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By Jørgen Dige Pedersen

In its comparability of 2 significant rising countries, India and Brazil, this booklet techniques the topic via an cutting edge theoretical blend of developmental states theory and theories of the altering nature of world capitalism.

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Additional info for Globalization, Development and the State: The Performance of India and Brazil since 1990

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1 Industrial workers § growth and structural changes § foreign and domestic control Economic outcomes : § industry § financial sector § external trade relations Policies and institutions : § economic dependency § integration in regional or world markets § financial status and so on Structural limitations and opportunities : industrial associations (incl. individual companies, domestic and foreign) Private business: (executive): public administration (incl. political leadership) The state Model of the causal structure of the argument Relevant social groups: Parliaments and political parties Economic globalization The Analytical Framework and the Two States 41 the interaction of state and business is regarded as the central complex interaction taken from the debate over developmental states influencing both the policies chosen and the resulting reception of the policies by those private businesses whose actions determine the economic outcomes.

The discussion in the two preceding chapters has provided some analytical distinctions that may help to clarify and provide guidelines for the analysis. Economic globalization has posed significantly new challenges to developing countries in at least three areas: the realm of industrial production, the realm of financial flows and the realm of international rules governing the global economy. Within these three areas, an account of the management by the selected case countries – India and Brazil – will form the mainstay of the next chapters.

In this way, India and Brazil may illustrate a range of theoretically optimal reactions by developing countries rather than the typical policy reactions, and through their experiences, we can learn more about the impact of different policy 36 Globalization, Development and the State options and their implications for the prospects of developmental state actions under the condition of economic globalization. In the literature on developmental states, India and Brazil are – on a slightly different basis – often classified as ‘intermediate states’, or ‘middling performers’, mostly through a comparison with the few highly successful states such as South Korea and Taiwan (Evans 1995; Kohli 2004).

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