Thursday, June 19, 2014

State Capitalism - Ian Bremmer

The objective of state capitalism is to control the wealth that markets gener­ate by allowing the government to play a dominant role through public ­sector com­panies and politically loyal corporations. Whereas the free market system’s motive  of maximizing profits and growth is eco­nomic, state capitalism’s goal is political:
to control economic development and thereby maximize the incumbent regime’s chances of survival. It isn’t a coherent phi­losophy but a set of techniques peculiar to each country.

In New Rules of Globalization, Harvard Business Review,  January - Feb,  2014

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