The politics of the developmental state

The developmental state paradigm advances a powerful counter-narrative to neoliberal theories and practices recommending that developing countries rely on markets only to meet their development aspirations. In fact, it shows how states can intervene effectively in the economy to ensure sustained growth and integration in global markets. This chapter highlights the political logic of the developmental state, starting first from its intellectual roots in classic Western economic nationalism from the 18th and 19th centuries. Second, it recalls the experience of three developmental states in East Asia (Korea, Japan and Taiwan), defining also China as a more recent addition to the group. Third, three defining features of the developmental state are outlined – economic nationalism, committed institutions, and corporativism. The chapter concludes with some considerations about the replicability of the developmental state outside East Asia and the rehabilitation of the concept in the West.