State Structure, Policy Formation and Economic Development in Southeast Asia

Why do some small, developing countries industrialize and others don’t? What factors account for different economic performance among states that are vulnerable to external shocks, crony capitalism, and political instability? This book argues that the answer lies in the structuring of state power, specifically the way different sets of governing elites – political leaders and economic technocrats – are embedded in political organisations and state institutions, and the way these elites relate to each other in the economic development policy process. Conducting a comparative historical analysis of Thailand and the Philippines, the book argues that the institutional settings of governing elites influence economic outcomes. In Thailand, political power traditionally connects to state institutions in ways that has limited the impact of political turnovers and global downturns - conducive to long-term industrial activities. In contrast, Philippine state power derives from family networks that merge social and political power, suited to fast-moving, short-term commercial interests. In focusing on this political and institutional story, the author analyses the current development dilemmas of countries, weighed down by historical legacies of unstable regimes, dependency, and social conflict, and how they are likely to develop in the future.

State Structure, Policy Formation, and Economic Development in Southeast Asia The political economy of Thailand and the Philippines......Page 10 Copyright......Page 11 Contents......Page 14 Figures and tables......Page 16 Acknowledgments......Page 17 Abbreviations and acronyms......Page 19 1 Introduction: institutional settings of state power and the policy process......Page 22 The state in changing development contexts......Page 25 Policymaking in the ASEAN-4 countries......Page 33 The case studies......Page 39 2 Patterns of economic growth: narratives and realities......Page 47 Open markets, rents, and industrial development......Page 49 Deconstructing dominant narratives......Page 53 Two tales of economic collapse and survival......Page 60 Conclusion......Page 71 3 Building the modern state and economy......Page 73 Thailand and its bureaucratic polity......Page 77 The Philippines and its proprietary polity......Page 87 Synthesis and conclusion......Page 100 4 Comparative policy dynamics of trade and investment promotion......Page 107 Thailand and the Philippines: early history of international trade......Page 108 Politics of import–substitution industrialization......Page 113 Conclusion......Page 126 5 Liberalization: divergent paths, different outcomes......Page 130 Foundations of export–oriented industrialization......Page 132 Conclusion......Page 152 6 Conclusion: state configuration and the politics of economic development......Page 154 Thailand and the Philippines in comparative perspective......Page 158 Institutional settings of the ASEAN-4 countries......Page 164 The politics of late–late development......Page 169 Notes......Page 175 Bibliography......Page 195 Index......Page 218

Antoinette R. Raquiza is Associate Professor in Political Science at the De La Salle University, Philippines.

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