pol201y1: politics of...
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POL201Y1:PoliticsofDevelopmentLecture11:
Developmentalstates
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Recap• State-makinginEurope:
� Warà� Statecapacityà� Representativenessandaccountability+ruleoflawà� ‘Denmark’
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Recap• State-makingelsewhere:
� LatinAmerica:� Warfinancedbyexternalprovisionofdebtà� Noneedtobargainwithpopulations
� PrecolonialAfrica:� Littleinternationalcompetitionà� Nocontrolovertheperiphery
� PostcolonialAfrica:� Internationalprotectionofnegativesovereignty,fewwarsà� Noneedtoestablishstrongstatecapacity
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Asia
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Asia
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AsianTigers
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Asia• WhyareHongKong,Japan,SouthKorea,andTaiwan(and,increasingly,MainlandChina)somuchricherthantherestofthecontinent?
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Developmentalstates• “Organizationalcomplexesinwhichexpertandcoherentbureaucraticagenciescollaboratewithorganizedprivatesectorstospurnationaleconomictransformation”� Doner,RF,BKRitchie,andDanSlater.2005.“SystemicVulnerabilityandtheOriginsofDevelopmentalStates:Northeastand
SoutheastAsiainComparativePerspective.”InternationalOrganization 59:327–61.
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Developmentalstates• Statedevelopmentcapitalism:
� Stateautonomy� Stateinterventionintheeconomy,extensiveregulationandplanning� Collaborationofthestatewiththeprivatesector� Export-orientedindustrialization
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WhyhaveEastAsiancountriesbeensosuccessful,whileothershavefailed?
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Export-ledindustrializationvs.ISI
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Export-ledindustrialization• Successfuldevelopmentalstates
• ButalsoPhilippines,PuertoRico,etc.
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Investmentandsavings• Rapidgrowthindomesticsavingsà
• Highratesofinvestment (exceeding20%ofGDPonaveragebetween1960-1990)
• Highratesofprivateinvestment
• Successfulallocationofcapitaltohigh-yieldinginvestments
• Alsohighandrisingendowmentsofhumancapitalduetouniversalprimaryandsecondaryeducation� Page,JohnM.1994.“TheEastAsianMiracle:AnIntroduction.”WorldDevelopment 22(94):615–25.
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Governedmarket• State-corporatistpoliticalarrangements(e.g.controloverfinancialsystems)à
• Statecapacitytoleadtheeconomythroughtheuseofincentives,controloverunions,andmechanismstospreadriskà
• Highlevelsofproductiveinvestments
• Combinationofprotectionismwithexportorientation� Wade,Robert.1990.GoverningtheMarket,Princeton,N.J.:PrincetonUniversityPress.
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Stateautonomy• Concentrationofpowerattheapexanduseofstatepowertodisciplinesociety
• Authoritarianism
• Repressionoflabour
• Controloversociety� Atul Kohli.2004.State-DirectedIndustrialization:PoliticalPowerandIndustrializationintheGlobalPeriphery.Cambridge:
CambridgeUniversityPress.
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Embeddedautonomy• “Autonomy isfundamentaltothedefinitionofthedevelopmentalstatebutnotsufficient.Theabilitytoeffecttransformationdependsonstate- societyrelationsaswell.Autonomousstatescompletelyinsulatedfromsocietycouldbeveryeffectivepredators.Developmentalstatesmustbeimmersedinadensenetworkoftiesthatbindthemtosocietalallieswithtransformationalgoals.Embeddedautonomy,notjustautonomy,givesthedevelopmentalstateitsefficacy”
• Necessityofthestate—andhighlydeveloped,coherentbureaucracy—forthemobilizationofcapitalandcoordinationofindustrialdevelopment
• Embededdness ofthebureaucracyininformalnetworks
• Embeddednessprovidessourcesofintelligenceandchannelsofimplementationthatenhancethecompetenceofthestate
• Autonomypreventsstatecapture� PeterEvans.1995.EmbeddedAutonomy:StatesandIndustrialTransformation.Princeton:PrincetonUniversityPress.
KarolCzuba,U
niversityofToron
to
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Internationalsystem• Contradevelopmentalstatesashighlyautonomousentities
• Politicalelitesonlyinvestindevelopmentalinstitutionalarrangementswhenconfrontedwith‘systemicvulnerability’:� Crediblethreatthatanydeteriorationinthelivingstandardsofpopularsectorscouldtriggerunmanageablemassunrest
� Heightenedneedforforeignexchangeandwarmaterielinducedbynationalinsecurity
� Hardbudgetconstraintsimposedbyascarcityofeasyrevenuesources
• SystemicvulnerabilityinSingapore,SouthKorea,andTaiwan,butnotinIndonesia,Malaysia,thePhilippines,orThailand� Doner,RF,BKRitchie,andDanSlater.2005.“SystemicVulnerabilityandtheOriginsofDevelopmentalStates:Northeastand
SoutheastAsiainComparativePerspective.”InternationalOrganization 59:327–61.
KarolCzuba,U
niversityofToron
to
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Historicallegacies—landdistribution• RelativelyequitablelanddistributioninEastAsiaà
• Equitabledistributionofwagesandsalariesà
• Littlesocialconflictandinflationà
• Highsavingsrates� Amsden,AliceH.1991.“DiffusionofDevelopment:TheLate-IndustrializingModelandGreaterEastAsia.”TheAmerican
EconomicReview81(2):282–86.
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niversityofToron
to
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Historicallegacies—colonialism• Stateinterventioninsupportofinvestorprofitsaspreconditionofindustrializationamonglate-late-developers.
• Stateinstitutionsindevelopingcountriesasaproductofcolonialism:� Cohesive-capitaliststates(developmentalstates):e.g.Korea� Fragmented-multiclassstates:e.g.India� Neopatrimonial states:e.g.Nigeria
• JapanesecolonialismasthesourceofSouthKorea’ssuccess:� Koreanstatewastransformedfromacorruptandineffectiveinstitutionintoahighlyauthoritarian,penetratingorganization,capableofsimultaneouslycontrollingandtransformingKoreansociety.
� Production-orientedalliancesinvolvingthestateanddominantclassesevolved,buttressingthestate’scapacitytobothcontrolandtransform,leadinguptoconsiderableexpansionofmanufacturing.
� Thelowerclassescametobesystematicallycontrolled(andbrutallyrepressed)bythestateanddominantclasses.� Atul Kohli.2004.State-DirectedIndustrialization:PoliticalPowerandIndustrializationintheGlobalPeriphery.Cambridge:
CambridgeUniversityPress. KarolCzuba,U
niversityofToron
to
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Complexsequencing• Subsidizationofbusinessà
• Impositionofperformancestandardsà
• Growthà
• Statemorecommittedtoeconomicdevelopmentà
• Moreresourcesfordevelopmentà
• Moregrowth� Amsden,AliceH.1991.“DiffusionofDevelopment:TheLate-IndustrializingModelandGreaterEastAsia.”TheAmerican
EconomicReview81(2):282–86.
KarolCzuba,U
niversityofToron
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AredevelopmentalstatesexclusivelyEastAsian?
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DevelopmentalstatesinAfrica• ‘Developmentalist’statesinAfricainthe1960sand1970s
• Destructionofstatecapacitythroughstructuraladjustmentpolicies� Mkandawire,T.2001.“ThinkingaboutDevelopmentalStatesinAfrica.”CambridgeJournalofEconomics25(3):289–314.
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DevelopmentalstatesinAfrica
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