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

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

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

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

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

Why East Asia surged ahead of Latin America(June 2006)

Why East Asia surged ahead of Latin America(June 2006) • “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

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

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’.”

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.”

Statist Theory • Focus on nature of stateinstitutions • Developmental vs. predatory • Institutional level of analysis • Not individual level • Not global political economy structure

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

Statist Theory: Background • Why would states have interests autonomous from society’s in promoting development? • Remember Tilly

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

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

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.

Statist Theory: Background • Note that the global technological frontier is always moving forward • Militarily

Statist Theory: Background • Note that the global technological frontier is always moving forward • Economically

Statist Theory: Background • So, how can latecomers amass the huge investments necessary to develop economically and militarily at the global technological frontier?

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

Statist Theory: Background • How did Britain—the earliest industrializer—do it? • Britain ~1700s • Early • Small start-up firms

Statist Theory: Background • How can latecomers amass the huge investments? • Germany ~1840s • Only a little “late” • Only a little “backward” •  Investment banks

Statist Theory: Background • How can latecomers amass the huge investments? • Russia/Soviet Union ~1880s-1930s • Much “later” • More “backward” •  State itself

Statist Theory: Background • Soviet state • Asserted control over entire economy • Forcibly extracted resources • To use for military development • Russia/Soviet Union

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

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