The paper "Is State Capitalism Placed to Cope with the Challenges of Globalization" is a good example of macro and microeconomic essay. State capitalism-whereby most of the means of production and capital are either owned or controlled by the country-has indeed attracted significant attention globally. It is indeed a model of capitalism that originated as a result of Wilhelm Liebkenecht’ s work back in 1896. While different countries have adopted different models of capitalism, state capitalism has commanded significant attention, raised critical questions and emerged as a contestable issue in the face of globalization challenges where some nations have preferred it while others have argued against it thereby preferring free market economy among others.
This particular paper seeks to critically analyze whether state capitalism is good enough to deal with the challenges of globalization as compared to other models of capitalism. As the economic system whereby governments manipulate the market outcomes for various reasons, many governments have embraced state capitalism given the various political and economic purposes this serves (Fioretos, 2001). The national production centres and important institutions are thus managed by the state hence the name state capitalism.
Actually, state capitalism puts a significant amount of financial resources under the control of the state officials, consequently making cash used in protecting the domestic capital accessible while increasing chances of leveraging on the global stage. Regardless of this, state capitalism has been considered as quite significant in addressing the challenges of globalization (Crouch, 2005). Globalization has for several decades been a critical concern globally. In fact, towards the end of the cold war, the idea of government’ s micromanaging national economies while at the same time generating prosperity seemed improbable.
The dynamism and market power of various nations including Japan and USA-fueled by private investments-seemed to have totally established the liberal economic model as the dominant choice.
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