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On Planning for Development:   the developmental state
The Developmental State The state, civil society and development The neo-liberal state
From UNDP, "Human Development Report 2013"

Drivers of Development Transformation
Driver 1: a proactive developmental state
Driver 2: tapping of global markets
Driver 3: determined social policy innovation

How have so many countries in the South transformed their human development prospects? Given their social and political diversity and their contrasting natural resource endowments, their trajectories have often diverged. Yet some underlying themes have been consistent. This chapter looks at the experience of some of the more successful countries and at three of their common drivers: their proactive developmental states, their capacity to tap into global markets and their focus on social policy innovation.

From UNECA - Economic Report on Africa 2011. Governing development in Africa - the role of the state in economic transformation

Chapter 4: The Role of the State in Economic Transformation in Africa
4.1 Economic transformation and sustained economic growth
- Stylized facts
- Growth and transformation in Africa
- Key lessons
4.2 The role of the state in promoting economic transformation in Africa
- Planning the development process
- Formulating relevant development policies
- Implementing plans and policies
4.3 Conclusions

Africa’s states have three major development tasks for achieving economic transformation: planning the process, formulating appropriate policies and implementing the plans and policies.
The development process has to be planned for several reasons. The changes required are substantial and therefore the decisions cannot be optimally made by free market forces—most developing economies are characterized by pervasive market failures. The interdependence of all elements of the process needs to be reconciled through comprehensive development frameworks rather than narrow, partial models.

Economic Report on Africa. The complete series
Copyright © Economic Commission for Africa
From ECLAC 2012

Time for Equity: closing gaps, opening trails

(2 July 2012) "Planning for development is back with a renewed strength and complex challenges," said today the Deputy Executive Secretary of ECLAC Antonio Prado, when opening the commemorative seminar to celebrate the fiftieth anniversary of the Latin American and Caribbean Institute for Economic and Social Planning (ILPES) at the organization's headquarters in Santiago, Chile.
"Closing the multiple gaps in the region takes a long-term vision, strategic planning and long-lasting persistence, " highlighted Prado at the international seminar that will conclude tomorrow. "The State must be capable of providing strategic management for the long run, looking ahead, and being involved in the design of strategies for guiding national development," he emphasized.

The Feasibility of the Democratic Developmental State in the South.
Edited by Daniel A. Omoweh. Dakar, CODESRIA, 2012, 180 p., ISBN: 978-2-86978-512-0

The state has a role to play in any economy, especially in the provision of public goods. But the majority of the states in the South lack the capacity to perform such a minimal task. This is partly because the concept of state capacity has not been well articulated and understood in both scholarly and policy circles; nor has the politically-created process that will result in the transformation of the statefrom an ‘incapable’ state into a ‘capable’ one been underway.

From UNCTAD, Least Development Countries Report 2009

Chapter 1
Rethinking the Role of the State in LDCs - Towards Development Governance

The current financial crisis has given added urgency to a reconsideration of the potential for new roles and functions for the State in the current global context. This chapter examines what this might mean in general terms for the least developed countries (LDCs). Its central argument is that the LDCs should pursue good development governance and that with this in view they should seek to build developmental State capabilities.
Development governance, or governance for development, is about creating a better future for members of a society by using the authority of the State to promote economic development, and in particular to catalyze structural transformation, create productive employment opportunities and raise living standards for present and future generations. In general terms, governance is about the processes of interaction between the Government — the formal institutions of the State including the executive, legislature, bureaucracy, judiciary and police — and society. Development governance is governance that is oriented to solve common national development problems, create new national development opportunities and achieve common national development goals. This is not simply a matter of designing appropriate institutions but also a question of policies and the processes through which they are formulated and implemented. Which institutions matter is inseparable from what policies are adopted. Development governance is thus about the processes, policies and institutions that are associated with purposefully promoting national development and ensuring a socially legitimate and inclusive distribution of its costs and benefits.

Economic Development in Africa 2007
Reclaiming Policy Space
Domestic Resource Mobilization and Developmental States 

"Developmental states" are the key to boosting domestic savings and productive investments in Africa, contends Economic Development in Africa 2007

Latin American Politics and Society  -  Summer 2001
State developmentalism without a developmental state: The public foundations of the "free market miracle" in Chile
By Kurtz, Marcus
If export orientation is a goal in a sustainable development strategy, this study argues that public interventions at the sectoral level in a variety of markets can produce economic reorientation that pursues international comparative advantage faster and at lower cost than free market forces can. Pervasive failures in information, credit, input, distribution, and insurance markets can render strictly market-based adjustment both slow and costly. Although Chile's export boom and high growth rates have been associated with its free market economic policies, this article, based on a comparison of the fruit, fish, and forestry sectors, contends that new forms of public intervention were crucial catalysts in shaping a sustained export response.
Thandika Mkandawire - 1998
Thinking About Developmental States in Africa
One remarkable feature of the discourse on the state and development in Africa is the disjuncture between an analytical tradition that insists on the impossibility of developmental states in Africa and a prescriptive literature that presupposes their existence. States whose capacity to pursue any national project is denied at one level (theoretical or diagnostic) are exhorted, at the prescriptive level, to assume roles that are, ex definicione, beyond their capacity or political will. Such states are urged to "delink", to reduce themselves, to stabilize the economy, to privatize the economy, to engage in "good governance", to democratize themselves and society, to create an "enabling environment" for the private sector, etc.
In other words, to do what they cannot do. What we then have is, to paraphrase Gramci, the pessimism of the diagnosis and the optimism of the prescription. Obviously such a contradictory position is unsatisfactory. To attain some congruence between diagnosis and prescription, we need to retrace our steps back to the diagnosis. We shall argue that neither Africa’s post-colonial history nor the actual practice engaged in by successful "developmental states" rules out the possibility of African "developmental states" capable of playing a more dynamic role than hitherto.
On the 1990s East Asian Crisis and the developmental state debate
Mark Beeson - 2004
The rise and fall (?) of the developmental state: the vicissitudes and implications of East Asian interventionism
"... but it is important to emphasise that one of the most important consequences of the crisis was to subject the entire East Asian development experience to a rapid and generally unfavourable reappraisal. The distinctive role of the region’s interventionist political elites was the object of particular attention as what were formerly seen as ‘strong’ states were now depicted as centres of self-serving ‘crony capitalism’. This remarkable change in the conventional wisdom about East Asian modes of governance was mirrored in, and drove, an externally imposed reform agenda - designed by primarily by the International Monetary Fund with encouragement from the United States - which was intended to completely reconfigure much that was distinctive about East Asian developmental states.
The key questions that emerged as a consequence of the crisis and its subsequent economic and political aftermath were: was the East Asian developmental state (DS) actually the cause of the crisis? Can it survive in the face of external reformist pressure in particular and in the face of competitive pressures generated by ‘globalisation’ more generally?

From International Development Research Center - Canada
BRICS -The role of the state
Mario Scerri and Helena M. M. Lastres
Routledge/ 2013-03-01
ISBN: 9780415842549/ 390 pg.
Download EBook Download PDF Order Book

This is the first volume in a series of five books bringing together the results of intensive research on the national systems of innovation in the BRICS countries – Brazil, Russia, India, China, and South Africa. The Role of the State analyzes the relationship between the state and the development of the national system of innovation. Combining original data and expert analysis, the book presents experience and knowledge that may impact how we understand the theory of innovation systems, and implement policies and strategies for their development.

A. K. Bagchi - 2000
The past and future of the developmental state
Like most human institutions—the family, the village, the city, the state, customs, laws, the nation—the developmental state was born long before anybody thought of naming it. There are debates about when it was born, whether all developmental states (as they are usually characterized) are properly labeled, and whether there have been developmental states overlooked literature. In this paper, it will be claimed, inter alia, that indeed there were developmental states long before economists, political scientists or historians recognized them as such, and that not all developmental states, as conventionally labeled, have been true members of the select club of developmental states.
From Third World Quarterly
L. Boer (1997)
Feature Review: The State in a Changing World

Two Africas? Two Ugandas? An African "Democratic Developmental State"? Or another "failed" state?
By T. M. Shaw - 2004
…neither Africa's post-colonial history nor the actual practice engaged in by successful 'developmental states' rule out the possibility of African 'developmental states' capable of playing a more dynamic role than hitherto (Mkandawire 2002: 289)
…the spread of the term ‘global civil society’ reflects an underlying social reality. What we can observe in the 1990s is the emergence of a supranational sphere of social & political participation in which citizen groups, social movements, and individuals engage in dialogue with each other & with various governmental actors – international, national & local – as well as the business world…global civil society both feeds on & reacts to globalization (Anheier, Glasius & Kaldor 2001: 4 & 7)

Economic development and the anatomy of crisis in Africa: from colonialism through structural adjustment
By H. Stein - 2000
Africa is mired in a developmental crisis, not the common narrow monetary or financial crisis portrayed in the standard literature but a crisis of a more profound and protracted nature. A developmental crisis refers to the generalized incapacity of an economy to generate the conditions necessary for a sustained improvement in the standard of living. The problem is basically structural in nature. The antecedents lay in the colonial period and in the inability of post-colonial governments to fundamentally transform the economies inherited at independence. While structural adjustment has exacerbated the underlying weaknesses of African economies, its greatest crime is located in its inherent inability to structurally and institutionally transform African economies. The major reason can be found in its roots that lie in neo-classical economic theory with its misplaced emphasis on balancing financial variables in a hypothetical axiomatic world. Adjustment is simply incapable of either assessing the nature of Africa’s problems or putting in place the policies that will put African countries on a trajectory of sustainable development. 1

Botswana's "Developmental State" and politics of legitimacy
By I. Taylor - 2002
A democratic developmental state in Africa? A concept paper
By O. Edigheji - 2005
...the question of the democratic developmental state is not sufficiently on the agenda in Africa. It has also received little attention in academic discourse. Against this background, the Centre for Policy Studies (CPS), Johannesburg, South Africa and the Partners in Development for Research, Consulting and Training (PID), Cairo, Egypt are undertaking a research project on the democratic developmental state in Africa. It will address the following pertinent issues:
• Can African states be both democratic and developmental under conditions of globalisation?
• What are the indicators and mechanisms for democratic developmentalism?
• What are the prerequisites for the establishment of democratic developmental states and do these prerequisites exist in Africa?
• What are the prospects of introducing such democratic developmentalism under the present conditions of globalisation?

The developmental state, democracy and glocal society in Africa
By D. W. Nabudere - 2006
Sub-Saharan Africa
Financing the developmental state: tax and revenues issues
By A. Sindzingre - 2006
This paper focuses on the concept of the developmental state, the conditions of its consolidation, especially in the perspective of the modes of financing it requires. The issues of taxation, public revenue and spending, are examined, because they constitute crucial elements in the building of viable developmental states, and are problematic in least developed countries, especially in Sub-Saharan Africa. The concept of the developmental state stems from the analysis of fast-growing Asian economies. Its elements are presented, particularly the fact that they rely on low levels of taxation and public spending, at least at the early stages of their development. The principal elements and constraints regarding taxation in Sub-Saharan Africa are then analysed, in particular its dependence on commodities and external trade, as well as the effects of the programmes of international financial institutions, in particular trade liberalisation, which appear to be mixed. The constraints that affect aid in the building of developmental taxation systems and states are also examined. Aid provides incentives that may undermine tax structures and key state institutions of recipient countries, such as policy credibility and political legitimacy. Firstly, it is shown that the key features of developmental states are the capacity for a state to credibly commit and intervene, more under the form of policies that are directed towards growth than taxation policies. These states relied on a series of ingredients: intervention of the state in the economy via credible policies oriented towards growth, capacity to address coordination failures and to reallocate factors of production, coalitions between the state, private firms and the civil society. These ingredients cannot be disentangled from political dimensions, growth having being instrumental in the building of legitimacy. Secondly, it is argued that for a policy or an institution to be effective, it needs to be credible and result from endogenous processes. These conditions for developmental states and institutions are currently to be built in most Sub-Saharan African countries. The difficult question remains as to whether foreign aid, given the intrinsic asymmetry of conditionalities, aid dependence and budget constraints, can contribute to the building of developmental states and policies that could be credibly committed towards growth.

Growing out of the developmental state: East Asia welfare reform in the 1990s (draft)
By I. Peng and J. Wong - 2004
The developmental state and educative advance in East Asia
By M. Abe - 2004
Private tutoring and demand for education in South Korea
By S. Kim and Ju-Ho Lee - 2004
The managerial revolution and the developmental state: the case of U.S. agriculture
By L. Ferleger and W. Lazonick - 1993

Overarching Concerns Programme Paper Number 9 October 2005
United Nations Research Institute for Social Development

The Search for Policy Autonomy in the South: Universalism, Social Learning and the Role of Regionalism
By Norman Girvan
This paper argues the need for the South to secure greater autonomy in development policy... It utilizes a political economy analysis in the historical context of decolonization and contemporary globalization... in the 1950s, the new subdiscipline of development economics made a significant contribution to policy autonomy in the global South by legitimizing the principle that their economies should be understood within their own terms and by providing justification for policies that built up its industrial capabilities...However, the marginalization of development economics and its policies in the 1980s resulted in a marked discontinuity in the accumulation of policy experience in much of the South and the squandering of much of intellectual capital developed in the earlier period. Neoclassical economics and neoliberal policies ruled out the notion of an economics sui generis for the developing countries. Nonetheless, developments since the late 1990s have shown that the triumphalism was premature, as global social movements, financial crises, contradictions in the World Trade Organization (WTO) process and the shifting political climate in the South have served to undermine the Washington consensus and have re-opened space for academic enquiry and policy experimentation in the South and North.
The Developmental Agenda in the Age of Neoliberal Globalization
By E. Yeldan - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

“Is this the end of economic developmental state?” was the opening title of a modeling exercise by Adelman and Yeldan in the Global Trade Policy Analysis meetings of Odense, June 1999. Referring to the recent Asian crisis as a point of reference, the authors utilized a smooth-functioning neoclassical model with fully flexible commodity and financial markets to show how the neoliberal global agenda severely restricts the autonomy of the developing countries to pursue strategic policies to attain development targets. Accordingly, with the recent attempts towards full liberalization of the capital account under pressures from the US and the IMF (the so-called Washington consensus), governments lost their autonomy in designing a strategic mix of the exchange rate and interest rate instruments for promotion of industrialization targets. Thus, in Grabel’s words:
“These changes, coupled with the ensuing investor euphoria, led to a general speculative appreciation of asset prices, extremely high real interest rates, and an overall shift in aggregate economic activity toward financial trading and away from industrial activities” (Grabel 1995: 128).
The assessment that the process of neoliberal globalization is associated with successive financial crises has further been a recurrent theme in much of the literature on international finance and open economy macroeconomics. Notwithstanding the original proposition of a (Tobin’s) tax on short term capital flows, the detrimental effects of unregulated flows of financial capital have been the topic of active debate in Stiglitz (2000), Rodrik (1997), Calvo, Leiderman and Reinhart (1996), Grabel (1996), Diaz-Alejandro (1985), and Velasco (1987); and also constituted one of the main themes in all of the last five annual Trade and Development Reports of UNCTAD.
In this paper, I attempt to address to the ideas provided in this literature and try to deduce implications for a renewed development policy.
The Need to Rethink Development Economics
By T. Mkandawire - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

Up until the 1970s, problems of welfare and unemployment in the developed countries, and those of poverty and underdevelopment in the developing ones, were interpreted through the lenses of the corpus of knowledge recognized as Keynesian economics and “development economics” respectively. But the oil crisis, “stagflation” and subsequent indebtedness of the developing countries severely put to test the models and the theories that had underpinned their welfare and development policies.
>Although there was little in common between the actual analytical content of Keynesian doctrine and that of development economics, the two approaches shared critical views of neoclassical economic theory, and the related acceptance of state intervention. They also had in common the understanding that the economy described by neoclassical economists was a “special case”, and there were many other economies that could be “stylized” by entirely different models because they were characterized by different structural features. Furthermore, they shared the view that the state could play an important role in addressing these structural features, which often resulted in “market failures”. Both were induced by the need to solve policy problems and were not merely formal theoretical disciplines whose modelling was based on “real economies” trapped in a particular equilibrium (unemployment or underdevelopment) from which they had to be extricated. These positions opened them to attack from neoliberalism.
For two decades, starting from the beginning of the mid-1970s, the status of development economics in both academia and policy circles was not enviable. The “death” of development economics was not merely an academic “paradigm shift”. It was given official sanction by the United States government. The US representative to the Asian Development Bank is reported (Newsweek 13th May, 1985) to have announced that the “United States completely rejects the idea that there is such a thing as ‘development economics’” (cited in Toye, John 1987: page 73). Development economics became, as John Toye remarks, “an Orwellian un-thing” in the eyes of the most powerful nation. The Spartan certainty of the ascendant neoliberalism as to what was required left no room for specialized knowledge of the problems of development.
The Neo-Liberal Doctrine and the African Crisis
By M. Nissanke - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

The core model of Structural Adjustment Programmes (SAPs) undoubtedly reflects a revival of neo-liberal orthodoxy in mainstream economics as well as in popular global economic policy debates in the 1980s. In this sense, SAPs are an application of the neo-conservatism of the Thatcher-Reagan era to development economics- a product of the neo-liberal ’counter-revolution’. The legitimacy of ’development economics’ as a distinct subject discipline was seriously challenged in the process.
The ascendancy of the neo-liberal school in development economics has not only impoverished the development policy debate with its monolithic understanding of the essentially multi-dimensional process of socio-economic development, but also inflicted irrecoverable costs and pains to low-income countries by imposing its doctrine in the form of conditionality to Structural Adjustment Loans. While its supremacy as applied to developed and emerging market economies has been gradually questioned after a series of global financial crises in the 1990s, its application to low income developing countries has been surviving as the core component of loan conditionality.
The "Washington Consensus" and Development Economics
By M. Weisbrot - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

The disappearance of development economics, and replacement of economic development strategy with a simple code for liberalizing international trade and capital flows, has undoubtedly contributed to the economic failure experienced by the vast majority of low to middle income countries over the last two decades. Thandika Mkandawire and others have summarized some of the analytical capacity and tools that were lost in this neo-classical and neo-liberal resurgence. In many ways it is similar to the loss of knowledge in the natural sciences due to clerical influence during the Middle Ages; so it is a great thing that the UNRISD has taken up this project not only to recover lost knowledge but to lay the foundation for real progress in both practice and theory.
Thoughts and Proposals on Reviving Development Economics
By J. Y. Lim - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

There are three main factors that caused the decline of development economics, especially during the eighties and nineties. These reasons are:
1. the hegemony of the neoclassical non-interventionist and monetarist/rational expectations schools in mainstream economics during the seventies and eighties succeeded in removing from the mainstream literature developmental and interventionist approaches to economics.
2. The core of development economic theories and the dependency theorists’ debates on the dual economy, works on ‘big push’, ‘balanced and unbalanced growth’ and ‘import-substitution strategy’ all did not employ the ‘elegant’ ‘rational’, optimizing and comparative statics framework and methodology of neoclassical economics... The methodology mattered, but we must remember that the historical conditions that brought about the rise of the endogenous growth models in the eighties and nineties precisely involved the lack of empirical validity of the traditional neoclassical growth model, especially with the rise of the East Asian ‘miracles’. (They had to turn to the disgraced theories of development economics to partly find the right answer.) Another point is that the ascendancy and dominance now of new Keynesian and new institutional theories that allow ‘market failures’, institutions and governance structures to enter the mainstream is their use of neoclassical models and tools as well as the increasingly fashionable game theory approach.
3. A third reason which we should not ignore is the entry in the sixties and seventies of so many other topics in the realm of development economics, which merely duplicated existing fields in economics but applying them in a ‘Third World’ context. Areas and topics in the fiscal, monetary, exchange rate arenas, labor economics, international trade, agricultural economics, education and social sector (population, health, etc.) were all included as part of ‘development economics’. This...relegated development economics to a status of ‘soft’ economics indistinguishable from sociology, psychology and other social sciences, and unbefitting of true ‘hard-core’ scientific and analytical (neoclassical) economics.
Towards Developmental Democracy: A Note
By A. Olukoshi - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

The policies that were at the heart of the structural adjustment programmes were presented as the core of a new "consensus" on the management of the economy to which no (viable) alternative exists; in fact, they were more reflective of the hegemonic influence exercised by the key Western regimes and the multilateral financial/economic institutions which they control. These governments and institutions served as the springboard for the spread of neo-liberal policies around the world, using an array of conditionality and cross-conditionality clauses to compel developing countries to embrace their preferred options for the reform of ailing national economies.
Yet, as has been acknowledged even by the World Bank, structural adjustment has generally failed to achieve the results which its authors promised it would deliver. (It bears pointing out though that even with the repeated acknowledgement by the Bank about the shortcomings of its policy prescriptions, orthodox structural adjustment measures continue to be administered on developing countries as the panacea to their economic difficulties).
Amidst the on-going discussions about the limitations of the neo-liberal philosophical and policy underpinnings of IMF/World Bank structural adjustment, and against the backdrop of the serious concerns which have been raised, both before and since the recent East Asian crisis,...various alternatives to neo-liberalism are beginning seriously to be considered. At the heart of some of these alternatives is a concern to bring development back into the mainstream of economic and social policy-making. This note is intended to contribute to this discussion by suggesting that the quest, which is highly welcomed, for a new developmentalism should be imbued with and undertaken in a framework that is by definition democratic. It will draw on the specific African experience for this purpose.
Women, Politics and a Development Economics Renaissance
By R. R. Sharma - 2001
Draft paper prepared for the discussion at the UNRISD meeting on “The Need to Rethink Development Economics”, 7-8 September 2001, Cape Town, South Africa.

"I come to this discourse from the perspective of an advocate, a lobbyist to be more precise, working to open the minds of U.S. policy makers to alternative thinking on development, including the role of gender in development.
"I think there are roughly four steps required to mainstream a new development economics theory and policy—empirical research, theory formulation and testing, education of technical experts in the use of new theory, and the ultimate adoption of the new theory by policy decision makers. Of these four steps, Women’s EDGE focuses its work on the last: to get U.S. policy makers to abandon the “Washington Consensus” and embrace a new formula for development, one which includes gender in its basic equation. Therefore, I will focus my contribution on how we might “close the loop” between researchers, economists, and decision-makers.
"And, as you have already gathered from the name of my organization, I will offer some thoughts on how the neo-liberal model has affected women and why any new thinking on development economics must ground itself in the most basic social organization humans have—male and female."

Editor: Róbinson Rojas Sandford

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