Essay about State Capitalism vs Liberal Capitalism
Capitalism is the combination of many actions that provides the economic structure such as the changing balance of output, trade, income and employment. This is based on private ownership by means of corporations or individuals. There are many types of capitalism. This essay discusses two types of capitalism that are currently being debated in the media, State capitalism and liberal capitalism.
This essay also investigates whether the South Africa is really state capitalism or are they using Major Private Sectors to socially develop the South African economy, being Neoliberal capitalism?
State Capitalism VS Liberal Capitalism
State capitalism is when the government takes control over the commercial economic environment. The …show more content…
In 2003 to 2008, jobs grew rapidly but the unemployment still did not fall below 20%.
The Government is trying to reduce unemployment by means of two methods, namely State capitalism and Neoliberal Capitalism.
The government is helping unemployment by launching the New Growth Path Framework. They identified that; infrastructure development, tourism, agriculture, mining, manufacturing and the green economy are the major job drivers. Government is not only helping the unemployment by using every government entity including; state owned enterprises, funding new industrial and manufacturing projects, training and re-training, but are also getting support from social partners. Social partners would be the business, labour and community sector, which are the major job drivers. Therefore the combination of government controlled sectors with the social partner enterprises creates a mixture of a state capitalism and neoliberal economy.
“Government alone cannot solve the challenges faced by the country, but working together, solutions are possible.” (Zuma 2012)
By Government developing new infrastructures and projects