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GGR345H5 Chapter Notes -Worldwide Governance Indicators, Millennium Development Goals, Good Governance


Department
Geography
Course Code
GGR345H5
Professor
Gabrielle Sauter

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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
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