Developmental State Essay

Topics: Economics, World War II, Economic growth Pages: 11 (3308 words) Published: May 30, 2013
Essay Assignment Submission Sheet


Course Code: HST2028F

Essay: 1

Tutor: Adele

Tutorial Group Number: 2

Name of Student: Brent Brache

Date Assignment Due: 03 May 2013

Plagiarism Declaration
1. I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend it is one’s own. 2. I have used the [this should be the footnote convention] convention for citation and referencing. Each significant contribution to, and quotations in this essay/report/project from the work(s) of other peopled has been attributed, and has been cited and referenced. 3. This essay/report/project is my own work.

4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work


Name: Brent Brache

This essay outlines the history and meaning of the concept “developmental state” and contrasts the features of the developmental state models of Asia and Latin America. We will identify specific themes including bureaucratic autonomy extending to public-private cooperation, socio-political climate, strategic industrial policies, labour quality and income distribution when looking at Asia and Latin America. We will look at Japan and Korea who are seen as the pioneer successful developmental states and compare and contrast them to the less successful developmental models applied in Chile and Brazil. Latin America’s industrialisation and economic growth rates were slower than those seen in Asia and once we complete the analysis of these developmental models we will be able to offer an explanation as to why they were different in the two regions.

A key feature of the underdeveloped economy is market failure and it is the state that has to play an important role in correcting this problem. The concept of the developmental state is associated with the leading role played by government in promoting industrialisation in Japan and East Asia after World War II. This was achieved through strategic implementation of various policies into the market including subsidies, tariff protection and other controls so as to develop certain sectors of production and boost economic activity.

Although originating in Japan and then following in South Korea, a different developmental state model was applied in Latin America where the state intervened and made use of their own distinct fiscal, exchange rate, monetary and sectoral policies to facilitate industrialisation transformation. In both instances though, the state played a strategic and active role by directing and supporting growth by using state resources and influence to help their people as well as increase economic activity. This, almost tactical, interventionist approach by underdeveloped, late industrialising countries is known as the developmental state model.

After World War 2 ended in 1945 Japan’s economy was essentially destroyed and left in the hands of Joseph Dodge’s “stabilization panic” – a selection of anti-inflation measures installed by the USA to stabilise the Japanese economy, if but by anti-inflation strangulation. Korea was decolonised from Japanese occupation after the war and was succeeded by US military government. Japan and Korea, including the state and elites, were therefore vulnerable post-war and as a result, had joint nationalistic ideas and obligations towards...
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