International Development Studies, Institute of Society and Globalisation Laurids S. Lauridsen Paper to be presented at the EADI/DSA Conference on ’Rethinking Development in an Age of Scarcity and Uncertainty’, 19-22 September 2011, University of York, UK ’Developmental governance is different from good governance – what economic transformations in Taiwan tell us about developmental governance’
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International Development Studies, Institute of Society and Globalisation Laurids S. Lauridsen Paper to be presented at the EADI/DSA Conference on Rethinking.
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International Development Studies, Institute of Society
and Globalisation
Laurids S. Lauridsen
Paper to be presented at the EADI/DSA Conference on ’Rethinking Development in an Age of Scarcity and Uncertainty’, 19-22 September 2011, University of York, UK
’Developmental governance is different from good governance – what economic transformations in Taiwan tell us about developmental governance’
International Development Studies, Institute of Society
and Globalisation
What was the role of state – policy, institutions and politics - in the dynamics of economic transformation in Taiwan, and how can that inform a developmental governance approach to economic development?
The core question
International Development Studies, Institute of Society
and Globalisation
Orthodox perspective
’Getting policies right’ – good policies
’Getting institutions right’ – good governance
’Getting politics right’ – good politics
Heterodox perspective
Developmental policies matter
Developmental institutions matter
Developmental politics matter
THE POLITICAL ECONOMY OF DEVELOPMENTAL GOVERNANCE
International Development Studies, Institute of Society
and Globalisation
Policies• Industrial diversification
• Industrial deepening
• Industrial upgrading
Institutions• a highly motivated, competent and coherent bureaucracy protected and supported by the political leadership• a relational institutional arrangement for sustained strategic cooperation and coordination between public and private sectors (SBRs)• a well-organised private sector either in form of business associations with a high representation, effective interest intermediation, high capacity for in-house information provision• an institutional infrastructure with mechanisms of transparency and accountability
Policies, Institutions and Politics
International Development Studies, Institute of Society
and Globalisation
Politics•How do developmentally oriented states come into being and how are they consolidated?
•Where does the development orientation of the political leaders come from?
•How does the political organisation of the state impact upon policy decision-making and policy implementation?
•What motivates private business to enter into a developmental coalition with state elites, and under what conditions should we expect collaborative rather than collusive relations between state and business?
Politics•leadership
•state elite challenges
•legitimacy
•political conflicts
•political exchange relations
•political circumstances
Policies, Institutions and Politics
International Development Studies, Institute of Society
and Globalisation
• A set of favourable initial conditions –domestically and internationally
• Institutions: refurbished steering capacity, technological pilot agency, stronger and more balanced bureaucracy-private enterprise links, transnational technical community (Northern TW and Silicon Valley)
• Politics: Electoral politics, networking from above and below, POEs as a policy tool, a KMT-big business alliance, side payments to local factions
Developmental governance, political opening and industrial upgrading 1986-2000
International Development Studies, Institute of Society
• Politico-institutional set-up: DPP, divided government, KMT economic bureaucracy, upgrading and electoral calculations, difficulties with cross-border governance (identity politics), loss of state-autonomy
Developmental governance under stress 2000-
2008.
International Development Studies, Institute of Society
and Globalisation
• Not a mixture of ’good policies’, ’good institutions’ and ’good politics’
• Strategic industrial policies – consistently important• Some similarity with the institutional design principles
but also differences• Politics: not just economic rationality and technocratic
foresight : policy choices, institutional set-up• Policies, institutions and politics all matter and must be
studied in an integrated way• Development governance has a strong relational
element, so the analysis must encompass the changing nature of state-business relations, while taking the institutional/ organisational nature of the business-side as well as broader micro-institutional arrangements into account
• Developmental governance is dynamic entity
Concluding remarks on developmental governance in Taiwan
International Development Studies, Institute of Society