STATE-DIRECTED DEVELOPMENT

Political Power and Industrialization in the Global Periphery

This study undertakes a comparative analysis of the state as an economic actor in developing countries. Why have some developing country states been more successful at facilitating industrialization than others? An answer to this question is developed by focusing on both patterns of state construction and patterns of state intervention aimed at promoting industrialization. Four countries are analyzed in detail – South Korea, Brazil, India, and Nigeria – over the twentieth century. The states in these countries varied from cohesive-capitalist (mainly in Korea but also in Brazil) to fragmented-multiclass (mainly in India but also in Brazil) to neo-patrimonial (mainly in Nigeria). It is argued that cohesive-capitalist states have been most effective at promoting industrialization and neo-patrimonial states the least. The performance of fragmented-multiclass states falls somewhere in the middle. After explaining in detail why this should be so, this study traces the origins of these different state types historically, emphasizing the role of different types of colonialisms in the process of state construction in the developing world.

Atul Kohli is the David K. E. Bruce Professor of International Affairs at Princeton University. He has written or edited nine books and has published some fifty articles. His most recent publications include The Success of India’s Democracy (2002) and States, Markets and Just Growth (2003). He has held fellowships from the Russell Sage Foundation, the Ford Foundation, and the Social Science Research Council, New York.

STATE-DIRECTED DEVELOPMENT

Political Power and Industrialization
in the Global Periphery

ATUL KOHLI
Princeton University

PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE
The Pitt Building, Trumpington Street, Cambridge, United Kingdom

CAMBRIDGE UNIVERSITY PRESS
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© Atul Kohli 2004

This book is in copyright. Subject to statutory exception
and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without
the written permission of Cambridge University Press.

First published 2004

Printed in the United States of America

Typeface Sabon 10/12 pt.     System LATEX 2_e   [TB]

A catalog record for this book is available from the British Library.

Library of Congress Cataloging in Publication Data

Kohli, Atul.
State-directed development : political power and industrialization in the
global periphery / Atul Kohli.
p. cm.
Includes bibliographical references and index.
ISBN 0-521-83670-0 (hb) – ISBN 0-521-54525-0 (pb)
1. Industrial policy – Developing countries.   2. Industrialization – Developing
countries.   3. Developing countries – Economic policy.   4. Developing
countries – Politics and government.   I. Title.
HD3616.D452.K64   2004
338.9′009172′4–dc22       2003069755

ISBN 0 521 83670 0 hardback
ISBN 0 521 54525 0 paperback

To
My Parents

Contents

List of Tables and Figures

Acknowledgments

This book was a long time in the making, nearly a decade. A substantial portion of the research and writing was completed during three years of sabbatical leaves. My foremost thanks are thus to Princeton University for its generous leave policy. During the first of these sabbaticals in 1992–93 I was a visitor at the Economic Growth Center, Yale University; I would like to acknowledge the collegiality and support of Koichi Hamada, Gustav Ranis, and T. N. Srinivasan (then the director of the center). The Russell Sage Foundation in New York City offered me a fellowship during 1996–97, facilitating a full year away from teaching and administrative duties at Princeton. And finally, I was a visitor in 2001–2 at the Graduate Center, City University of New York. During that year, I appreciated friendship and conversations with Forrest Colburn, Mauricio Font, and Susan Woodward.

   A number of colleagues with shared interests read the entire manuscript and gave me very useful suggestions. I would especially like to acknowledge the help of Thomas Callaghy, Andrew Coleman, Peter Evans, Patrick Heller, Ashutosh Varshney, and Meredith Woo-Cumings. Another set of colleagues read and commented on parts of the manuscript, both saving me subsequent embarrassment of mistaken facts and helping me to clarify or to modify the argument. These included Jeremy Adelman, Sheri Berman, Bruce Cumings, Carter Eckert, Neil Englehart, John Gerring, Stephan Haggard, Jeff Herbst, David Kang, Devesh Kapur, John P. Lewis, Pratap Mehta, Chung-In Moon, Gyan Prakash, Adam Przeworski, Susanne Rudolph, Anna Seleny, Robert Wade, John Waterbury, and Crawford Young. A discussion with my Princeton colleague Evan Lieberman was especially helpful in rethinking some conceptual categories.

   I must also acknowledge the help of some graduate students at Princeton. Rina Agarwala, Vanya Krieckhaus, Erik Kuhonta, and Rani Mullen were not only able research assistants, but also insightful scholarly critics of one part of the manuscript or the other. In this role of an assistant and a critic, I would especially like to single out the important contribution of Maya Tudor in preparing tables and figures and for helping to bring the manuscript to conclusion. Other graduate students who read and provided useful written comments on parts of the study were Bruce Giley, Jaime Kirzner-Roberts, Elizabeth Kittrell, Ilan Nam, Sejin Oh, David Yang, and Min Ye. Finally, Kerry Griffin helped to complete the index.

   The manuscript was ably copyedited by Ilene Cohen. To her, my sincere thanks. Peter Johnson provided useful ideas for the cover art. The prolonged interest that Lewis Bateman at Cambridge University Press maintained in this book provided needed encouragement. My most significant debt is to Edna Lloyd for typing and retyping numerous versions of the manuscript. I need not add, but I will add that Edna’s cheerful cooperation was indispensable in bringing this project to completion.

   Finally, I would like to note the help of loved ones. Marie Gottschalk and our daughter, Tara Kohli, provided all the warmth, distractions, and good cheer necessary for a balanced life while working on a long drawn-out project. My brother, sister, and their respective families remain an important part of my extended connections. This book is dedicated to my parents, Dr. Jai Dev and Pushpa Kohli, for years of love and support.