Historical materialism is the application of Marist science to historical development. The fundamental proposition of historical materialism can be summed up in a senten "it is not the consciousness of men that determines their existence, but, on the contrary, their social existence that determines their consciousness." Marx saw human-history in several stages; Primitive communism, Slave system, Feudal system, Capitalist system and Socialist system Marx developed Hege) s 'dialectics' to build his political-economy theory. Dialectic method is an explanation how history is progressing. Initially, there is "Thesis' and this 'Thesis is )nsituws attempted by Ant-thesis' and yield 'Synthesis'. Once this Synthesis' is considered as "Thesis" again, it is challenged by "Anti-thesis According to the Mar ist perspective, the structure of society may be understood in terms of its base and superstructure. Base consists of the modebf produetion wile superstructure is represented by its legal and political structure, religion, morals, social practices, literature, art and culture, etc. Mode of production has two components: forces production and relations of production. unon Theory of Value Surplus' represents economic basis of Marxist critique of capitalism. It is meant to demonstrate how the capitalist mode of production involves in the exploitation of working class. According to Marx, labor is the sole creator of value. The value produced by the worker may be split into two parts worker's wage and capitalist's profit (surplus value) In other words, surplus value denotes the value of the labor done by the worker for which he is not paid at all It is significant that the collapse of socialism in Eastern Europe and Soviet Union, followed by the introduction of market economy entailed question about adequacy o classical Marxism. Moreover, in the People's Republic of China and other Communist countries moved toward liberalization. Meanwhile, Socialism is still being exercised in many countries such as Northern Europe. Socialism is partly derived from Marxism. It stands for an economic system under which he major instruments of social production are placed under the ownership and control of public authority to ensure public interest.