THE ROLE OF THE STATE IN THE ECONOMIC TRANSFORMATION OF EAST ASIA

2007 ◽  
Vol 60 (1) ◽  
pp. 1-36 ◽  
Author(s):  
Cathie Jo Martin ◽  
Kathleen Thelen

This article investigates the politics of change in coordinated market econo\mies, and explores why some countries (well known for their highly cooperative arrangements) manage to sustain coordination when adjusting to economic transformation, while others fail. The authors argue that the broad category of “coordinated market economies” subsumes different types of cooperative engagement: macrocorporatut forms of coordination are characterized by national-level institutions for fostering cooperation and feature a strong role for the state, while forms of coordination associated with enterprise cooperation more typically occur at the level of sector or regional institutions and are often privately controlled. Although these diverse forms of coordination once appeared quite similar and functioned as structural equivalents, they now have radically different capacities for self-adjustment.The role of the state is at the heart of the divergence among European coordinated countries. A large public sector affects the political dynamics behind collective outcomes, through its impact both on the state's construction of its own policy interests and on private actors' goals. Although a large public sector has typically been written off as an inevitable drag on the economy, it can provide state actors with a crucial political tool for shoring up coordination in a postindustrial economy. The authors use the cases of Denmark and Germany to illustrate how uncontroversially coordinated market economies have evolved along two sharply divergent paths in the past two decades and to reflect on broader questions of stability and change in coordinated market economies. The two countries diverge most acutely with respect to the balance of power between state and society; indeed, the Danish state—far from being a constraint on adjustment (a central truism in neoliberal thought)—plays the role of facilitator in economic adjustment, policy change, and continued coordination.


2019 ◽  
Vol 21 (4(73)) ◽  
pp. 22-36
Author(s):  
A.M. VDOVICHENKO ◽  
O.V. KALINCHAK ◽  
M.A. KUZNETSOVA

Topicality. The effect of modern globalization processes leading to escalating competition make it actual and necessary to learn historical studies of implementing reforms worldwide and the role of the state in the process of institutional transformation provided by highly developed countries of the world. Therefore, the present day the key issue of Ukraine resolving which has the theoretical and practical importance is the issue of the institutional modernization with defining the role and placing of the state on course of implementing and supporting the innovative and sustainable development. Aim and tasks: to prove, on the basis of learning the historical studies of implementing reforms worldwide and the role of the state in the process of institutional transformation, that at the present stage of human development it is the state that is in a role of the main institutional strategic subject of the innovative and sustainable development strategy that has the practical importance for defining the direction of the further social and economic transformation in Ukraine. Research results. The article is focused on that the market system in its classical form is past the point of the historical development. Gradually, in view of objective reasons, the placing and functions of the state have been changing in the direction of consolidation of its role, direct dealing with resolving fateful issues. Nowadays in successful and developed countries it is the main institutional and strategic subject of mixed economic system, one of its organization components. The overview of historical experience of the reform implement in countries that have achieved substantial gains proves that these gains are connected with the institutional reformations with the state being in the heart of them. On the other hand, dogmatical proclamation of private property privileges under any circumstances and at the same time the removal of the state from resolving fateful issues, the glamorization of the market of Ukraine and as a result � system error while choosing and implementing the model of economic development, have led to the formation of oligarchic capitalism with the objective traits peculiar to it. Therefore, the present day the issue must be not the reforms modernization and intensification but the change of their rates, the economy management philosophy in general. Conclusion. The research that had been made gave an opportunity to substantiate the attitude of the authors being that without the complex system support of the real sector of economy with the focus on innovation, without consolidation of state property and its institutes including those on the backs of reprivatizing the strategically important enterprises as the fundamental principle of the future economy of Ukraine the fateful issues would be impossible to resolve.


Author(s):  
Pradeep K. Chhibber ◽  
Rahul Verma

Conservative political thinking has a long intellectual lineage in India. We explore the intellectual roots of this tradition by examining older texts as well as more contemporary writing on the role of the state. In one strand of conservative political thinking, the state is subservient to social norms, and it can only have a limited, if any, role in social and economic transformation. We contrast these conservative ideas with the views of more liberal thinkers who seek to use the power of the Indian state to transform society and the economy. A reading of the debates in the Constituent Assembly of India shows that there was significant division on the role of the state in social transformation and on whether special provisions should be made for religious minorities and disadvantaged groups. The ideological dimensions of conflict that we have identified were of deep concern to the framers of India’s constitution and they resonate in contemporary India.


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