Published online by Cambridge University Press: 22 September 2009
Exclusive rule and greater centralization, combined with increasing resources, enabled the three states to intervene extensively in the economy and promote development. To varying degrees, state intervention turned each government into a key economic actor and the center of capital allocation or accumulation. These governments controlled major banks, enterprises and sources of revenue in their countries. They actively affected capital allocation through their control of the banking system by means of their own revenues, foreign aid, or extensive borrowing. These states also expanded their regulation of the economy, thus affecting many aspects of the market. All three governments also deliberately pursued development strategies that favored private sector capital accumulation. These efforts often paid off as state intervention produced impressive results, most notably growth in the initial stages.
Despite impressive growth rates, the development strategies employed by the three governments laid the foundation for contradictions and conflicts. Although these states achieved a high level of autonomy from the privileged groups and classes, state intervention largely served particular, rather than general, societal interests. In the first place, it enriched state rulers, their associates and allies who accumulated massive wealth often in a short period of time. Furthermore, government development strategies, whether in the form of import-substitution or export-led industrialization, served the interests of modern, capital-intensive sectors of the economy while working against the small, traditional sectors.
To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.