Modes of production and its various forms in Nepalese context

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Modes of production and its various forms in Nepalese context:

Modes of production and its various forms in Nepalese context By: Jeevan Acharya Search me in facebook:


Modes of Production : defined as the way a society is organized to produce goods and services. It consists of two major aspects: The forces of production and the relations of production. The forces of production include all of the elements that are brought together in production – from land, raw material, and fuel to human skill and labor to machinery, tools, and factories. The relations of production include relationships among people and people’s relationships to the forces of production through which decisions are made about what to do with the results. INTRODUCTION

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Social science concerned with the production, distribution and exchange of goods and services Focus on individual develop business and government seeks to achieve efficiently any objectives Karl Marx’s mode of production as the strategy of economic development in the world

Classified into the following categories:

Communal modes of production Kind of production system where equal ownership of each people of community in the resources. Non of the unnatural differences are erected there. Classified into the following categories


Assume social equalities. Communal property. Communal ownership on the means of production. Communal productive system in fishing and agriculture. People live in group of 10 -15 member. Equal subsistence system, life style and equal role. C haracteristics

Slavery modes of production:

Production system where some people control over other people’s labor and use them for own sake . Here, the owners exploit the worker or slaves involving them in the production system and in return no profit is provided to later. Slavery modes of production


Slaves as the private property of slave owner which helped purchasing of slaves as material. Society is stratified into the slaves and slaves owner. Lack of social mobility in slavery. Tradition of making slave on the basis of caste, race, colour , and by birth. C haracteristics

Feudalistic modes of production :

Political factor was the major causes of evolution of feudalism.9 th and 10 th century Europe was the age of anarchy. Agriculture is the very foundation of feudalistic mode of production . society is mainly divided into classes the landlord and the slaves. land is the major base of feudal mode of production. Feudalistic modes of production


Basically two classes; slave and landowner emerged in society. Agriculture was the core of production .Industries and factories were not developed. Unequal social system exits . Tradition of not giving wages to the slaves. King has more power. Currency was also used in feudalist age. Lack of market system in feudal mode of production. Some people have control over entire land known as landlords. Domination of feudal landlords exists in society. Characteristics

Capitalistic modes of production:

Economy, mean of production largely in private and incentive for the accumulation of profit Qualities of capitalism Personal profit: “for the pursuit of profit and even renewed profit”(Max Weber) Free competition: isn’t an evil tendency of business, merely working out of law of nature and a law of god”(John D Rockefeller) Capitalistic modes of production

Characteristics :

Ownership of individual properties Open and competitive market Market controlled economy Automatic price mechanism Production for surplus values Centralization of capitals Class conflict and unequal income Characteristics

Socialistic modes of production::

Economy, means of production and distribution in a society are collectively Objectives is to meet peoples need rather than maximum profit Believes, competition between different firms producing similar products, waste of resources Productions design to serve social goals. Socialistic modes of production:

Characteristics :

Community ownership on means of production Fulfillment of public needs and social welfare Equal distribution of means and resources Government controlled central planning End of exploitation and classless society Lack of competition and individual property Characteristics

Mixed economy:

Recent economy system of Nepal is also based on mixed economy . Middle ground between capitalism and socialism Government wields economic power with regards to major industries and social services Goals to achieve growth of free market by protecting workers Mixed economy

Characteristics :

Middle ground between capitalism and socialism Central policies are formulated by government Private sector are encourage with partial freedom Government design price mechanism Characteristics

Forms of current Nepalese economic system(modes of production):

The nature of the Nepalese economic system is semi feudal. The state has adopted mixed economic policy at present. The UN has identified Nepal as the lest developed with the per capita income about US $ 240 (2006).Several factor have contributed to Nepal's underdevelopment, including its landlocked geography rugged terrain, lack of natural resources ,and poor infrastructure. Nepal’s economy is characterized by heavy foreign loan, donation ,and a narrow range of export . Forms of current Nepalese economic system(modes of production)

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Agriculture dominate Nepal's economy .it provides livelihood for 79%of total population and contribute 42% of GDP. The industrial area covers only less than 10% of GDP(growth domestic product). The remittance gained by foreign employment covers 14% but it is not considered as a sustainable economic source. Most of the industries are based on the agro product . Large manufacturing plans are owned and operated by the government. Major manufacturing products are jute, sugar, cigarette, beer, leather ,brick, cement, tea etc. the entry of WTO in 2004 BS is not recognized as a economic option till to now.

Current features of Nepalese economy:

Mixed economy system Subsistence type production and consumption Heavy loss in external trade Driven to market oriented economy system Semi feudal production system Development of financial cooperation Unequal distribution of means of resources and economy inequality Current features of Nepalese economy

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Increment in foreign loan and dependence in foreign donations Lack of industrial culture and entrepreneurship


P eak hour of the feudalist mode of production remained in Europe from 1000 to1400 A.D. Howe ever in Nepalese context, we still the semi-feudal mode of production. Recent economy system of Nepal is based on mixed economy . CONCLUSION

Reference :

Perry Anderson, passage from antiquity to feudalism Perry Anderson Barry hindess and Paul Q. horst, pre capitalistic modes of production. Development and critique in the writing of Karl Marx. Earnest Mendel, matrix economic theory.   Reference

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