Aldo Musacchio

Carl J. Shapiro Professor of International Finance, Brandeis International Business School

Research Associate, National Bureau of Economic Research (NBER)

Brandeis page | @MusacchioAldo | LinkedIn | @NBER |  @Amazon Author

aldom [at] brandeis [dot] edu

Aldo Musacchio is the Carl J. Shapiro Professor of International Finance at Brandeis University, Director of the Perlmutter Institute for Global Business Leadership, and a Research Associate at the National Bureau of Economic Research (NBER). His research examines the role of governments in economic development, with a particular focus on state-owned enterprises, development banks, industrial policy, innovation, and corporate governance. Combining insights from economic history, economics, and strategy, his work has explored topics ranging from the historical origins of financial and educational institutions in Latin America to the performance of state-owned enterprises, sovereign wealth funds, and government-backed innovation programs. He is the author of Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond (Harvard University Press) and numerous articles published in leading journals in economics, management, and public policy.

Beyond academia, Musacchio has worked extensively with governments and international organizations to improve public sector performance and manage fiscal risks. He has advised the World Bank, the Inter-American Development Bank (IDB), the OECD, and governments throughout Latin America on state-owned enterprise reform, impact and efficiency in state-owned banks,  infrastructure governance, development finance, and fiscal risk management. His policy work includes leading research and advisory projects on the governance and financial sustainability of state-owned enterprises, the role of development banks, and the fiscal risks associated with public infrastructure. He is a co-author of the World Bank book Off the Books: Understanding and Mitigating the Fiscal Risks of Infrastructure and co-editor of the IDB volumes Fixing State-Owned Enterprises: New Policy Solutions to Old Problems and Smoldering Embers: Do SOEs Threaten Fiscal Stability in the Caribbean?, which have informed policy discussions on public enterprise reform and government ownership across the world. Among their contributions is the design of best practices for SOE monitoring agencies, tools to measure creditworthiness in state-owned enterprises, as well as new accounting tools to measure and prevent fiscal risk.

Follow us on Twitter @StateCapitalism and Facebook 

Review in the Schumpeter column (The Economist)

Read the introduction of the book here

Do you want to teach about this topic using HBS cases, this note explains what cases to use and how.

Here is the summary of the book according to ChatGPT

"Reinventing State Capitalism" explores the evolution of state capitalism in the 21st century. The book focuses on the experiences of state-owned enterprises (SOEs) in emerging markets, specifically in China, Brazil, and Russia. Musacchio and Lazzarini argue that state capitalism has undergone a transformation in recent years, moving away from the traditional model of state control over industry and towards a more market-oriented approach.

The book uses case studies of SOEs in the energy, telecommunications, and transportation sectors to illustrate his points. He notes that these enterprises have become more competitive, efficient, and profitable under the new model of state capitalism. However, he also acknowledges that there are challenges to this approach, including the risk of corruption, the potential for political interference, and the need for regulatory frameworks that balance state ownership with market principles.

Throughout the book, the authors provide a nuanced analysis of state capitalism, drawing on a wide range of academic research and empirical evidence. He argues that state capitalism is not a monolithic concept, but rather a diverse set of practices that vary depending on the political and economic context. Musacchio and Lazzarini's  book is an important contribution to the study of state capitalism, offering insights into how this economic model is evolving and what the implications are for emerging markets and the global economy.