* The developmental state: Japan is a key example. The idea that a state can play an extraordinary role in development (economic intervention) through directing the energies of businesses.
Summary: Credit for the postwar Japanese economic ‘miracle’ must be found in conscious and consistent governmental policies that had their roots as far back as the 1920s. Intervention in the economy is not fascism (as has been accused) – it is a possibility, but not a necessity. It is essentially a new relationship between the state and business – the state focuses its attention on certain industries (cartelizes them), and helps to facilitate growth in these industries. In the developmental state, each side uses the other in a mutually beneficial relationship to achieve developmental goals and enterprise viability.
Important Insights: Importantly, the Japanese case is not easy to emulate – it depended heavily on losing a big war to the right people at the right time – also depended on a highly mobilized population (which was never demobilized). Links with Evan’s notion of ‘Embedded Autonomy.’