Sovereign Economic Model VS State Capitalism

Sovereign Economic Model VS State Capitalism


In the Sovereign Economic Model the role of the state is:

  • in control of natural resources(including land, forestry, water), similar to the Georgism economic theories
  • in control of strategic infrastructure for sovereignty/security reasons
  • in control of strategic companies(natural resources, finance, military,industrial) for sovereignty reasons
  • as main promoter/investor in certain sectors of business to promote research, innovation and growth as practiced in many East Asian countries
  • very liberal in consumer markets/small business,it promotes the limitation of market share in order to promote many players entering a market and making the economic more competitive and healthy 

In (pure) State Capitalism the government is severely limiting private business and trading. This severely limits business activity.

Add comment