Monday, March 17, 2008

The New Authoritarian Capitalists: State, Inc.

In modern times, business and government have occupied increasingly separate spheres in Western economies - separation that has laid the groundwork for their economic ascendancy. By the end of the 20th century, many economists and political scientists assumed there was no other path to growth. The modern record of state-controlled business, by contrast, was chiefly one of failure.

But in the past five years, governments around the world have been transforming themselves into deal makers and business players on a scale never seen in the modern era.

The rise of states as global economic players marks a sharp reversal from decades in which private enterprise seemed an unstoppable force in global finance, commerce, and culture. It represents a new and unexpected fusion of state control with the business principles of capitalism. And it is already causing a significant shift in global power.

The new state capitalists - China, the United Arab Emirates, Russia, and others - are primarily authoritarian nations. And as they become bigger commercial players, they are gaining new influence in a realm once dominated by the democratic West. As the global business momentum shifts from private companies to national governments, the implications are far reaching.

Read more of the article "State, Inc." in
the Boston Globe.


At 3/17/2008 11:07 PM, Blogger Gregory said...

Is this supposed to be new information? We have known since Nazi Germany conquered capitalist Europe that fascist states are perfectly capable of delivering the goods. The problem has been the goods chosen for delivery: tanks, planes, prisons, and gas chambers.


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