Title
State Capitalism Returns: the Impact of Government Ownership on Markets, Indebtedness, and the Environment
Code
GF24-14391L
Summary
The cumulative crisis of the Covid-19 pandemic, Russia’s invasion of Ukraine, and climate
change have put a spotlight on the rapidly changing role of the State. What was an unthinkable
State intervention a couple of years ago is now commonplace—decision-makers have used the
power of the State to counteract the negative socio-economic and environmental consequences
of the crisis in an attempt to protect people’s well-being. State leadership can help navigate the
economy through challenges and uncertainty. It can also play an important role in navigating
the economy through climate change, energy transition, or natural disasters. At the same time,
state ownership of enterprises and banks can generate large costs to the budget when
governments must bail out these companies, mainly due to weaker governance and efficiency.
Understanding the various roles the government may need to play in the economy is thus
important, including the policy tradeoffs between potential benefits and costs.
Start year
2024
End year
2026
Provider
Grantová agentura ČR
Category
Obecná forma
Type
Mezinárodní grantové projekty Lead Agency (GF)
Solver
Information system of research, development and innovation (in Czech)