Walsh, John, “The New Developmental State,” paper to be presented at the International Conference on Commerce, Financial Markets and Corporate Governance/2nd International Conference on Research Methods in Management and Social Sciences (Shinawatra University, Thailand: February 7th, 2015).
One of the principal reasons for the success of the four tigers of East Asia was the assistance provided by a developmental state (DS) supportive of that success and, indeed, a prime reason for it. The method most commonly selected was the Factory Asia paradigm of low labour cost competitive manufacturing which was import substituting and export oriented. That method was suitable for bringing low income countries into middle income status but is incapable of moving into high income status – this is known as the Middle Income Trap. To escape from the trap, new methods are required and new forms of assistance from the state that are more sophisticated and in turn with the newly emergent historical and international relations and this will form the basis of the advanced developmental state (ADS). This paper attempts to create a framework for the analysis of the transition from DS to ADS and the realities of economic life beyond factory Asia.
Keywords: developmental state, East Asia, Factory Asia, Middle Income Trap