State-capitalism and Globalization – a challenge to whom?

Abstract

State-capitalism is an economic system in which governments manipulate market outcomes for political purposes. Governments embrace state-capitalism because it serves political as well as economic purposes—not because it’s the most efficient means of generating prosperity. This paper examines the institutional, economic and social combination in which state-capitalism is possible and contributes to prosperity. It is argues that state-capitalism works best under authoritarian rule because there is no constituency to provide for. However, this article also argues that state-capitalism has fundamental flaws