Economic Development and the Developmental State

Abstract

This article presents evidence on the divergent development experiences of Ghana and Malaysia. Various demographic, social, and development indicators are carefully analyzed. Factors that explain Malaysia’s development miracle are discussed. The state’s capacity to engineer economic transformation is discussed using literature on the developmental state paradigm. Malaysia’s industrial and agricultural transformation is presented as examples of the developmental state in action. It is argued that for sub-Saharan African countries such as Ghana to develop, they must carefully study the experiences of countries like Malaysia. Instead of demonizing the state’s activities, they must reassess the role of the state, its capacity to reclaim policy space, and the extent to which the state can embed itself in society to achieve developmental goals. The relevance of the Malaysian experience for Ghana is discussed.