Catch-Up Development VS. Forward-Looking Development: from Theoretical Models to Developmental State Practices

Abstract

The presented article was carried out within the framework of scientific project dedicated to Russia's participation in the export and import of institutions. The solid question arose that the conditions and specificity of Russia's place in these processes are related to its position in the global world economy. These problems are considered within the framework of competing concepts of catch-up and forward-looking development in the economic literature. Comparative characteristics of methodological foundations, provisions and normative recommendations of these concepts are highlighted in the article. The analysis shows that there is no ground to justify the absolutization of their differences. Representatives of competing approaches came to the conclusion that it was necessary to search for the optimal configuration of imported and genuine institutions at the level of specific problems of development of countries that were largely on the periphery of the modern global economy. This configuration provides productive orientation of economic actors and creation of favorable conditions for the development of Schumpeterian type innovations. The solution of these tasks is linked with the formation and activities of developmental state. The functions of such a state are fundamentally different from compensating market failures that is characteristic of developed market economy. Such a state acts as a subject that forms the basic institutions of the economic system. Fundamental importance is its ability to ensure the combination of selective imports of institutions with the modification of genuine institutions that have historical and cultural specificity. Characteristics of the reasons and conditions for the successful solution of these tasks by countries such as Japan, Taiwan and South Korea, are highlighted in the article. The success stories are compared to the experience of partial failure of developmental state in Brazil. The fulfilled study is of interest not only for positive analysis, but also for the elaboration of normative recommendations for the formation of optimal configuration of imported and genuine institutions in contemporary Russia.