Commanding heights of the economy

Source: Wikipedia, the free encyclopedia.

In

domestic trade
.

History

This phrase emerged from a branch of modern

Bolshevik economist, control over the commanding heights of the economy would ensure primitive socialist accumulation.[1] The phrase can be traced back to Vladimir Lenin's defense of the New Economic Policy (NEP), which saw market-oriented reforms while the state retained control of the commanding heights. Lenin used the military metaphor to justify NEP, proposing that free markets could be permitted so as long as the government retained control of certain commanding heights like heavy industry and transport.[2]

Specific national contexts

China

China retains state control over the commanding heights of the economy in key industries like infrastructure, telecommunications, and finance despite significant marketization of the economy since

reform and opening up.[3]: 20  Specific mechanisms implementing its control of the commanding heights in these areas include public property rights, pervasive administrative involvement, and Communist Party supervision of senior managers.[3]
: 20 

For an example from socialism with Chinese characteristics, while the Chinese economic reform has generally shifted funding sources for higher education from the government to individual students, the Chinese Communist Party also organized projects like Project 985 and Project 211 to retain government funding and therefore influence over certain elite institutions.[4]

India

The second of the Five-Year Plans of India, overseen by Jawaharlal Nehru, was an attempt to industrialize India through state control of the commanding heights.[5]

New commanding heights

The phrase "commanding heights" often occurs in modern political commentary outside of Marxist connotations.[6]

Healthcare and education

In

service economies, where the relative importance of industry has decreased, Arnold Kling posited in 2011 that healthcare and education are the new commanding heights. The two sectors are central to employment and consumption, and in the United States are driven primarily by government intervention.[7] In the ten years preceding 2011, employment in education and healthcare in the United States increased by 16%, despite employment in other sectors decreasing.[8]

Internet

Other commentators have identified digital platforms and the internet as the new commanding heights of the economy.[9][10]

See also

References

  1. ^ Bonner 2013, p. 86.
  2. ^ Wang, Rong (2014). "The commanding heights: The state and higher education in China". The Oxford Companion to the Economics of China. p. 78. 'The commanding heights' was first used by Lenin as a defence of his New Economic Policy, which included permitting profitmaking enterprises in some areas of the ...
  3. ^ .
  4. ^ Wang, Rong (2014). "The commanding heights: The state and higher education in China". The Oxford Companion to the Economics of China. p. 78.
  5. ^ Tharoor, Shashi (2011). Nehru: The Invention of India. Arcade Publishing. p. 188.
  6. ^ Joseph Stanislaw, Daniel Yergin (1998). The Commanding Heights. Free Press.
  7. ^ Kling, Arnold (5 July 2011). "The New Commanding Heights". Cato Institute. Retrieved 15 August 2020. The commanding heights of our economy today are not heavy manufacturing, energy, and transportation. They are, rather, education and health care.
  8. ^ "Liberating The Economy's New Commanding Heights". Manhattan Institute. 24 August 2015. Retrieved 15 August 2020.
  9. ISSN 0190-8286
    . Retrieved 15 August 2020.
  10. ^ Rajadhyaksha, Niranjan (29 August 2017). "Digital platforms—the new commanding heights?". Livemint. Retrieved 15 August 2020. ... the Indian government has been building a new generation of digital public goods—or platforms that in a way occupy the commanding heights of the digital economy.

Bibliography