Managing Change in the Twenty First Century
1. Evolution of the developmental state The 1980s witnessed the growth of a consensus among many development agencies and Western governments that development was best promoted by laissez-faire policies and limited government. This reflected the growing economic problems both in the communist command economies and in the many developing nations that had tried to promote import substitution industrialization. This was ironic, however, because at the same time there was growing recognition of the rapid development that was occurring in many Asian countries with highly interventionist governments (Clark and Roy, 1997; World Bank, 1993). Consequently, an important branch of political economy began to emphasize the ‘developmental state’ (Evans et al., 1985; Johnson, 1982). This book, thus, analyses the role of the state in Asia during the post-war era. The first two chapters develop the theoretical framework that will structure our analysis. This chapter provides an overview of the evolution of the developmental state, and Chapter 2 discusses the institutional factors that shape the nature and performance of state economic activities. The controversy of the role of the state in development has certainly not abated over the past several decades. Chapter 3 looks at the specific institutional foundations of the Asian states included in our analysis. The next three chapters then provide summaries of the socio-economic performances of the developmental states under consideration here: Chapter 4 on trade, technology and industrialization; Chapter 5 on growth and income distribution; and Chapter 6 on poverty and human development. Based on these descriptive materials, Chapter...
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