Developmental States

Developmental states are countries where the government plays a strong, strategic role in guiding economic growth. They prioritize long-term development goals by actively supporting industries, controlling credit, and making investment decisions to promote rapid industrialization and modernization. Unlike markets driven mainly by private businesses, these governments intervene to foster industrial growth, build infrastructure, and improve education and skills. This approach often results in faster economic progress and modernization, as seen in countries like South Korea and Singapore during their development peaks. Essentially, developmental states balance government planning and intervention with private enterprise to achieve national economic transformation.