Conclusion and Implications

Abstract

Abstract The book’s analysis yields scholarly implications. First, rather than treating state capitalist countries as a monolith, examining their institutional variation reveals strengths and limitations of state ownership. Second, though multiple principals are typically associated with greater agent autonomy, a clear line of authority can help reduce counterproductive agent behavior. It also yields policy implications. First, state capitalism is compatible with democratic governance. Opposition parties without direct access to the NOC can help keep the chief executive more accountable. Second, the improvement of NOC operational efficiency may demand more fundamental bureaucratic reorganization, as counterproductive NOC behavior often reflects the institutional landscape in which it operates. The book concludes with an application of its theory to decarbonization. To achieve decarbonization that not only helps governments meet their political objectives, but also helps NOCs ensure their longer-term commercial viability via a managed transition to renewables, the role of bureaucratic institutions will be even more crucial.