Abstract
This chapter looks at the origins of the classic developmental states and differentiates between the agency and urgency views explaining the emergence of developmentalist institutions and policies in the twentieth century. By recalling the experiences of the Northeast Asian model-cases it puts special emphasis on the political-economic explanation of Doner et al. (International Organization 59(2): 327–361, 2005), the so-called systemic vulnerability concept, and aims to apply its logic and reinterpret its mechanisms under the new circumstances of the twenty-first century. First it reveals the changes in the external conditions of aspirational developmental states in the first two decades after the Millennium, and highlights the dynamics of contextual changes both in economic and political terms. Then it turns towards the domestic arena and aims to provide a political economy interpretation of the challenges of building developmentalist institutions and strategies in the twenty-first century. The aim is to contribute to a better understanding of the scarcity of catching up success stories and re-open the debate on the origins of developmental states.
This research was conducted in the framework of the research project “From developmental states to new protectionism: changing repertoire of state interventions to promote development in an unfolding new world order” (FK_124573) supported by the National Research, Development and Innovation Office (NRDIO) of Hungary.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Wide-ranging debates surround the Chinese growth story and whether it can be considered as a developmental state (see e.g. Boltho and Weber 2009; Knight 2014; Naughton 2017; Székely-Doby 2020). For a rather narrow focus on the new Chinese developmental state and its green industrial policies see Szalavetz, this volume.
- 2.
Though obviously even these societies reveal social stratification and can be clustered around social classes, the argument here is, that social (ethnic, racial, religious) cleveages were much smoother in the cases of classic developmental states, than is usually the case in Latin America, Sub Saharan Africa, or even in many countries in South Asia.
- 3.
The reference here is not to the exclusive and decisive role of Confucianism (as many critics to developmental state highlight that Confucianism was present in these communities even before the World War II, and that Confucianism is also present in other countries in Southeast Asia, such as in Thailand and Malaysia, which did not experience comparable economic miracles), however communitarian values such as obligation and loyalty to the family, obedience to legitimate authority, high value placed on hard work, education and self-discipline have played an important role in the social constructs of classic developmental states (see Pye 1985; Stubbs 2005).
- 4.
According to the embedded autonomy concept the meritocratic bureaucracies of the classic DS are not insulated from the society (in Weberian sense), “on the contrary they are embedded in a concrete set of social ties that binds the state to society and provides institutionalized channels for the continual negotiation and renegotiation of goals and policies” (Evans 1995: 12).
- 5.
- 6.
Fine and Pollen (2017) refer to this challenge as financialization (‘the extraordinary growth of finance’), and highlight its wide-ranging consequences, such as the influence of finance regarding investments, value judgements, and more broadly extending over economic and social policy issues, and as a result constraining (or at least transforming and conditioning) the prospects for development, or even for developmental states to emerge.
- 7.
References
Acemoglu, D. – Robinson, J A. (2006): Economic Origins of Dictatorship and Democracy. Cambridge, UK: Cambridge University Press.
Acemoglu, D. – Robinson, J A. (2012): Why Nations Fail: The Origins of Power, Prosperity and Poverty. New York: Crown Publishers.
Acemoglu, D. – Robninson, J. A. (2019): The Narrow Corridor: How Nations Struggle for Liberty. London: Penguin Books.
Agénor, P. R. – Canuto, O. – Jelenic, M. (2012): Avoiding Middle-Income Growth Traps. The World Bank, Economic Premise, Nr. 98.
Amsden, A. (1989): Asia’s Next Giant: South Korea and Late Industrialization. New York, NY: Oxford University Press.
Amsden, A. H. – Di Caprio – Robinson, J. A. (2012): The Role of Elites in Economic Development. Oxford: Oxford University Press.
Beeson, M. (2004): The Rise and Fall (?) of the Developmental State: The Vicissitudes and Implications of East Asian Interventionism. In: Low, L. ed.: Developmental States: Relevancy, Redundancy or Re-configuration. New York, NY: Nova Science Publisher. pp. 29–40.
Benczes I. (2000): Válság és átalakulás a Távol-Keleten. (Crisis and Tranformation in the Far East). Külgazdaság, 44(3): 56–75.
Benczes I. (2002): A fejlesztő állam válsága Ázsiában. (The Crisis of Developmental State in Asia). Külgazdaság, 46(5): 23–40.
Bermeo, N. (2016): On Democratic Backsliding. Journal of Democracy, 27(1): 5–19.
Boltho, A. – Weber, M. (2009): Did China Follow the East Asian Development Model? The European Journal of Comparative Economics, 6(2): 267–286.
Clift, B. (2019): Economic Patriotism, the Politics of Market-Making, and the Role of the State in Twenty-First-Century Capitalism. In: Gerőcs – Szanyi eds.: Market Liberalism and Economic Patriotism in Capitalist Systems. The Role of State in Varieties of Capitalism (SVOC). Cham: Palgrave Macmillan. pp. 9–21.
Cornia, G. A. ed. (2014): Falling Inequality in Latin America: Policy Changes and Lessons. Oxford: Oxford University Press.
Csaba L. (2018): Válság–gazdaság–világ: Adalék Közép-Európa három évtizedes gazdaságtörténetéhez (1988–2018). (Crisis–Economy–World: Addendum to the Three-Decade Economic History of Central Europe, 1988–2018). Budapest: Éghajlat Könyvkiadó.
Doner, R. F. – Ritchie, B. K. – Slater, D. (2005): Systemic Vulnerability and the Origins of Developmental States: Northeast and Southeast Asia in Comparative Perspective. International Organization, 59(2): 327–361.
Doner, R. F. – Schneider, B. R. (2016): The Middle-Income Trap: More Politics than Economics. World Politics, 68(4): 608–644. doi: https://doi.org/10.1017/S0043887116000095.
Edigheji, O. ed. (2010): Constructing a Democratic Developmental State in South Africa: Potentials and Challenges. Cape Town: HSRC Press.
Evans, P. B. (1995): Embedded Autonomy: States and Industrial Transformation. Princeton, NJ: Princeton University Press.
Fine, B. (2013): Beyond the Developmental State: An Introduction. In: Fine, B., Saraswati J. – Daniela, T. eds.: Beyond the Developmental State: Industrial Policy into the Twenty-first Century. London: Pluto. pp. 1–32.
Fine, B. – Pollen, G. (2017): The Developmental State Paradigm in the Age of Financialization. In: Munck, R. – Fagan, H. eds.: Handbook of Development and Social Change.
Gereffi, G. (2014): Global Value Chains in a Post-Washington Consensus World. Review of International Political Economy, 21:1, 9–37.
Gerőcs , T. – Szanyi, M. eds. (2019): Market Liberalism and Economic Patriotism in Capitalist Systems. Cham: Palgrave Macmillan.
Gerschenkron, A. (1962): Economic Backwardness in Historical Perspective. A Book of Essays. Cambridge, Mass.: The Belknap Press of Harvard University.
Haggard, S. (2018): Developmental States. Cambridge: Cambridge University Press.
Huntington, S. P. (1991): The Third Wave: Democratization in the Late Twentieth Century. University of Oklahoma Press, Norman.
Johnson, C. (1982): MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925–75. Stanford, CA: Stanford University Press.
Johnson, C. (1999): The Developmental State: Odyssey of a concept. In: Woo-Cumings, M. ed.: The Developmental State. New York, NY: Cornell University Press. pp. 32–60.
Knight, J. B. (2014): China as a Developmental State. The World Economy, 37(10): 1335–1347.
Kornai, J. (2016): The System Paradigm Revisited. Clarification and Additions in the Light of Experiences in the Post-Socialist Region. Acta Oeconomica, 66(4): 547–596.
Kurlantzick, J. (2013): Democracy in Retreat. The Revolt of the Middle Class and the Worldwide Decline of Representative Government. Yale University Press, New Heaven – London.
Kurlantzick, J. (2016): State Capitalism: How the Return of Statism is Transforming the World. New York, NY: Oxford University Press.
López-Calva, L. F. – Lustig, N. C. (2010): Declining Inequality in Latin America: A Decade of Progress? Washington DC: Brookings Institution Press.
Low, L. ed. (2004): Developmental States: Relevancy, Redundancy or Re-configuration. New York, NY: Nova Science Publisher.
Mazzucato, M. (2013): The Entrepreneurial State: Debunking Public vs. Private Sector Myths. London: Anthem Press.
McCloskey, D. N. (2016): Bourgois Equality—How Ideas, not Capital or Institutions, Enriched the World. Chicago, IL: University of Chicago Press.
Mihályi P. – Szelényi I. (2019): Rent-Seekers, Profits, Wages and Inequality—The Top 20%. Palgrave Pivot Series, Cham: Palgrave-Macmillan.
Milanovic, B, (2012): Global Income Inequality by the Numbers: In History and Now. The World Bank, Policy Research Working Paper 6259. pp. 1–28.
Naughton, B. (2017): Is China Socialist? Journal of Economic Perspectives, 31(1): 3–24.
Nölke, A., ten Brink, T., May, C. – Claar, S. (2019): State-permeated Capitalism in Large Emerging Economies. Routledge, New York.
Onis, Z. (1991): The Logic of the Developmental State. Comparative Politics, 24(1): 109–126.
Pempel, T. J. (1999): The Developmental Regime in a Changing World Economy. In: Woo-Cumings, M. ed.: The Developmental State. Ithaca, NY: Cornell University Press. pp. 137–181.
Piketty, T. (2014): Capital in the Twenty-First Century. Cambridge, MA: Belknap Press.
Polanyi, K. (2001/1944): The Great Transformation: The Political and Economic Origins of Our Time. Boston, MA: Beacon Press.
Pye, L. W. (1985): Asian Power and Politics: The Cultural Dimensions of Authority. Harvard University Press, Cambridge.
Ricz, J. (2016): Developmental States in the 21st Century: Analytical Structure of a New Approach. Working Paper Nr. 223, Institute of World Economics, Centre for Economic and Regional Studies Hungarian Academy of Sciences.
Ricz, J. (2019): The Changing Role of the State in Development in Emerging Economies: The Developmental State Perspective. In: Szanyi, M. eds.: Seeking the Best Master: State Ownership in the Varieties of Capitalism. Budapest—New York: Centre for Economic and Regional Studies, Hungarian Academy of Sciences, Central European University Press. pp. 237–273.
Robinson, M. – White, G. (1998): The Democratic Developmental State: Politics and Institutional Design. Oxford: Oxford University Press.
Rodrik, D. (2011): The Globalization Paradox: Democracy and the Future of the World Economy. W. W. Norton & Co., New York.
Scheiring, G. (2020): The Retreat of Liberal Democracy: Authoritarian Capitalism and the Accumulative State in Hungary. Palgrave Macmillan.
Sen, A. (1999): Development as Freedom: Human Capability and Global Need. New York: Alfred A. Knopf: Anchor Books.
Stubbs, R. (2005): Rethinking Asia’s Economic Miracle. Palgrave Macmillan, New York.
Szanyi, M. ed. (2019): Seeking the Best Master: State Ownership in the Varieties of Capitalism. Budapest - New York: Center for Economic and Regional Studies, Hungarian Academy of Sciences, Central European University Press.
Székely-Doby A. (2020): The Chinese Developmental State: Threats, Challenges and Prospects. Issues & Studies: A Social Science Quarterly on China, Taiwan, and East Asian Affairs.
Szelényi I., & Mihályi P. (2020): Varieties of Post-Communist Capitalism: A Comparative Analysis of Russia, Eastern Europe and China. Series: Studies in Critical Social Sciences, volume 157, Brill.
Tapscott, C. — Halvorsen, T. — Cruz-Del Rosario, T. eds. (2018): The Democratic Developmental State: North-South Perspectives. CROP International Poverty Studies. Stuttgart: ibidem Verlag.
Wade, R. H. (1990): Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. Princeton, NJ: Princeton University Press.
Wade, R. (2018): The Developmental State: Dead or Alive? Development and Change, 49(2): 518–46.
Wilkin, P. (2016). Hungary’s Crisis of Democracy: The Road to Serfdom. London: Lexington books.
Williams, M. ed. (2014): The End of Developmental State. New York, NY: Routledge.
Woo-Cumings, M. ed. (1999): The Developmental State. New York, NY: Cornell University Press.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Ricz, J. (2021). On the Emergence of Developmental States in the Twenty-First Century: Urgency or Agency?. In: Gerőcs, T., Ricz, J. (eds) The Post-Crisis Developmental State . International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-71987-6_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-71987-6_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-71986-9
Online ISBN: 978-3-030-71987-6
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)