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Order Paper Now- Do you believe state capitalism has potential to overtake capitalism due to foreign investment?
- Explain the differences between Chinese and Russian approaches to state capitalism, and decide which one you believe to be longer lasting.
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State capitalism is the idea that the government should regulate the economy by controlling shares from major corporations. China and Russia are two leading examples of state capitalism. China has control of corporations such as Huawei, which they are able to grant loans to and foster innovation at a rapid pace (pg. 1). China’s government is communistic but its public sector is capitalistic, which has helped it propel millions out of poverty in the past few decades. Russia’s history of socialism and approach to state capitalism is like a giant machine. There is no competition in the state owned corporations, with growth rapidly plateauing and becoming unsustainable. In my opinion, I believe that the Chinese approach to state capitalism would be more prosperous. China has taken millions out of poverty, all while propelling their companies to the forefront of the public sector. While other countries were in an economic crisis from 2008-10, China has proven that it could grow even within these times. State capitalism is still flawed however. The government could give or take loans, businesses, ideas, and more. Entrepreneurs could lose their wealth overnight. In our times, we are seeing more and more entrepreneurs moving their assets to foreign countries and fleeing their own.
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