The following lecture of the series on the role of State in the economy deals with Concepts of the founders of Marxism and their adepts in the post-October 1917-period on the State’s role in the economy. I identify this vector of economic thought in a separate section due to significant influence that Marxism and Leninism ideas had impinged on the Economics and Politics in our country. The Marxist views analysis of the State’s attitude towards entrepreneurship is needed to identify the roots of the events that occurred in the twentieth century, in order to avoid their repetition in the XXI century.
Author page: Marina Klinova
The following two lectures of the series on the role of State in the economy (see ES–2016, N 2, 3, 4) deal with Concepts of the founders of Marxism and their adepts respectively, in the pre-October 1917 and the post-October period on the directions, methods and goals of the State economic policy towards the building of so-called communist society. I identify the vector of economic thought in a separate section due to significant influence that Marxism and Leninism ideas had impinged on the Economics and Politics. A rising tide of interest in the Marxist ideas in some social strata and countries nowadays is due to a slowdown in the global economy and to the aggravation of socio-economic problems. The Marxist views analysis of the State’s attitude towards entrepreneurship is needed to identify the roots of the tragic events that occurred in the twentieth century, and which mark the centenary in 2017.
The lecture deals with Keynesian views on interaction between government and business — first, during the Great Depression, and then in the postwar period of economic recovery, when the role of the State in the Tandem increased, the State intensified its involvement in the business. The role of public investment into infrastructure as a cornerstone of future economic growth is characterized. Keynesian idea of the importance for economic development of investment in human capital is obtained. The features of neo-developmentalism (neo-structuralism) that have proliferated in the XXI century are analysed.
The second lecture is devoted to the initiation and development of liberal ideas on the role of the State in a market economy. Several kinds of liberalism — from classical to neoliberalism are marked. Views of Western and Russian Liberal schools on the cooperation between government and business are compared. The ordoliberalizm school in which the necessity to combine private initiative, freedom of entrepreneurship, and the public interest in a competitive environment is justified. The German model of Social market economy that combines liberal values with active role of the State in the social sphere is recognized as basic in the European Union.
In view of the increasing State’s influence in the economy around the World, especially in 2010s, we start publishing series of lectures dedicated to interaction between State and Business. The author examines the State’s participation in economic life of some countries and beyond national borders, State’s relationship with Private Capital in the conditions of the market economy formation and further internationalization. The term “State capitalism” is becoming widespread again in the World. This is largely due to the increasing number of companies with State participation among the leading transnational corporations, especially coming from emerging economies. The course of lectures deals with the history of interaction between State and Business and is intended for undergraduate and graduate students studying the History of economic Thought and economic policy. It may also be useful for everybody interested in evolution of the State’s role in one of the key areas of its influence — economy.
The crisis generated by the separation of finance from the real sector can not be considered an occasional phenomenon. On the contrary, such concourse of circumstances is rather natural.