The Transformation of the East Asian States: From the Developmental State to the Market-Oriented State
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This article reviews the main characteristics of state‐led development in East Asia and follows this up with an analysis of the increasing pressures on developmental states. The state has had to confront both internal economic constraints and external pressures, such as political liberalization and economic globalization, and the prospects for sustaining long‐term development plans within nation‐states seem even less promising in a deregulated global economy. The East Asian states have recognized that their national systems of economic development have declined, and that their policy initiative has therefore become less effective. They have in fact witnessed a transition from the developmental state to the postdevelopmental state, although the conventional statist assumptions ignore this transition. As other governments pursued market‐conforming economic policies, the postdevelopmental market‐oriented states established rules governing the market economy and abolishing government regulation.
Abstract
This article reviews the main characteristics of state‐led development in East Asia and follows this up with an analysis of the increasing pressures on developmental states. The state has had to confront both internal economic constraints and external pressures, such as political liberalization and economic globalization, and the prospects for sustaining long‐term development plans within nation‐states seem even less promising in a deregulated global economy. The East Asian states have recognized that their national systems of economic development have declined, and that their policy initiative has therefore become less effective. They have in fact witnessed a transition from the developmental state to the postdevelopmental state, although the conventional statist assumptions ignore this transition. As other governments pursued market‐conforming economic policies, the postdevelopmental market‐oriented states established rules governing the market economy and abolishing government regulation.
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