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Chapter Seven Summary

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University of Guelph
Political Science
POLS 2080
Adam Sneyd

Chapter Seven: State of the State  State: an entity with monopoly over the means of force within a designated territory that it controls, enjoying legitimate support for that monopoly from the majority of the population residing in the territory and recognition of its control by other states, and is empowered by the population with making public decisions o This is considered a Eurocentric concept of the state created by people who see it as a normative experience  Most European states have developed their respective identities over 1000+ years o Because of this the state in the developing world is seen as illegitimate and artificial because its historical experience was through colonialism rather than experiences over time  The developing state can still makes decisions however it lacks the legitimacy that is afforded to developed states  The economies of colonies were set up with mercantilism in mind, something that has continued through neo- colonialism despite the removal of actual colonial rulers o This is seen through the continued military involvement of the former colonial rulers and the developing governments that are full of corruption o There was a combination of force and co-optation used to extract resources and control populations o While under neo-colonial influence it is nearly impossible to create sustainable development Defining the State‟s Role in Development  There are two distinct views on this: the compradorial view and the Weberian view  Compradorial state view: o Sees the post-colonial state as run by an elite „bought out‟ by and/or in alliance with foreign governments, investors, or military or tied to the local resource-owning and internationally oriented capitalist class o Coined by “radical” Marxist thinkers  Weberian (Max Weber) view: o In contrast, sees the modern state guided by a rational-purposeful nationalism. That is, colonialism can no longer prevent the developing state from leading a government that is purposeful, rational, and legitimate State Capacity and Autonomy  State capacity is used to suggest that developing states may not be as capable of weighing technical decisions as their counterparts in the North: they lack well-trained personnel, up-to-date equipment, and have considerably smaller budgets o An example of this could be that developing states seem to lack meritocratic hiring practices  State autonomy is used to assess the degree of „insulation‟ a state has from social and external forces  Embedded autonomy is a term used by Peter Evans to refer to states that develop strong networks ties with foreign and domestic elites yet manage to retain some degree of autonomy for the pursuit of national interest  Miguel Angel Centeno argued that a lack of state autonomy (specifically in Latin America) may be due to the absence of a strong sense of nationalism o This is contrasted by the United States which has things such as their civil war (which worked) and the Declaration of Independence to support their national identity Central Debates about the Role of the State in Economic Development The Push for Early Industrialization th  Broken down into Keynesianism and neoliberalism in the 20 century  The concern with “modernization” was that it would free up so much labour that it would drive the actual profitability of the labour to rock bottom prices o Lewis believed this to be a good thing because that would attract more industry and spur development, leaving the state out of the equation entirely o There was little proof of this happening post-WW2 in Asia and Africa so Keynesianism took over  In the 1960s the idea of modernization was directly linked to modernization –the goal was to create a healthy and thriving middle class  State-sponsored industrialization was linked to Soviet Union and China, a model later rejected due to the flaws of socialist regimes –the standard of living was considered far below that of Western countries o There was also a lot of repression in socialist states o Even in communist states such as China there was an elite that lived a better life  Industrialization in Latin America took the form of Import Substituting Industrialization (structuralism), a middle ground between market and state involvement o Industrialization through market and „healthy‟ state involvement was supported by the „Structuralist School‟ (UN-ECLA) led by Raul Prebisch and Latin American economists o He argued that the state was needed in the beginning to facilitate the creation of the industrialized state –believed manufactured goods superior to commodities because commodities never became more sophisticated  Prebisch called for regional integration to achieve a more efficient industrial sector –southern countries sell to each other so they can build up their economies to compete with the North  At the time, industrialization meant investment in large-scale projects, such as airports and hydroelectric dams –a “big push” supported by Rosenstein and Rodan o Hirschman‟s idea of “linkages” states that one industry (such as an automotive industry) props up mining, steel, rubber, manufacturing, retail, etc. and that it may be impossible for the state to create all of this on its own  By 1970, disillusionment followed the state‟s role in Latin America‟s development experience  Gerschenkron believed that due to a lack of protectionism in the banking systems of developing states they lost a lot of money and educated people to foreign countries –large scale access to higher education would solve this  The OPEC caused tailspin of the economy in the 70s and 80s led to disillusionment with Keynesianism which ushered in neoliberalism Rise of and Justification for Neoliberalism  Market-based economics appealed to sout
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