Different Models of Developmental State 0 169

Development-Stage

To put it bluntly, there isn’t one economic theory that can single-handedly explain Singapore’s success; its economy combines extreme features of capitalism and socialism. All theories are partial; reality is complex

Development-Stage

Prof. Ha-Joon Chang

  • Former Consultant – (UNCTAD, WIDER, UNDP, UNIDO, UNRISD, INTECH, FAO, and ILO),
  • Former Consultant – The World Bank, the European Investment Bank, the Asian Development Bank.
  • Former Consultant for the Governments of Argentina, Brazil, Canada, Ecuador, Indonesia, Japan, Malaysia, Mexico, Namibia, Saudi Arabia, Singapore, South Africa, UK, Uruguay, Venezuela, and Vietnam.
  • Winner of the 2003 Myrdal Prize.
  • Winner (jointly with Richard Nelson of ColumbiaUniversity) of the 2005 Leontief Prize for Advancing theFrontiers of EconomicThought awarded by Tufts University.
  • Winners of the Prize include the Nobel Laureates Amartya Sen and Daniel Kahnemann as well as John Kenneth Galbraith and Albert Hirschman.
  • He was ranked no. 9 in the Prospect magazine’s World Thinkers 2014 poll.

The ‘classic’ developmental state is an ideal type derived from the East Asian – more specifically Japanese – experience between the 1950s and the 1980s. 

There were of course variations even within East Asia. Korea actually went further down the road than Japan did, although now it has moved to the opposite extreme, embracing neo-liberalism as if there is no tomorrow. Between the 1960s and the 1980s, the Korean state pursued some of the most market-defying selective industrial policies, using an extremely powerful pilot agency (the Economic Planning Board, or the EPB) and total state ownership of the banking sector, both of which were missing in Japan. The Taiwanese state may have intervened in the affairs of the private sector less forcefully and dramatically than Japan or Korea did, but that was in part because there were few no large private sector firms in whose affairs the state felt the need to intervene. The other side of the coin of the weakness of the private sector in Taiwan was that SOEs (especially in upstream intermediate inputs industries, where scale economy is crucial) and state-financed R&D played a more important role in Taiwan than in Korea or Japan. Singapore used yet another model, combining free trade, a welcoming (albeit carefully targeted) approach to foreign direct investment, and a massive SOE sector (one of the biggest in the non-oil-producing world, producing 22% of GDP, when the world average is 9-10%). 

Even the ‘classic’ developmental state was, however, not confined to East Asia. During the same period, under a similar political condition of nationalistic, interventionist rightwing hegemony, France used a very similar strategy of economic development, involving (indicative) planning by Commissariat Général du Plan (the planning commission), sectoral industrial policy (of course, somewhat constrained by the imperatives of European integration) led by elite bureaucrats, and aggressive use of SOEs (Cohen, 1977, Hall, 1986, Hayward, 1986, and Chang, 1994). There is even anecdotal evidence that Japanese bureaucrats stationed in France were reporting on French policy practice.

If we broaden our definition of the developmental state to include any state that deliberately intervenes to promote development, we could argue that the Scandinavian countries also practiced a variety of developmentalism, especially since the 1950s. 

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BiZnomics Global Out-front Comments Off on BiZnomics Global Out-front 135

Global-Outfront

President Trump offered to meet North Korean leader Kin Jong Un at the demilitarised zone following the G 20 Summit raised prospects for a third face to face meeting between the two leaders.

G -20 Osaka Summit 

14th G-20 Summit – a forum of 19 member countries and European Union was held in Osaka, Japan 28 -29 June 2019 with the participation of heads of G 20 Governments. International Monetary Fund, Asian Development Bank (ADB), International Labour Organization (ILO), Organization for Economic Corporation and Development (OECD), United Nations (UN), World Bank (WB), World Health Organization (WHO), World Trade Organization (WTO), represented in the summit by their respective heads of Institutions. 

Global-Outfront-01

Collectively G 20 nations represent more than 80 percent of global output and 2/3 of its people. Easing the global tension centred around US – China trade dispute, President Trump announced that he has agreed to allow US companies to sell high tech components to Chinese telecommunication giant Huawei. He also announced that China will buy more US farm goods. US President indicated that US will call off raising tariff on Chinese goods and negotiations to end the trade dispute between two countries will continue.

Prime Minister Abe who hosted the G 20 Summit explained that global leaders have affirmed free and fair and inclusive economy and open competition are the principals to lead the world economy in future.

Global-Outfront
Source: IMF Economic Outlook

 

 

Global Outfront
Source: IMF Economic Outlook

 

As estimated by IMF total GDP of G20 nations of nearly USD 60 trillion account for 78 percent of the world total GDP of USD 88 trillion. In terms of population, G20 nations is estimated to have 4.6 billion people in 2019 accounting for 61 percent of the world total population of 7.5 billion. China takes the lead with 31 percent and India accounts for 29 percent making two emerging nations in Asia having 60 percent of the population of G20 nation.

By: BiZnomics research team

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Political Leadership-A Matter of Age 0 272

Political Leaders a Matter of Age

By: Dr. Kenneth De Zilwa

Perspective

Age has become an increasingly discussed topic when it comes to our political leaders (i.e. Parliamentarians), the arguments have been that we are unduly saddled with older politicians that make the parliament system meaningless as it prevents the infusing of young energetic and more progressive leaders in to governing the country. Well, yes this is definitely one aspect that is on the table and it seems to be the dominant view shared by many of whom are frustrated about the responsibility and accountability of these members albeit their ability to comprehend the demands of the younger generations. Therefore the proposers of this debate are eager for changing the status quo. On the other hand there are those who contend that age is just a number and the ability of the person irrespective of one’s age is what matters in a participatory democracy, for people have many routes to representation and redress.

In order to really get to the bottom of this debate we need to analyse and understanding the dynamics of the global public office and the trends in life expectancy.

Scrutiny of Public Office

The evolution of democracies has meant that parliaments are indispensable and now are deemed to be an integral part of the institutional framework that represents the people’s democratic choice. The choice of selection (be it liberal or conservative or its varying compositions) is of course based on their own perceptions of what the future should be transformed into considering the stage of its economy, social and environmental concerns and the overbearing global geopolitical trends. Irrespective of country-specific rules, the role of parliamentarians, (of both men and women), remains the same: to represent the people and ensure that public policy is informed by the citizens on whose lives they impact. If we look at the political context of each country we find a unique disposition in their selection process, however, parliaments and Parliamentarians do face a common challenge, that is, how best to consult citizens and keep them informed about parliamentary deliberations and how such deliberations would eventually shape the people’s lives (for better or worse, as public policy cuts both ways). What is important here is that the relative maturity of parliamentarians is called into focus, as the people are now looking for responsibility, accountability and also the bottom-line, of delivery.

The UNDP Global parliamentary study undertaken in 2012 indicated that there are 46,552 Members of Parliament (MPs) in the world. Of which there are 8,716 women parliamentarians, or 19.25 pct.  of the total number of MPs. While the global average number of parliamentarians per country is 245.China has the largest parliament with 3,000 members in the Chinese National People’s Congress. The world’s smallest parliament is in Micronesia, with just 14 MPs.  While the global average age of a male MPs is 53 the average age a woman MP is 50. Sub-Saharan African MPs have the lowest regional average age at 49 with Arab countries the highest at 55.

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