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From Mining Weekly, Sept. 28, 2007 "It is estimated that some 800 Chinese SOEs are active in Africa today, covering every country, although this figure includes provincially owned as well as nationally owned companies, as well as companies that are trading, not investing, and companies whose activities have nothing to do with natural resources or China's strategy for obtaining these resources. 'China is trying to move from being subject to price and supply risk takers on international markets to owning, operating, and refining the resource, thereby gaining some price and supply security."' Present day China most represents the corporate state, where labor and resources are controlled, stability is guaranteed and corporations partner with the Chinese government for mutual benefits. Russia is not as advanced in statism as is China, but is growing in that direction - possibly due to the conclusion that the Chinese model can serve the former leading republic of a defunct Soviet Union. One difference between the former communist states is that China has inexpensive labor for competitive manufacturing industries while Russia has raw materials for capital intensive industries. Russia has gone from a nation which had oversupply to an unknown demand to a nation that had great demands and no supply and now to a nation in which internal demands are met by external supply and external demands are met by Russia's supply of its natural resources. The Putin era has transferred ownership and power from oligarchs who had little regard to the population needs to a state that controls essential industries. The state claims to use its controlled surplus for social benefit and internal investment. The investment reduces unemployment and provides incentives for additional investment and private ownership. Noting the derogatory effects of a previous "wild capitalism," which included concentrations of production, resources and media in the hands of a relatively few oligarchs, Putin has diverted the previous concentrations to the government. The present Russian government has overwhelming participation in defense industries, some banking, oil and gas resources, several television stations and print media. SOEs on a buying spree David M. Woodruff, 11.7.2007 , The Expansion of State Ownership in Russia: Cause for Concern? Development and Transition forum "According to researchers at Alfa-bank, in the middle of 2003 the Russian state owned stock worth about 20 percent of the capitalization of Russia's stock market. By early 2007 the state's share had risen to 35 percent....Defence firms in aviation and shipbuilding are consolidating into large new conglomerates under state ownership. The state's arms-export firm Rosoboroneksport has taken control of assets in metallurgy and auto manufacturing." Concentration of economic power has been complemented by concentration of political power in a single Party. Of eight Parties in the Dumas, Putin's United Russia has a majority control of 305 out of 450 seats. United Russia's majority votes have allowed the government to transfer the selection of Provincial Governors from local election to being appointed by the President and ratified by the Dumas. Non-governmental Organizations (NGO) that undermine state power have been regulated and the government has been allowed to purchase print and television media. The Federal Secret Service (FSB), successor to the former KGB, has been strengthened and a mild suppression of persons and activities that "threaten the stability of the nation" has occurred. Corporations want stability and the new Russia has given this directive a double barreled approach - acquire control of significant industries in energy, raw materials and defense and apply pressure against those who disturb the arranged harmony. Several other nations, including Poland, South Africa, Indonesia, Singapore, Vietnam and India have SOEs that account for a major portion of their Gross domestic Product. India and Israel contain components of the statism system. Both of the latter countries are democratic nations with extensive free and private enterprises. India has government majorities in many industries, some of which are totally state controlled. A May 2006 World Bank report states: "In India, there are 240 Public Sector Enterprises outside the financial sector. These enterprises produce 95 percent of India's coal, 66 percent of its refined oil, 83 percent of its natural gas, 32 percent of its finished steel, 35 percent of its aluminum, and 27 percent of its nitrogenous fertilizer. Indian Railways alone employs 1.6 million people, making it the world's largest commercial employer. Financial sector SOEs account for 75 percent of India's banking assets." The Indian bureaucracy has three types of SOEs. It has Departmental Enterprises, Statutory Corporations, which are established by an official act of the legislature and wholly owned by the state, and the Government Limited Companies. The latter are organized similar to companies in the private sector, but have the state as the principal shareholder. The statist feature of the limited company is that it co-operates in private sector ventures and does not have the same reporting requirements to Parliament that other Indian SOEs have. Israel has several unique and not readily apparent statist features. With these features, the government regulates the factors of production. Israel's government controls 90% of the land and, by this ownership, is able to regulate much of the nation's economic and social fabric. It also uses legal restrictions and directives to essentially regulate labor. Discriminatory laws prejudice the education and economic development of its Arab citizens. This creates availability of a lower wage labor market of less skilled workers. Intensive concentration on immigration provides a growing number of flexible and directed laborers. The West Bank and Gazan Palestinians have for decades provided another massive group of lesser skilled and lower wage laborers. Guest workers, who cannot obtain residency, are the another group of directed workers.
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