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through banking channels, so we can name it as Bank Capitalism. In these countries, banks not

only function as financial intermediaries but they play a more vital rolethey act as a monitor,

consultant or advisor. They stop advancing credit to firms that are being governed badly and are

not ready to pay heed to the advice of the bank. Careless and more risky lending or

misgovernance in banks themselves can cause serious problem in such a system.

Yet there is another type of capitalism where government collects taxes and provides capital to

businesses. Government officials play the roles of monitors and regulators and have the right to

intervene into the management matters of corporations if they fail to perform. But role of

governments in accumulation and allocation of capital remained also present in so-called free-

market-economieshistorically by the name of Industrial Policies. Government intervention or

control, in extreme form, leads to socialism.

Fact of the matter is that no single country could be found as practicing purely any of the three

forms of Shareholders, Banks or State Capitalism. Each form of Capitalism has emerged from

unique socio-political circumstances and has its own benefits and challenges.

Variants of Capitalism

Like democracy, capitalism has different forms and shapes in different countries. Some of them

are as under:

Canada:Shape of capitalism in Canada is affected by it historyfirst being French andthe British colony. Pyramidal groups gained and lost control in Canadian history.

Netherlands: It has the oldest stock market in the world and Joint Stock Companiesoriginated here. Dutch East Indies Companies is believed to be the first widely held Joint

Stock Company which was formed in 1602.

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China: Late nineteenth-century Chinas first generation of industrial firms floated equityyet remained under state control. Modeled on the imperial salt monopoly, these ventures

were financed and operated by private merchants, but ultimately controlled by imperial

bureaucrats.

France:Before 1789, due to religious prohibition of interest, there was no formal conceptof debt in France. Stream of revenues had to be separated from investment ownership.

But in 1789, the revolutionary government changed the usury laws and formal debt

became available to corporations.