era, merchants, who had traded under
13250-440: The state of capitalism in 1867. The postwar boom ended in the late 1960s and early 1970s and the economic situation grew worse with the rise of stagflation . Monetarism , a modification of Keynesianism that is more compatible with laissez-faire analyses, gained increasing prominence in the capitalist world, especially under the years in office of Ronald Reagan in the United States (1981–1989) and of Margaret Thatcher in
13375-420: The term "capitalism" by many authors as "mainly rhetorical, functioning less as an actual concept than as a gesture toward the need for a concept". Scholars who are uncritical of capitalism rarely actually use the term "capitalism". Some doubt that the term "capitalism" possesses valid scientific dignity, and it is generally not discussed in mainstream economics , with economist Daron Acemoglu suggesting that
13500-418: The term "capitalism" should be abandoned entirely. Consequently, understanding of the concept of capitalism tends to be heavily influenced by opponents of capitalism and by the followers and critics of Karl Marx. Capitalism, in its modern form, can be traced to the emergence of agrarian capitalism and mercantilism in the early Renaissance , in city-states like Florence . Capital has existed incipiently on
13625-525: The term "capitalism" while it was used twice in the more political interpretations of his work, primarily authored by his collaborator Friedrich Engels . In the 20th century, defenders of the capitalist system often replaced the term "capitalism" with phrases such as free enterprise and private enterprise and replaced "capitalist" with rentier and investor in reaction to the negative connotations associated with capitalism. In general, capitalism as an economic system and mode of production can be summarized by
13750-518: The term "private capitalism" in 1863. There is no universally agreed upon definition of capitalism; it is unclear whether or not capitalism characterizes an entire society, a specific type of social order, or crucial components or elements of a society. Societies officially founded in opposition to capitalism (such as the Soviet Union ) have sometimes been argued to actually exhibit characteristics of capitalism. Nancy Fraser describes usage of
13875-541: The term in his first work, What is Property? (1840), to refer to the owners of capital. Benjamin Disraeli used the term in his 1845 work Sybil . Alexander Hamilton used "capitalist" in his Report of Manufactures presented to the United States Congress in 1791. The initial use of the term "capitalism" in its modern sense is attributed to Louis Blanc in 1850 ("What I call 'capitalism' that
14000-531: The territories now comprising Germany and Switzerland were under the influence of the Merovingian dynasty , and later the Carolingian dynasty . Various Slavic tribes that inhabited eastern Central Europe established settlements during this period, primarily in present-day Croatia, Czech Republic, Poland, Slovakia and Slovenia. The territory of Lithuania was inhabited by Baltic tribes. Amongst them were
14125-414: The time of Smith, it is vital to the construction of his ideal society. One of the foundational blocks of capitalism is competition. Smith believed that a prosperous society is one where "everyone should be free to enter and leave the market and change trades as often as he pleases." He believed that the freedom to act in one's self-interest is essential for the success of a capitalist society. In response to
14250-501: The transformation process of the Visegrád Group countries in different, though comparable ways. According to him, in Germany's contemporary public discourse "Central European identity" refers to the civilizational divide between Catholicism and Eastern Orthodoxy. He argued that there is no precise way to define Central Europe and that the region may even include Bulgaria, Estonia, Latvia and Serbia. The issue of how to name and define
14375-411: The uniform use of geographical names, proposes two sets of boundaries. The first follows international borders of current countries. The second subdivides and includes some countries based on cultural criteria. In comparison to some other definitions, it is broader, including Luxembourg, Estonia, Latvia, and in the second sense, parts of Russia, Belarus, Ukraine, Romania, Serbia, Italy, and France. There
14500-550: The various German Principalities and the Old Swiss Confederacy were within the Holy Roman Empire . By the end of the 18th century, the Habsburg monarchy , a prominent power within the Holy Roman Empire, came to reign over the territories of Austria, Bosnia and Herzegovina , Croatia, the Czech Republic, Hungary, Slovakia and Slovenia, alongside parts of Serbia , Germany, Italy , Poland and Switzerland. Since
14625-410: The word being coined by socialist critics of capitalism, economist and historian Robert Hessen stated that the term "capitalism" itself is a term of disparagement and a misnomer for economic individualism . Bernard Harcourt agrees with the statement that the term is a misnomer, adding that it misleadingly suggests that there is such a thing as " capital " that inherently functions in certain ways and
14750-502: Was accelerated by writers and other intellectuals, who recognized the societal paralysis of decaying dictatorships and felt compelled to speak up against Soviet oppression. In the early Middle Ages, Central Europe had a diverse landscape, with various ethnic groups inhabiting the region. Germanic tribes , among them the Franks , Alemans and Bavarians , were predominantly situated in the west, while Slavic tribes were predominantly in
14875-579: Was at the time in personal union with the Kingdom of Hungary, served as a significant maritime gateway of Central Europe, with its ports facilitating key trade routes between Central Europe and the Mediterranean. The Republic of Ragusa emerged as a prominent hub for cultural exchange during this time. Following the Ottoman and Habsburg wars of the 16th and 17th centuries, the Kingdom of Croatia, under Habsburg rule , began to regain its position as
15000-671: Was dominated by Byzantine cultural influence. After the East–West Schism in 1054, significant parts of Eastern Europe developed cultural unity and resistance to Catholic Western and Central Europe within the framework of the Eastern Orthodox Church , Church Slavonic language and the Cyrillic alphabet . According to historian Jenő Szűcs , at the end of the first millennium Central Europe became influenced by Western European developments. Szűcs argued that between
15125-496: Was largely unregulated by the state, but became more regulated in the post– World War II period through Keynesianism , followed by a return of more unregulated capitalism starting in the 1980s through neoliberalism . The existence of market economies has been observed under many forms of government and across a vast array of historical periods , geographical locations , and cultural contexts. The modern industrial capitalist societies that exist today developed in Western Europe as
15250-679: Was one of the most visible symbols of this division. Respectively, countries in Central Europe have historical, cultural and geopolitical ties with these wider regions of Europe. Central Europe began a "strategic awakening" in the late 20th and early 21st century, with initiatives such as the Central European Defence Cooperation , the Central European Initiative , Centrope , and the Visegrád Four Group . This awakening
15375-697: Was placed at the centre of the concept. At that time the scientists took an interest in the idea: the International Historical Congress in Brussels in 1923 was committed to Central Europe, and the 1933 Congress continued the discussions. According to Emmanuel de Martonne , in 1927, Central Europe encompassed Austria, Czechoslovakia, Germany, Hungary, Poland, Romania and Switzerland, northern Italy and northern Yugoslavia. The author uses both Human and Physical Geographical features to define Central Europe, but he doesn't take into account
15500-735: Was so fashionable that other languages started referring to it when indicating territories from Rhine to Vistula , or even Dnieper , and from the Baltic Sea to the Balkans . An example of this vision of Central Europe may be seen in Joseph Partsch 's book of 1903. On 21 January 1904, Mitteleuropäischer Wirtschaftsverein (Central European Economic Association) was established in Berlin with economic integration of Germany and Austria (with eventual extension to Switzerland, Belgium and
15625-763: Was used in the sense of the capital assets of a trading firm and was often interchanged with other words—wealth, money, funds, goods, assets, property and so on. The Hollantse ( German : holländische ) Mercurius uses "capitalists" in 1633 and 1654 to refer to owners of capital. In French, Étienne Clavier referred to capitalistes in 1788, four years before its first recorded English usage by Arthur Young in his work Travels in France (1792). In his Principles of Political Economy and Taxation (1817), David Ricardo referred to "the capitalist" many times. English poet Samuel Taylor Coleridge used "capitalist" in his work Table Talk (1823). Pierre-Joseph Proudhon used
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