Marxist Political Economy and Its Implications for Domestic Economic Development

Abstract

The study of the Marxist political economy offers critical insights into domestic economic development, emphasizing labor's central role and the dynamics of class struggle. Historical implementations of Marxist-inspired policies highlight successes and challenges in addressing inequality, labor exploitation, and sustainability. These include centralized systems like the Soviet Union, hybrid models like China’s market socialism, and welfare states like Sweden. This paper aims to analyze the evolution of Marxist economic thought, its application across various economic systems, and its implications for contemporary domestic development strategies. This paper identifies pathways for adapting Marxist principles to modern economic challenges, including globalization, technological disruption, and environmental sustainability by exploring key achievements, critiques, and lessons from historical case studies. A critical analysis framework was adopted to evaluate historical and contemporary applications of Marxist policies. Comparative case studies, including the Soviet Union, China, and Sweden, were examined to assess outcomes in industrial growth, poverty reduction, and social equity. Additionally, challenges in balancing Marxist approaches with modern economic trends were analyzed through existing literature. The findings reveal that Marxist-inspired policies have achieved significant milestones, such as poverty alleviation in China and equity in Scandinavian welfare states. However, challenges like bureaucratic inefficiencies, environmental degradation, and tensions between socialist ideals and market mechanisms persist. Integrating Marxist principles with modern innovations offers transformative potential for domestic economic development. By addressing systemic inequalities and promoting sustainable growth, Marxist approaches remain relevant for creating inclusive and resilient economies in the 21^st century.