State capitalism is an economic system in which the state has substantial control over the economy, operating businesses and industries while still allowing for some degree of private enterprise. This approach combines elements of capitalism with significant government intervention, aiming to utilize state resources to promote national interests and economic growth. In the context of the New Economic Policy (NEP), state capitalism represented a shift from pure socialism towards a mixed economy, allowing for limited private ownership and market mechanisms to recover from economic turmoil.
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