Moving beyond abstract economic models and superficial descriptions of the market, Beyond the Developmental State analyses the economic, political and ideological interests which underpin current socio-economic processes.
Through this approach, the contributors show the close interrelation between states and markets in both national and international contexts. Drawing on a wide range of case studies and themes, the book exposes the theoretical and empirical limitations of the developmental state paradigm, offering alternatives as well as discussing the policy implications and challenges they raise.
For scholars, students and practitioners of development, Beyond the Developmental State presents a decisive break with the old dogmas of both neoliberal orthodoxy and theories of 'market-imperfection', and outlines theoretically and empirically grounded alternatives. 1. Beyond the Developmental State: An Introduction, by
Ben Fine
2. The Rise and Fall of the Developmental State? The case
of the Japanese and South Korean steel industries, by
Hajime Sato
3. An Alternative Perspective on Industrial Policy: The Case
of the South Korean Car Industry, by Kwon-Hyung Lee
4. Labour and the ‘Developmental State’: A critique of the
developmental state theory of labour, by Dae-oup Chang
5. What of the Developmental State Beyond Catching up?
The Case of the South Korean Microelectronics Industry, by
Humam Al-Jazaeri
6. Globalisation and the Decline of the Developmental
State, by Iain Pirie
7. The Software Industry and Interventionist Policy in
India, by Jyoti Saraswati
8. Lessons for Nigeria from developmental states: the role
of agriculture in structural transformation, by Eka Ikpe
9. Finance and the developmental state: the case of
Argentina, by Daniela Tavasci
10. Systems of Accumulation and the Evolving MEC Sam
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BEYONd THE DEVELOPMENTàL STàTE
Political Economy and Development
Published in association with the International Initiative for Promoting Political Economy (IIPPE)
Edited by Ben Fine (SOAS, University of London) Dimitris Milonakis (University of Crete)
Political economy and the theory of economic and social development have long been fellow travellers, sharing an interdisciplinary and multidimensional character. Over the last 50 years, mainstream economics has become totally formalistic, attaching itself to increasingly narrow methods and techniques at the expense of other approaches. Despite this narrowness, neoclassical economics has expanded its domain of application to other social sciences, but has shown itself incapable of addressing social phenomena and coming to terms with current developments in the world economy. With world nancial crises no longer a distant memory, and neoliberalism and postmodernism in retreat, prospects for political economy have strengthened. It allows constructive liaison between the dismal and other social sciences and rich potential in charting and explaining combined and uneven development. The objective of this series is to support the revival and renewal of political economy, both in itself and in dialogue with other social sciences. Drawing on rich traditions, we invite contributions that constructively engage with heterodox economics, critically assess mainstream economics, address contemporary developments, and offer alternative policy prescriptions.
Also available
The Political Economy of Development: The World Bank, Neoliberalism and Development Research Edited by Kate Bayliss, Ben Fine and Elisa Van Waeyenberge
Theories of Social Capital: Researchers Behaving Badly Ben Fine
Dot.compradors: Crisis and Corruption in the Indian Software Industry Jyoti Saraswati
BeyonD the Developmental State
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Edited by Ben Fine, Jyoti Saraswati and Daniela Tavasci
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CONTENTs
Acronyms and Abbreviations
v
i
1 Beyond the Developmental State: An Introduction 1 Ben Fine 2 The Rise and Fall of the Developmental State? The Case of the Japanese and South Korean Steel Industries 33 Hajime Sato 3 An Alternative Perspective on Industrial Policy: The Case of the South Korean Car Industry 61 KwonHyung Lee 4 Labour and the ‘Developmental State’: A Critique of the Developmental State Theory of Labour 85 Daeoup Chang 5 What of the Developmental State beyond Catching Up? The Case of the South Korean Microelectronics Industry 110 Humam AlJazaeri 6 Globalisation and the Decline of the Developmental State 146 Iain Pirie 7 The IT Industry and Interventionist Policy in India 169 Jyoti Saraswati 8 Lessons for Nigeria from Developmental States: The Role of Agriculture in Structural Transformation 187 Eka Ikpe 9 Finance and the Developmental State: The Case of Argentina 216 Daniela Tavasci 10 Systems of Accumulation and the Evolving South African MEC 245 Sam Ashman, Ben Fine and Susan Newman
ReferencesContributorsIndex
268 297 299
acrONYMs àNd abbrEViàTiONs
AAC ADP ADR ANC ASEAN BOF BEE CDMA CKD CKTU DEP DMIU DoE DRAM DRI DS DSP EAF ECIL EDSP EIAK EOI EPZ FAO FDI FLACSO
GDP GEAR GM GNP HCI HSRC IC IFI INDEC
Anglo American Corporation Agricultural Development Project American Depositary Receipt African National Congress Association of Southeast Asian Nations Basic Oxygen Furnace Black Economic Empowerment Code Division Multiple Access Complete KnockDown Kit Korean Trade Unions Department of Economic Policy Digital Monolithic Integrated Unit Department of Electronics Dynamic RandomAccess Memory Directly Reduced Iron Developmental State Developmental State Paradigm Electric Arc Furnace Electronics Corporation of India Limited Enhanced Developmental State Paradigm Electronics Industries Association of Korea ExportOriented Industrialisation Economic Processing Zones Food and Agriculture Organisation Foreign Direct Investment Facultad Latinoamericana de Ciencias Sociales (Latin American School of Social Sciences) Gross Domestic Product Growth, Employment and Redistribution General Motor Gross National Product Heavy and Chemical Industry Human Sciences Research Council Integrated Circuit International Financial Institution Instituto Nacional de Estadística y Censos (National Institute of Statistics and Censuses)
Vi
aCRonymS anD aBBRevIatIonSVii
IPAP Industrial Policy Action Plan IRDP Integrated Rural Development Project ISI ImportSubstitution Industrialisation IT Information Technology KD KnockDown KMT Kuomintang: The Chinese National Party KTCU Korean Confederation of Trade Unions M&As Mergers and Acquisitions MAIT Manufacturers’ Association of Information Technology MEC Minerals–Energy Complex MERG Macro Economic Research Group MITI Ministry of International Trade and Industry MNC Multinational Corporation NASSCOM Association for Software and Service Companies NEITI Nigerian Extractive Industries Transparency Initiative NFC National Finance Corporation NGP New Growth Path NIC Newly Industrialised Country NIE Newly Industrialising Economies NIPF National Industrial Policy Framework OBM Own Brand Manufacturing ODM Original Design Manufacturing OEM Original Equipment Manufacturing OHF Open Hearth Furnace PRSP Poverty Reduction Strategy Paper RCA Revealed Comparative Advantage R&D Research and Development RDP Reconstruction and Development Programme SACP South African Communist Party SKD Simple KnockDown Kit SMEs Small and MediumSized Enterprises STP Software Technology Park UNESCO United Nations Educational, Scientic and Cultural Organisation VLSI VeryLargeScale Integration WTO World Trade Organisation YPF Yacimientos Petrolíferos Fiscales
1 BEYONd THE DEVELOPMENTàL STàTE: 1 aN INTrOducTiON
Ben Fine
1.1 IntRoDUCtIon
In their edited collection entitledDeconstructing Development Discourse: Buzzwords and Fuzzwords, Cornwall and Eade (2010) range over 30 or so entries that critically unpick the more prominent concepts that have been deployed in the study and practice of development. These include poverty reduction, social protection, globalisation, participation, citizenship, empowerment, social capital, gender, sustainability, rights, NGOs, social movements, country ownership, transparency, accountability, corruption, governance, fragile states, knowledge, and so on. ‘Developmental state’ is notably absent. Indeed, ‘state’ itself only appears as a heading within one entry: ‘fragile state’. This is not an oversight or error on the part of the editors, but a genuinereflection of the nature and extent to which the (developmental) state has been written in and out of development discourse by 30 years of neoliberalism. To put it crudely, the term ‘developmental state’ could not have been expected to become prominent, given that it is a point of critical departure from orthodoxy, and so unlikely to have been adopted, let alone promoted, by the World Bank. Yet, whilst development and the state are everywhere in the Bank’s activities, the developmental state is nowhere. The contrast for the entry in the collection on ‘social capital’ (Fine 2010e) is striking, not least because of that concept’s heavy promotion by the World Bank at the close of the millennium and its use as a device to outflank and marginalise the adoption of the developmental state in the shift from the Washington Consensus to the postWashington Consensus (Fine 1999, 2001). In the event, containing any potential radical content and implications of the postWashington Consensus needed at most to draw only temporarily on the notion of social capital and, within the new millennium, it has been as rapidly abandoned