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State capitalism
The Putin Doctrine: 51 Percent State Ownership, 49 Percent to Investors

Оглавление

Russian President Putin has implemented one of the most clever state capitalism ownership structures. Partial privatization lets the state control most of the shares while ceding 49 percent of them to investors. Such a structure applies to several of the largest Russian companies: Gazprom (gas), RosNeft (oil), Aeroflot (airline), Sberbank (banking), and several others. This creates several advantages:

• Attracts private markets, investors, and specialists with best practices

• Removes unstable political parties bickering about company matters

• Removes the risk of political fiefdoms

• Reduces government outlay of money for full ownership

This hybrid model, as a de facto public-private partnership in running business operations, is probably one of the most efficient economic models for an SOE.

The Sovereign Economic Model. A manifesto for rising nations

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