State Capitalism

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"The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie."

State Capitalism, or Dirigisme, is an economic system where the state plays an active role in business or commercial activity. This can be direct in the form of state-owned enterprises or companies where the state has controlling shares, in an indirect form of the state planning through government agencies organized along for-profit and business management lines, or through state-sponsored private business activities. If the state owns or controls all the means of production or is the primary shareholder, this is called state monopoly capitalism (StateMoCap). State capitalism is usually seen as economically center since it denies the means of production to workers, yet is often collectivist in nature.



Dirigerism or Dirigisme (from French diriger, "to direct") is an economic system in which the national government plays an imperative role in directing and coordinating the economy through public policy. By utilizing market instruments like taxation and monetary investment, the state is understood to be capable of correcting inefficiency and failures commonly found among tradition free-market economics, while also achieving it's desired material objectives.

East Asian Model

The East Asian model pioneered by Japan, is a plan for economic growth whereby the government invests in certain sectors of the economy in order to stimulate the growth of specific industries in the private sector. It generally refers to the model of development pursued in East Asian economies such as Japan, South Korea and Taiwan. It has also been used by some to describe the contemporary economic system in Mainland China after Deng Xiaoping's economic reforms during the late 1970s and the current economic system of Vietnam after its Đổi Mới policy was implemented in 1986.


State Capitalism is not a formal ideology with unifying theory, nor is it used in a self descriptive term. State Capitalism is believed by some to have first been used and coined, by Friedrich Engels, in his and Marx's book "Socialism: Utopic and Scientific". It was later on also used by many Anarchists, Left Communists, and Council Communists, in criticism of the USSR.

In the modern day state capitalism has been used to described countries like Taiwan, South Korea, and China. Critics of United States, such as Noam Chomsky, believe it is state capitalist since government backs big business interests while playing a substantial role in development (e.g., bailouts and public research respectively). Libertarian socialists also describe the Soviet Union as state capitalist for centralizing surplus value extraction and commodity production. Cliffists also erroneously apply this criticism to USSR during Stalin's reign, while anti-revisionist Marxist-Leninists would do the same to the Khrushchev administration and later administrations.


Before World War II, France had a capitalist economic system with many small, family-owned companies that were not as efficient as larger industrial groups in other countries like Germany and the United States. The war devastated France, with industries and infrastructure being destroyed or seized by Germany, and the country facing the prospect of long-term rationing in the aftermath. Some French businesses and politicians lost credibility after collaborating with the German occupiers during the war.

After the war, French governments of all political stripes sought to modernize and develop the country's economy, with the goal of matching the advanced economy of the United States. The French government implemented dirigisme, a policy of strong government intervention in the economy, to achieve this goal. This policy approach was accompanied by the development of Meritocracy and Technocracy, with elite state-trained administrators and engineers taking leadership roles in industry.

During the 1945-1975 period, known as the "Glorious Thirty," France experienced significant yearly economic growth (5.1% on average) and a population boom. Dirigisme was supported by conservative governments led by Charles de Gaulle and Georges Pompidou, and seen as a compromise between American policies of minimal government intervention and Soviet policies of total state control. In 1981, Socialist president François Mitterrand was elected and pursued dirigisme policies, including nationalizing industries and banks. However, economic difficulties and inflation led the government to abandon dirigisme in 1983 and adopt austerity measures instead. Dirigisme has not been widely supported by subsequent French governments, though some elements of it remain in place.

Imperial Japan


South Korea





Socialism with Chinese Characteristics is a set of political theories and policies of the Chinese Communist Party that are seen by their proponents as representing Marxism-Leninism adapted to Chinese circumstances and specific time periods, consisting of Deng Xiaoping Theory, Three Represents, Scientific Outlook on Development, and Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.





Marcus Garvey

Marcus Garvey was a journalist, businessman and one of the first black activists, founder of UNIA.

Born into a family of "petty bourgeois" peasants, Garvey had slave ancestors and (later discovered) Iberian ancestors, so much so that his surname is of Irish origin. Garvey had white friends and at age 14 was arrested for breaking church windows. In 1905, he started working at the Benjamin Manufacturing Company, where after a while he became a trade unionist, but the strike failed and he was fired, gaining a reputation as a troublemaker. In the same year, he converted to Catholicism. In 1910, he founded Garvey's Watchman, a magazine whose publication reached 3,000 copies, even though it was considered an exaggeration.

Subsequently, he traveled to Latin American countries, after starting work at the United Fruit Company as a timekeeper. In Panama he founded the newspaper La Prensa. In 1913, he became a pan-Africanist African Times and Orient Review handyman.

  • In 1914, he founded the Universal Negro Improvement Association and African Communities League (UNIA), being one of the first black movements. The UNIA adopted mottos such as "One goal. One God. One destiny" and "establish brotherhood among the black race, promote a spirit of racial pride, recover the fallen and help in civilizing the backward tribes of Africa". UNIA promoted self-confidence and self-esteem for people, in addition to racial separatism and pro-black emigration. After the first world war, he tried to join to fight, but was rejected for his physical issue. He later opposed the participation of blacks in a "war of whites" and increased his radicalism on the radical question, even saying "for every black lynched by whites in the South, blacks should lynch a white in the North". After accusing Garvey of using the UNIA to make money, Garvey resigned from the UNIA in 1917, but returned the same year, suing some members. In 1918, UNIA was incorporated (business) and gained more membership. In the same year, Garvey founded the newspaper Negro World, which was supported by philanthropists. The Negro World published 10,000 publications, being read even outside the USA in Latin American and Caribbean countries, even if some accuse it of having been propaganda. There was also an altercation between Garvey and his old friend Wilfred Domingo over Domingo's socialist views. After the end of World War I, Garvey and other black activists founded the International League for Darker People, to pressure then-President Woodrow Wilson and the Paris Peace Conference to give more respect to people of color, causing the UNIA to send the Haitian Eliezer. Cadet to the conference, but it was in vain because the conference ignored his efforts. After the party's high growth (reaching branches in 25 states in 18 months and even on some other continents) it began to have disagreements with the National Association for the Advancement of Colored People (NAACP), in which W. E. B. Du Bois came to claim that Garvey was a "reactionary under the pay of white men" and "a fat little black man, ugly, but with smart eyes and a big head". Garvey, later founded the African Legion, which became a secret service, worrying the Bureau of Investigation, even having an infiltrator, there were also accusations of personality cult, even claiming that Garvey was the provisional president of Africa, who would take the power after decolonization, being ridiculed for it. UNIA began to have relations with the Liberian government (ruled by the True Whig Party), with various agreements and collaborations, such as raising 2 million loan for the reconstruction of Liberia. In the meantime, Garvey suffered assassination attempts and fights in his relationship with his then-wife Amy Ashwood, leading to a divorce. In 1919, Garvey founded the Black Star Line as a way to generate black participation in the maritime industry and challenge white domination. The company received support from African-American businessmen, the UNIA and white businessmen, even receiving aid from the United Fruit Company, but it ceased to function in 1922, when it was abandoned, generating losses ranging from US$ 630,000 to US$ 1.25 million (today US$20,236,000).

There were criminal allegations surrounding Garvey, such as selling shares in a ship that the Black Star Line did not own, in which he claimed he was part of a plot by the NAACP to arrest him, but that justification didn't work and the press went ahead. to see him as a crook who lied to black people. He also ended up having contact with KKK wizards and even supported some ideals, such as, according to himself, "He believes that America is the white man's country, and he also says that the black man should have a country of his own in Africa [...] Klan". He subsequently resigned (again) the presidency of the UNIA and the African Provisional Government. James Eason had also left the UNIA, founded the rival group Universal Negro Alliance, but in 1923, he was assassinated by Garveyites, who, Garvey denied any involvement, but launched a campaign of defense for the assassins, tarnishing Garvey's image. After the 1923 mail fraud trial, a trial in which Garvey uttered anti-Semitic phrases and slurs, he was arrested that year, but released on bail from 1923-1925. He and the UNIA wanted a colony in Liberia with 3,000 African Americans, but when he got there, Charles D.B. King arrested and deported him, in which Garvey accused Du Bois of this change. He was imprisoned again between 1925-1927, when released, he returned to Jamaica and then went to London, dying at the age of 52.


State Capitalism can take on many forms, both theoretical and material, as it did throughout history:

  • Industries being ran as private enterprise, with the state being it's primary or sole shareholder.
  • State direction or control of investment, either indirectly (e.g., through contracts) or directly (sovereign wealth funds).
  • "Privatization" of the State, so it operates as a single, for-profit economic monopoly.
  • Implementing decentral or central planning, while maintaining private resource ownership and markets.
  • A strong, for-profit public sector that co-exists and/or competes with the private sector.
  • ^Any combination of the above.

How to Draw

Flag of State Capitalism

The symbol of State Capitalism is based on a flag design posted on the r/vexillology subreddit, created by u/SekaiDarkness. The flag is supposed to symbolize a balance between capitalist and communist economics.

  1. Draw a ball
  2. Color it burnt orange
  3. Draw a yellow left-facing cent symbol (¢)
  4. Add a yellow arrow, crossing through it and facing top-left
  5. Draw the eyes

You're done!

Color Name HEX RGB
Burn Orange #9C3E26 156, 62, 38
Yellow #FFCD00 255, 205, 0




  • Capitalist Communism - I admit that I borrow elements from both, but only the good parts.
  • Mercantilism - Even he thinks I'm too statist & that's says a lot.
  • Corporatocracy - Basically me, but with more focus on pleasing the rich.
  • State Socialism - My confused brother, who some say is me in denial. But I like his aesthetic and use it in some nations. Countries such as Brazil and Iraq prospered in the past because of effective centralization and economic bureaucracy.
  • Authoritarian Capitalism - Not regulatory enough. Although Morales-Bermúdez did well when partially keeping the Velascoist economy, but without the leftist stuff (I am an economic centrist anyway), unlike those Fujimorists who deregulated the economy.
  • Progress Party - A bit anti-statist for my taste but hey he really likes the oil fund[2].
  • Leninism - Thanks for implementing the NEP, but why do you say it’s only temporary??
  • Neocameralism - I was thinking, that you are a good son of Cameralism, but you are a laissez-faire lover...



Portraits and Artwork

Alternative designs

Further Information