Beyond the Developmental State: East Asia’s Political by Steve Chan, Cal Clark, Danny Lam

By Steve Chan, Cal Clark, Danny Lam

This selection of essays examines the historic effect of states in East Asia's political economies, and considers their contributions to the continuing social, monetary and political transformation of the international locations during this quarter. They exhibit that the prestige of those so-called developmental states have developed over the years, and that their position and skill were considerably with regards to the social bases and cultural roots of the appropriate countries.

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Following the analytical lead of Williamson 18 Beyond the Developmental State (1985), they postulate that the East Asian developmental state can be seen as a network state or a quasi-internal organization composed of the government and private enterprises. State-business relations in the developmental state operate like the corporate headquarters and business units of an M-form hierarchy. This internal organization reduces transaction costs through "extended bounded rationality, reduced opportunism and uncertainty, reduced small-number indeterminancies, better information, and a group-oriented atmosphere" (Lee, 1992, p.

State, and Society in Asian Development 33 be seen in Richard Doner's (1991) comparative study of the automobile industry among members of the Association of Southeast Asian Nations (ASEAN). Not surprisingly, the domestic industry's performance was worst in the Philippines due to a combination of inefficient management, political corruption, and manipulation by foreign MNCs. What is interesting, though, is Doner's conclusion that Thailand had the best record because it had the best cooperation between local businesses who possessed industry expertise and government officials who could use the power of sovereignty to negotiate with foreign companies.

This chapter examines a variety of Asian political economies to advance the argument for "moving beyond the developmental state" by "bringing society back in" to development studies. We consider cases with widely varying economic performance, political regimes, and indigenous societies and cultures. Two substantive sections provide data indicating the limits of both statist and neoclassical theories for explaining economic outcomes in Asia. They are based on a series of comparisons between political economies in which opposite characteristics seemingly have the same economic consequence or the same characteristic is associated with very different economic outcomes.

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