Paper Economic Geography
State capitalism in Europe
In the the past and the current global financial crisis governments have nationalised banks in the Western world. They did this kind of because the financial institutions had lots of debts of course, if the banking institutions would go bankrupt it would create social unrest, political lack of stability and financial problems because people will lose assurance in the financial system. Put simply, these agencies were " too big to failвЂќ and the governments had to step in to resolve market failing. State capitalism is the wide-spread influence of the government throughout the economy, either by owning vast majority or community equity positions in corporations or through the provision of subsidized credit and/or various other privileges to private firms. There are two different types of state capitalism: through majority control (state-controlled SOE's) or in a more cross types fashion through minority opportunities by advancement banks, monthly pension funds, or the government itself.
The difference of state participation in Western and East Europe If we look at stand 1 we come across a list of the amount of State owned enterprises. Whenever we compare the countries from Western The european union to the countries from East Europe we come across a significant difference Eg. the number of SOE's in the countries plus the percentage of presidency minority positions in SOE's. The countries listed are typical part of the OECD. The quest of the Enterprise for Economic Co-operation and Development (OECD) is to encourage policies that could improve the monetary and sociable well-being of men and women around the world.
Biskupiec, poland has 1189 SOE's, even though the Netherlands only has forty-four SOE's. Although the government in Poland features in 58% of the SEO's a fraction position, the total volume of SEO's is still very high. In the Netherlands this percentage is 36%, but the total volume of SEO's is forty-four. The reason that for example Biskupiec, poland and Czech...