1. “Remains of the Day” (streaming media— instructions on course website)
Supplement to ED LN3-Developmental State
and Gerschenkronian Views
“Remains of the Day”
(streaming media—
instructions on
course website)
From Google. Accessed March 17, 2013
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edu%2Fswhiting%2Fpols204%2F204Win11wk2b_web.
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2. Dependency Theory: Review
Development is “externally conditioned”
Core dominates periphery 2 2

3. Dependency Theory Expected outcomes for periphery economic social
results in continued underdevelopment, i.e. poverty
social
produces inequality (“transnational kernel”) and conflict
political
reinforces authoritarian government 3 3

4. Statist theory: Introduction
Challenge to dependency theory
Dependency theory failed to explain the rise of the East Asian NICs
Newly industrialized countries
South Korea, Taiwan, Singapore

5. Why East Asia surged ahead of Latin America (June 2006)

6. Why East Asia surged ahead of Latin America (June 2006)

7. Why East Asia surged ahead of Latin America (June 2006)
“Increasingly, institutions are seen as accounting for divergent growth patterns across countries. Analysts have identified areas in which government institutions have helped underpin growth in East Asia.”
A quarterly magazine of the IMF

8. Why East Asia surged ahead of Latin America (June 2006)
“The strength and independence of government bureaucracy has been important to East Asia's economic development and has too often been lacking in Latin America.
“Asian governments have tended to foster the development of a professional, merit-based civil service tradition, insulated from political influence, to implement economic policy in close consultation with business groups.
“To streamline decision making, lead government agencies with strong coordinating authority were created to translate a national strategic vision of economic development into specific actions.”
A quarterly magazine of the IMF

9. Asia and Africa in the Global Economy (August 1998)
“Government’s administrative competence is the single most important factor explaining the difference in growth among many developing countries.
“Africa comes in the bottom group in cross-regional comparison in terms of an index of ‘bureaucratic efficiency’.”

10. Asia and Africa in the Global Economy (August 1998)
“The World Bank put it quite starkly: ‘African governments have become employers of last resort and dispensers of political patronage, offering jobs to family, friends and supporters
“The poor economic management capacity and cumbersome administrative and bureaucratic structures of African bureaucracies has limited the successful formulation and implementation of economic policies and become a central obstacle to market oriented reforms.”

11. Statist Theory Focus on nature of state institutions
Developmental vs. predatory
Institutional level of analysis
Not individual level
Not global political economy structure

12. Statist Theory Characteristics of developmental state bureaucracy
Merit/skill-based recruitment technocrats
Performance-based rewards
With competitive salaries, proper incentives
Belief in bureaucratic mission
Insulation from societal pressures
Power to formulate and implement policy

13. Statist Theory: Background
Why would states have interests autonomous from society’s in promoting development?
Remember Tilly

14. Statist Theory: Background
Because they are responsible for national security.
States must compete in the international state system
Militarily
To compete militarily, states need to develop economically
States need $$$ to pay for military competition

15. Statist Theory: Background
Gerschenkron’s insight
Timing of development matters for how states develop
Early and late players in the game of state survival develop differently

16. Statist Theory: Background
How can latecomers compete militarily & economically?
States must “jump in” to the international system at the global technological frontier
Or be crushed.

17. Statist Theory: Background
Note that the global technological frontier is always moving forward
Militarily

18. Statist Theory: Background
Note that the global technological frontier is always moving forward
Economically 18

19. Statist Theory: Background
So, how can latecomers amass the huge investments necessary to develop economically and militarily at the global technological frontier?

20. Statist Theory: Background
Remember Gerschenkron’s insight
Timing of development matters for how states develop
Early and late players in the game of state survival develop differently

21. Statist Theory: Background
How did Britain—the earliest industrializer—do it?
Britain ~1700s
Early
Small start-up firms

22. Statist Theory: Background
How can latecomers amass the huge investments?
Germany ~1840s
Only a little “late”
Only a little “backward”
 Investment
banks

23. Statist Theory: Background
How can latecomers amass the huge investments?
Russia/Soviet Union ~1880s-1930s
Much “later”
More “backward”
 State itself

24. Statist Theory: Background
Soviet state
Asserted control over entire economy
Forcibly extracted resources
To use for military development
Russia/Soviet Union

25. Premises of Statist Theory
States have the potential to promote development within their own borders
(NOT simply “externally conditioned”)
States have interests autonomous from society’s in promoting development because they are responsible for national security; they must compete militarily and economically in the international state system
Ability of states to promote development depends on the nature of state institutions