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State Building and Late Development State Building and Late Development David Waldner C Cornell University Press ITHACA AND LONDON Copyright© 1999 by Cornell University All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher. For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850. First published 1999 by Cornell University Press. First printing, Cornell Paperbacks, 1999. Printed in the United States of America Cornell University Press strives to use environmentally responsible suppliers and materials to the fullest extent possible in the publishing of its books. Such materials include vegetable-based, low~VOC inks and acid-free papers that are recycled, totally chlorine-free, or partly composed of nonwood fibers. Library of Congress Cataloging-in-Publication Data Waldner, David. State building and late development I David Waldner. p. em. Includes bibliographical references and index. ISBN 0-8014-3554-4 (cloth: alk. paper).-ISBN 0-8014-8575-4 (pbk. :k alk. paper) 1. State, The. 2. Syria-Politics and government. 3. Turkey Politics and government. 4. Korea-Politics and government. 5. Taiwan-Politics and government. I. Title JC13l.W36 1998 321 '.09172'40904-dc21 98-30402 Cloth printing 10 9 8 7 6 5 4 3 2 Paperback printing 10 9 8 7 6 5 4 3 2 Contents Abbreviations vii Acknowledgments ix 1. Institutional Origins and Economic Outcomes 1 2. State Building and the Origins of Institutional Profiles 19 3. Constructing Coalitions and Building States: Turkey 53 4. Constructing Coalitions and Building States: Syria 74 5. Precocious Keynesianism in Practice 95 6. Elite Cohesion and State Building in East Asia 125 7. The Collective Dilemmas of Late Development 153 8. The Developmental Consequences of Precocious Keynesianism 179 9. Pathways from Precocious Keynesian ism 208 10. Theory and Method Reconsidered 230 Index 241 Abbreviations ANAP Motherland Party (Turkey) DNP Democratic Nationalist Party (Korea) DP Democratic Party (Turkey) ELG export-led growth FDI foreign direct investment GDP gross domestic product GNP gross national product lSI import-substituting industrialization JP Justice Party (Turkey) KMT Kuomintang (Taiwan) LS Syrian lira or pound NSP National Salvation Party (Turkey) RPP Republican People's Party (Turkey) SEE State Economic Enterprise (Turkey) SPO State Planning Office (Turkey) TFF Turkish Federation of Farmers TL Turkish lira TOB Turkish Chambers of Commerce (Turkiye Odalar Birligi) TUCA Turkish Union of Chambers of Agriculture UAR United Arab Republic vii Acknowledgments I first began thinking about the political requirements of economic development as an undergraduate in Yahya Sadowski's introduction to comparative politics at the University of California, Berkeley, in 1984. I thank him for introducing me to a topic that has engaged me so thor oughly for so long. I have had the good fortune to spend the intervening years in the company of friendly scholars and scholarly friends. At Berke ley, KenJowitt, Robert Price, Kiren Chaudhry, and Ira Lapidus were a wonderful source of intellectual inspiration and support. I thank Ilkay Sunar for introducing me to Turkish politics, arguing with me about my initial formulation of this study, and assisting me with my research in Turkey. Many of the ideas presented in this book were first sharpened in debate with the members of the seminar on state formation at the New School for Social Research, especially Charles Tilly, Cannenza Gallo, and Ariel Salzman. I also benefited from many stimulating conversations with colleagues at the Middle East Institute at Columbia University, especially Lisa Anderson, Greg Gause, Richard Bulliet, Henri Barkey, and Marty Malin. My thinking about social science, and thus about all the arguments contained in this book, was indelibly influenced by years of intellectual exchanges with my Berkeley friends and cohorts-Bob Bullock, Russ Faeges, John Gerring, Steve Hanson, Peter Kingstone, Glenn Robinson, and Arun Swamy. More directly, I benefited from the advice of Gerard Alexander, Bob Bullock, and Herman Schwartz, who read and com mented generously on successive drafts of this book. I am particularly in debted to Sayres Rudy for so often lending me his amazing analytic and editorial skills. I also thank Henri Barkey, Dale Copeland, Joshua Dien stag, John Echeverri-Gent, Robert Fatton, Steve Heydemann, John McLaren, Carol Mershon, Debra Morris, Soli Ozel, William Quandt, Len ix