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There are two different opinions in the modern world about the priority in the commanding heights. There is no one firm point of view shared by all the scholars, as some of them are sure that the state controls the commanding heights while others believe that the companies are the rule setters in the modern economics.
Each of the opinions has the right to exist. Moreover, there is no correct answer as both states and corporations have the control over commanding heights in different situations. Having conducted a research in the sphere, the following arguments in favor of each of the points of view have been gathered.
Looking at many Asian countries, such as China, India, South Korea, Taiwan or Indonesia, it should be stated that these country are controlled by the states. All economic processes are based on the idea of the government commanding heights and no one tries to contradict this opinion. The level of development in these countries is different, therefore, there is no need to dwell upon it as about the one which is the reason for differences in the control influence.
Turning to the facts, most of the social and economic programs are completed because of the state’s desire. Thus, Indonesia financially supports the places which are unable to govern themselves. Such economic support is really important for those parts of the country where the level of poverty is too great (“Asian welfare states”). Being a capitalistic country, China is one of the main supporters of the state commanding height believing that only state is able to do something that can affect world economy (“Universal banking”).
Looking at the changes in the banking sphere and the way how government affects it (“Special report”), it is possible to predict that most of the changes in the economies of the countries in the future are going to be conducted under the strict supervision of the state. Moreover, the directions in changes and other particular aspects are going to be given by the government. The future of the world economy is the hands of states as they have the power of legislation and other leverages aimed at controlling world business.
However, there is another point of view, according to which corporations are considered as the main guides for the modern economics. The supporters of such opinion have another vision of the problem. The arguments in favor of this point of view are as follows, there are a lot of world known brands that control the specific markets. China, for example, has managed to capture international market of the telecoms-equipment-maker.
There are also many other markets where China managed to occupy leading positions (“Chinese multinationals”). These leaders at the world market set their rules in the world economics. Having the power to regulate prices (making them cheaper) and the power to add more and more items by means of controlling the stock, the giants of the marketing relations control the world economics (“State capitalism’s global reach”).
The collapse or another situation which may lead to bankruptcy of such a corporation will lead to the shake of the economics in the whole world as the stock will be changed, the prices will be reconsidered and a new leader will enter the market with personal rules. The government of state is in the past, the corporations’ commanding heights scheme is a new way of the world economy development.
“Asian welfare states: New cradles to graves.” The Economist 2012. Web.
“Chinese multinationals: Who’s afraid of Huawei?” 2012. Web.
“Special report: State capitalism – The visible hand.” 2012. Web.
“Universal banking: Together, forever?” 2012. Web.