1. State-Market issues
| state-market continuum | ||||
| strategy | command economy | mercantilism (Europe)
statism (LatAm) developmental state (Asia) mixed economy (US) |
government intervention
regulatory states |
laissez faire
libertarian neo liberal |
| role of state | state owns directs everything | directly guides private
sector
regulates trade |
state deals with market
failure
law and order public health property law education collective action/commons |
minimal |
| examples | China (before 1980)
USSR - Stalinism |
Bismarck
Europe (democratic socialism) East Asia Latin America (1940s-70s) Democratic Socialism |
US, Keynesianism | Hong Kong (in past) |
| results | rapid early transformation
growth equality long term stagnation |
rapid growth for several
decades
stagnation |
widespread poverty
monopoly controls |