The Asian Developmental State The Asian Developmental State Reexaminations and New Departures EditedbyYin-wahChu THEASIANDEVELOPMENTALSTATE Copyright©Yin-wahChu,2016 Softcoverreprintofthehardcover1stedition2016978-1-137-47611-1 Allrightsreserved.Noreproduction,copyortransmissionofthispublication maybemadewithoutwrittenpermission.Noportionofthispublicationmaybe reproduced,copiedortransmittedsavewithwrittenpermission.Inaccordance withtheprovisionsoftheCopyright,DesignsandPatentsAct1988,orunder thetermsofanylicencepermittinglimitedcopyingissuedbytheCopyright LicensingAgency,SaffronHouse,6-10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublicationmay beliabletocriminalprosecutionandcivilclaimsfordamages. Firstpublished2016by PALGRAVEMACMILLAN Theauthorshaveassertedtheirrightstobeidentifiedastheauthorsofthis workinaccordancewiththeCopyright,DesignsandPatentsAct1988. PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills, Basingstoke,Hampshire,RG216XS. PalgraveMacmillanintheUSisadivisionofNatureAmerica,Inc.,One NewYorkPlaza,Suite4500,NewYork,NY10004-1562. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. ISBN:978-1-349-57410-0 E-PDFISBN:978-1-137-47612-8 DOI:10.1057/9781137476128 DistributionintheUK,EuropeandtherestoftheworldisbyPalgrave Macmillan®,adivisionofMacmillanPublishersLimited,registeredin England,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. LibraryofCongressCataloging-in-PublicationData TheAsiandevelopmentalstate:reexaminationsandnew departures/editedbyYin-wahChu. pages cm Includesbibliographicalreferencesandindex. Summary:“Contributingauthorstothisvolumere-examinetheconceptof thedevelopmentalstatebyprovidingfurthertheoreticalspecifications, undertakingcriticalappraisalandtheoreticalre-interpretation,assessingits valuefortheemergingeconomiesofChinaandIndia,andconsideringits continuedapplicabilitytoSouthKoreaandTaiwanastheyconfrontthe challengesofpost-Fordismanddemocratization”—Providedbypublisher. 1. Economicdevelopment—Asia. 2. Developmenteconomics—Asia. I. Chu,Yin–wah. HC412.A742962015 338.95—dc23 2015021016 AcataloguerecordforthebookisavailablefromtheBritishLibrary. Contents ListofFiguresandTables vii Acknowledgments ix NotesonContributors xi Introduction 1 TheAsianDevelopmentalState:IdeasandDebates 1 Yin-wahChu ComparativePerspective 2 TheDevelopmentalStateinanEraofFinance-Dominated Accumulation 27 BobJessop 3 BeyondEmbeddedAutonomy:ConceptualizingtheWorkof DevelopmentalStates 57 FredBlockandMarianNegoita SouthKoreaandTaiwan 4 EmbeddingtheEconomy:TheStateandExport-Led DevelopmentinTaiwan 73 MichelleF.Hsieh 5 TowardaPlatformBuilder:TheState’sRoleinTaiwan’s BiopharmaceuticalIndustry 97 Jenn-hwanWang 6 Democratization,EmergenceoftheKnowledge-Based Economy,andtheChangingDevelopmentalAlliancesin SouthKoreaandTaiwan 117 Yin-wahChu vi ● Contents 7 SouthKoreaaftertheDevelopmentalState 139 IainPirie ChinaandIndia 8 TheChineseStateandItsRoleinShapingChina’s InnovationSystem 159 ErikBaark 9 ThePost-SocialistPathoftheDevelopmentalStateinChina 175 AlvinY.So 10 ChangingDevelopmental-nessoftheState—TheCaseof China 197 RebeccaS.K.Li 11 IsIndiaaDevelopmentalState? 217 RahulMukherji 12 IndianStateandItsCapitalistGrowth:Successofa DemocracywithMultipleChallenges 237 AnilKumarVaddiraju Index 253 Figures and Tables Figures 2.1 Theknowledge-andproduction-basedcanonofeconomic thought 30 4.1 Exportvalueofselectedindustries(Unit:millionUSdollars) 86 Tables 2.1 Catch-upcompetitiveness 40 6.1 SelectedITfirms:SouthKoreaandTaiwan 129 Acknowledgments Theideaofthedevelopmentalstate,havingonceservedasamostinfluential accountoftheeconomicmiraclesinEastAsia,becamediscreditedwiththe surfacingofthe1997–1998financialcrises,yetreemergedagaintogenerate insightsintotheeconomicgrowthandtransformationsofmanyemergingor evendevelopedeconomies.Thepurposeofthiseditedcollectionistopartake in this debate. It will examine the idea in the broader context of the capi- talist state, evaluate its continuing applicability among the East Asian cases of South Korea and Taiwan, and explore its utility for understanding the emergingeconomiesofChinaandIndia. This book owes its completion to the kind assistance and generous sup- portofmanyindividualsandorganizations.Mostfundamental,theChiang Ching-kuo Foundation for International Scholarly Exchange has provided generous financial support to fund the December 2013 workshop, which tookplaceattheHongKongBaptistUniversityandservedasapreparatory meetingforthisvolume.Theparticipantsincludemostcontributingauthors to this book. Together with Jean-Pierre Cabestan, Yun-chung Chen, Louis Kuijs,Tak-wingNgo,Ngai-lingSum,andBryanPak-nungWongwhoserved asdiscussantsintheworkshop,theygeneratedvibrantdiscussionthathelped tosettheparametersofthedebatesexploredinthepresentwork.Someofthe contributingauthors,RahulMukherji,IainPirie,andAnilKumarVaddiraju, inparticular,didnottakepartinthe2013meeting.However,theyweregood enoughtoacceptmyinvitationtocontributeachaptereventhoughwewere hardlyacquaintedwitheachother.Altogether,itwasthroughthehardwork ofthecontributingauthorsthatthisbookhasbeenmadepossible.Toallof them,Iamgrateful. I also like to thank Rachel Krause, Veronica Goldstein, and the anony- mousreviewer(s)atPalgraveMacmillan,whohaveshownkeeninterestinthe projectfromthestart,andprovidedinsightfulguidanceandpatientsupport atdifferentstagesofthebook’swritingandproduction.TheResearchIncen- tives Scheme granted by the Faculty of Social Sciences, Hong Kong Baptist x ● Acknowledgments University,providedvitalsupportforcopy-editing.Finally,IalsothankAnna Lo,ChristieTang,andRossCheungfortheirproficientclericalandadmin- istrative support. All errors and omissions, needless to say, remain my sole responsibility. Yin-wahChu Contributors Erik Baark is Professor at the Division of Social Science and the Division of Environment at the Hong Kong University of Science and Technology, China. He was awarded a PhD from the University of Lund in 1986 and a Dr Phil from the University of Copenhagen in 1998. He has published numerous books, including Lightning Wires: Telegraphs and China’s Techno- logical Modernization 1860–1890, and articles in top international journals suchasTheChinaQuarterly,ResearchPolicy,andtheInternationalJournalof TechnologyManagement.Hisresearchinterestsarerelatedtoinnovationsys- tems and environmental policies in China and other East Asian countries. E-mail:[email protected] FredBlockisResearchProfessorofSociologyattheUniversityofCalifornia atDavis,UnitedStates.HismostrecentbooksareThePowerofMarketFun- damentalism: Karl Polanyi’s Critique (with Margaret R. Somers) and State of Innovation: The U.S. Government’s Role in Technology Development (edited withMatthewR.Keller.)E-mail:fl[email protected] Yin-wah Chu is Associate Professor of sociology at the Hong Kong Baptist University, China. Her research interests include the political economy of development in China, South Korea, and Taiwan, as well as social and political movements in these societies. Her research papers have been pub- lished with Economy and Society, International Journal of Urban and Rural Research, Urban Studies, among others. She is editor of Chinese Capitalisms, coeditor of East Asia’s New Democracies (coedited with Siu-lun Wong), and coauthor of The Global Rise of China (co-author with Alvin Y. So). E-mail: [email protected];[email protected] Michelle F. Hsieh is currently Assistant Research Fellow at the Insti- tute of Sociology, Academia Sinica, Taipei, Taiwan. She received her PhD (in Sociology) from McGill University, Montreal, Canada. Her research interests fall within the areas of economic sociology, sociology of