week 4 Flashcards
(12 cards)
What is state capitalism?
An economic system where the state plays a proactive role in markets through ownership, subsidies, and regulation, while allowing market-based coordination.
How is state capitalism different from a command economy?
*State capitalism uses market mechanisms with state influence
*Command economies rely on central planning, quotas, and state-set prices
What are three variables used to classify varieties of state capitalism?
1.State ownership
2.Statism (extent of state involvement)
3.Government threat (intervention intensity
What are some types of state capitalist models?
*Entrepreneurial states
*Welfare states
*Market-oriented states
*Interventionist states
*Interventionist entrepreneurial states
Each varies in combinations of threat, ownership, and statism.
Why has interest in state capitalism increased?
*Rise of emerging markets with strong state roles
*Increased protectionism in developed countries
*Global financial crises prompting state intervention
What is the case of Taiwan used to illustrate?
*State-supported industrialisation (e.g., TSMC’s rise)
*Shift from state-led to market-driven development
*High tech focus, US-China intermediary role, and global supply chain positioning
What is TSMC and why is it important?
*World’s leading semiconductor manufacturer
*65% of global market share
*Strong government backing, strategic global positioning, and tech innovation
What is Foxconn’s role in state capitalism?
*OEM/ODM model for global electronics brands (e.g., Apple)
*Expansion to India, Mexico
*Labour issues and digital transformation pressures
What defines the Taiwanese model of capitalism?
*Large business groups, family-based firms
*SME networking
*State-provided capital and infrastructure
*Globalised, decentralised ownership
What is Singapore’s model of state capitalism?
*Entrepreneurial state with high ownership (e.g., Temasek)
*Efficient bureaucracy, meritocracy
*Government-linked companies (GLCs)
*Regulatory support for innovation and finance
What is “commercially viable strategic alignment”?
A Singaporean concept where SOEs are aligned with state economic priorities but operate commercially, aiding innovation and global competitiveness.
How do government-industry relations operate in Singapore?
*Tripartism (state, unions, employers)
*Skills development and employment coordination
*Strong public-private collaboration (e.g., Enterprise Singapore)
