Financing Continuous Development: The 'American Plan' of State Capitalism

Abstract

In this chapter for the forthcoming Oxford Handbook of State Capitalism (OUP, 2020), we outline what we call 'The American Plan' of state capitalism, developed by Treasury Secretary Alexander Hamilton in the early years of the American republic, and trace its defining elements through two centuries down to the present. In the modern era, these elements jointly define what we call a 'Development Finance State,' an American tradition of hybrid public-private financing of continuous economic progress. We argue that rediscovery and rebirth of this forgotten but powerful American tradition is the key to the country’s ability to meet the many challenges it faces today.

Keywords: 'American System,' capitalism, development, development finance, development finance state, digital dollar, finance, First Bank of the US, national investment authority, open market operations, state capitalism