What is state capitalism?
State capitalism is the ownership and control of corporations by the sovereign government. It often occurs in markets with energy, natural resources and military technologies. Common examples include the national oil companies of Russia and Venezuela. In some forms, the state operates publicly traded corporations, while other varieties include businesses funded and managed exclusively through government channels. As a hybrid form of public and private entrepreneurship, the right role and benefits of state capitalism remain controversial.
corporations are managed by the government itself in state capitalism. They often work in the energy sector, where state control over the necessary mineral or oil sources leads to a single national corporation, such as Russian Aramco Russian or Saudi Arabia. As a result, the government is the main market participant, not only its regulatory body. The state uses markets to create wealth and strengthen political power and then implement the economic and lekontrola Gal above the industry to inhibit competitionence. Socialist states that control the production or sale of goods on the global market or which own majority shares of publicly traded corporations practice capitalism.
by trading in global markets and competitors with multinational private corporations are involved in the world economy. However, unlike their competitors on the free market, they are not always exposed to internal competition and sometimes they can become monopolies. State capitalism may include the use of government regulation, police and even military protection to increase profits and prevent individuals from private competition in the same market. In less authoritarian countries, especially in developing countries such as India, the state industry only expands to the sector considered necessary for defense or domestic growth and stability.
Marxist theorists like Leon Trotsky and his followers claimed that state capitalIsis was a development outside the free market. Instead, some economists defined to include the dependence of the private market sector that relied on the government in buying its products and subsidizing its industries. A monarchy such as Saudi Arabia, presidential systems such as Russian Federation and Communist regimes such as the People's Republic of China share some level of economic interventionism. In the Chinese socialist market economy, the state is perceived as part of the market.
sometimes states state capitalism that it is essential in developing countries where profits from national assets such as oil reserves must be focused on domestic growth and employment, and this can only be provided by the government. In post -colonial countries, for example, over the first few decades after World War II, the national industry was a means of reducing foreign control of domestic economies. Critics of these arrangements called monopolistic and "crony capitalism" that remarks how often mThe authoritarian regimes and the ease of the ease as the rulers and members of the government class benefit and control these businesses. Analyst Ian Bremmer wrote that state -owned companies represent challenges for global free markets.