What are the similarities and differences between the capitalist and the socialist pattern of industrialization?

Capitalism is a mode of production in which capital in its various forms is the principal means of production. Socialism is a mode of production in society in its various forms in the principal means of production. Capitalism is the first stage in the history of the world to coincide with the phenomenon of industrialization in its full brown form together, the new economic institutions and the new technology transformed the world. Technical progress is the most essential characteristic of capitalist advance. But it is very hard to quantify or explain its growth. Some scholars regard the application of science to industry as the distinguishing characteristic of modern society. As early as the seventeenth century the methods of science in particular, observation and experiment, were being applied for utilitarian purposes. One of the most remarkable features of technical advance in the eighteen and early nineteenth centuries was the large proportion of major inventions made by ingenious thinkers, self taught mechanics and engineers and other autodidacts. The most significant improvements in technology involved the use of machinery and mechanical power to transform tasks that had been far more slowly and laboriously by human or animal power. During the eighteen century, a notable increase in the use of water-power occurred in industries such as grain milling, textiles and metallurgy. The most important developments are application of energy in the early stages of industrialization. It involved the substitution of coal for wood and charcoal as fuel, and the introduction of the stream engine for use in mining, manufacturing and transportation. The use of coal and coke in the smelting process greatly reduced the cost of metals and multiplied their uses. Though the term industrialization is absent from the work of Marx and Engel’s, the concept is clearly present. Marx distinguishes modern industry or the factory system or the machinery system from earlier forms of capitalist production, co-operation and manufacture. Modern industry is distinguished from manufacture by the central role of machinery. As soon as tools have converted from manual implements of man into implements of a mechanical apparatus, the motive mechanism also acquired an independent form. In parallel with manufacture, Marx distinguishes two stages in the development of the machinery system. The conversion of tools reduces the workers to a ‘mere’ source of motive power. The socialist critique of capitalism was varied in Europe. Socialism means different forms of practice before the October Revolution in Russia. It implied activity to strengthen trades unions, friendly societies and labor syndicates with or without the assistance of political parties. Socialist pattern of industrialization emphasizes of co-operative enterprise and various forms of community enterprise that would benefit the public as a whole. As a result initiatives were taken associated with municipal socialism or municipal trading. It means the running of urban facilities for fuel, water and lighting. Most socialists had an abiding fear of the state and state control as a possible source of intensification of exploitation rather than a solution to it. Prior to First World War, in fact, nationalization was looked upon as a way of constituting an area of activity where the proletariat had no say. Before 1914 there was no model of a socialist economy.  After the October revolution the first major large scale experiment with socialism in Europe was done. Governments evolved with state control of the economy. These governments used public welfare as their reference point. The economy was regularly mapped to trace out the areas where state investment is necessary. Hence the economy as it matured was called a planned economy. The system of planning was highly innovative. The soviet planned economy was considered the archetype of socialist experiment. The Bolsheviks set out to provide the benefits of industrial development. A line of argument also runs that soviet industrialization was not socialist since socialism could not be constructed in an undeveloped country like Russia where industrial capitalism had been weak. The anti-soviet economist has recently advanced the notion that soviet production was no incompetent that it does not deserve serious attention as growth. Anders Aslund’s views on the post soviet economy of the Russian federation have been criticized. In argument he said that so much worthless production took place in the soviet economy and shortages were so great that this fact cannot be ignored at all. State capitalism meant the operation of industry, trade and finance with the collaboration of the old entrepreneurial class, but with rigorous supervision by and participation from the state. Spontaneous nationalization of industry by workers and distribution of agricultural land was done.