Tuesday, August 14, 2012

REFLECTIONS ON SHIH: Is the Strong State THE Explanatory Variable Behind Success?

The article provides a demonstration of how theories of the state provide an explanation to economic development. Readers will learn that factors of social change need to be unpacked and determined so as to guide sociopolitical analyses.
 
Shih begins his discourse with a brief foreword, a set of remarks on the value of statism. Statism is not a wholistic entity. The scope of its application includes other intellectual roots which consider the elevation of the state to the highest status. The names Amsden, Cumings, Crane, and Evans are not strange to statists. 

Amsden in the conclusion of one of her compositions asserts the inadequacy of dependency theories in the explanation of Taiwan's story. Cumings has been often cited by statists for his vista on the economic theory of product cycles and on the analysis of authoritarian regimes. Crane on the other hand presents an argument on the possibility of ascent in the world system with credit to an active role played by the state.

The paper comprises of a three-tiered objective: 
(1) To present a critique of the main thesis of the Statist Approach 
(2) An empirical application on the case of Taiwan 
(3) Provide a test of theoretical validity in order to balance, through an assessment of two policies: Land Reform Policy and Import-Substitution to Export Promotion.

Shih, Cheng-Feng considers the following main theses of the Statist for his paper:
“…more universal regularities may be generalized by taking lessons from economic performance in NICs.”
“…dependent development is possible if the state plays a more role in the process of economic development.”

COROLLARY: Negative consequences from   dependency may be mediated by state intervention.
“…growth and equity may be reached with proper manipulation of strategies.”

CRITIQUE

There is the inquiry posed on the identification of the ultimate determinant of changes. It is out of ontological consistency and an act of faith that statists must specify what they believe to be the ultimate determinant of changes. The relevance of this is that sometimes political analyses are more applicable if they could present a hierarchy of causality to readers and students to guide them in analyzing the factors for social change; although this hierarchy should not be dogmatically followed. Instances such as this are present between necessary and sufficient factors; enduring and contingent conditions; dialectics or interplay of factors, conditions and processes.
It appears that statists never pay attention to the Agent-Structure. There is a lack of clarity as to which factor dominates. While statists maintain that external factors largely decide the fate of the state, there is the calim that the strong state may play an active role in national development. A spectrum may be of use as to when the structure plays a more decisive role or when the social agent is able to exert more influence on processes so as to put into effect a change.

Much ado has been posed as to composing an effective working definition of 'strong state', when the concept of 'society' is being overlooked. But what about the amount of influence that intervening social forces exert upon the state? The portrayal of the state as an omnipotent one neglects the existence of other social forces and treats the society as passive.

Does having a strong state mean having a weak society? Does having a strong society denote a weak state? A general accepted definition of state autonomy goes as follows: it is the extent to which the state is able to isolate itself from domestic dominant classes and to contain or even suppress their interests in policy-making. Theda Skocpol on the other hand provides her version which interprets state autonomy as the strength of society which determines the strength of the state. Policy efficacy then, is a feasible yardstick of state strength and or state autonomy. From examining these primary considerations it is concluded that state autonomy is a relative phenomenon.

As to addressing the inquiry of whose interests should the state uphold, this is also answerable through Skocpol. Ideally, the state should uphold the interests of all interest groups. But most studies indicate focus on dominant classes, majority of which comprise of capitalist. Shih tells readers that class stratification isn't always the case. Taiwan is considered once more, an illustration of dominant ethnic groups. Ethnic cleavages having been present between dominant mainlanders and the subordinate Taiwanese.

According to Shih, there is the undermining of the alleged domination of the strong state. The status of the strong state as an independent explanatory power is lost due to the consideration that state autonomy is being conditioned by the strenth of the society. This challenges the postulate that the strong state is an independent explanatory power. Statists assign Taiwan the status of being dependent, being based on the judgment of Taiwan's engagement in international trade and reception of foreign investment.

Why did the state decide to undertake all those policies, such as land reforms, or the decision to move from import-substitution to export promotion? Land reform was implemented to destroy the economic base of the emerging Taiwanese middle class. So according to Shih, land reform was a means toward self-preservation and not economic development… and that the implementation of such policy was not a product of careful planning. Export-promotion was a rational choice. It must be mentioned that the monopoly of political or economic power by the state is not equivalent to state autonomy and that the possession of capacities does not guarantee insulation from society. Further, a holistic state does not guarantee that its plans will all be translated into policies and will be successfully implemented.

CONCLUSIONS

Statists argue that it is because of the active role that the strong state plays that "Bringing-the-state-back-in" is a way of explaining dependent development. Being autonomous, strong state is able to isolate itself from the demands of the dominant group of the society and thus to actively formulate any policy that seems optimal for the general interests of the counts as a whole.

There is the failure of the statists in distinguishing whether systemic or internal factors cause change.

The degree to which the state is strong is not only determined by its own organizational coherency, but also by the strength of society. This renders the statist explanation incomplete if it continually neglects society.

The strength of the state cannot be measured simply in terms of the full quantity of its capacities.

There is circular argumentation between successful policy and the strong state, being that the policy is successful owing to the strong state. The state is strong because its policy is successful.

ASSESSMENT: All is not lost in the Statist Paradigm...

The author, Shih, should have been more informed of the not-so-recent work of Joel Migdal entitled State in Society: Studying How States and Societies Transform and Constitute One Another (2001). Amazon.com reviews call Migdal's book a refreshing account, a discussion how societies and states create and maintain distinct ways of structuring day to day life, including the nature of rules that govern people's behavior, whom they benefit and whom they disadvantage, which sorts of elements unite and divide people and what shared meanings people hold about their relations with others and their place in the world.

As a useful tool of analysis, it is recommended to locate the statist approach in a broad spectrum ranging from extreme to moderate. Crane – Cuming – Migdal – Evans – Amsden – Haggard, extending from least moderate to moderate to extreme.

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Dr. Shih Cheng-Feng, Strong State as an Explanatory Variable of Economic Development: with a Focus on the Case of Taiwan.
 http://www.wufi.org/tw/eng/strongst.htm Accessed: 21 June 2008  1500 HRS.

Amsden, Alice H. 1985. "The State and Taiwan's Economic Development." in 
Peter B. Evans, Dietrich Rueschemeyer, and Theda Skocpol, eds. Bringing the State Back In. pp. 78-106. Cambridge: Cambridge Univ. Press.

 -------. 1979. "Taiwan's Economic History: A Case of Etatisme and a Challenge to Dependency Theory." Modern China. Vol. 5, No. 3, pp. 341-80.

Migdal, Joel S. 2001. State in Society: Studying How States and Societies Transform and Constitute One Another. Cambridge University Press.

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