Varieties of State Capitalism and Reformed State-Owned Enterprises in the New Millennium

This chapter describes the historical evolution of state-capitalistic models, with a focus on the different roles played by the main industrial and financial actors. The state-capitalistic model relied heavily on government ownership and control over banks and enterprises. During the 1970s a model of state capitalism also emerged in some less developed non-democratic countries, such as Algeria, Ethiopia, Libya, Brazil, Colombia, Venezuela and Argentina. Indeed, the return of state intervention in the economy takes different forms and intensities around the world, depending on various factors. These include the solidity and quality of the governing institutions in countries with a state-capitalistic model, and the intensity of the market reforms that have opened up the economy. Traditional state-owned enterprises (SOEs) and state-owned banks (SOBs) were directly controlled by the government, operated domestically, and provided essential facilities or services under a legal monopoly regime. SOEs and SOBs vary according to the percentage of shares owned by public bodies.