Transnational capital, the state and foreign economic policy: Singapore, South Korea and Taiwan

Abstract

Various discourses and debates on the state - transnational capital relationship have emerged within the international political economy literature. The particular contribution offered here focuses on this relationship in three East Asian developmental states (Singapore, South Korea and Taiwan - the NIE-3) through the lens of foreign economic policy (FEP) analysis. In different ways their respective state governments have all worked closely alongside various forms of transnational capital in sustained yet evolving ‘adaptive partnerships’, and in accordance to largely state-determined FEP objectives. Moreover, these objectives broadly relate to the pursuit of economic security in the international system. While each of the NIE-3's own path of economic development has differed significantly, there nevertheless exist important similarities. This not just relates to being constituent to the East Asian regional economic dynamic but also their shared developmental state tradition. The relationship between the state and transnational capital is also key to understanding the NIE-3's foreign economic policy formation, although this has differed significantly across the group. In sum, this study analyses just one of many contemporary examples where both the state and transnational capital are working to congruent ends in their respective adaptations to the challenges posed by globalization.