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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.
- Sales Rank: #576563 in Books
- Brand: Brand: Cambridge University Press
- Published on: 2004-08-30
- Original language: English
- Number of items: 1
- Dimensions: 8.98" h x 1.06" w x 5.98" l, 1.60 pounds
- Binding: Paperback
- 480 pages
- Used Book in Good Condition
Most helpful customer reviews
27 of 29 people found the following review helpful.
Provocative, but no new topic
By TJ
[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 cliqu� 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'�tat - 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
4 of 4 people found the following review helpful.
Useful study of the state's role in development
By William Podmore
In this remarkable book, Atul Kohli of Princeton University examines the growth policies of South Korea, Brazil, India and Nigeria. He makes a detailed comparative analysis of the state as an economic actor in developing countries and asks, why is there such variation in developmental efficacy?
He shows that the Washington consensus, the cult of the market, is against developing countries' interests. There is no evidence that laisser-faire policies work: "there is a stunning lack of evidence for the proposition that less government facilitates more rapid industrialisation in the developing world." And, "if the neoclassical argument is that free and open economies subject to minimum government intervention are best situated to maximize growth, then supportive evidence is lacking."
He concludes, "rapid industrialisation in the developing world has been a product of effective state intervention." Countries have to create effective states in order to industrialise their economies.
2 of 2 people found the following review helpful.
WARNING! Kindle version has No Page #'s Can't be used for citation
By Amazon Customer
I purchased this book on my Kindle for college. But after reading it, and I started my essay, I realized I CAN'T CITE REFERENCES WITH IT!!!! it doesn't have page #'s listed!! BEWARE! If you are buying this for college YOU CANNOT CITE REFERENCES WITH THE KINDLE VERSION!!!!!
I tried getting it from the library here and they don't carry it. So I'm going to be FORCED to purchase a physical copy of it and I'm so unhappy right now.
I called Amazon customer service and they said there is nothing they can do to make the page #'s work for this book. I've suggested that they institute warnings for college students on the page so we know before we purchase it.
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