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02nd
February 2012
State
Capitalism or Private Enterprise
State
capitalism harbours statutory corporations,
favours companies and, in some discrete
localities, development foundations.
These state owned corporations have enormous
state resources at their disposal, such
as financial guarantees, state clout,
idealistic talking points, bureaucrats,
and well connected insiders.
In ordinary times, this model helped develop
incubators and was allowed to grow, and
accommodate communities.
In so doing, this model of transformation
to growth and development bankrolled by
state capital never saw the need to prepare
the infrastructure, both tangible and
intangible and in essence never grew up,
much less face the consequence of the
new reality -- that would have been a
win-win situation, to a sustainable “magnet”
model.
This conclusion is in keeping with the
argument that state corporations are no
more than a government department with
the entire accolade.
The truth is such that, in the new priorities
of the 21st century, there is still too
little to show for all the talk and state
resources – perhaps it is an ideal
opportunity to defer from idealism to
realism, and convert state corporations
into the realm of private enterprise.
How about getting into the real world
and earning their worth?
What started as a handout should have
multiplied as a sustainable hand up to
deliver economic growth for communities
and entrepreneurs alike.
But the fact is the dream of an improvement
in the quality of life has evaded an adequate
workable alternative.
As a result, the failure to create a people-centric
marketplace that is in line with emerging
economies, developing skills and increasing
productivity, is not where it should have
been.
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And in so doing
the desperation of individualism has propagated
the “I” syndrome.
This requires urgent restoration for the sustainability
and enlargement of trade and investment, joint
ventures, foreign direct investments, and
job creation for the economic dependence of
small developing states like Saint Lucia.
To make matters worse, private enterprise
is struggling to raise capital in order to
have the liquidity to attract the best and
brightest in small developing economies. Meanwhile,
state corporations are sucking large sums
of capital and distributing wealth that might
have been better used in the private sector.
In furtherance of this, the old method by
way of state capitalism to jump start growth
is unsustainable – this is an exercise
with obvious appeal, pitted towards a nucleus,
as a simple proffer of a singular infatuation.
At this time, the national interest of small
developing states could be best served, to
provide solutions that enable global trade;
public policies and investments that will
enable growth; and innovation to come about
in this economic transition.
We’re not there yet – will state
capitalism or private enterprise deliver such
prosperity?
In preparation for the next era, small developing
states like Saint Lucia may very well look
to transition its historic villages, towns
and city in accordance with its heritage,
ambiance, and creative industries –
into a renewed powerhouse that is unique in
its fusion heritage of being seven times French
and British.
(Adapted from a contribution submitted by
Melanius Alphonse)
Please
comment respectfully and responsibly as we reserve
the right to remove any comment we consider
inappropriate. Refrain from personal attacks
and using any offensive language.
Discuss
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