The social bases of development: Hungary and Romania in comparative perspective

Abstract

AbstractThe present paper studies the relationship between state and development in the post-communist world. My strategy is to extend the applicability of the ‘developmental state’ concept to the post-communist context. Whereas the ‘developmental state’ model emphasizes the relationship between state bureaucrats and business groups, post-communist societies lacked a capitalist class at the beginning of transition. Using a concept developed by Mann (1989), I argue that capitalist development is associated with an increase in the infrastructural power of the state. This necessary condition is accompanied, in a late development context, by what I call ‘deliberative capacity’—the ability of the state managers to navigate between internal and external pressures in pursuing their goals. The comparative analysis of Hungary and Romania shows that, where capitalist classes are missing, a powerful technocratic class spurred by the industrialization process can transform the state if it is able to topple Stalinist bureaucrats from positions of power.