a brief presentation about the role of state capitalism in nepal

1. PRESENTED BY:
SARBOTTAM SILWAL
IN PARTIAL FULLFILLMENT OF THE REQUIRENMENT FOR
MANAGERIAL ECONOMICS-MHM

2. WHAT IS STATE?
The state is a political and geopolitical entity
Which is operated either following
Economic ideologies like:

3.  Capitalism is an economic system in which capital
assets are privately owned and items are brought in
market for profit.
 Socialism is an economic system characterized
by social ownership of the means of production and
co-operative management of the economy
 Communism is a revolutionary socialist movement to
create a classless, moneylessand stateless social
order structured upon common ownership in means of
production

4. WHAT IS CAPITALISM?

5. STATE CAPITALISM
As per Wikipedia- its an economic activity undertaken
by the state with management of productive forces in
capitalist manner.
Dominance of state owned business enterprises in
national economy
A form of capitalism, in which all sectors of national
production and important social institutions are
managed by the state

6. ACCORDING TO
 Marxist literature: One where government controls the
economy and all essential acts.
 Friedrich Engels: It would be final stage of capitalism
consisting of ownership and management of large
scale production and communication by the state.

7. CAPITALISM (THEN & NOW)

8. Number of State-owned Enterprises in
following countries, 2005
Australia 12 Japan 77
Austria 78 Korea 30
Belgium 15 Netherlands 44
Canada 100 New Zealand 34
Czeh Republic >1000 Norway 26
Denmark 27 Poland 1189
Finland 55 Slovak Rep. 115
France 100 Spain 40
Germany 37 Sweden 58
Greece 50 Turkey 39
Italy 25 United Kingdom 80

9. WHY STATE CAPITALISM?
It provide stability as well as growth
Explore foreign investments
Proper allocation of resources
Quality production
Overall development
Consumers beneficial
Safe investments

10. Tourism & State-Capitalism
To understand the relationship between state capitalism
and tourism,
lets have a small Insight tour of world’s biggest
Communist turn State-capitalist country

11. CHINA
 China is the third most visited country in the world
 No. of overseas tourists was 55.98 million
 Foreign exchange income was 45.8 billion U.S. dollars
 World's fourth largest in Tourism Earners
 number of domestic tourist visits totaled 1.61 billion,
with a total income of 777.1 billion yuan
 According to the WTO, in 2020, China will become the
largest tourist country and among the largest for
overseas travel

12. But how was it possible??
 Between 1949 and 1974, the People's Republic was
closed to all but selected foreign visitors
 After Mao’s death, Deng Xiaoping led china towards
a market economy
 Over 250 cities and counties had been opened to
foreign visitors by the mid-1980s
 In 1985 approximately 1.4 million foreigners visited
China, nearly US$1.3 billion earned from tourism.
ABSOLUTE COMMUNISM TO STATE-
CAPITALISM

13. RESULTS OF STATE CAPITALISM IN CHINA
 After 1974, the change in government policy bought
great change in Chinese Tourism
 Average growth rate of 9.5% a year in GDP
 Increase by 18% in International Trade
 2nd biggest economy of present world
 Chinese state hold more than 150 biggest companies
 Guides 1ooos more
Lastely
 3rd most visited country

14. BUT EVEN A COIN HAVE OTHER SIDE
 When Gov. supports one lot of company- others
suffers.
 State companies use capital less efficiently than private
ones-slow grow
 Miss-use the Gov. clout
 State companies have unfair distribution of nations
resources
 Chances of inequality and eventually discontent

16. NEPALESE TOURISM
 Nepal opened its borders to the world in 1949
 Nepal is the country where Mount Everest, the highest
mountain peak in the world are located
 8 of the 10 highest mountains in the world
 Nepal is the most preferred eco-tourism destination in
the world
 Nepal is the only country with altitudinal variation
that ranges from 70 meters to 8848 meters

17. STATE CAPITALISM IN NEPAL
 State capitalism have obvious appeal in Nepal
 Can boost the resources in tourism sector better than
private sector
 State companies can work freely in market as they are
state operated
 Over all development of nation

18. BUT???
 Since Nepal is democratic country, its not possible for
Gov. control over all productive sector
 Handful of bureaucrats can misuse power, decide
taxation and unfair distribution of resources.
 Even distribution of wealth to poor doesn’t eliminate
poverty
 It makes richest the poor
 Creates negative feelings to hard workers as lazy bones
are also equally paid

19. NEPALESE MAY REPLACE THEM