The developmental state model
In what ways is the Chinese case a good example of the developmental state model? In what ways, China’s development is similar and/or different from the state development model?
Sample Solution
The Chinese case is a prime example of the developmental state model due to its implementation of economic and social reforms in order to develop a modern, prosperous nation. Through such reforms, China has created an environment where the government takes a direct role in actively supporting and facilitating the development of industry and commerce (Eichengreen & Oksuzoglu, 2005). The Chinese government has focused on long-term strategies for industrial growth by investing heavily in infrastructure. This investment has allowed for the rapid expansion of foreign trade and technology transfer which have been central features in China’s economic success (Kenworthy, 2011).
Furthermore, one key element of the developmental state model that is observed within China is its strong emphasis on education. The Chinese government recognizes that highly educated citizens are necessary for a successful economy as they provide technical knowledge, capital resources and increased labor productivity (Ebrahim & Lin, 2016). In addition to providing basic schooling free at all levels up until university level, China also provides planning assistance through think tanks as well as generous research funding to support innovation throughout universities(Luo et al., 2019). Moreover,China has implemented policies which aim to encourage entrepreneurship among young people by offering them loans with low interest rates or no risk guarantees (Zenou & Zhang 2010).
In terms of decentralization of power ,the Chinese case demonstrates how devolving authority from central bureaucracy can be beneficial when it comes to balancing regional interests with those of national development. By allowing local governments more independence regarding revenue collection and spending decisions this leads to faster decision-making processes which can create greater efficiency within bureaucracies whilst simultaneously preventing conflicts between different governmental levels(Hsu et al., 2018) . With regards to political stability ,the ruling party in china –the Communist Party– maintains control over both party leadership selection process as well as policy direction thus enabling clear pathways towards achieving specific objectives set out by top officials(Chiou&Peng 2020) . Ultimately, these examples demonstrate how the developmental state model applied by China has enabled it become one global superpower today with high levels economic growth managed through effective utilization various elements such as infrastructure investments ,education reform ,decentralization powers ,as well stable political conditions.
