The Process of Economic Development

By James M. Cypher; James L. Dietz | Go to book overview
Save to active project

7

The state as a potential agent of transformation

From neoliberalism to embedded autonomy
After studying this chapter, you should understand:
the neoclassical perspective on the role and nature of the state in the economy;
P.T. Bauer's critique of developmentalist theories and his case for spontaneous development;
the origins and importance of market failure versus government failure;
the nature of the so-called New Political Economy and DUP activities;
the importance of government leadership versus government followership;
how state activities can result in crowding-out or crowding-in of private investment;
the crucial role of a meritocracy of state employees to successful development;
the characteristics of the predatory, the intermediate, and the developmental state;
the meaning and significance of embedded autonomy; and
the four roles of the developmental state.

Introduction

This chapter concentrates on one of the most disputed areas of development studies, the role of the state in the process of economic transformation. It begins by framing the discussion within the context of major socioeconomic realignments of the 1980s which set the stage for a renewed debate over the role of the state. It concludes with recent research which attempts to reaffirm the potential of the state as an agent of economic growth, a view widely held by the early developmentalists as well as the heterodox thinkers discussed in the previous two chapters.

While England was passing through the agonies and ecstasies of the Industrial Revolution (1750-1840), a group of industrialists, pundits, and economists urged unrestrained laissez faire as the best means to advance the wealth of the nation, and they made an impression in national political-economic debates of the period. Because many were located in the thriving industrial town of Manchester, they became known as the "Manchester Liberals." In their view, if the British government would only eliminate almost all regulations and constraints on market behavior, then England would forge ahead even faster. 1

-191-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
The Process of Economic Development
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 539

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?