Dictators, Democrats, and Development in Southeast Asia: Implications for the Rest
Dictators, Democrats, and Development in Southeast Asia: Implications for the Rest
Samuel and Etta Wexler Professor of Economic History
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Abstract
Since 1960 only nine developing countries have succeeded in sustaining high growth. Dictators, Democrats, and Development in Southeast Asia examines how dictators and democrats in three of the nine—Indonesia, Malaysia, and Thailand (IMT)—built and sustained pro-growth political coalitions, enabling them to deliver high sustained growth. The focus is on IMT because the three have factor endowments, ethnic heterogeneity, and forms of governance that resemble the Rest, suggesting that the Rest may have much to learn from IMT. The focus is unabashedly on the politics of growth in IMT because political elites there built and sustained pro-growth political coalitions, enabling them to link their long-term political survival with delivering development. How and why they did so should be of keen interest to the Rest. Because dictators and democrats in IMT were committed to capitalist, industrial, and open economy development strategies but were deeply suspicious of neoliberal markets, none of the three ever adopted a Washington Consensus growth strategy. While all three toyed with a Northeast Asian capitalist developmental state growth strategy, because governments in IMT lacked the political requisites to make this strategy work, none really stuck to this approach to growth either. Instead, dictators and democrats in IMT implemented highly pragmatic, trial-and-error growth strategies. When markets worked, governments used them. When interventions worked, governments relied on them. When either failed to deliver results, governments weeded out bad investments to sustain high growth. Such a pragmatic, trial-and-error approach to development should also be of keen interest to the Rest.
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Front Matter
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1
Getting Growth Going Is Difficult and Rare
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2
History as Prologue
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3
Dictators Build and Sustain Pro-Development Political Coalitions
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4
Dictators Incite Domestic Capitalists to Invest
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5
Selective Interventions in Rice Agriculture
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6
The State and Industrial Development: Impact of Industrial Policies on the Size Distribution of Firms and Economic Diversification
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7
Technological Upgrading
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8
Democrats, Democratic Developmental States, and Growth
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9
Corruption and Democracy
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10
Lessons for the Rest
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End Matter
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