From poverty to power - Oxfam-Québec

From poverty to power - Oxfam-Québec From poverty to power - Oxfam-Québec

12.07.2015 Views

2 POWER AND POLITICS I RULE, THEREFORE I AMPromote growth: All these states actively intervened in the economy,building infrastructure and directing credit and support to thoseindustries they deemed to be ‘winners’. Crucially, they were also ableto drop ‘losers’: if companies or sectors failed to perform, the statewithdrew support and let them founder. By promoting domestic savingsand investment, they were able to minimise their dependence on ficklesources of foreign capital.Start with equity: South Korea and Taiwan began their take-offs afterthe Second World War with ‘pre-distribution’ in the shape of radicalland reforms, Malaysia with an affirmative action programme infavour of the economically excluded ethnic Malay population.Integrate with the global economy, but discriminate in so doing:The tigers used trade to generate wealth, but protected fledglingindustries. Governments actively promoted national firms, engagingselectively with foreign investment rather than bowing to US andEuropean demands that they accord foreign companies the sametreatment as local ones. These economic development policies arediscussed in greater detail in Part 3.Guarantee health and education for all: Development is synonymouswith healthy and educated populations, not least because anindustrial economy requires a skilled and fit workforce. In recentdecades, many developing countries (not just in East Asia) have madeenormous advances in health and education.A study of East Asia’s successes also debunks some commonmyths: many economies grew despite high levels of corruption;countries such as China and Viet Nam have not guaranteed Westernstyle‘property rights’ deemed essential by the World Bank and others;and Malaysia and Viet Nam overcame the ‘resource curse’ of abundantmineral and agricultural wealth that is often seen as a death sentencefor developing countries.93

FROM POVERTY TO POWERBOX 2.2ARE EFFECTIVE STATES COMPATIBLE WITHACTIVE CITIZENS?The rise of strong states over the past two centuries is litteredwith famous names such as Napoleon (France), Cavour (Italy),Bismarck (Germany), Atatürk (Turkey), Mao Tse Tung (China),Stalin (USSR), Chiang Kai-shek (Taiwan), Jawarhalal Nehru(India), Jomo Kenyatta (Kenya), and Sukarno (Indonesia), as wellas some not so famous ones like Seretse Khama of Botswanaand Lázaro Cárdenas of Mexico.These leaders inspired a sense of national pride and identity,but their fame seldom stemmed from their commitment todemocracy. The most notorious among them sought to establishtotal state control by crushing any independent action by citizens.Effective states in East Asia and elsewhere have typically takenoff with little initial recognition of human rights or democracy,although this has often improved later on; in Latin America,active social movements and political organisations have rarelybeen accompanied by effective states. Are the two mutuallyexclusive? Or is this a case of ‘selection bias’ – those countriesthat have had both have already ceased to be poor, and sodisappear from the development radar? Many of the mostsuccessful transformations in the past century, such as thoseof Sweden and Finland, have been triggered by social pacts withina democracy, showing what the elusive combination of activecitizens and effective states can achieve. Data are limited andbeset with measurement problems, but seem to suggest apositive correlation between active citizenship and effectivestates. Although this does not prove which came first, it at leastsuggests that they are not mutually incompatible. 134In any case, backing authoritarianism in the hope that it coulddeliver economic growth was never a safe bet. For every LeeKuan Yew in Singapore or Chinese Communist Party, there havebeen dozens of autocrats who ignored both citizens and businessleaders and drove their economies into the ground. Moreover,the authoritarian road to development is getting harder. Thespread of democracy makes it much harder for today’s autocrats94

FROM POVERTY TO POWERBOX 2.2ARE EFFECTIVE STATES COMPATIBLE WITHACTIVE CITIZENS?The rise of strong states over the past two centuries is litteredwith famous names such as Napoleon (France), Cavour (Italy),Bismarck (Germany), Atatürk (Turkey), Mao Tse Tung (China),Stalin (USSR), Chiang Kai-shek (Taiwan), Jawarhalal Nehru(India), Jomo Kenyatta (Kenya), and Sukarno (Indonesia), as wellas some not so famous ones like Seretse Khama of Botswanaand Lázaro Cárdenas of Mexico.These leaders inspired a sense of national pride and identity,but their fame seldom stemmed from their commitment <strong>to</strong>democracy. The most no<strong>to</strong>rious among them sought <strong>to</strong> establish<strong>to</strong>tal state control by crushing any independent action by citizens.Effective states in East Asia and elsewhere have typically takenoff with little initial recognition of human rights or democracy,although this has often improved later on; in Latin America,active social movements and political organisations have rarelybeen accompanied by effective states. Are the two mutuallyexclusive? Or is this a case of ‘selection bias’ – those countriesthat have had both have already ceased <strong>to</strong> be poor, and sodisappear from the development radar? Many of the mostsuccessful transformations in the past century, such as thoseof Sweden and Finland, have been triggered by social pacts withina democracy, showing what the elusive combination of activecitizens and effective states can achieve. Data are limited andbeset with measurement problems, but seem <strong>to</strong> suggest apositive correlation between active citizenship and effectivestates. Although this does not prove which came first, it at leastsuggests that they are not mutually incompatible. 134In any case, backing authoritarianism in the hope that it coulddeliver economic growth was never a safe bet. For every LeeKuan Yew in Singapore or Chinese Communist Party, there havebeen dozens of au<strong>to</strong>crats who ignored both citizens and businessleaders and drove their economies in<strong>to</strong> the ground. Moreover,the authoritarian road <strong>to</strong> development is getting harder. Thespread of democracy makes it much harder for <strong>to</strong>day’s au<strong>to</strong>crats94

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