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On Planning for Development:                                              state, market and civil society
The Developmental State   The neoliberal state
From The New York Review of Books
Capitalism Beyond the Crisis

By Amartya Sen - February 25, 2009
It is also worth mentioning in this context, especially since the “welfare state” emerged long after Smith’s own time, that in his various writings, his overwhelming concern—and worry—about the fate of the poor and the disadvantaged are strikingly prominent. The most immediate failure of the market mechanism lies in the things that the market leaves undone. Smith’s economic analysis went well beyond leaving everything to the invisible hand of the market mechanism. He was not only a defender of the role of the state in providing public services, such as education, and in poverty relief (along with demanding greater freedom for the indigents who received support than the Poor Laws of his day provided), he was also deeply concerned about the inequality and poverty that might survive in an otherwise successful market economy.

From Financial Times
Adam Smith’s market never stood alone

By Amartya Sen
Published: March 10 2009
Exactly 90 years ago, in March 1919, faced with another economic crisis, Vladimir Lenin discussed the dire straits of contemporary capitalism. He was, however, unwilling to write an epitaph: “To believe that there is no way out of the present crisis for capitalism is an error.” That particular expectation of Lenin’s, unlike some he held, proved to be correct enough. Even though American and European markets got into further problems in the 1920s, followed by the Great Depression of the 1930s, in the long haul after the end of the second world war, the market economy has been exceptionally dynamic, generating unprecedented expansion of the global economy over the past 60 years. Not any more, at least not right now. The global economic crisis began suddenly in the American autumn and is gathering speed at a frightening rate, and government attempts to stop it have had very little success despite unprecedented commitments of public funds.

From UNDP - 2009
Markets, the State and the Dynamics of Inequality

The main objective of this project is to discuss and propose specific policies directed to reduce welfare gaps among and within different social groups, through economic growth and efficient and equitable market mechanisms

From Open University
The changing relationships between state, market and civil society
The central development debates over the last fifty years can – somewhat crudely – be characterised by shifting perceptions of the relative roles of the state and the market. Until the late 1970s development policy and practice was dominated by a state-led vision of social and institutional change. By the 1980s, neo-liberal perspectives came to dominate. Through the late 1990s and into the early 2000s, a reframing of the relationship between state and market took place and greater interest was expressed in ‘getting social relations right’. As a result, a third element, ‘civil society’, has become a dominant feature of the institutional landscape within which development intervention takes place.

Review of African Political Economy, 35, 1, 23—42.
New African choices? The politics of Chinese engagement in Africa and the changing architecture of international development
Giles Mohan and Marcus Power
The role of China must be understood in the context of competing and intensified global energy politics, in which the US, India and China are among the key players vying for security of supply. Contrary to popular representation, China’s role in Africa is much more than this however, opening up new choices for African development for the first time since the neo-liberal turn of the 1980s. As such it is important to start by disaggregating ‘China’ and ‘Africa’ since neither represents a coherent and uniform set of motivations and opportunities. This points to the need for, at minimum, a comparative case study approach which highlights the different agendas operating in different African states. It also requires taking a longue durée perspective since China-Africa relations are long standing and recent intervention builds on Cold War solidarities, in polemic at least. It also forces us to consider Chinese involvement in Africa as ambivalent, but contextual. We focus on the political dimensions of this engagement and set out a research agenda that focuses on class and racial dynamics, state restructuring, party politics, civil society responses and aid effectiveness.

From the Asian Development Bank
Sustainable Development in Asia, 1999
Market, state and civil society
Some key issues regarding the transition period from unsustainable industrial, agricultural, and infrastructure practices to sustainable development are examined here. Government policies, market incentives, and public pressure need to align to push reluctant public and private sector enterprises to waste less, pollute less, and meet more of the needs of low-income households, women, and socially excluded groups.
However, sustainable development will not result solely from a fortuitous conjunction of correct pricing, sound regulation and enforcement, and inevitably sporadic public pressure. The challenge is too great; the gap between crisis and potential achievements of environmental policy shifts is widening daily. Only fundamental shifts in culture, in the mindsets of enterprise managers, government functionaries, and owners of capital, can extricate Asia and the Pacific from a morass of obsolete technologies and process designs and overcentralized infrastructural behemoths, and put it on the path to a revolutionary transformation of production, consumption, and distribution of resources.

From Monthly Review - October 1998
"The State in a Changing World": Social-Democratizing Global Capitalism?
By Leo Panitch
There are two central developments that define our era. One of these is the historic failure of the socialist project of the mass working-class parties, both Communist and Social Democratic. The other is, of course, what has commonly come to be known as the "globalization" of capitalism. These two developments are certainly related to one another, but they cannot be reduced to one another. Each also has its own specific dynamics which need to be analysed separately.
The failure of communism was not only due to the strength of global capitalism. It was also due to the Communist Parties and regimes lack of understanding that democratic rights alone provide socialism with the political air it needs to breathe. Under a dictatorship, without multiple parties, freedom of the press, speech, and association, workers could never learn how to become a ruling class, as Rosa Luxemburg chastised Lenin immediately after his dissolution of the constituent assembly. In the absence of political freedom there is no way to generate the "thousand solutions" that need to be discovered in face of the "thousand problems" that revolutionary change inevitably entails.

K. Dervis, 1997:
Global markets and the state: new challenges for a new century
Moreover, in line with the caveat I just entered about the problematic aspects of globalization, could some of the economic forces and social pressures it has unleashed adversely affect the process of global economic integration, despite today’s confident forecasts? For example, can globalization and open markets survive the extreme volatility that seems periodically to grip capital markets? Events in Mexico and the “Tequila Crisis” they sparked elsewhere in Latin America barely three years ago, and the recent financial crisis in Asia, show countries and groups of countries attracting tens of billions of foreign capital in one year and losing equal amounts the next--with the turnaround apparently occurring in a matter of days if not hours. What does this imply about the role of the state in modern economies? And are there special social challenges associated with globalization? What are the consequences for social cohesion (and hence for the continuing assent of the governed to the policies of economic openness espoused by increasing numbers of governments worldwide) of apparently rising inequality in some countries and unemployment in others? And will governments continue to be able to provide core services to their peoples if international mobility, especially of capital, undermines parts of the tax base on which they have relied?
Thandika Mkandawire, 1998:**
Thinking About Developmental States in Africa
One remarkable feature of the discourse on the state and development in Africa is the disjuncture between an analytical tradition that insists on the impossibility of developmental states in Africa and a prescriptive literature that presupposes their existence. States whose capacity to pursue any national project is denied at one level (theoretical or diagnostic) are exhorted, at the prescriptive level, to assume roles that are, ex definicione, beyond their capacity or political will. Such states are urged to "delink", to reduce themselves, to stabilize the economy, to privatize the economy, to engage in "good governance", to democratize themselves and society, to create an "enabling environment" for the private sector, etc. In other words, to do what they cannot do. What we then have is, to paraphrase Gramci, the pessimism of the diagnosis and the optimism of the prescription. Obviously such a contradictory position is unsatisfactory.
Mark Beeson - 2004
The rise and fall (?) of the developmental state: the vicissitudes and implications of East Asian interventionism
In the aftermath of the Second World War a number of features of the evolving international order were especially striking. Most obviously, the world divided into two implacably opposed ideologically and militarily opposed camps – a structurally entrenched bifurcation that was to distinguish post-war international relations for more than four decades.
At the same time, an equally surprising and – arguably – important, but altogether more positive development occurred: much of East Asia began to rapidly industrialise and witnessed a concomitant and seemingly permanent rise in living standards across the region as a consequence. East Asia’s transformation was surprising because even as late as the 1960s and 1970s, influential strands of radical scholarship continued to question whether the ‘peripheral’ parts of an increasingly inter-connected global economy could ever hope to escape the predations and exploitation of the established industrial heartlands of Western Europe and North America. And yet the fact that Japan had rapidly re-established itself as East Asia’s pre-eminent industrial economy appeared to be unequivocal evidence that, not only was rapid economic development possible outside the established ‘core’ economies, but that such a processes might ultimately take on a regional and self-sustaining quality.

The Myth of the Friendly Markets
by Mahbub ul Haq - Special Advisor to the Administrator of the United Nations Development Programme. This is an edited transcript of an address given extempore at the World Bank's Twelfth Agriculture Sector Symposium on January 8, 1992.

...before I come to the markets and what I call "the myth of the friendly markets," let me go back a little as to why an overcommitment as made to the public sector in many developing countries. Were we so ill-informed that we did not know what we were doing? I think, at that time, all of us, as we grew up during our formative years, faced the challenge of tremendous poverty in our societies. We realized that great disparity existed between various income groups and that we needed to pursue a range of social objectives, not only higher economic growth, to liberate our societies from poverty. In this search for social objectives, many developing countries lost their way. There was an innocent flirtation with socialism but unfortunately there was a mix up between ends and means. The means that were chosen were a large role for the public sector and, instead of a pursuit of the real social objectives, often it became bureaucratic capitalism. The economy was handed on a silver platter to the civil servants, often ill-trained and ill-paid. Many times they used controls and regulations, not to enrich the economy but to enrich themselves.

J. F. Linn - October 2006 -Wolfensohn Center for Development

State versus Market: Forever a Struggle?

" Economic historians tell us that swings in dominance between state and market go back many centuries. Over the last 200 years these swings seem to have gathered in speed. The industrialization process of the West in the 19th century was characterized by a dominant market and a small government sector. After World War I the state took over, not only in the Soviet Union. Western governments also assume growing roles after the Great Depression and then during and after World War II, with the rise of socialist ideology, the economic theory of "market failure" and the belief in planning by government as a way to promote a stronger economy and a better life for its citizens.
By the late-1970s the socialist, central planning and statist models ran out of steam around the globe, as a backlash of neo-liberalism, based on the ideas of Milton Friedman and translated into the policies of Ronald Reagan and Margaret Thatcher, took hold in many parts of the world, including in Russia after 1990. "Government failure," excessive size of government and too much state intervention were blamed for many of the world's ills. Smaller government and a dominant market were seen as the solution.
Perhaps we should not have been surprised to see yet another backlash by the end of the 20th century as opposition to the neo-liberal "Washington Consensus" and to a market-driven globalization process became a slogan for Nobel-prize winning economists and street protestors alike. And so a reversal in Russia also was probably to be expected as President Putin took over from President Yeltsin. "

Creating an enabling environment for private sector development in sub-Saharan Africa

The key role played by the private sector in spurring economic development, often referred to as “engine of growth”, has since long been common knowledge. Private sector development (PSD) has thus received increasing attention by policy-makers in the developing world and by the development community alike. In this context, the creation of an enabling business environment through business environment reforms has been acknowledged as an important pre-requisite for unleashing a private sector response that leads to dynamic growth, and ultimately employment and income generation. A debate is ongoing, however, as to the relative merits and development impact of improvements of various dimensions of the business environment on the one hand, and of targeted public policy interventions in support of PSD on the other.
The present study by the German Development Institute (GDI), Bonn, offers a contribution to this debate. Taking a closer look at the reasoning and results of a set of regulatory reforms in sub-Saharan Africa—focusing on easing business registration, the provision of property rights and the simplification of labour regulations—the study advocates a balanced approach. It argues that while constituting a necessary condition, business environment reforms alone will ultimately not be sufficient to foster enterprise development in sub-Saharan Africa in a broad way, and hence require supplementary action at other fronts.

Structural Transformation and Polycentric Governance: A Constitutional Gateway towards Nigerian Democratization
Dr. S. R. AKINOLA - 2006
Department of Public Administration
Obafemi Awolowo University, Ile-Ife, Nigeria.

The misfortune of the post-independence development paradigm in Africa is that it is monocratically centralized, separating African leaders from the rest of African people. The state-dominated and state-driven economy has no mechanism and inspiration to rally the large percentage of African citizenry, who are in the informal sector around socio-economic and political projects. The Africans could not use their common sad experiences to solve their problems (Sawyer 1992). Analyses of postcolonial Africa social orders have frequently faltered because the colonial experience has been used as the paradigm and this has not really helped Africa. Individual peculiarities have been set aside.

A. K. Bagchi- 2000
The past and future of the developmental state

The concept of the developmental state and its transformations through history. Like most human institutions—the family, the village, the city, the state, customs, laws, the nation—the developmental state was born long before anybody thought of naming it. There are debates about when it was born, whether all developmental states (as they are usually characterized) are properly labeled, and whether there have been developmental states overlooked literature. In this paper, it will be claimed, inter alia, that indeed there were developmental states long before economists, political scientists or historians recognized them as such, and that not all developmental states, as conventionally labeled, have been true members of the select club of developmental states.
First, let us see what a developmental state (DS) means in the era of the global spread of capitalism. It is a state that puts economic development as the top priority of governmental policy and is able to design effective instruments

L. Boer: Feature Review: The State in a Changing World
UN Public Administration Programme
Division for Public Administration and Development Management
UN Commission on Global Governance

World Development Report 1997
The State in a Changing World (Summary)
Around the globe, the state is in the spotlight. Far-reaching developments in the global economy have us revisiting basic questions about government: what its role should be, what it can and cannot do, and how best to do it.
The last fifty years have shown clearly both the benefits and the limitations of state action, especially in the promotion of development. Governments have helped to deliver substantial improvements in education and health and reductions in social inequality. But government actions have also led to some very poor outcomes. And even where governments have done a good job in the past, many worry that they will not be able to adapt to the demands of a globalizing world economy.
The new worries and questions about the state's role are many and various, but four recent developments have given them particular impetus:...

G. M. Carew - 1995
Development theory and the promise of democracy in Africa
My objective in this essay is twofold: first, I will attempt to assess two major hurdles to the transition to democracy. I argue that the first experiment with democratic regimes in postcolonial Africa was derailed by two false moves:
a) the presumption of nationhood in devising a postcolonial political order;
b) the adoption of a flawed and inadequate theoretical framework for interpreting political processes in Africa. Second, I argue that the removal of these obstacles to democratic governance imposes one further conditionality: the need to reconceptualize democratic criteria in a bid to render it relevant to culturally plural and ethnically diverse societies.

Y. Bangura - UNRISD - 1991
Authoritarian Rule and Democracy in Africa: A Theoretical Discourse,
The last few years have been marked by intense struggles for democratic reform in several African countries and the 1990s are likely to be the decade for transition to democracy in a growing number of African countries. In this highly topical study, Yusuf Bangura tackles the profoundly important and complex questions of the foundations and determinants of authoritarianism and democracy in Africa. The paper addresses itself to such questions as: How does one explain the persistence of authoritarian and military rules in a large number of African countries? What are the key processes involved in the transition from authoritarian and military régimes to civilian and democratic ones? What are the structural pre-conditions for sustenance of democratic systems in African countries? What are the implications of economic crisis and structural adjustment for the prospects of democracy in the continent?

Róbinson Rojas - 1997
Notes on the centrality of the African state
Two contradictory features have marked the development of the African state after decolonization: extreme political fragility and extreme consistency in serving the interests of international capital. In both cases, a common structure: a gap, a lack of connection, between African civil society and African state. The African state mainly as a dynamic part of the structure of dependency, and governments as the foreman to keep civil society producing a surplus to be accumulated by foreign and native social elites which enjoy almost absolutist power.
How external forces extract surplus from dependent economies in Asia, Africa and Latin America, is well documented. How internal forces extract surplus in dependent economies is less documented. Sometimes, impressionistic snapshots are useful. J. Bayart, in "The Sate in Africa", Longman, 1993, writes:...

A.Okolo - 1983
Dependency in Africa: stages of African political economy
(This work, first presented at a conference on "The Future of Africa" organized by the University of Ife, in Nigeria, and then published in ALTERNATIVES, Vol. IX, No. 2, 1983, provides the researcher with a well reasoned reading of the political economy of African development/lack of development, which should be considered by the so-called 'experts in development studies' serving the interests of the international capital. I reproduce and annotate here some excerpts of this major work on the African political economy. Róbinson Rojas)
The history of Africa is a history of domination by the Western political economy, which created and now dominates and operates the modern world system.

ECLA - 1972
The political context and the role of the State
The gap between the prevailing real styles of development and the value- oriented images of what development should provide have accentuated two political contradictions that have long been present in the region:
(a) The contradiction between the imposing roles assigned to the State as defender of national sovereignty, definer of the national purpose, arbiter between interest-groups and dispenser of services, and the frequently deficient policy-making, planning, administrative and financial capacities of the State;
(b) The contradiction between political forms emphasizing equal rights and democratic procedures, and the very uneven distribution of opportunities for political participation.
In most Latin American countries, reliance on the State to "solve problems" of whatever nature is more widely diffused throughout the population than in most other parts of the third world, and is much more pronounced than it was at the earlier stages of development of the countries which are now industrialized.

Migration of peoples, disintegration of states (Africa 1999)

Regional migrations, disintegrating states, geopolitical restructuring: Africa is constantly pulling itself apart and taking on new shapes under the combined effects of demography, massive urbanisation and the economic, military and religious ambitions being pursued. These conflicts and movements rarely fit into a pattern based on the state and they are hard to pin down. Yet the mosaic makes up a picture on which the continent’s new frontiers are being drawn...

M. Van Creveld - 1996
The fate of the state
In this article the state of the state will be discussed under five headings. Part I looks at the state's declining ability to fight other states. Part II outlines the rise and fall of the welfare state. Part III examines the effects of modern technology, economics, and the media. Part IV focuses on the state's ability to maintain public order. Finally, Part V is an attempt to tie all the threads together and to see where we are headed.
US Army. Strategic Studies Institute

P. H. Baker/J. A. Ausink:
State collapse and ethnic violence: toward a predictive model
S. Saumon: From state capitalism to neo-liberalism in Algeria: the case of a failing state
S. Saumon: External domination via domestic states: the case of Francophone Africa
S. Saumon: French neo-colonialism in Francophone Africa? The role of the state in processes of foreign domination
V. A. Schmidt: The New World Order, Incorporated: the rise of business and the decline of the nation state
V. L. Uchidelle: Globalization has not severed corporations' national links
R. Lubbers/J. Koorevar:
Nation state and democracy in the globalized world  (1998)
Within globalization studies a debate is going on about the effects globalization has on the governance-capacity and role of the state. A lot of authors claim, either with enthusiasm (Ohmae) or with regret (Strange), that the state is 'losing out'. Others (Sassen) take a more nuanced stance, claiming that indeed the state is weaker in fulfilling its traditional roles (like redistribution), but that it is at the same time gaining strength with respect to other policy-functions (like protection of contract-rights/private property, like the creation of international standards regulating international trade/investments, etc.). All authors stress the importance of governance by intergovernmental institutions (IGOs). They all point at the internal and external security deficit haunting all states.
E. J. Arnold, Jr.:
The use of military power in pursuit on national interests (1994. U.S.A)

In remarking that "war is merely the continuation of policy by other means," Clausewitz unambiguously defined the conduct of war--the use of military force--as a means for a state to achieve policy and not an end in itself.[1] He implied, but did not state, that other means must also exist. These other means as well as the use of military force emanate from the four elements of national power: military, economic, political, and social. What Clausewitz did not discuss in his treatise On War were the circumstances under which war becomes the correct means with which to pursue policy--the imposition or dominance of one state's national interests over those of another state. He never answered the question: When is it proper to use military force in the pursuit of national interests?
G. Arrighi
Globalization, State Sovereignty, and the 'Endless' Accumulation of Capital (1997)

I shall begin by arguing that much of what goes under the catch-word "globalization" has in fact been a recurrent tendency of world capitalism since early-modern times. This recurrence makes the dynamics and likely outcome(s) of present transformations more predictable than they would be if globalization were as novel a phenomenon as many observers think. I shall then shift my focus on the evolutionary pattern that has enabled world capitalism and the underlying system of sovereign states to become, as Immanuel Wallerstein (1997) puts it, "the first historical system to include the entire globe within its geography."

Fernand Braudel Center

Foreign Policy IN FOCUS

FPIF tackles critical issues getting short shrift by policymakers and in the mainstream media: military outsourcing, drone attacks, immigration, Islamophobia, terrorism, military bases, and so much more...

The State, the community and society in social development
by F. H.  Cardoso, President of Brazil
(Translation of the revised text of President Cardoso's address at the First Regional Follow-up Conference on the World Social Development Summit Meeting (Sao Paulo, 6-9 PRIL 1997))

"The World Summit for Social Development, held in Copenhagen on 11 and 12 March 1995, brought up once more the ideals which gave rise to the United Nations at the San Francisco Conference and which have since been reasserted in many forums of the Organization. The maintenance of peace and security, although an irreplaceable element in the peaceful coexistence of nations, was not the only objective of that Conference, however: it also sought to lay the foundations for a form of coexistence which would make possible more harmonious development. The United Nations Charter which emerged from that meeting was the clear expression of a humanistic spirit and of the quest for democratic ideals and values which made human beings the centre of governments’ concern."
F.H. Cardoso and E. Faletto - 1979
Capitalist development and the state: bases and alternatives
(The subheadings were added by Dr. Róbinson Rojas. The text is part of the POST SCRIPTUM, in Cardoso and Faletto, "Dependency and Development in Latin America", University of California Press, 1979, 1979, translated from Cardoso y Faletto, "Dependencia y Desarrollo en América Latina", Siglo XXI Editores, México, primera edición, 1969)

The more developed countries of Latin America are attempting to define foreign policy objectives that take advantage of contradictions in the international order and allow these countries some independent policy- making. But these countries remain dependent and assure an internal social order favorable to capitalist interests and consequently fail to challenge one of the basic objectives of American foreign policy. Multinational enterprises continue to receive support from the foreign policies of their countries of origin, as well as from local states.

G. Schopflin, 1997:
Civil Society, Ethnicity and the State: a threefold relationship
Traditionally civil society is conceptualised as a necessary condition of democracy. Indeed, some arguments come close to seeing civil society and citizenship as the sole defining condition of democracy. The proposition to be argued here is that the problem is, in fact, much more complex and that civil society is only one component of democracy, though a vital one.
In brief, the argument to be put forward here is that democracy is composed of three key, interdependent elements - civil society, the state and ethnicity. These three are in a continuous, interactive relationship. They have different functions and roles, create different, at times overlapping, at times contradictory attitudes and aspirations and through their continuous interaction, all three are reshaped and reformulated dynamically. Hence civil society is not a static entity, a state of affairs that has been reached and is then established for good, but is fluid, shifting, conflictual, responsive to changes in politics and vulnerable to hostile pressures.
International Monetary Fund
Economic Forum 2001:
Governing global finance: the role of civil society

Globalization and civil society: NGO influence in international decision-making
Greening and the grassroots: people's participation in sustainable development
Copenhaguen Plus Five. Follow-up to the social summit
Trade-related employment for women in industry and services in developing countries
IFAD, 1995:
Civil society: development from the roots up
C. P. Oman, 2001:
Corporate Governance and National Development
The case studies identified key forces resisting moves to improve corporate governance, including vested interest goups, and those that can be mobilised to work for improvements such as the rise of institutional investors. Two of their titles, “Private Vices in Public Places” and “The Tide Rises, Gradually”, convey the tenor of the studies and also of this paper. They are listed in the references and available on our website. In the paper they are quoted by the name of the country.
It was after the Development Centre’s Washington Conference on Corruption, coinciding with the signing of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, in February 1999, that we began to look at corporate governance from a developmental perspective. This was a natural sequel to the Washington Conference, which had shown the important role of the private sector in the quest for more transparency and the fight against corruption. Its final report was issued in October 2000 on the occasion of an Anti–Corruption Summit organised in Washington among others by USAID and the World Bank.
(US Army War College Quarterly)
Changing production patterns with social equity
*Introduction. By the Executive Secretary of ECLAC (1997)
*Changing Production Patterns with Social Equity (1990)
*Policies to Improve linkages with the global economy (1995)
*Population, Social Equity and Changing Production Patterns (1995)
*The Equity Gap: Latin America, the Caribbean and the Social Summit (1996)
*Sustainable Development: Changing Production Patterns, Social Equity and the Environment (1991)
*Social Equity and Changing Production Patterns: An Integrated Approach (1992)
 editor: Dr. Róbinson Rojas Sandford

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