By Jerry Harris
State-owned corporations and financial institutions have gained major influence in the global economy. The influx of capital through cross-border investments, a rapid growth in commodity and energy prices, trade surplus and global production have propelled a dramatic growth in government controlled assets and wealth. This is particularly true in China, Russia and the Arab Gulf states.
The emergence of transnational state capitalism marks a new stage in the development of globalization, one unforeseen by Western globalizing elites. Their vision saw private markets sweeping away statist regimes just as the neoliberal revolution had undermined the Keynesian state in the West. Indeed, global capitalism has come to developing countries and former socialist states, but within the context and character of their own history giving birth to statist globalization and a new breed of transnational capitalists. This competition comes as a shock for many and has sparked protectionist rhetoric. The Transnational Capitalist Class (TCC) (Harris, Robinson, Sklair) of the developing countries are not the obedient junior partners of the previous imperialist era, rather they are emerging as independent players and rebalancing global power.
Although statist globalization has caused debates and divisions, most transnational capitalists are eager for their new partners to join the world economy. As Richard Gnodde, CEO of Goldman Sachs argues, “This emergence of new flows and new actors from new models of capitalism reflects a natural diversity of social and economic practices that is in no way incompatible with the process of globalisation…” (Gnodde, 2007, 11) READ THE ENTIRE ARTICLE > >