State and Market in Development: Synergy or Rivalry?

By Louis Putterman; Dietrich Rueschemeyer | Go to book overview

1
State and Market in
Development: An Introduction

LOUIS PUTTERMAN & DIETRICH RUESCHEMEYER

The issue seems decided before it is fully spelled out: state interventions in the economy harm economic growth and development. State action that goes as far as planning and political control of the economy leads to economic disaster. Prosperity comes with reliance on the market. It is the free interaction among economic actors all pursuing their own improvement, not political decision and collective action, that brings sustained advances in economic efficiency.

Two historic developments offer themselves as compelling evidence: the dramatic economic success of the NICs of East Asia, especially Taiwan and South Korea, and the collapse of the state socialist political economies of Eastern Europe. For the past generation, both Korea and Taiwan followed an economic policy geared to exploiting the opportunities of the world market and exposing their industries to the discipline of that market. By contrast, the command economies of Eastern Europe made only minimal use of the market mechanism within their borders, and in the pursuit of regional autarky, they protected their industries against international competition. Their economies not only fell further and further away from their one-time ambition of surpassing the capitalist West in productivity but increasingly failed in meeting even elementary demands of their own societies. Now the Second World merges into the Third.

Such developments seem to call for strong and stark conclusions. And there is indeed a clear-cut shift in the opinions of commentators and policymakers. In fact, public discourse shows an overwhelming tendency toward simplistic trust in “the market” and skeptical rejection of the state’s role in the economy. However, the authors of this volume, among them distinguished economists as well as social scientists, resist without exception this temptation to form simplistic conclusions. They are far from united in their fundamental positions. And their contributions vary a great deal in substantive theme—from a demonstration of the ill effects of government intervention on growth and equity in Southern Asia (Gustav Papanek) to a

-1-

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.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Upgrade your membership to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
State and Market in Development: Synergy or Rivalry?
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
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?

Help
Full screen
Items saved in your active project from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 281

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Upgrade your membership to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.