ECONOMIC SYSTEMS AND NEW POLITICAL CAPITALISM
DOI:
https://doi.org/10.18485/Keywords:
comparative economic systems, new classification of economic systems, new state capitalism, crony capitalism, state capture, JEL classification: D72, P16, P50.Abstract
The paper analyzes the necessity of introducing new classifications of economic systems. These classifications should incorporate changes that have occurred after the downfall of the centrally planned economies. The emergence of a new state capitalism is characterized by the existence of soveriegn funds, the domination of state enterprises and the favouring ”national champions” thus reintroducing Weber’s category of political capitalism. Furthermore, in the new state capitalism the domination of politics over economics does not have general economic well being as a goal, but rather the expansion or at least preservation of political power of the current political elites. Crony capitalism is a method of profiting from being close to the political elites in power. The paper argues for a sharp methodological division between the concept of crony capitalism and the concept of state capture. The concept of state capture does not describe sporadic and individual subversion of pure market results through lobbying or individual corruption. Rather than that it describes the systematic subservience of all branches of government, state institutions to the currently ruling political elite. The research of the phenomena of state capture is of significant importance for political science research with the goal of analyzing the political dynamics under the conditions of state capture. Many of the states that have undergone transition can be classified in this category.
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