Developmental State Economic Success

This assignment analyzes the factors contributing to economic success in developmental states. It examines government policies that attract industrialization, focusing on subsidies and revenue generation. The report uses Thailand, Japan, and China as examples, highlighting their strong governments, efficient leadership, and successful long-term growth strategies.

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International Relation and Global Economy

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Table of Contents
Introduction......................................................................................................................................3
How valid is the argument that the developmental state is the main cause for Economic success
in the Asia Pacific? Support your answer with appropriate examples............................................4
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The report is about the argument on the developmental state and mentions the reasons for
economic success in the Asia Pacific. The report includes the some examples to explain the
argument clearly. It also includes the factors by which economy is successful in the
developmental state.

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How valid is the argument that the developmental state is the main cause for Economic
success in the Asia Pacific? Support your answer with appropriate examples.
For the world’s economy, polity and society globalization is an inevitable trend. Due to this
tendency, the interest in global governance has increased. The most important discussion over
this scope is the relationship between global governance and state.
Extensive planning and regulation is the key for the success of a state whether it is under
development phase or developed. An expression is applied from the other developed countries
by the researchers as a macroeconomics preparation for the development of eastern Asia in the
new era. The capitalism model shows that the country powers are in the hands of government in
terms of decisions, money and rights. Government decides the allocation and monitoring of the
various activities of the economy.
The term has frequently been used for the countries, which are outside from the Asia Pacific and
fulfill the needs of grown continent (Castells, 2010). Chalmers Johnson who critically
conceptualizes the continent initially introduced this concept. He also focused that this economy
is having motive towards progress, taking needed steps and making policies to achieve that goal.
Recognized by Johnson (1982), in American literature developmental state is contemplated as
main breakthrough on Northeast Asia. It is initially invented as a clarification of industrialization
in Northeast Asia thinks “developmental state” as a place that is having several resources and
cheap labour, which will results to progress when capital is introduced in this economy and
political decisions will responsible for formations of financial life in capitalist northeast Asia
(Cai, 2010).
The developmental state theory is result of the observed information in various eastern countries
However; developmental state is not a new thought. As a leader in this scope, many scholars

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follow Johnson. The model of developmental state has become the key stream clarification. Still
there are some questions exits on the framework of the developmental state. Like, is the
developmental state support by specific history and culture? What is the area limit for
developmental state? Can the developmental state knowledge in East Asia be transferred, and so
on? What’s extra, because of the pre hypothesis of state interference, the model of developmental
state is observed as an informal theory to some extent contributing the quick growth to vibrant
state actions that may not be true all the time, but at least somewhat the reality (Beeson, 2014)
An authoritarian state administers the nation with the help of several bodies, which primarily
regulates the different areas responsible for the growth of a country. It controls the market,
exchange system, monitory system and other activities within a country. It also provides public
education and national defense, which are not possible to function in the absence of regulation.
In the absence of this system, there are chances of failure in the economy. To develop the
economy and making it stronger the developmental state promotes the new industries and
reduces the displacement reason for this moving of venture to other countries (Yahuda, 2011).
The government of developmental state should focus on more investment and invites the more
industrialists to invest in their state and help them in building the industries in their state. It will
affect the economy positively and generates the more opportunities of job in the economy to
overcome employment problem and better opportunities for employed population. To maintain
the stable macro economy, it is important to have collaboration between the major industries and
the state (As per Alice Amsden’s the involvement of the government in market like funding of
subsidy to improve competitiveness of firm, wages and stop unethical controlling of price to
bring down manufacture cost. It is also necessary for growth of industries and economy, and
control of exchange rate, which is mainly found in late industrializes countries. Just like case in

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Japan, there are slight government rights of manufacturing sector, but non-government sector is
restricted and strictly directed by elite’s bureaucratic bodies. (Chan, et. al., 2016). Official are
not elected these bureaucratic government elites and are therefore matter to manipulate through
the business class and working class during the political procedure. The logic from this
standpoint is that a governing agency are having the liberty to design the financial system or
come across to long-standing nationwide welfares with financial strategies interrupted through
any working group or business group narrow interests.
After the Second World War the East Asian economies has shown rapid growth and becomes a
noticeable focus in academic for a long time. There are several important characteristics of the
developmental state’s bureaucracy in East Asia. Investment and profits for the state is totally
depend on their decision and policies, which is made by the government. There is long
discussion on development, need of industrialization and the involvement of the state to
encourage it. In addition, it is the criteria where Japan and other eastern countries lack behind
western countries due to influence from unethical groups results to expected and rational benefits
in Japan. (Evans, 2012) the little, best government is recruited from the top ranks of the top law
school, the selection is totally based on the national examinations patterns and is unchanged by
election outcomes. The bureaucracy outlines virtually all ordinances, laws, regulations, licenses
and orders that rule society. Moreover, it has additional legal powers of ‘administrative
guidance’ and is reasonably unrestrained in any means by the legal system (Gereffi, et. al.,
2014).
A developmental state signifies a sound government, which has enough power and resources to
attain its developmental goals. As per a report released by the World Development, the
foundation of a good government is formed by the efficient supply of goods and services such as

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policies and organizations. These resources bring boom in the markets and increase people’s
living of standards. It has been observed that today’s dynamic world demands a much better and
urgent process of development (Leigh, and Blakely, 2016). In the absence of developmental
state, the economic development of underdeveloped countries cannot be imagined. , Moreover, it
is evident that the third world nations have occupied a large area on the earth, which is likely to
form an important part of the future globalizing world in the nearer future. So, the developmental
In this view, after the Second World War, a speedy growth was observed in most of the Asian
companies such as USA, Japan, China and Thailand. While USA is a regulatory oriented
country, Japan is a developmental oriented nation. These countries are a good example of
Economic success due to developmental states. Over the past few decades, some of the ultimate
prospects for economic success have also been seen in Singapore, India, Taiwan, India,
Malaysia, Vietnam, Indonesia, and Philippines. These nations have experienced from high to
moderate rate of development. Since 1980s, Thailand has been grown at double speed in
maximum years (Beeson, 2014). On the other hand, China has been leading the globe in terms of
economic growth and advancement in many years since 2001. In addition, it is found that United
Kingdom took approximately sixty years to speed the pace of its economic development in the
initial period of Industrial revolution. On the other hand, America took fifty years to become
fully developed state in the period of American economic take-off in the late 19th century. At
present, numerous countries can be seen boosting their developmental states every ten years.
Furthermore, in many of these Asian nations, not only the rich and prosperous people are getting
richer but also the standard of living of middle class and poor people is increasing greatly. In
Thailand, the rate of poverty has declined from 1960s when more than sixty percent of the
people were living below poverty line and suffering due to the lack of necessities. By 2004, the

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situation was improved and according to the World Bank figures, this country has shown the
highest record in minimizing poverty and enhancing GDP rate across the globe in comparison to
other countries (Chan et al., 2016). The Asian countries like Thailand, Singapore, and Japan have
developed a strong government and efficient leaders who have the ability to compete with
multinationals for protecting and promoting their people’s interest. They have become successful
in creating and maintaining a thread of long-term developmental state growth for the economic
development.

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Conclusion
The report concludes that there are various methods by which economic is successful in
developmental state. The report focus on the policies made by the government that attracts the
large industrializes to establish their industry in developmental state. The government grants the
subsidiary to the industrialist to attract in their state; it will help in improving the society because
it generates revenue and job opportunities. The examples of Thailand, Japan and China are also
included in the report for better understanding.

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References
Beeson, M. (2014) Regionalism and globalization in East Asia: politics, security and economic
development. UK: Palgrave Macmillan.
Beeson, M., (2014) Reconfiguring East Asia: regional institutions and organizations after the
crisis. UK: Routledge.
CAI, F. (2010) the developmental state in the globalizing world. [Online]. Available at:
http://www.e-ir.info/2010/12/22/the-developmental-state-in-the-globalizing-world/ (Accessed:
31 August 2017).
Castells, M. (2010) End of Millennium: The Information Age: Economy, Society, and
Culture| (Vol. 3). USA: John Wiley & Sons.
Chan, S., Lutz, H., Lam, D. and Clark, C. eds., (2016) Beyond the developmental state: East
Asia’s political economies reconsidered. USA: Springer.
Evans, P. B. (2012) Embedded autonomy: States and industrial transformation. USA: Princeton
University Press.
Gereffi, G., and Wyman, D. L. (Eds.). (2014) Manufacturing miracles: paths of industrialization
in Latin America and East Asia. USA: Princeton University Press.
Gilpin, R. (2011) Global political economy: Understanding the international economic order.
USA: Princeton University Press.
Leigh, N.G. and Blakely, E.J., (2016) Planning local economic development: Theory and
practice. USA: Sage Publications.
Yahuda, M. (2011) The International Politics of the Asia Pacific. UK: Routledge.