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The Emergence of Developmental States from a New Institutionalist Perspective

A Comparative Analysis of East Asia and Central Asia

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Manuel Stark

This book addresses the relevance of institutional arrangements in East Asian developmental states for the Central Asian countries. It is argued that the Central Asian transition countries share crucial similarities with the economies of East Asia. By a detailed analysis of historical developments in Northeast and Southeast Asia, a coherent and comprehensive model of the developmental state on the basis of the New Institutional Economics is developed in this book. This model is applied to Central Asia by a comparative study on the basis of semi-structured interviews that were carried out in Kazakhstan and Uzbekistan. Both Central Asian countries show notable similarities but also crucial differences to the East Asian developmental states.

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LIST OF ABBREVIATIONS ................................................................................... XIII LIST OF TABLES.................................................................................................. XV LIST OF FIGURES...............................................................................................XVII 1 Introduction ................................................................................................... 1 1.1 Research scope .......................................................................................... 1 1.1.1 Central Asia after 20 years of transition ............................................. 1 1.1.2 The East Asian miracle and its relevance for Central Asia ................ 3 1.1.3 Research questions and the relevant unit of analysis.......................... 8 1.2 Theoretical Framework ............................................................................. 9 1.3 Ontological and methodological considerations..................................... 10 1.4 Outline of the study................................................................................. 12 PART I: SETTING THE FRAMEWORK.................................................................... 13 2 The state from the perspective of economic theory .................................... 15 2.1 NPE and NIE as extensions of neoclassical economics ......................... 15 2.2 The Fundamentals of the NIE ................................................................. 19 2.2.1 Objectives and Methodology ............................................................ 19 2.2.2 Institutional change and its drivers ................................................... 23 2.3 Institutions, the state, and the path of development................................ 30 2.3.1 Enforcement and interplay of institutions......................................... 30 2.3.2 Informal institutions, ideology, and discontinuous institutional change ............................................................................................... 33 3 East Asia and the developmental state in the literature: perspectives and disagreements .............................................................................................. 39 3.1 Methodology and research focus of the developmental state literature . 39 3.2 The key issues of the developmental state literature .............................. 41 3.2.1 Economic policies in East Asia: the controversial role of the state.. 41 3.2.2 Effective governance as a prerequisite for the developmental state. 49 3.2.3 Conditions for the emergence of a developmental state................... 54 X 4 The developmental state and economic theory: implications, theoretical lineage, and the need for further research ................................................... 63 4.1 Varying models and definitions .............................................................. 63 4.2 Toward a typology of states .................................................................... 66 4.3 The theoretical lineage and implications of the developmental state argument.................................................................................................. 70 4.4 Conclusions...

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