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The End of the Free Market by Ian Bremmer Essay

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Updated: Oct 16th, 2019

The end of the free market by Ian Brimmer is an important book that explains economic concerns of the various global economies. The inexistence of cooperation between states has continued to prompt the increase in number of national and state conflicts.

This fact necessitates the formulation of proper operational mechanisms aimed at enhancing a high sense of efficiency and cost-effectiveness. Different aspects of a free market economy stipulate how state capitalism affects both local and international economies. The existence of authoritarian governments remains to be a major focus of the global economic development.

Economic struggles and capitalist policies have increasingly become major issues of concern as they shape the manner in which economic development and efficiency are enhanced. Dictatorship and ineffective authoritarian governments also exist in state capitalism and free-market states. Authoritarian governments continue to play a pivotal role in shaping the overall global economy and enhancing a high sense of efficiency and cost-effectiveness.

The existence of free-market economies is believed to be a serious threat to the economic development of a number of states and national economies. As analyzed below, critical issues that relate to free-market economies include dictatorial leadership structures, capitalism and the failure of corporations to adhere to the rule of law. Other aspects include increase in global economic crises and emergence of new economies. The mentioned issues are vital economic issues that deserve proper planning and streamlined business strategies.

The explanation of the manner in which state governments approach the economic aspects of the country through the purchase of key state corporations is clearly highlighted to depict the level of seriousness of various financial strategies of the governments. Book summary The book depicts state capitalism and free-market capitalism as two very different entities. In a state capitalism, society, politics and success in profit-making is the core driver of national decision-making process.

State-based capitalism, therefore, poses a lot of challenge to a country’s economy as it is likely to limit the extent to which free-market is undertaken. In reference to the emergence of the recent patterns in the global economy, Brimmer, the author of the case study book reveals that the expansion of non-western states and the overall expansion of the global economies contribute to the increase in economic freedom of said states.

The differentiation of capitalism is very dependent on the manner in which wealth is used to create more wealth and establish control of global economies. According to Ian Bremmer, both state capitalism and free-market are best defined by their ability to use wealth, spread the wealth and enforce better wealth creation strategies.

Capitalism and free-market economies emerge as the major drivers of the economy. The free-market form of capitalism is dominated by a country’s constant implementation of wealth creation and state enforcement of legal procedures that would enhance business contracts and limit the influence of immoral acts. Immoral acts in this context include greed, selfish desires, unworthy business contracts and sabotage of development strategies of emerging economies.

Initially, state-sponsored capitalism led to the perception that countries like China, Saudi Arabia, and China had perverted economic strategies. However, the book reveals that the economic approaches have come to be appreciated. A number of benefits and economically sound business processes are equated to the economic approaches.

The domination of the government in a given economy often influences a number of happenings. An authoritarian government can focus on enhancing its economic superiority rather than realize profitability on the investments made. Secondly, the government can end up fostering economic, social and political interests that only address its needs and issues aimed at enhancing its international relationship.

The rise of new forms of market economies reflects a paradigm shift in the operation of major economies of the world. This fact is a sure indicator of the emergence of a new form of capitalism in areas that were originally dominated by communist practices.

It also emerges from this book that the end of communism was influenced by a number of factors and that its collapse was never followed by the existence of free-market economies but rather by international politics and a struggle between modernized forms of state capitalism and free-market liberalization. The concept of state capitalism aims at ensuring that the form of capitalism practiced is restricted to addressing the economic wellbeing and political goodwill of the state.

Free markets are only allowed to exist if the business strategies employed are aimed at limiting countries’ dependence on those states that are usually considered to be superpowers. Ideas from the book Government ownership of a country’s big business organizations and other investment opportunities are a sure concept that is developed throughout the book. It is evident that this idea aims at enhancing strict accountability of all existing businesses of the governments.

The book intends to demonstrate the manner in which government agencies can be employed in ensuring that large corporations that have excess capital are controlled by the government. The government, therefore, uses such investment strategies for social and political gains. There exist a number of vital insights of business persons, policymakers and investors. The idea of state capitalism as explained from the book is a distortion of how free-market economies should operate.

This concept partly explains the reason why western companies have been compelled to compete across the globe against business organizations that have enormous political and financial support from their home countries. In the end, it is evident that new business strategies emerge with the view of encouraging international cooperation and overreliance on global economic state leaders. What has been known to be a global free-market economy is no longer in existence.

Dominance of states in the local or domestic economies is a sure proof of the existence of state capitalism. This idea leads to the revelation of the continued use of state dominance strategies. The strategies focus on ensuring that political leaders and major market economies foster national unity as well as encourage the initiation of a number of state strategies aimed at encouraging national growth, transparency and tranquility.

For the government to achieve its development goals, state-owned business organizations and privately owned government-friendly companies are used in enhancing a high level of efficiency, cost-effectiveness and overall success of government strategies. The intervention is mainly done on major aspects of global economy such as the energy sector, aviation industry, power generation, shipping and related aspects of transport and communication industries.

Other sectors include metal, mineral, and petrochemical among others. A government strategy that outlines the degree to which government agencies can work towards enhancing efficiency, cost-effectiveness, and reliability of all operational strategies being employed is necessary. The strategy can improve state-based capitalism.

State-sponsored capitalism emerges as a critical issue of concern in the book, The End of the Free Market by Ian Brimmer. However, it is clear that the term “state capitalism” carries a slightly different meaning from what has been used with reference to a fascist engagement and the socialism economic model used in East Germany. It, therefore, emerges that unlike the socialism and fascism models, the state capitalism model does not dwell on economic ideologies.

State capitalism, as explained in the book, refers to the different political and economic ideologies that are put in practice and which are unique to every country. On the existing capitalism concerns in the book, it is evident that the invention of state capitalism, as is articulated in book, The End of the Free Market brings about sensitive issues.

Through the analysis of the interaction between state capitalism and the challenging global economy, the book brings out vital global aspects that demand to be accorded due attention, proper allocation of time and other related scarce resources and streamlined management strategies. State capitalism is likely to pose a number of challenges to the global economy. The emergence of state-owned business firms has increasingly continued to shape the ever-changing financial status of the various global states.

This trend continues to be heightened by protectionist and populist economic pressures from the developed states and the emergence of state capitalism. Sadly, state-owned multinational companies receive a lot of financial, political and cultural favors, thus reducing their operational costs. This aspect leads to a major imbalance in the economic competition in state-owned corporations. State capitalism also presents a number of challenges to the modern economies. Global free markets are very dynamic and complex in nature.

They demand proper planning and strategic management of all resources with the view of fostering healthy national economic relations. State capitalism’s dangers are varied, many and likely to cause a lot of conflict in future economic developments of various states. Regardless of the economic situation in question, it is highly likely that there will always be major issues that relate to the existence of many competing economies across the globe and hence the end of free-market economies.

Economic competition can take a unique and different approach. Countries like Russia employ state capitalism in achieving political mileage within countries that were originally neighbors of the Soviet Union. However, due to unforeseen capitalism issues such as emergence of the most unpredictable superpowers, it is apparent that the success of certain state-capitalist strategies are limited by the existence of complex economies such as Kazakhstan and Ukraine which have other security, political and commercial interests.

The future of the global economy The future of the global economic development is an important aspect of global economic progress. A strong economy employs effective economic policies. Many global states today encourage diversification of their existing investment strategies.

The United States of America no longer possesses unmatched dominance and control over the global economy. As outlined in the book, it is evident that greater and fair economic competitions are emerging. The competitions are focused on issues and not a country’s ability of being depended upon by other global economies. It is therefore evident that the United States of America has to formulate other competitive or reliable long term economic solutions in order to effectively have a long term development strategy.

The possible continued existence of authoritarian governments is a sure indicator of the direction that the global economic is likely to take. Political and economic drivers in China, Russia and many Arab monarchies agree that they are not better placed to determine long-term economic growth and development. Major global economies are likely to continue developing political systems that would be tailored to fulfill the economic and political needs of the majority in society.

Rather than focus on state capitalism, free-market economies, dictatorial state governments, and some countries’ desire to achieve market autonomy, it is crucial for all states to contribute towards the expansion and steady growth of global business strategies. This step should be undertaken on a non-discriminatory basis and in line with the stipulated international obligations and the need to enhance global economic wellbeing.

State capitalism is an ever-growing global concept that is believed to be a major threat to the economic development and wellbeing of the different national economies. The Intersection of economies and state-owned firms in Iran, China, Venezuela, Persian Gulf, Russia, the United States and Japan plays an important role in shaping the operational strategies of a free market.

With regards to a free-market economy, it is least likely that state capitalism can emerge in the United States of America though it can happen in many world nations, albeit not with similar political and economic ideologies as those that shape China and Russia’s state capitalism. This fact is partly because the interconnection between government agencies and state contractors seems to move quickly into the domain of cybersecurity and information system.

In the U.S., economic challenges such as the global financial crisis have managed to shift the balance of financial decision making authority from the Wall Street to the Washington State. Due to the continuous development of the global economy, the benefit of self -evaluation is likely to be exploited to transform retrogressive social, political and economic statuses of a number of leading global economies.

The existence of a “long boom” resulting in the implementation of dynamic economic strategies is an important aspect of the future of the global economy. Implementation of technological platforms, fair economic competition, and existence of environmentally sustainable economic strategies, formulation and implementation of economically sound policies can foster a “long economic boom” in the near future.

Evidence to support the views The concept of state capitalism is supported by a number of real-life global undertakings. Policymakers demand proper organization as well as integration of business leadership, policymakers and formulation of new internal and local political mechanisms of enhancing reliability.

As the biggest, renowned, and most influential state capitalist, it is its unique strength, challenges, and philosophy that have continued to uniquely separate China from other state capitalist states. While China’s state-capitalist perceptive comes from its long-term relationships and government support for state-owned business corporations, Russia thrives on the ownership of a lot of natural wealth while Saudi Arabia is rich in oil.

China’s success is likely to convince many other countries to embrace ideologies that promote national growth. The slow emergence of the cold war strictly associated with the global market economy remains a major challenge. Capitalism related issues are of great concern and cannot be ignored.

The continued rise of many “emerging markets” such as Brazil, China, Japan and a host of European states illustrate the degree to which the world economy can help enhance a greater level of efficiency and also implement economically appropriate strategies of dealing with serious financial crisis.

The emergence of the global economic crisis, political tension and lack of economic vitality supports the fact that free-market economies are concepts that no longer have significance as state capitalism has increasingly become popular in many countries.

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IvyPanda. 2019. "The End of the Free Market by Ian Bremmer." October 16, 2019. https://ivypanda.com/essays/the-end-of-the-free-market-by-ian-bremmer/.


IvyPanda. (2019) 'The End of the Free Market by Ian Bremmer'. 16 October.

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