Jones: Is the rise of state capitalism a threat to economies like Canada’s?
The issue is overblown. It’s based on a premise that several of the rising powers use state ownership of capital or state companies to edge out the global competition. Let’s look at the numbers. US government share of GDP is just above 19%; that of Brazil, two points lower, at 17%. China and India are higher, yes – about 2% higher, at around 22%. That contrasts with 30%, 48% and fully 61% for those uber-threatening foes of Canadian interests: Japan, Germany and France, respectively. Will China and India use effective government policy to leverage their economic interests to our disadvantage? Sure. Can we compete? Sure. As ever, the ‘rise of the rest’ argument is real, but overblown.