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Ch 9.docx

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Gabrielle Sauter

Chapter 9: Governing Development The State’s Role within Development -Southern govts may seem to be unlikely candidates as agents of development: externally they are often constrained by unequal international geopolitical relationships, and internally their relationships with their own citizens are often far from perfect. The rise, fall, and return of the developmental state -During the period of rapid decolonization of the Global South following World War II, the idea that national govts should actively direct social and economic change was a central theme in development thinking -decolonization leads to great national identity, thus many leaders of newly emergent nations in the South could therefore legitimately claim that they had a mandate to undertake sweeping social and economic changes -evidence by the Great Depression, private markets needed a degree of govt regulation -economies of many Southern countries at independence were still largely based around primary industries, such as agriculture and mineral extraction, an economic structure that reflected colonial needs for the South to act as a source of raw materials and as a market for European manufactured goods rather than the needs of the nation’s themselves. Radical economic change to reflect the new political realities seemed necessary -projects the Tennessee Valley Administration (think back to his272) were virtually impossible for the private sector to conduct in the Global South -owing to their massive scale -scarcity of capital -long term nature of the investment required -Many southern govts, supported by international aid, did undertake such ‘mega’ development projects (dam building programmes in Colombia; one of the WB’s first projects) -success: provide key infrastructure that enabled future growth -failures: overambitious or inefficient -experiences of European postwar reconstruction and, in particular, the rapid industrialization of Japan all suggested that the state had a role to play in dev. That went beyond ind. Projects: to manage the economy to actively direct growth -the lesson seemed that the state needed to replace the private sector if the South was to catch up -done by: 1. aiming to raise national manufacturing industry itself, such as limiting import of foreign products(Import Substitution Industrialization (ISI)) 2. boost industrial growth by shaping national economic parameters - govts control of the banking sector could direct national savings towards growth areas -control of agricultural markets ensure a reliable and cheap supply of food to industrializing areas -control of foreign exchange rates could help promote the export of a countrry’s manufactured goods abroad -developmental states: a state that takes an active role in directing (rather than merely regulating) the drive towards economic growth, particularly through industrialization -there are risks with the govt control -ISI often results in the delivery of second rate products -corruption -whose interests are represented within state-led development (usually target toward a favoured part of the population or a part of the population with something to contribute like natural resources) -related dangers of excessive central control have led to calls for alternative forms of development that challenge standardization and involve community-based planning or decentralized market-led development approaches -harder today for state-led economic control with many countries (especially from the South) rely/receive contribution of foreign aid and investment. Modernization Theory -central problem was how to achieve rapid transformation toward modern, industrialized societies -answer: learn from the North Reforming the State -recent interest in good governance has usually started from the assumption that states in the Global South need to improve the quality of their rule. The reasons for this are not hard to find: -in most southern countries, state-led development has not led to the dramatic transformations hoped. Often due to inefficient or corrupt intervention -according to neo-liberal ideas of market-led development (that became globally important): states in the south were trying to do too much, and doing it badly -Good governance: a developmental agenda, associated particularly with the World Bank, aimed at improving the quality of governance within Southern Countries -Millennium development goals (MDGs): series of developmental targets internationally adopted in 2000 that focus on improving living conditions for the poorest -poverty alleviation targets -there are strong arguments for setting global governance standards on both developmental and humanitarian grounds, and for making improvements in governance a central concern of international development agencies. -Worldwide Governance Indicators: created to provide a reliable statistical measure on governance -indicators based on perception data of 1. Voice and accountability:
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