State Capitalism
"The modern state is essentially a capitalist machine. The more it proceeds to the taking over of productive forces, the more does it actually become the national capitalist, the more citizens does it exploit. The workers remain wage-workers — proletarians. The capitalist relation is not done away with. It is, rather, brought to a head."
State Capitalism, State-Directed Capitalism, or Dirigisme, is an economic system where the state plays an active role in business or commercial activity. This can be direct in the form of state-owned enterprises or companies where the state has controlling shares, in an indirect form of the state planning through government agencies organized along for-profit and business management lines, or through state-sponsored private business activities (e.g., state-backed business conglomerates). If the state owns or controls all the means of production or is the primary shareholder, this is called state monopoly capitalism (StateMoCap). State capitalism is usually seen as economically center since it denies the means of production to workers, yet is often collectivist in nature.
Variants
Dirigisme
Dirigerism or Dirigisme (from French diriger, "to direct") is an economic system in which the national government plays an imperative role in directing and coordinating the economy through public policy. By utilizing market instruments like taxation and monetary investment, the state is understood to be capable of correcting inefficiency and failures commonly found among tradition free-market economics, while also achieving it's desired material objectives.
East Asian Model
The East Asian model pioneered by Japan, is a plan for economic growth whereby the government invests in certain sectors of the economy in order to stimulate the growth of specific industries in the private sector. It generally refers to the model of development pursued in East Asian economies such as Japan, South Korea and Taiwan. It has also been used by some to describe the contemporary economic system in Mainland China after Deng Xiaoping's economic reforms during the late 1970s and the current economic system of Vietnam after its Đổi Mới policy was implemented in 1986.
Social State Capitalism
Social state capitalism is a term used to describe economic systems where the state plays a significant role in managing the economy and providing social welfare programs, while still maintaining a ownership economic structure.
History
State Capitalism is not a formal ideology with unifying theory, nor is it used in a self descriptive term. State Capitalism is believed by some to have first been used and coined, by Friedrich Engels, in his and
Marx's book "Socialism: Utopic and Scientific". It was later on also used by many
Anarchists,
Left Communists, and
Council Communists, in criticism of the
USSR.
In the modern day state capitalism has been used to described countries like Taiwan,
South Korea, and
China. Critics of
United States, such as Noam Chomsky, believe it is state capitalist since government backs
big business interests while playing a substantial role in development (e.g., bailouts and public research respectively).
Libertarian socialists also describe the
Soviet Union as state capitalist for centralizing surplus value extraction and commodity production.
Cliffists also erroneously apply this criticism to
USSR during Stalin's reign, while
anti-revisionist Marxist-Leninists would do the same to
the Khrushchev administration and
later administrations.
Soviet Union
The implementation of the New Economic Policy (NEP) by the Sovnarkom in 1921 marked a significant achievement in Soviet economic policy. This policy shift allowed for the introduction of limited private enterprise and market mechanisms into the Soviet economy. The NEP was seen as a necessary measure to stabilize the economy and restore growth following the tumultuous period of the Bolshevik Revolution.
Under the NEP, small-scale private businesses and shops were permitted to operate, while larger industries remained under state control. This market-oriented approach aimed to stimulate economic growth. Additionally, the NEP facilitated trade between the Soviet Union and other countries, introduced a new tax system, and implemented a new currency, the chervonets, to stabilize the economy and facilitate international trade. It also saw an increase in food production, addressing the food shortages that plagued the country during the preceding War Communism period.
However, the NEP also led to growing income inequality, as some entrepreneurs amassed wealth while the majority of the population remained impoverished. Despite this, the NEP was viewed as a necessary step towards the eventual transition to a fully socialist economy.
The implementation of the NEP was not without challenges and controversies. The Soviet state faced economic and political difficulties, leading the Sovnarkom to take controversial measures to address these issues. Criticism arose from various quarters, including within the Communist Party, accusing the Sovnarkom of bureaucracy and inefficiency.
It is worth noting that Lenin attempted to negotiate with the wealthier peasants, known as kulaks, through the NEP. Measures such as requisitioning, the formation of cooperative farms, and taxation were implemented to encourage wealthier peasants to share their grain during a time of shortage. However, these measures were insufficient to prevent resistance from the kulaks, leading Lenin to wage war against them, as well as speculators, black-marketeers, and looters. The response to these actions resulted in civil unrest and violent retaliation.
France

Before World War II, France had a capitalist economic system with many small, family-owned companies that were not as efficient as larger industrial groups in other countries like
Germany and the
United States. The war devastated France, with industries and infrastructure being destroyed or seized by
Germany, and the country facing the prospect of long-term rationing in the aftermath. Some French businesses and politicians lost credibility after collaborating with the German occupiers during the war.
After the war, French governments of all political stripes sought to modernize and develop the country's economy, with the goal of matching the advanced economy of the United States. The French government implemented dirigisme, a policy of strong government intervention in the economy, to achieve this goal. This policy approach was accompanied by the development of
Meritocracy and
Technocracy, with elite state-trained administrators and engineers taking leadership roles in industry.
During the 1945-1975 period, known as the "Glorious Thirty," France experienced significant yearly economic growth (5.1% on average) and a population boom. Dirigisme was supported by conservative governments led by
Charles de Gaulle and
Georges Pompidou, and seen as a compromise between American policies of minimal government intervention and Soviet policies of total state control. In 1981, Socialist president
François Mitterrand was elected and pursued dirigisme policies, including nationalizing industries and
banks. However, economic difficulties and inflation led the government to abandon dirigisme in 1983 and adopt austerity measures instead. Dirigisme has not been widely supported by subsequent French governments, though some elements of it remain in place.
Imperial Japan 


W.I.P.
South Korea 

W.I.P.
ROC/Taiwan 


W.I.P.
Peru 
Francisco Bermúdez
Francisco Morales Bermúdez was a
Peruvian military officer and politician known for overthrowing the
leftist socialist-leaning
military government of
Juan Velasco Alvarado in August 29th 1975. Initially, the new military government claimed to continue the revolutionary process started during the previous government, but in a more
moderate way without the excesses commited during Juan Velasco's era, which the new government blamed to the
far-left influence, which was proposed to be removed, first by disbanding
SINAMOS. However, in early 1976, the government officially abandoned its pro-socialist agenda, and would start counter-reforms with some liberalization of the economy, while still being
an authoritarian military dictatorship with a statist Velascoist-like economy. After a nationwide strike organized by the
CGTP in 1977, Morales-Bermúdez's military government started a democratic transition process, which was completed in 1980.
China 








Socialism with Chinese Characteristics is a set of political theories and policies of the Chinese Communist Party that are seen by their proponents as representing
Marxism-Leninism adapted to Chinese circumstances and specific time periods, consisting of
Deng Xiaoping Theory,
Three Represents,
Scientific Outlook on Development, and
Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.
Singapore 

W.I.P.
Belarus 
W.I.P.
Beliefs
State Capitalism can take on many forms, both theoretical and material, as it did throughout history:
- Industries being ran as private enterprise, with the state being it's primary or sole shareholder.
- State direction or control of investment, either indirectly (e.g., through contracts) or directly (sovereign wealth funds).
- "Privatization" of the State, so it operates as a single, for-profit economic monopoly.
- Implementing decentral or central planning, while maintaining private resource ownership and markets.
- A strong, for-profit public sector that co-exists and/or competes with the private sector.
- ^Any combination of the above.
How to Draw
The symbol of State Capitalism is based on a flag design posted on the r/vexillology subreddit, created by u/SekaiDarkness. The flag is supposed to symbolize a balance between capitalist and
communist economics.
- Draw a ball
- Color it burnt orange
- Draw a yellow left-facing cent symbol (¢)
- Add a yellow arrow, crossing through it and facing top-left
- Draw the eyes
You're done!
Color Name | HEX | RGB | |
---|---|---|---|
Burn Orange | #9C3E26 | rgb(156, 62, 38) | |
Yellow | #FFCD00 | rgb(255, 205, 0) |
Relations
Friends
Dengism - You carry my ideas so well!
Cameralism - State-owned economy gang!
Nordic Model - A one trillion dollar sovereign wealth fund? Truly beautiful!
Corporatism - Thanks for teaching me all I know but why don't you call yourself state capitalist?
Social Authoritarianism - Fellow regulated economy fan, we sometimes overlap.
Monarcho-Capitalism - I love Saudi Aramco!
Afunism - "The ZAMINT government must have input on the market to make sure that the nation as a whole is always benefiting."
State Liberalism - YOU WILL ACCEPT STAKEHOLDER THEORY!
Ingsoc - A particularly extreme example of my ideology.
Frenemies
Capitalist Communism - I admit that I borrow elements from both, but only the good parts.
Mercantilism - Even he thinks I'm too statist & that's says a lot.
De Francism - All around good ideology, though perhaps initially a bit too leftist for my liking.
Corporatocracy - Basically me, but with more focus on pleasing the rich.
State Socialism - My confused brother, who some say is me in denial.
Authoritarian Capitalism - Not regulatory enough. Although
Morales-Bermúdez did well when partially keeping the
Velascoist economy, but without the leftist stuff (I am an economic centrist anyway), unlike those
Fujimorists who deregulated the economy.
Progress Party - A bit anti-statist for my taste but hey he really likes the oil fund[2].
Leninism - Thanks for implementing the NEP, but why do you say it’s only temporary??
Neocameralism - I was thinking, that you are a good son of Cameralism, but you are a laissez-faire lover...
Enemies
Market Socialism - Literally my opposite.
Distributism - He's just jealous that his small businesses aren't as successful as my State-owned companies.
Anarcho-Communism,
Libertarian Socialism &
Minarcho-Socialism - Calls any "socialist" state they don't like me.
Mutualism - Centralized forces of production do not make me a fascist!
Anarcho-Capitalism - Privatization of industry and deregulation are bad for the economy, actually.
Anarchism - Anarchy? CRINGE!
Agorism - Black markets? CRINGE!
Libertarianism &
Minarchism - I am not an oxymoron! And
he and I are NOT one and the same!
Gallery
Portraits and Artwork
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First image
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Second image
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Third image
Comics
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By u/Dr_Occo_Nobi
-
By AquaHeart
Alternative designs
-
East-Asian Model
Further Information
Wikipedia
- Partido Demokratiko Pilipino
- State capitalism
- Socialism with Chinese characteristics
- State monopoly capitalism
- State-owned enterprise
- Dirigisme
- Corporatisation
- Sovereign wealth fund
- Monotown
- Economy of China
- Lotteries in the United States
Other websites
- r/interlandia (
Social Capitalism (Interlandia))
Videos
- New Approaches to Understanding Chinese State Capitalism by Center for Strategic & International Studies
- State directed Capitalism is not Socialism. by DemocraticMarxist01
Reference
- ↑ Since 2000, although defended the 1993 constitution.
- ↑ https://web.archive.org/web/20110929011506/http://www.frp.no/no/Vi_mener/Andre_temaer/Okonomisk_politikk/