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Sample text

Bureaucratic structures create a set of incentives for state officials. They create an affinity between the incentives facing state managers and the policies required for capitalist growth. If Weber is right, imposing different policies on a state apparatus without changing the structure of the state itself will not work. Real changes in policies and behavior depend on the possibility of erecting new state structures. At the same time, the Weberian perspective generates a powerful comparative hypothesis: differences in the structure of the state apparatus should predict differences in developmental efficacy.

The role of demiurge is based on a stronger assumption about the limitations of private capital. It presumes that private capital is incapable of successfully sustaining the developmentally necessary gamut of commodity production. Consequently, the state becomes a “demiurge,” establishing enterprises that compete in markets for normal “private” goods. Taking on the role of midwife is also a response to doubts about the vitality of private capital, but it is a response of a different sort. The capacities of the local entrepreneurial class are taken as malleable, not as given.

The variations grew, at least in part, out of differences in state structure and state-society relations. Different role combinations were associated with differential effectiveness in the expected way. As chapters 5 and 6 show, the principal difference between Korea and the other two countries was that Korea was able to build on a base of firms with a broad range of related industrial prowess, fostered by prior midwifery. This allowed the state to shift easily to the combination of prodding and supporting that I have called husbandry.

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