Vertical Integration
In his dissertation, Putin wrote: "The process of restructuring the national economy must have the goal of creating the most effective and competitive companies on both the domestic and world markets."
Putin's 1999 article proposes that the state should closely regulate and develop the natural resources sector through creating companies with close links to the power vertical, making the firms big enough to compete with multinationals. These companies would become “national champions”, representing the state’s interest in international commerce.
Most national champions are likely to be 50% or more owned by the Russian government, but there is no reason why predominantly private companies could not also serve as national champions, given the right guidance and pressure.
Read more about this topic: National Champions
Famous quotes containing the words vertical and/or integration:
“In bourgeois society, the French and the industrial revolution transformed the authorization of political space. The political revolution put an end to the formalized hierarchy of the ancien regimé.... Concurrently, the industrial revolution subverted the social hierarchy upon which the old political space was based. It transformed the experience of society from one of vertical hierarchy to one of horizontal class stratification.”
—Donald M. Lowe, U.S. historian, educator. History of Bourgeois Perception, ch. 4, University of Chicago Press (1982)
“The more specific idea of evolution now reached is—a change from an indefinite, incoherent homogeneity to a definite, coherent heterogeneity, accompanying the dissipation of motion and integration of matter.”
—Herbert Spencer (1820–1903)