The Competition between Western Capitalism and State Capitalism as Drivers of Economic Growth

Policy Brief Number 7
March 2012

The Competition between Western Capitalism and State Capitalism as Drivers of Economic Growth

Author: Danny Leipziger

In 2012, the competition between state-led capitalism and market-dominated capitalism was reaching a decisive stage. The state capitalists were growing faster, investing more, and following a clear strategy that might lead to a larger share of world output and income. With such an increase in economic power would come other political aims of statism. This paper examines the urgent and necessary reforms to market capitalism that Western democracies must enable in order to compete with state capitalism.