A guided national economy one calls a marketing area, in which the state intervenes strongly in the private economic processes. It does not concern thereby nevertheless central administration economy or descendants of these, since always a free-market economy in the background works. One speaks also of "“a private sector"” directed by the state.

Guided national economies are among other things characterized by a high teeth of economics and politics, a large participation of the state in publicly important enterprises (typical: Post office, telecommunications, railway), an economically active bureaucracy, a strong adjustment as well as strong national interferences into the economy e.g. by the defaults of the economic, competition, research and labor policy.

A strong national interference is justified v. A. in developing countries often with the fact that a process of the industrialization is to be set on. This succeeds, is remaining the state as control instance to often observe (examples Italy, South Korea, Japan or Singapore). In the course the progressive trade liberalisation and the increasing globalization grows however the pressure on guided national economies to open the markets and to solve the entwinements between state and economics, e.g. by privatisations and Deregulierungen.

Examples of guided national economies

• South Korea
• Taiwan
• Singapore
• Argentina
• Japan
• Hong Kong
• Italy
• India

Articles in category "Guided national economy"

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