Study Cards on capitalism, economic, economy

What does state capitalism (authoritarian capitalism) refer to?
Capitalist economies in which the state plays a crucial directive role.
Often non-liberal capitalist societies.
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What is the difference between 'liberal market economies' and 'coordinated market economies'?
-Liberal market economies: firms coordinate their activities on the basis of competitive market arrangements.

-Coordinated market economies: depend heavily on non-market arrangements. --> adopted by East and Southeast Asian 'tigers'.
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What is the distinctive character of state capitalism?
Emphasis on cooperative, long-term relationships (collective capitalism).
This allows the economy to be directed not by an impersonal price mechanism, but through 'relational markets'.

-Firms provide the social core of life. Workers are 'members' of firms. In return for their loyalty and hard work , have traditionally expected lifetime employment, pensions etc.
-Stress is placed on teamwork and the building of a collective identity.      
- The state has played a vital role in 'guiding' investment, research and trading decisions.
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What are the downsides of state capitalism?
- Inflexibility and unresponsiveness to changing global market conditions, and the tendency for individualism and entrepreneurialism to be stifled by a continuing emphasis on values such as duty and hierarchy.

- Contradiction between economic liberalism and non-liberal political arrangements, as authoritarianism may either become a fetter on enterprise and innovation, or it may generate resentment and demands for political freedom that make such systems unsustainable.
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What is an example which shows how state capitalism can help but also cause a slowdown of the economy?
Japan: highly succesful in the post-1945 period, helping Japan to recover from wartime devastation, making it the world's second largest economy.
But causing an economic slowdown in the 1990s and the 1997 Asian financial crisis.
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What has helped China in delivering sustained economic growth?
China's mixture of burgeoning capitalism and Stalinist political control. Huge supply of cheap labour and massive investment in the economic infrastructure.
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What has been the key aspect of Putin's economic strategy and what is the chief weakness of Russian state capitalism?
Key aspect: to exploit Russia's vast energy reserves, both as a motor for economic growth and to give Russia greater leverage over neighbouring states and much of Europe.

Weakness: its failure to sufficiently diversify the economy. Russia's economic aspects are closely linked to the price, in particular, of oil and natural gas as determined by global markets.
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When can state capitalism constitute a viable alternative to Western-based capitalist models?
If it is possible for market economics to prosper in the long-term in the absence of political liberalism.
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