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Die Neue Zeit
18th October 2007, 05:23
[I only posted this article here because of its bourgeois author and key bourgeois content, in spite of the former's insights.]



http://www.alternativeinsight.com/The_New_Statism.html

The Rise of Corporate States
By Dan Lieberman


A new statism, in various prescriptions, exercises control over the political, moral, economic and social fabric of several nations and has the potential to control the destiny of the world.

United States President George W. Bush pledged to bring democracy and free market economics throughout the world. Many observers interpreted his statement to mean bringing U.S. dominance throughout the world and disguising the adventure with the trappings of democracy. In any event, apart from the new Central European nations established within the framework of the European Community, democracy has not flourished - just the opposite - the world has witnessed the expansion of statism; state interference in economy with trappings of free market economics. These "free" markets can better be described by a term allied with fascism, the corporate state.

The new statism has several identifying characteristics:

The government allows free enterprise, but invests in some industries (mixed economy) and controls significant industries, especially those related to national defense, resources, communications and media. In some cases it also has extensive land ownership.

The government regulates, either directly or indirectly, international money transfers, international trade, wages, prices, internal investment and, in some cases, the labor market.

The government promotes nationalism, reinforces a chauvinistic identification among its people and allies the education system with these efforts.

The government exercises powers that lessen opposition and prevent excessive dissent.

The article goes on to illustrating specific cases of rising corporate states: first China, then Russia, then Israel, then the "Bolivarian" countries. The conclusion?


In a world accustomed to democratic capitalism, the growth of statism might seem only a slight perturbation in the trend to more democracy and more free enterprise. A closer survey shows otherwise. Most developing nations, and there are some exceptions, although they might be rich in raw materials, realize they cannot readily create industries that can compete with already developed nations that have established markets, communications, transportation and infrastructure.

And this is the problem with "free trade," and why some alternative-but-bourgeois folks advocate subsidized trade in favour of the developing countries, as a "progressive" way of reducing poverty and economic retardation.


Nevertheless, developing nations will not permit oligarchs to control their economies and destinies, as happened in Russia, Africa, and Latin America. Russia, Venezuela and Bolivia are contemporary examples of government participation in finance, industry and markets in order to use the material resources for the benefit of the entire nation. Other newly developing states, which have inexpensive and adaptable labor and control investment, prices, wages and currency can produce products which preclude competition. With Russia supplying the material resources and China supplying the labor for manufacturing, the emerging statist nations have the capability to control resource distribution and value added manufacture.

The democratic capitalist nations previously extracted the material resources and inexpensive labor of a Third World for benefit of the western societies and domestic oligarchs. The developed world guided the destiny of the lesser developed world. The Third World now extracts capital from the developed nations and uses their own material resources and inexpensive labor for the benefit of their own peoples. The new statist nations are prepared to determine the destinies of all nations.

Thoughts?