An alternative to hybrid state controlled capitalism

The paper critically analyzes various interpretations of the concept of state capitalism. The author differentiates the state as the owner of the means of production, state as a form of economic coordination, state as the dominant institution of political power, and state as an instrument for extracting and distributing surplus value. The failure of post-socialist European countries to transition to a sustainable market capitalist system, as well as the rise of state-managed hybrid market economies in China, have led to such economies becoming long-term economic formations. A hybrid economy, in which a market-capitalist sector coexists with a politically controlled and dominant public sector, is proposed as an alternative to neoliberal forms of coordination. It provides the foundation for the development of a rational political economy.