Economic foundations 

Mehrdad Vahabi from University of Sorbonne Paris Nord opened the conference by tracing the origins and logic of political capitalism. In his speech which was entitled “The economic rationale of political capitalism”, he referred to Max Weber, who first distinguished two forms of capitalism in the early 20th century: rational market capitalism and political capitalism. Rational capitalism is based on free markets and profit-making through economic activities. In contrast, political capitalism gains profits through non-market channels such as political influence and control over state institutions. 

In his presentation Professor Vahabi emphasised that political capitalism is not a new or isolated phenomenon. It is a persistent and adaptive system that exists whenever political and economic power unite.  

He identified four major ways political capitalism manifests in contemporary economies: distortion of democracy through regulatory capture; capitalisation of institutions; profit-making via control of public resources; and the formation of domination relationships by fusing political and economic power (sovereignty and property rights). 

Examples include different models of political capitalism: the U.S., where business controls the state, and countries like China and Russia, where the state controls business but often acts like a corporation itself. 

The researcher concluded that political capitalism shifts the main source of wealth from market productivity to institutional control and political power. This blend of sovereignty and property is a defining and enduring feature of political capitalism, making it a powerful system that challenges the foundations of traditional market capitalism. 

Challenging class divisions 

In his presentation about “The new capitalism: the elites in the West and China”, Branko Milanovic from the City University of New York, explored the emergence of a new capitalist elite in the West and China, characterised by individuals who earn both high labor and capital incomes, a phenomenon he termed with the Greek word “homoploutia” (“equally wealthy”).  

Unlike traditional capitalism, where workers and capitalists were different classes, this new elite blurs the lines by simultaneously holding top positions in both categories. “Homoploutes” are wealthy both as workers and as capitalists, making them resilient to economic fluctuations. In the U.S., this elite group comprises approximately 3% of the population, and its rise is closely tied to meritocracy and higher education. 

The concept of “homoploutia” challenges traditional class divisions, suggesting that if this dual-income structure were to extend across the entire income spectrum, class distinctions could dissolve. However, as it stands, it is mainly confined to the top of the income distribution. This elite is ideologically aligned with meritocratic values, often attributing their success to personal effort while displaying contempt for the less wealthy. 

Professor Milanovic also touched upon the development of this new capitalist elite in China, highlighting the rapid rise of capital income and the increased presence of private sector elites in the top 5% of income earners. The elite in China is increasingly composed of capitalists and private-sector professionals, with significant overlap between Communist Party membership and wealth. 

Corruption emerges as a powerful mechanism of upward mobility in China. Data on convicted officials shows that those involved in corruption often move from the top 7% to the top 1% of income earners. Provincial-level corruption is prevalent, but officials on national level tend to amass more wealth due to their higher power and access to resources. This interconnection of corruption and political power exemplifies the dynamics of “political capitalism”, where economic and political influence reinforce one another. 

Global outlook  

In his speech about “political capitalism vs. communist totalitarianism”, Chenggang Xu from Stanford University, broadened the discussion to the worldwide consequences of political capitalism, arguing that it is no longer confined to authoritarian states but has spread into liberal democracies as well. 

He focused on the role of “dark money” in U.S. politics — anonymous donations that allow wealthy individuals and corporations to influence elections and policy-making. This financing of politics enables economic elites to shape democratic institutions in their favour, weakening political equality. 

Professor Xu also highlighted the global impact of Chinese state-backed enterprises, which operate as extensions of the state itself. These firms blend corporate interests with political objectives, merging market and state power in a way that challenges traditional distinctions between public and private sectors.  

He argued that political capitalism combines market mechanisms with state authority, undermining democracy and increasing economic inequality worldwide. This hybrid system elevates the power of elites and concentrates wealth, raising urgent concerns about governance and fairness. 

In conclusion, the researcher called for stronger regulatory frameworks to limit the influence of economic elites on state institutions. He advocated for greater transparency, accountability, and democratic oversight to protect public interests and ensure that political capitalism does not erode democratic values. 

The conference made clear that political capitalism is a complex and multifaceted global phenomenon. It takes different forms depending on political and historical contexts but shares a core characteristic: the fusion of political power and economic control.