Finance and Industrial Policy in Unsuccessful Developmental States
The Case of Pakistan
Bibliographic Data
| ID | 4780342 |
|---|---|
| Authors | Natalya Naqvi (0000-0003-0821-070X, corresponding author) |
| Year | 2018 |
| Volume | 49 |
| Issue | 4 |
| Pages | 1064-1092 |
| Publication date | 2018-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development and Change (JOURNAL) |
| Journal identifiers | ISSN: 0012-155X • E-ISSN: 1467-7660 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/dech.12424 |
| OpenAlex | W2804224221 |
| Language | EN |
| Citations received | 9 |
| References cited | 27 |
While a large body of research indicates that state-directed finance worked for successful East Asian developers, the dominant assumption remains that countries with a weak state capacity, where corruption is rife, should not 'try this at home'. In this article, that narrative is questioned through a case study of the role of the financial sector in Pakistan, which is widely considered to be a successful case of financial liberalization, contrasting the role of the publicly controlled financial system in the 1970s and 1980s with that of the liberalized financial system in the 2000s. Utilizing archival firm-level and aggregate data, historic government documents, and interviews with policy makers, financial sector employees and industrialists, it is argued that in the Pakistani case, the withdrawal of state control over the financial sector led to a deterioration of outcomes. This resulted in the allocation of credit away from the productive sectors, namely industry and agriculture, towards unproductive sectors, for speculative purposes; and in the health of the financial sector not improving as expected, with non-performing loans and corruption remaining a problem, and banks actually becoming a greater burden on government finances. This indicates that even states with weak capacity and flawed industrial policy may be better off with some degree of public control over finance
Agriculture · Business · Control (management) · Economic policy · Economics · Economy · Financial system · Government (linguistics) · Language change · Liberalization · Market economy · Public sector · State (computer science) · Asian Industrial and Economic Development · Economic Theory and Policy · Finance · Indian Economic and Social Development
Structural transformation within a neo-liberal state architecture
State and capital in Pakistan’s rooftop solar transition
Introduction
Contextual analysis of child labor laws and educational rights for children in Pakistan with a focus on KPK province
When billions meet trillions
Unpacking state-led upgrading
Power to the People!”
Forging alliances
Pakistan, China and the Structures of Debt Distress
Industry and trade in some developing countries
Strategic factors in economic development.
The Japanese Main Bank System
The Industrial Policy Revolution II
State-Directed Development
The Developmental State
The Political Economy of the New Asian Industrialism
Beyond market failures
Bringing the State Back In
Money and Capital in Economic Development
What strategies are viable for developing countries today? The World Trade Organization and the shrinking of ‘development space’
Marketing the third world
The Developmental Roles of the State
Governing the Market
The IMF, the World Bank, and the Global Economic Crisis
Structural Change
Market versus State' or 'Market with State
Privatization in the Land of Believers
Economic Backwardness in Historical Perspective
| Unique citing works | 9 |
|---|---|
| Citations per year | 1,29 |
| Citation span | 2019 - 2026 (8) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 9 |