1. “Remains of the Day” (streaming media— instructions on course website)

2. 2 Dependency Theory: Review Development is “externally conditioned” Core dominates periphery

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

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)

7.  “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

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