The Transformation of Northeast Asian States in the Era of Globalization

This paper provides an analysis of the effects of globalization on Northeast Asian developmental states.What is the future fate of the developmental state in the era of globalization?To answer this question, it is helpful to review the conditions under which it is more likely to succeed or fail.The developmental state consisted of three elements.First, Northeast Asian developmental states placed top priority on economic development, which was often operationalized in terms of growth, productivity, and competitiveness.Second in order to achieve these broadly defined goals, the state intervened in the market to guide, discipline and coordinate the private sector through strategic allocation of resources and the use of diverse policy instruments.Third, the success of strategic intervention by the state was ensured by rational and competent bureaucrats.However, the developmental state appeared too rigid to cope with rapidly changing circumstances.The developmental state also appeared too weak to mange the * Thi work was supported by Korea Research Foun dat ion Grant (KR F-2001•041 -COOlll).136 The Korean Journal of Il7Iernational Relations, VO/llme 44, Number 5, 2004changing circumstances.The developmental state also appeared too weak to mange the globalizing economies as evidenced in the economic crisis of 1997 and 1998.Northeast Asian states have been transformed from the bureaucratic model that characterized the economic success to the flexible one.The flexible developmental state is defined by its ability to nurture production networks, to attract foreign direct investment, and to link local and global business networks together in ways that promote development.The flexible developmental state model, therefore, can be presented as a solution to the dilemmas of the bureaucratic developmental state in the era of globalization.