Concession, an agreement under which a country gives a foreign company or individual the right to exercise some kind of economic activity on its soil, such as extraction of minerals, the construction and operation of enterprises, etc. A concession granted by a government to an alien (or a foreign private firm) is regulated by that country’s legislation. The country may terminate the operations of a concession any time. Capitalist monopolies and the bourgeois state use concessions as a tool to exploit the peoples of newly liberated countries and a means of furthering the policy of neocolonialism. In the period of transition from capitalism to socialism, the Soviet state provided concessions on a limited scale in order to rebuild its economy, which had been devastated by the foreign intervention and Civil War. In 1923-24 the share of state capitalism in the form of concessions and leases accounted for slightly more than 3 per cent of the country’s gross industrial output. The socialist countries’ experience in attracting state capitalism to help build socialism has been adapted by developing countries to establish their national economies.