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Life State building of the “ developmental state Developmental state ” concept has its ups and downs. Its heyday had lasted from the mid-1980s until the Asian financial crisis Crisis broke out in the late 1990s. Many analysts considered that it would face almost certain death following that crisis Crisis , during which the term “ developmental state Developmental state ” seemed to connote “ crony capitalism Crony capitalism ”. Nonetheless, its flagging fortune has been revived again in the wake of the global financial crisis Crisis of 2007–08, as the so-called Washington Consensus Washington consensus , with an opposing emphasis on deregulation De-regulation and liberalization Liberalization , is subject to growing criticisms (Helleiner 2010 ; Birdsall and Fukuyama 2011 ). Meanwhile, the Beijing Consensus, reminding most observers of the developmental state Developmental state concept, has attracted increasing attention worldwide (Halper 2010 ). More fundamentally, however, renewed interest in the developmental state Developmental state is due to the fact that the debate itself focuses on questions that are unlikely to easily fade into insignificance, that is, the relationship between the state, the market Market and civil society as well as the political and institutional foundations for long-term economic development (Hayami and Aoki 2001 ; Haggard 2015 ).

This chapter reexamines the industrial policy Industrial policy in postwar Japan Japan from perspectives of new strands of literature. The first strand is the studies on a development state. As discussed in the introductory chapter of this volume (Takagi et al. 2018 ), the concept of development state (Johnson 1982 ) has been newly attracting interests in the context of the present emerging states, facing globalization Globalization and democratization Democratization . Recent literature, including Takagi et al. ( 2018 ), focuses on the dynamic nature of the development state. Indeed, as we will see in this chapter, the industrial policy Industrial policy regime in postwar Japan Japan , from which Johnson ( 1982 ) derived the concept of developmental state Developmental state , is not characterized by a static set of policies, but it evolved over time.

Developmental state building should not simply be seen as a story about effective economic policies implemented by capable states. An equally important, but far less explored, question is how East Asian countries “managed” socio-political conflicts that accompanied their rapid economic transformation. This chapter examines how South Korea, Taiwan and Singapore have dealt with the domestic conflicts arising from their catch-up process. It argues that the characteristics of growth-led conflict vary across countries. South Korea has undergone a series of contentious settlements, in which opposing forces clashed for a few decades before reaching a compromise. Taiwan has pursued a gradual process of political opening in which competing groups of elite reached an agreement. A distinctive trajectory of continuous consolidation is found in Singapore, whereby interests and ideologies among the ruling party, key government agencies and the middle class have been readjusted periodically to maintain their symbiotic relationship. The diversity within the East Asian development models is key to understanding this multiple paths to settlements.

This chapter discusses challenges facing emerging states that promote development under democratization Democratization and globalization Globalization It compares two types of developmental state Developmental state that is, ‘ authoritarian Authoritarian developmental state Developmental state ’ and ‘democratic developmental state Developmental state ’. Indonesia Indonesia experienced both types of developmental states during the last five decades. The chapter looks at similarities and differences between the two types from the viewpoint of institutions, policies, and policymakers under the respective given external conditions. By doing so, it explores the key characteristics inherent in ‘democratic developmental state Developmental state ’ in the context of the twenty-first century.

The Nationalism ‘East Asian developmental state Developmental state ’ has Globalization been State building for Malaysia some Ethiopia time Japan a source of interest and inspiration to different regimes and leaders in different parts of the developing world. In Malaysia Malaysia for example, former Prime Minister Mahathir Mohamad Mahathir Mohamad (1981–2003) constructed a variant of the so-called ‘East Asian developmental state Developmental state ’ to drive an ambitious program of economic transformation. In Ethiopia Ethiopia too, former Prime Minister Meles Zenawi Meles Zenawi (1991–2012) attempted to implement economic policies along a similar state-guided trajectory of development

This chapter analyzes the mechanism of economic growth in Rwanda, and illuminates their close links with the process of political power consolidation, in other words the state-building. Rwanda’s development policies include two contrasting components, namely neo-liberal, laissez-faire type of policies on one hand, and strongly interventionist type of policies on the other. The analysis of growth mechanisms in leading sectors such as the agriculture, the mining, and the modern business sector clarifies that they have been deeply related to the power consolidation of the ruling party, Rwandan Patriotic Front (RPF). The country has sustained its economic growth through the RPF-led state-building process. On the basis of these findings, this chapter concludes that the growth mechanism depending on the power of the ruling party represents significant challenge for its long-term sustainability.

Until recently, the Myanmar Myanmar economy was stagnant and poverty-stricken. The major cause was considered to be the military Military rule that had started in 1962. The economy, however, had grown even under the military Military government, slowly though. Such a growth had been facilitated by the development strategy made by the military Military and quasi-military Military government before the democratic government started in 2016.

This chapter examines the association between politics and regional economic development during the period of devolution in Kenya, which has been experiencing partially since devolved funds for local public services called the Constituency Development Fund (CDF) were established in 2003 and more comprehensively since the new constitution was promulgated in 2010. Using satellite image information on nighttime light intensity as a measurement of subnational level economic performance, we investigate factors affecting the economic development in Kenya from 1992 to 2016 and find that (i) there is no systematic relationship between major ethnicity of counties and their growth rates of nighttime light intensity until 2012; (ii) during the latest five year period (2012–16) largely overlapped with the ruling period of President Uhuru Kenyatta whose ethnicity is Kikuyu, however, the Kikuyu dominant counties, which have more than 50% share of Kikuyu ethnic group in population, show much higher growth rates than other counties and, moreover, Kiambu county which is the home county of the president shows the highest growth rate among 47 counties; (iii) county governors’ observed personal characteristics such as their educational attainment and past experiences as a Member of Parliament (MP) are not associated with the growth rate; (iv) county level human capital indicators measured by proportions of secondary school graduates or university graduates are positively associated with the growth rate of nighttime light intensity.

The book defines the developmental state as a low-or middle-income country led by political leaders, technocrats, and bureaucrats who share a strong will to deliver rapid economic growth so that the country catches up with high-income countries. The pursuit of the goal is made difficult by various factors, such as the world or regional order, the violation of which might invite the interference of superpower, and internal conflicts, which rapid economic growth may create or intensify. These points have been illustrated in previous chapters with examples from Japan, Korea, Taiwan, Singapore, Malaysia, Indonesia, Myanmar, Rwanda, and Kenya. The previous chapters have also examined the manner in which historical, political, social, and economic conditions affect these constraints. To conclude the book, this chapter summarizes these findings, discusses their immediate implications, and asks some new questions.