State-Directed Development: Political Power and Industrialization in the Global Periphery
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State-Directed Development: Political Power and Industrialization in the Global Periphery
Atul Kohli
Manufacturer: Cambridge University Press
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Binding: Paperback

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ASIN: 0521545250

Book Description

Why have some developing countries industrialized and become more prosperous rapidly while others have not? Focusing on South Korea, Brazil, India, and Nigeria, this study compares the characteristics of fairly functioning states and explains why states in some parts of the developing world are more effective. It emphasizes the role of colonialism in leaving behind more or less effective states, and the relationship of these states with business and labor in helping explain comparative success in promoting economic progress.

Customer Reviews:

4 out of 5 stars Provocative, but no new topic.......2006-12-08

[CONTENT]
In his book State-Directed Development, Atul Kohli, Professor at the Woodrow Wilson School at Princeton University, asks the long-discussed and controversial question why some countries have succeeded in creating wealth and raising the standards of living of their citizens while other countries have failed despite extensive efforts.

To approach the question, Kohli presents four country cases in a comparative study - Korea, India, Brazil and Nigeria - providing extensive information on each country's colonial history, its class structures as well as the political and economic decisions that took place since their independence.

Kohli divides the wide array of developing countries into three ideal-type categories of states: cohesive-capitalist states, fragmented-multiclass states, and neopatrimonial states. He points out that none of the four samples in the study ever reflected any of those ideal-type categories (though some have come close to one or another), and, in addition, that states tended at different times with varying governments and regimes to different categories.

Cohesive-capitalist states represent, according to Kohli, nations with a strong, centralized government and are organized along a professional and meritocratic bureaucracy. The state in this example is insulated from any elite or popular interests, utilizes nationalism to mobilize support and to overcome fragmentation within the population, cooperates closely with businesses and investors, and intervenes heavily in the economy to enforce a rapid industrialization process. The nations that came closest to this description in Kohli's sample of case studies are Korea under Park Chung Hee and Brazil during the Vargas regime. On the other extreme of the scale, Kohli identifies neopatrimonial states, which are depicted as structurally weak states, taken hostage by a small cliqué of corrupt leaders whose only interest is personal aggrandizement. In a neepatrimonial state, corruption and rent-seeking is endemic, and leaders have no commitment to any public greater good. The nation that comes closest to this description among Kohli's sample is Nigeria for most of its post-colonial history. Finally, Kohli describes the fragmented-multiclass state, a state in which the population is fragmented along ethnic, tribal, class, religious or regional lines, but which is nonetheless ruled by a democratic regime. To maintain the ability for political action, the leaders of the latter state frequently furnish conflicting promises to different interest groups, while falling short on delivering them accordingly. Kohli sees the latter category relected in post-independence India.

While neopatrimonial states are likely to fail in creating growth and development for understandable reasons in an environment of endemic corruption and rent-seeking, Kohli argues that "[c]ohesive-capitalist states have proved to be the most effective agents of rapid industrialization in the global periphery" (p381). This is due to their ability to define and to enforce narrow economic goals, as well as to align all domestic resources and rally all classes - workers as well as capital-endowed elites - along a common economic agenda. The economic performance of fragmented-multiclass states, Kohli argues, end up somewhere between cohesive-capitalist and neopatrimonial states, with middling economic results due to recurrent swings in their political focus to accommodate changing pressures of conflicting interest groups.

Up to here, Kohli's concept of state categories does not exceedingly differ from Peter Evans's theory of developmental states which classifies states according to their ability to act as agents of societal transformation and growth. Kohli's neopatrimonial state equals Evans's predatory state, the fragmented-multiclass state is similar to Evans's intermediate state, and the cohesive-capitalist state seems to be comparable to Evans's developmental state. (Evans, "Embedded Autonomy," 1995) Kohli, however, distinguishes his understanding between the concept of the cohesive-capitalist state and Evans's development state as follows: "[P]olitical capacities are rooted not in the levels of information exchanged between state and business [as in Evans's developmental state] but in the amount of power the states command to extract resources, to define priority areas of expenditure, and to instill a sense of discipline and purpose in society." (385) The `discipline' Kohli refers to materializes in the "control of labor, downward penetration of state authority so as to silence opposition and control behavior, and nationalist mobilization so as to put a peacetime economy on a war-time footing." (p389) In describing Brazil's experience, Kohli becomes more explicit in outlining what it takes to be a cohesive-capitalist state: "systematic labor repression which generally kept wage gains well behind productivity gains as workers were mobilized to work hard in the name of the nation."(p392)

With the repressive nature of Kohli's cohesive-capitalist state in mind, the book's principal thesis of a cohesive-capitalist state as a "necessary but not a sufficient condition for rapid industrialization in the developing world" (374) becomes provocative. Do developing countries in fact need authoritarian regimes for late late industrialization? Very troubling, at first sight, some prominent examples of recent history - Brazil, Chile, China, Singapore, South Korea, Taiwan among them - seem to offer some evidence for it. Indeed, the question whether rapid industrialization necessitates an authoritarian regime has aroused academics for several decades, and considerable academic work has been done.

Anti-authoritarians have pointed to several arguments. First, undoubtedly, development comprises much more than industrialization. While Kohli's book is titled State-Directed Development, his understanding of development is clearly restricted to the term's narrowest sense, which is industrialization. This is further reflected in the various illustrations of the country studies: while rich historical information is provided to each country, there is little information on the simultaneous repression and gross human rights abuses that took place under Korea's dictator Park Chung Hee, the Japanese colonial occupation of Korea, or the Vargas regime in Brazil. Equally, Kohli conveniently ignores in over 400 dense pages any discussion of the notion of development as anything beyond pure industrialization. (see e.g. Amartya Sen's capability approach in: Sen, "Development as Freedom," 1999)

Second, it is frequently argued that authoritarian regimes offer a better protection of property rights, thereby providing a greater incentive for local and foreign enterprises to invest. Barro ("A cross-country study of growth, saving, and government," NBER Working Paper No. 2855, 1989, p22) rejects this notion, arguing that he could only find three former dictatorships in the entire world (Chile, Singapore, and South Korea) that had not engaged in any expropriation.

Third, Pranab Bardhan, developmental economist at UC Berkely, challenges the assumption that the state is the sole potent actor that can bring about development, and refers to a decentralized, community-based approach to development (Bardhan, "Symposium on the State and Economic Development", Journal of Economic Perspectives, Summer 1990, Vol. 4, No. 3 pp3-9).

Finally, but most important, advocates of authoritarian regimes have not been able to pinpoint to any motivational causality why a dictatorial regime - once it was in power - would need to show any concern for the greater public good and long-term growth. Instead, in a realist framework, it was more likely that it joined with elite interests to minimize the risk of another coup d'état - the exact opposite of hoped-for state autonomy and insulation.

Bardhan summarizes that "it is not so much authoritarianism per se which makes a difference, but the extent of insulation (or `relative autonomy') that the decision-makers can organize against the ravages of short-run pork-barrel politics. Authoritarianism is neither necessary nor sufficient for this insulation." (ibid.: 5)

To conclude, Kohli's State-Directed Development sheds new light on a question that has long divided social science into different camps. The detailed historic knowledge presented in Kohli's book will certainly make an impact in development economics as well as cultural and colonial studies, and lead to further studies on the elusive origin of growth.

[STYLE]
The book consists of some massive 425 pages. Reading is tiring, since margins are kept very small on all sides of the page. Changing margines, using common font size and the distances between lines would probably result in a total of some 650 pages.

The book's overall structure is simple: an introductory chapter, 4 chapters (each presenting one case study) and a massive conclusion chapter (60 pages). Within the chapters, structure is kept minimal which makes it at times hard to follow. Historical facts are at times repeated over and over again. The conclusion chapter repeats the essence of every case country once again, which made it necessary to interject another 12-page section named "concluding reflections" within the conclusion chapter itself.

For busy readers, I would recommend to read the introductory and jump to the concluding chapter. Both combined are some dense 85 pages (which would be in common book printing standards still around 120 pages). If you would like to look into each country case, watch out for the paragraphs starting with "To sum up, ..."

December 2006
Poor People's Knowledge: Promoting Intellectual Property in Developing Countries (World Bank Trade and Development Series)
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    5 out of 5 stars Essential for understanding some of the real origins of war.......2005-12-08

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          5 out of 5 stars Cogent, Succinct, and Informative.......2005-07-26

          With increasing pressure on public sector and non-profit organisations to move from activity-based management to a more results-based orientation, Ms. Kusek and Mr. Rist of the World Bank have written what they call a Handbook for Development Practitioners.
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          5. Bankers Bagmen and Bandits: Business and Politics in the Age of Greed Bankers Bagmen and Bandits: Business and Politics in the Age of Greed

          ASIN: 0773527435

          Customer Reviews:

          5 out of 5 stars Excellent, even if "grand unification" theme is suspect.......2005-12-31

          This is a book every single US Senator and Representative should read.

          The title derives from the reality that illicitly gotten funds create their own momentum as the funds are laundered throughout the world, creating interest, mayhem, and leaving 3rd world countries (preyed upon for weak financial regulations) struggling under massive debt they didn't really incur.
          Local Governance in Developing Countries (Public Sector Governance and Accountability) (Public Sector Governance and Accountability)
          Average customer rating: Not rated
            Local Governance in Developing Countries (Public Sector Governance and Accountability) (Public Sector Governance and Accountability)

            Manufacturer: World Bank Publications
            ProductGroup: Book
            Binding: Paperback

            Economic Policy & DevelopmentEconomic Policy & Development | Economics | Business & Investing | Subjects | Books
            GeneralGeneral | Small Business & Entrepreneurship | Business & Investing | Subjects | Books
            Public Affairs & AdministrationPublic Affairs & Administration | Government | Nonfiction | Subjects | Books
            GeneralGeneral | Politics | Nonfiction | Subjects | Books
            Public AdministrationPublic Administration | Political Science | Social Sciences | Nonfiction | Subjects | Books
            Local GovernmentLocal Government | Levels of Government | Political Science | Social Sciences | Nonfiction | Subjects | Books
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            ASIN: 0821365657

            Book Description

            This book provides a new institutional economics perspective on alternative models of local governance, offering a comprehensive view of local government organization and finance in the developing world. The experiences of ten developing/transition economies are reviewed to draw lessons of general interest in strengthening responsive, responsible, and accountable local governance. The book is written in simple user friendly language to facilitate a wider readership by policy makers and practitioners in addition to students and scholars of public finance, economics and politics.
            Regulation and Development (Federico Caffè Lectures)
            Average customer rating: Not rated
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              Jean-Jacques Laffont
              Manufacturer: Cambridge University Press
              ProductGroup: Book
              Binding: Paperback

              Policy & Current EventsPolicy & Current Events | Popular Economics | Business & Investing | Subjects | Books
              GeneralGeneral | Popular Economics | Business & Investing | Subjects | Books
              Development & GrowthDevelopment & Growth | Economics | Business & Investing | Subjects | Books
              Economic Policy & DevelopmentEconomic Policy & Development | Economics | Business & Investing | Subjects | Books
              Economic HistoryEconomic History | Economics | Business & Investing | Subjects | Books
              GeneralGeneral | Business & Investing | Subjects | Books
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              Business & InvestingBusiness & Investing | Blowout Books | Stores | Books
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              ASIN: 0521549485

              Book Description

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              7. The Methods and Materials of Demography, Second Edition
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