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State capitalism

STATE Capitalism attempts to combine the powers of central governments with the powers of capitalism. Under STATE Capitalism the government may fully or partially own enterprises, or it may exercise direct or indirect control over key enterprise decisions.

The Chinese and Russian versions of STATE Capitalism in the 21 st century are sometimes called authoritarian capitalism. MacGregor

Previous examples of STATE capitalism include:

  • Japan 1880-1940.
  • Germany in the1870s and the 1930-45. State capitalism in Germany in the latter period was better known as National Socialism.
  • Italy, under Mussolini (1925-1945).
  • Indonesia under Sukarno (1949-1969).

The international presence of SOE s expanded rapidly in the late 20 th century. In the process, the national identities of SOE s changed markedly as well.

Before 1990, all the largest firms in the world were private sector firms. Call them PE s or Private Enterprises. And before 1990 virtually all of the ten largest firms were American -owned.

By 2012, a very different pattern had emerged. By then, three of the world’s ten largest firms were SOE s , and all three were Chinese.

SOE s continued to grow in importance in the 21 st century. How substantial has the recent shift toward state capitalism been?

In the year 2000, SOE s accounted for only about 10% of global stock market values. (For wholly-owned SOE s that had been partially privatized. i.e. where government had sold off a fraction of shares to the public). By 2010, this share had doubled to 20% of global stock market values. The Economist , November 13, 2010

Ten years ago, Chinese firms were responsible for less than 1% of international business. By 2010, this share grew six-fold, to 6%, and is still rising fast.

We have seen that economics is not immune to fads and fashions. Conventional wisdom on the efficacy of SOE s and state capitalism has oscillated from great enthusiasm a half century ago, to strong skepticism two decades ago to once again, growing enthusiasm, until 2012. By 2014 doubts over the efficacy of heavy reliance on SOE s were again prominent.

Consider the record of experience in recent years.

SOE s are not confined to emerging nations. There is a 22 member club of rich nations called the Organization for Economic Co-operation and Development (OECD), which includes all developed nations plus Chile. In the OECD countries, SOE s have a combined market value of $2 trillion, and employ 6 million people. Generally, SOE s in the developed world are mostly in local electric power generation or water supply, or telecommunications, or as in Norway and Italy in oil and gas.

In the U.S., reliance upon SOE s has historically been relatively slight. The best known and largest U.S. SOE has been the TVA (Tennessee Valley Authority), which operates hydropower and nuclear power plants in Alabama, Tennessee and parts of other states. Like SOE s almost everywhere, the TVA pays no income taxes and pays no dividends to the owner, the government. They keep all profits. The U.S. also has had SOE s in Finance. By the nineties Fannie Mae and Freddie Mac, two large mortgage insurance entities owned by the government, began to rival the TVA in size. Later these troubled enterprises were supposedly “privatized”, but this was mainly an illusion. Fannie and Freddie after privatization have behaved pretty much the same as before privatization. Trouble has been coming for a long time, and finally erupted with explosive force in 2008-11, when both lost tens of billions of dollars (see chapter___).

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
yes that's correct
I think
Nasa has use it in the 60's, copper as water purification in the moon travel.
nanocopper obvius
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
how nano science is used for hydrophobicity
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
what is differents between GO and RGO?
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
analytical skills graphene is prepared to kill any type viruses .
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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