The Role of the State in the Big Picture of Economic Development: Mainstream-versus-Heterodox Approaches and Historical Evidence


Özveren E.

Forum for Social Economics, 2025 (ESCI, Scopus) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1080/07360932.2025.2507583
  • Dergi Adı: Forum for Social Economics
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM
  • Anahtar Kelimeler: East Asian Miracle, economic development, Joseph Schumpeter, Karl Polanyi, state-market dichotomy
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

This paper purports to develop a double critique, (1) an institutional and historical critique of mainstream development literature, and (2) a critique of heterodox approaches to development. Concerning the first, it demystifies the myth of the liberal state and highlights that the liberal state was economically proactive even when it chose not to intervene, and that the zero-sum notion of the total realm as shared among the state and market on which the myth rested is far from correct. In relation with the second, it stresses the superior performance of heterodoxy but argues that it should resist to imitate its adversary by falling prey to formulating a singular alternative development policy. It ends by disclosing a rationale as to why state remains important yet with a changing contextual function all along, as a specific instance of a more general conception of development based on the principle of advantageous ‘repetition with a difference’.