A Round Table : Role Of The State Development

1449 Words May 4th, 2016 6 Pages
Chae Yeon Kim
IDS 120
3 May 2016

A Round Table: The Role of the State in Development Possibilities

Among developed and underdeveloped nations, the role of the state in development is often one that is contested. The differing perspectives include that of the state as being essential, an obstacle, or less of a factor in development than others. In this paper, I will first discuss how the state is essential for development by creating the conditions for investment and economic growth to happen. Next, I will discuss how the state can kill growth by pursuing overly protectionist policies as well as being corrupt. I will then analyze how ethnic diversity can be a determinant of development, more so than the state. Finally, I will argue that the reality is much more complex than not as one-sided as these arguments may suggest, but, with good leadership and institutions, the state as a helping hand can be a powerful driver of development.
The state as a helping hand Historically, the state has been essential to development by creating the necessary conditions for economic growth to happen, especially through protection against violence. Development requires investment, but investment requires protection from violence. The evolution of roaming bandits into the stationary bandit of the state provided the incentive to create conditions of prosperity (Posner, Apr. 12). Instead of plundering the wealth of its citizens and being the source of violence, the monarch facilitated…
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