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:
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“The only phenomenon with which writing has always been concomitant is the creation of cities and empires, that is the integration of large numbers of individuals into a political system, and their grading into castes or classes.... It seems to have favored the exploitation of human beings rather than their enlightenment.”
—Claude Lévi-Strauss (b. 1908)