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THE POLITICS OF INCLUSIVE DEVELOPMENT Policy, State Capacity, and Coalition Building POLITICS, ECONOMICS, AND INCLUSIVE Judith A. Teichman DEVELOPMENT The Politics of Inclusive Development POLITICS, ECONOMICS, AND INCLUSIVE DEVELOPMENT Series Editors William Ascher, Claremont McKenna College Natalia Mirovitskaya, Duke University Shane Joshua Barter, Soka University of America Politics, Economics, and Inclusive Development focuses on promoting humanistic development by publishing single- or multi-authored monographs. These books use an interdisciplinary approach to understand the current challenges facing individual nations, world regions, or the entire global system in pursuing peaceful, democratic, and technically sound approaches to sus- tainable development. Economic Development Strategies and the Evolution of Violence in Latin America Edited by William Ascher and Natalia Mirovitskaya Development Strategies, Identities, and Conflict in Asia Edited by William Ascher and Natalia Mirovitskaya The Economic Roots of Conflict and Cooperation in Africa Edited by William Ascher and Natalia Mirovitskaya Civilian Strategy in Civil War: Insights from Indonesia, Thailand, and the Philippines Shane Joshua Barter Smallholders and the Non-Farm Transition in Latin America Isabel Harbaugh Development Strategies and Inter-Group Violence: Insights on Conflict-Sensitive Development William Ascher and Natalia Mirovitskaya The Evolution of Development Thinking: Governance, Economics, Assistance, and Security William Ascher, Garry D. Brewer, G. Shabbir Cheema, and John M. Heffron The Politics of Inclusive Development: Policy, State Capacity, and Coalition Building Judith A. Teichman The Politics of Inclusive Development Policy, State Capacity, and Coalition Building Judith A. Teichman Prepared under the auspices of the Pacific Basin Research Center, Soka University of America THE POLITICS OF INCLUSIVE DEVELOPMENT Copyright © Judith A. Teichman 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-55085-9 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. 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, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2016 by PALGRAVE MACMILLAN The author has asserted their right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY 10004-1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. ISBN: 978-1-349-71561-9 E-PDF ISBN: 978–1–137–55086–6 DOI: 10.1057/9781137550866 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data is available from the Library of Congress. A catalogue record for the book is available from the British Library. Contents List of Figures vii Acknowledgments ix List of Abbreviations xi Chapter 1 Inclusive Development: Debates and Issues 1 Chapter 2 Inclusive Development and the Burden of History 27 Chapter 3 Addressing the Social Deficit in the Wake of Neoliberal Reforms 49 Chapter 4 Mexico and Indonesia: Politics and Development Policies in Weak States 67 Chapter 5 Chile: Moving toward Greater Inclusion, from Political Polarization to Consensus 105 Chapter 6 South Korea: Authoritarianism, Democracy, and the Struggle to Maintain Inclusive Development 133 Chapter 7 Conclusions: The Politics and Policies of Inclusive Development 159 Notes 181 References 199 Index 233 Figures 2.1 Millions of poor, numbers living on less than US$2.00/day (PPP) by region 32 2.2 Percent of population living on less than US$2.00/day (PPP), by region 43 4.1 Mexico, percent of population below poverty lines 68 4.2 Indonesia, percent of population below poverty lines, under US$1.25/day (PPP) and national poverty line 69 4.3 Mexico, urban and rural poverty, percent of population below the poverty line 72 4.4 Mexico and Indonesia, inequality as measured by the Gini-coefficient 75 4.5 Mexico and Indonesia, manufacturing as a percent of the value of exports 78 4.6 Mexico and Indonesia, manufacturing as a percent of GDP 84 4.7 Indonesia, urban and rural poverty, percent of population below the national poverty line 86 5.1 Chile, percent of population below the poverty line 106 5.2 Chile, inequality as measured by the Gini-coefficient 106 5.3 Chile, manufacturing as a percent of GDP 111 5.4 Chile, urban and rural poverty, percent of population below the poverty line 113 6.1 South Korea, percent of population below the national poverty line 134 6.2 South Korea, inequality as measured by the Gini-coefficient 134 6.3 South Korea, urban and rural poverty, percent of population below national poverty line 138 6.4 South Korea, manufacturing as a percent of GDP 139 6.5 South Korea, manufacturing as a percent of the value of exports 141 Acknowledgments I nspiration for this project came from many sources. It has come from my undergraduate students, who want to know why deprivation continues to remain such a pressing challenge in the Global South, and who have invariably pressed me to explain what can be done to substantially improve the lives of the poor. Inspiration has also come from my graduate students whose research constantly reminds me of how central politics and power is to issues of international development and improved welfare in the Global South. In addition, this book builds on earlier projects that have grappled with the politics of market reform and social policy. Especially important has been my recent work focusing on explaining distinct poverty and inequality outcomes in Latin America and East Asia. As I contemplated this body of research after its publication, I began to consider whether there were politi- cal and policy lessons that could be drawn from my original cases (Mexico, Chile, and South Korea) that might be applicable more broadly. I am grateful to the series editors, William Ascher and Natalia Mirovitskaya, for encouraging me to add Indonesia to the mix—advice that has enriched this work immeasurably. I am also very grateful for the support and encour- agement they provided throughout the process of writing and for the detailed comments provided on each chapter. This book is much better work for their efforts. I would also like to thank the anonymous reviewer who provided additional helpful comments. All errors and omissions are, of course, my own. As always, the support and encouragement of my husband, George, con- tributed in an important way to the success of the project.

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