The State and the Economy: Opinion Formation and Collaboration as Facets of Economic Management

Abstract

This paper seeks to extend discussion of the areas of state activity that are relevant to economic performance. It does this by linking several literatures that are now usually considered in isolation from each other. These are institutionalist theory, developmental state theory, and comparative and historical institutionalism. The paper focuses particularly on the experience of the east Asian developmental states. The paper suggests a new role for the state as catalyst in the formation of ideas, choice sets and motives concerning economic performance. It can play this role at national and policy community levels and in relation to desired overall outcomes, export or cluster development and innovation. The notion that economic globalization will inexorably drive convergence between states is discounted. On the contrary, this is as likely to nourish miscomprehension or incomprehension between citizens of different states. This is an additional reason for attending to the quality of opinion formation by states.