Jason Mclure's Article: GI State Capitalism
594 Words3 Pages
Jason McLure
In this article, Jason McLure discusses whether state capitalism will remain successful. State capitalism means that a country’s government largely controls the country’s companies and therefore its economy. McLure contends that states do this for political advantage and lists China, Russia, and Saudi Arabia all as examples of countries who practice state capitalism. These countries all did well after the 2008 financial crisis. Western capitalism markets, on the other hand, struggled for years. In fact, some believe that western capitalism was the cause of the crisis in the first place. As western capitalism struggled, China made state capitalism appealing because of the economic boom they have experienced and
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In the mid 19th century, the Chinese were experiencing extreme poverty and discontent. Prior to the Industrial Revolution, China was a booming economic power, producing a large majority of the world’s goods. But the country fell behind in technology and industry, not understanding how to utilise and distribute their land effectively. Rebellions, such as the Taiping Rebellion, and the military failure of the Opium Wars demonstrated to the Chinese government that reform was required. After defeating the rebels, the government attempted to appease them with the Self-Strengthening Movement.
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Many countries are in the process of industrializing, such as China, and other countries are in their post industrial era like the United States. When the economy failed in 2008, the entire world was affected. While many of these countries faced hard times after the economic failure, the elites of most still flourished (Priestland, p 232, 233). Any country that was tied to the global market in some way was affected. They were affected because the merchants had created a world economy in which all major world nation participated.
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In comparison, during the Chinese Revolution, there were four main crises. The first was a cyclic dynastic decline. There was distance between the central state and the rest of society. The government had to keep corruption under control by instilling Confucius readings to the gentry class that were becoming scholars.
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China on the other hand had more problems in its bureaucracy and civic unrest. For example, some peasants who had lost their farms had to sell their children into service. A third difference is that as previously stated, China had a successful revival while Rome did not. Rome divided and the Western half survived but was diminished by attempts to regulate the economy and decline tax revenue ’s.
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This can be shown in another example from the video “ Is America # One?” where John Stossel talks about Hong Kong and how they have a huge population like India, but unlike India they are actually doing really good in their economy. This is because in Hong Kong it’s really easy for entrepreneurs to start their own businesses since there's hardly any government involvement, unlike in India where the government likes to regulate everything making it basically impossible for people to start their own businesses. Processes to start one's own business may even take up years in India and on the other hand in Hong Kong it only takes a few days. One disadvantage of not having a lot of government involved though is that there's a lot of risks one has to take such as the business not being successful and losing
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Why do many neorealists liken states in the international system to firms in a capitalist market? How valid is that analogy? Neorealism has emerged as a contemporary theory that attempts to explain the interaction of states on an international level. Oftentimes neorealists compare states in the international system and firms in a capitalist market. There are a number of factors that can be described as similarities or differences between the two and for the sake of brevity, only a few will be discussed below.
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