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Week of September 30, 3B03

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McMaster University
Political Science
Richard Stubbs

Week of September 30, 2013 Political Science 3B03 S EPTEMBER 30, 2013 Developmental State SUMMARY OF CLASS BY R ICHARD STUBBS Different analysts have viewed the Developmental State in slightly different ways. For example: Chalmers Johnson the originator of the concept emphasizes the institutional aspects: 1) Small inexpensive elite bureaucracy staffed by the best managerial talent available. 2) Political system in which the bureaucracy as the key decision makers has relative autonomy – the politicians reign and the bureaucrat‟s rule. 3) A pilot agency that controls industrial development. 4) Perfection of market conforming methods of state intervention. Phil Deans writing on China emphasizes more the ideational aspects of the Developmental State. 1) Public/private distinction blurred. 2) State ideology rooted in nationalism and paternalistic capitalism. 3) State‟s authority rooted in developmental legitimacy or what can be termed „performance legitimacy‟ as opposed to „process legitimacy‟. 4) Plan rationality. 5) Autonomous economic technocratic elite committed to reform. There have emerged different and in some ways competing explanations for the rise of the developmental state and the general prosperity of the East Asian region. 1) Neo-classical economic approach rooted in economics and the „liberal‟ approach to IPE. 2) Statist approach, which argues that the state played a significant role in promoting economic development through a planned industrial policy. 3) Japan-centered approach, which emphasizes Japan‟s colonial ties to South Korea and Taiwan and also the extent to which the Japanese economy became the engine of growth for the region. 4) US Hegemony approach which emphasizes the US role in the region. 5) Cultural explanation, which emphasizes the advantages to the region conferred by Confucian culture. Which of these explanations is best at helping us understand East Asia‟s economic success from the 1950s to the early 1980s? JOHNSON &I NSTITUTIONS - Elite bureaucracy - Bureaucratic autonomy - Pilot agencies - Market conforming o Where as Amsden talks about Market Distorting; o Depends on industrial structure; PHIL DEANS & IDEATIONAL - Public and Private are blurred; o In North America; we know what part is public and what part is private; 1 Week of September 30, 2013 Political Science 3B03 o In the developmental state is it difficult to distinguish the line between the private and public; o Developmental states; political parties are heavily involved in the economy; o EXAMPLE: Malaysia; “401” North-South highway; and it is the private and public are difficult to disentangle here; o Singapore; two sovereign wealth funds; which is money that is put aside by governments for a rainy day. In the developmental state; the private and public is blurred; state is involved in the economy; military can be involved in the economy. - State ideology of paternalistic capitalism; o State agencies in the 50s and 70s‟ all banks were owned by the state; o State ran the capitalist sector; in a sense in a paternalistic way; “the state knows best” - Performance legitimacy; o In North America and in Europe; we have a different notion of legitimacy. The process by which they get into power that‟s really important; “input” or “process” legitimacy; it is the legitimacy that governments obtain; and as such get to be governments. o Output performance; people accept they are legitimate because they provide economic prosperity, social stability and external.  Directly after the second world war – economic chaos, rubble and social fabric torn apart; and developmental states came in and stabilized everything; accept decisions because it benefits me; o “Willingness” of the population to obey this government o Developmental state did not have elections; Japan elections, but not in Hong Kong or Taiwan and South Korea until the late 80s and 90s. The government maintained its legitimacy in the developmental state due to performance; - Autonomous Bureaucracy; - Planned Rationality; o Idea of planning „rational‟ over a long period of time; o Example: if you are going to emphasize shipbuilding and car manufacturing need steel industry, need energy, need to put in place the capacity to generate energy. The argument is that they planned the development of the economy in a rational way. The concept of the developmental state can be looked at differently. JAPAN & S OUTH K OREA - Conglomerates; big industrial groupings usually around a bank. - Trading house - Another corporation that looks after resources; - Corporation dealing with R&D (Research and development) - South Korea (colony of Japan) and therefore took over conglomerate model; T AIWAN AND H ONG K ONG - Small family owned companies; who networked amongst each other for a project - Rather than having big corporations had family owned; - Taiwan – Guerrilla capitalism; small companies rushing around and making money through networks; 2 Week of September 30, 2013 Political Science 3B03 - Singapore – Foreign direct investment; DIFFERENT EXPLANATIONS FOR THE DEVELOPMENTAL STATE & SUCCESS MARKET ORIENTED ; NEO -CLASSICAL ECONOMIES - Allowed the market to set the prices; - Kept the government out - Argument; neo-classical economist - At the time during the 60s and 70s (ISI) and (ECLA was big) - Economist were saying no; get rid of ISI and keep the government out; and look at Japan and Korea and etc. because they‟ve done really well and the market was open; - Original explanation; JOHNSON ‟S EXPLANATION – STATIST APPROACH - The state steps in and runs the economy; - Statists; - Alex Amsden; Robert Wade; - Wade goes to Taiwan –GOVERNING THE MARKET o ITS THE STATE THAT’S INVOLVED IN GUIDING AND GOVERNING THE MARKET; Alex AMSDEN  Market rationality X priorities of industrialization JAPANESE EXPLANATION A TUL K HOLI  Japanese centered argument; colonial strategies;  Region of japan has been the locomotive that‟s been pulling the region all along;  Rise of the economy meant that they were the locomotives that pulled the whole East Asian train along.  Problem does not tell us very much about why Hong Kong/Singapore was successful or perhaps Malaysia; o Singapore was never colonized by the Japanese; o Japanese destroyed Singapore; so did not do too much; o Problem with the Kholi argument  Can’t say that Japan was the factor in all developmental states US HEGEMONY ARGUMENT  Country tha
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