Evans

Developmental States

East Asian NICs - Taiwan and Korea - depending on active involvement of the state? WWI after, Japanese state acted as surrogate for a missing capital market while at the same time helped to induce transformative investment decisions - state institutions were crucial in getting the needed investment capital to industry - state financial inst backed industrial debt/equity ratios at levels unheard of in the west centrality to provision of new capital allowed state to implement industrial rationalization and industrial structu policy - MITI, investment loans, authority over foreign currency, ability to provide tax breaks... etc maximize induced decision making higher civil service got top grass long-term career paths with rules and established norms informal networks, MITI as exceptionally competent, cohesive org, external network participation, can independently formulate own goals and hold accountable those who work within - it has little to offer the private sector = creates relative autonomy

Introduction

Some states may extract such large amounts of otherwise investable surplus and provide so little in the way of collective goods in return that they do indeed impede economic transformation zaire others are able to foster long term entrepreneurial perspectives among private elites by increasing incentives to engage in transformative investments and lowering the risks involved in such investments - may not be immune to rent seeking or using some social surplus for ends of incumbents and friends than the citizenry as a whole - but the balance promotes rather than impedes the transformation - developmental states - JAPAN the balance between predatory and developmental activities is not clear cut in intermediary states like Brazil how do they look organizational?

An Intermediate Case: Brazil

The differences between the app that they describe and the ideal typical development state begin with the simple question of how people get jobs int he state meritocratic recruitment. unusually extensive powers of pol appt are necessary complement to lack of generalized meritocratic recruitment Brazilian presidents appoint thousands massive cabide de emprego - populated on the basis of connection rather than competence political leaders try to create pockets of efficiency BNDE offered a clear career path developmental duties and an ethic of public service - more developmental effective than traditional parts of Brazilian bureaucracy pockets of efficiency strategy has a number of disadvantages, as long as surrounded by a sea of traditional clientelistic norms, dependent on personal protection of individual presidents gfragmentation of structure due to changing positions, periodic spawning of new org, and mixed meritocratic and clientel the lack of stable bureaucratic struture makes it harder to establish regularized ties with the private sector of the administrative guidance, and pushes public private interaction to individualized channels relationships became inividualized rather than institutionalized prevents it from fulfilling gov function more coherent state org also enables a more institutionally effective set of linkages with the private sector, organizationally consistent career ladders not institutionalized, low level of bureaucratic capacity the intermediary state does not dominate their societies in the fashion of the truly predatory state, but neither can it construct common projects of accumulation in the way that developmental states can, it is organizationally uneven, both over time and across tasks, sometimes capable of fostering transformative change, often threatening to slip back into predatory patrimonialism

Historical Perspectives on States and Markets

Weber sees construction of a solid authoritarian framework as a necessary prereq to the operation of markets - concentration of expertise in bureaucracy through meritocratic recruitment and provision of opp for long-term career rewards was central problems are created by disjunction between scale of economic activity required for development and the effective scope of existing social networks Late industrializers were forced to rely on power of the state to mobilize necessary resources state must be surrogate entrepreneur "capital" in the sense of potentially investible surplus is not the principal ingredient lacking in developing countries - but where to invest in productive activities requires state role to be high in responsiveness to private capital corporate coherence of administration - requires some insulation from surrounding social structure and relative autonomy to respond to changes in economic reality application of these arguments to traditional societies or communist states would require substantial extension and revision apply most strongly to situations which structural transformation, like movement from reliance on ag to reliance on industry, is the order of the day -

The State as a Nexus of Exchange

competition for entry into government service, is in part, a competition for rents supporters whose original economic power derived from productive activities are likely to become increasingly dependent on rents and therefor committed to expansion of rental havens development implications of states expanding size, range of functions, and amount of resources they control, proportion of economic activity that becomes incorporated into rental havens increases and economic efficiency and dynamism will decline sphere of state action reduced to a minimum, bureaucratic control should be replaced with market mechanisms where possible - neoclassical economics with limited state scope

Comparative Conclusions and Future Agendas

internal structure and external ties the most effective states are embedded autonomy, joining well-developed, bureaucratic internal org with dense public-private ties least effective states, incoherent absolutist domination - undisciplined ties, ruled y invisible hand intermediate states occasionally approx embedded autonomy, but not sufficiently to give them transformative capacity nonbureaucratic bases of internal solidarity are necessary to reinforce the coherence of form bureaucratic structures - a bureaucracy without an organized network of external ties cannot effectively promote industrial transformation neoutil claims that a state run by an undisciplined collection of individually maximizing incumbents will tend to become a predatory monster - but is patently false that some nature law of human behavior that states are invariably constructed on this basis the neoutil admonition to minimize the state is generally interpreted to mean imposing a gen redux on resources allocated to bureaucracy. a diff view suggests that the the construction of a real bureaucratic apparatus as a crucial development task - requires institutionalization of meritocratic recruitment patterns and predictable career paths must be accompanied by the provision of terms sufficient resources to make careers int he state competitive with careers in the private sector intermediary state app are most vulnerable to neg consequence to neoutilitarian policies - cuts in real wages and redux of resources for training of personnel will undermine the islands of efficiency that still exist in these bureaucracies, undercutting possibility of positive movement two pronged policy: aimed at increasing the selectivity of tasks undertaken by the state app and devoting equal attention to reforms that will help reconstruct state app themselves

The Dynamics of Developmental States

static image of developmental state needs to be replaced with a dynamic one all began in post world war 11 period with long bureaucratic traditions and considerable experience in direct economic intervention largely exogenous events qualitatively enhanced autonomy of state autonomy constrained by international content, geopolitical and economic, create conviction that rapid industrialization was necessary, that export competitive was essential... commitment to indust promote growth of local industrial capital autonomy own gravedigger both existing forms of embeddedness and existing insulation of bureaucracy are likely to be seen as disadvantages by nonelite social actors

The Predatory State - Zaire

under Mobutu - gnp per capita declined at annual rate of 2.1 percent Presidential Brotherhood, invisible hand of the market dominating administrative behavior personalism and plundering and top destroys possibility of rule-governed behavior in lower levels of bureaucracy, indiv maximization for free reign marketization of state apparatus makes the development of a bourgeoisie oriented toward long-term profit-based productive investment almost an impossibility Zaire confirms our initial suspicion that it is not bureaucracy that impedes development so mucha s the lack of capacity to behave like a bureaucracy, but it poses some problems for state autonomy decisions are up for sale to private elites, state lacks autonomy