Evolution of Development Paradigms and Socio-Economic Systems ...
Evolution of Development Paradigms and Socio-Economic Systems ...
Evolution of Development Paradigms and Socio-Economic Systems ...
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Research Findings<br />
2. Interventionist Government<br />
As the World Bank’s The East Asian Miracle showed, not all <strong>of</strong><br />
the Asian governments were interventionist. Indonesia,<br />
Malaysia, Thail<strong>and</strong> developed with lesser degrees <strong>of</strong><br />
government intervention. Japan, South Korea, Taiwan (<strong>and</strong><br />
China <strong>and</strong> Vietnam today) are the leading examples <strong>of</strong><br />
successful growth with interventionist governments.<br />
The interventionist state model may not easily be transferred to<br />
Africa as it requires strong capacity <strong>and</strong> commitment on the<br />
part <strong>of</strong> the public sector to analyze the development situation,<br />
i<br />
formulate interventionist policies, <strong>and</strong> carry out these policies<br />
in a decisive manner throughout the long process <strong>of</strong><br />
development.<br />
29<br />
Research Findings<br />
3. <strong>Systems</strong> Approach<br />
Japan <strong>and</strong> the other high performing East Asian nations<br />
developed the system/institutions by which,<br />
1. private <strong>and</strong> public sectors cooperated to attain (shared) development<br />
goals,<br />
2. business conglomerates <strong>and</strong> business groups acted together to<br />
mitigate business risks <strong>and</strong> to obtain support from the public sector,<br />
3. public sector promoted the market system to suit the needs <strong>of</strong><br />
business investors, <strong>and</strong><br />
4. government was able to exercise macroeconomic management to<br />
preserve a healthy investment environment.<br />
In Africa, economic systems <strong>and</strong> institutions are still<br />
underdeveloped or new <strong>and</strong> unstable. This undermines policy<br />
predictability <strong>and</strong> policy decisiveness.<br />
30<br />
Research Findings<br />
4. Governance<br />
On governance, unlike what The East Asian Miracle praised, most<br />
Asian economies have developed without high marks in<br />
governance indicators (such as, macro-management, democracy,<br />
accountability, transparency, political participation) as<br />
preconditions for growth. Strong <strong>and</strong> stable bureaucracy laid the<br />
path for economic growth in Asia. In fact, bureaucracy<br />
constituted the core <strong>of</strong> the Asian ‘developmental state’, either<br />
under autocratic/charismatic leaders or under more democratic<br />
governments.<br />
Governance in Africa has been characterized by a ‘patronage-<br />
driven model’. Or if I may beg your indulgence <strong>and</strong> use a bit<br />
stronger terminology, a ‘vampire state model’. Such governments,<br />
<strong>and</strong> more importantly the bureaucracy that supports these types <strong>of</strong><br />
governments, cannot easily be transformed into<br />
‘developmentalists’.<br />
31<br />
Strategies for Mutual Learning?<br />
(from TICAD IV discussions)<br />
1.<br />
a. Needs <strong>of</strong> Africa should be identified by Africans.<br />
b. Given the identified needs, Asians should try to collect<br />
cases/policy experiences they feel could be relevant.<br />
c. From the cases <strong>and</strong> policy experiences suggested by the Asians,<br />
Africans then evaluate applicability <strong>and</strong> manageability, <strong>and</strong><br />
make their own selection <strong>of</strong> cases/policies.<br />
2. Asians should study the strengths <strong>of</strong> local African<br />
systems/institutions, rather than continuing to focus on missing<br />
elements.<br />
32<br />
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