Comparative Political Economy of East and South Asia: A Critique of Development Policy and Management

230 Pages·1999·2.764 MB·English

by  R. C. Mascarenhas (auth.)

COMPARATIVE POLITICAL ECONOMY OF
EAST AND SOUTH ASIA
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Comparative Political
Economy of East and
South Asia
A Critique of Development Policy
and Management
R. C. Mascarenhas
Reader in Political Science and Public Policy
School of Business and Public Management
Victoria University of Wellington
New Zealand
First published in Great Britain 1999 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS and London
Companies and representatives throughout the world
A catalogue record for this book is available from the British Library.
ISBN 978-1-349-40838-2 ISBN 978-0-333-98353-9 (eBook)
DOI 10.1057/9780333983539
First published in the United States of America 1999 by
ST. MARTIN’S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
Library of Congress Cataloging-in-Publication Data
Mascarenhas, R. C.
Comparative political economy of East and South Asia : a critique
of development policy and management / R.C. Mascarenhas.
p. cm.
Includes bibliographical references and index.
1. East Asia—Economic policy. 2. East Asia—Economic conditions.
3. South Asia—Economic policy. 4. South Asia—Economic conditions.
I. Title.
HC460.5.M35—1999
338.95—dc21 98–38454
CIP
©R. C. Mascarenhas 1999
Softcover reprint of the hardcover 1st edition 1999 978-0-333-73574-9
All rights reserved. No reproduction, copy or transmission of this publication may be made
without written permission.
No paragraph of this publication may be reproduced, copied or transmitted save with
written permission or in accordance with the provisions of the Copyright, Designs and
Patents Act 1988, or under the terms of any licence permitting limited copying issued by
the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 9HE.
Any person who does any unauthorised act in relation to this publication may be liable to
criminal prosecution and civil claims for damages.
The author has asserted his right to be identified as the author of this work in accordance
with the Copyright, Designs and Patents Act 1988.
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sources.
10 9 8 7 6 5 4 3 2 1
08 07 06 05 04 03 02 01 00 99
Contents
Preface viii
Chapter 1 Development: a Comparative Study 1
I Introduction 1
II Approach to the Study 2
III Emergence of Development Studies 8
IV The Plan of Study 10
Chapter 2 Development: Problems and Constraints 13
I Introduction 13
II Historical Background 14
III State Intervention: Context or Timing 18
IV A Critique of State Intervention 21
V Conclusion 25
Chapter 3 Development: Changing Objectives 26
I Introduction 26
II The Need for a Different Approach 26
III Direction for Third World Societies 32
IV Essentiality of Political Development 33
V Conclusion 43
Chapter 4 State and Market: Alternatives to
Development 44
I Introduction 44
II What Role has the State Played in Development? 46
III Factors Contributing to the Performance NIEs 49
IV Structural Adjustment 60
V Conclusion 65
Chapter 5 Comparative Development: the Two Asias 67
I Introduction 67
II Economic Performance of the Two Asias 68
III Explaining the Reasons for East Asian
Economic Performance 69
IV South Asia: the Problems of Development 78
V A Critique of the Development Strategy 87
v
vi Contents
VI Explaining Differences in Economic Performance 91
VII Conclusion 94
Chapter 6 Development Policies: Analysis and
Implementation 96
I Introduction 96
II The Political Environment of Policy-Making 97
III Implementation Analysis 101
IV A Framework for Analysing Differences in Policies 103
V Alternative Approaches 104
VI Conclusion 106
Chapter 7 Developing Capability for Managing
Development 108
I Introduction 108
II A Diagnosis 109
III A Framework for Identifying Problems relating to
Development of Administrative Capability 114
IV Alternative Strategies to Achieve Administrative
Capability 117
V Alternative Strategies for the Development of
Administration 120
VI Conclusion 127
Chapter 8 Technology and Industrialization: a Strategy
for Development 128
I Introduction 128
II Changing Technology 130
III The Institutional Foundations 133
IV Comparing Industrial Development Policies 139
V Technology and Development 142
VI Technology Transfer Process 147
VII Conclusion 151
Chapter 9 Public Enterprise and Development 153
I Introduction 153
II The Concept of Public Enterprise 154
III A Predictive Framework 155
IV Political and Administrative System for Policy-Making 159
V Organization and Management of Public Enterprises 161
VI Measuring Performance 166
Contents vii
VII An Agenda for Reform 167
VIII Conclusion 168
Chapter 10 Strategies for the Development and
Management of Agriculture 170
I Introduction 170
II Nature of TW Agricultural Societies 171
III Political Regimes and Agricultural Transformation 175
IV State-directed Agricultural Development in East Asia 177
V Technology for Modernization of Agriculture: 180
the Green Revolution
VI Impact of the Agricultural Strategy: India 181
VII Development with Redistribution 183
VIII Opportunities for Non-farm Income Generation 186
IX Conclusion 189
Chapter 11 Conclusion 190
References 194
Bibliography 212
Index 215
Preface
This study of the comparative political economy of East and South Asia
is a product of my long association as an academic interested in research
and teaching in the field of Third World (TW) development. I regard
this book as a contribution to the field of development policy and man-
agement and I hope it will enhance the understanding of the political
economy of the region. This work, like my earlier work, reaffirms my
position on the role of the state in the economy. It is a position that is
unfashionable in an era of neo-classical market dominance and an issue
over which policy-makers and academics are ideologically divided. In my
view the state and market ought to be complementary, not competitive.
Among academics working on TW development, particularly East Asia,
the complementarity view is becoming widely acceptable.
Comparative studies of the political economy of two regions –
economically developed East Asia and politically developed South Asia
– are seen as outcomes of their unique historical experience. Comparing
two diverse regions has been a difficult task, forcing me to be selective in
the range of countries covered. I have chosen to focus on Taiwan and
Korea in East Asia and India in South Asia, countries on which abundant
primary and secondary material is available.
In working on this study I have gained insight into the political and
administrative systems in these countries and their problems in achiev-
ing developmental objectives. Successful achievement of develop-
ment depends essentially on the quality of policies and their effective
implementation.
In any academic research one aspires to adopt a balanced and critical
view. Such a view is difficult to achieve in a comparative study involving
two regions and the perspective adopted is likely to suffer from imbal-
ances or even unconscious bias resulting from the author’s personal cir-
cumstances. If that imbalance has crept in, it can only be seen as human.
Opportunity to receive feedback from academics working in similar
fields is something I look forward to. An academic in this part of the
world has to envy the collaborative academic culture which is so much a
part of the North American scene. This work has been meticulously edited
by my wife Iris. Thanks are due to her and to my daughters Arati and
Antara – the former for editing two chapters and the latter for typing two
of them. Brenda Bongiovanni of the School of Business and Public
Management helped with the preparation of tables and with setting the
viii
Preface ix
work on the computer. My thanks to her for her readiness to help when-
ever requested. My thanks also to Linda Walker who prepared some of
the graphs.
R. C. M.
Wellington, New Zealand