Embedded in Globalization: China as a Developmental State in the Global Economy

Current discussion of development theory struggles with the idea of the "developmental state". While it is widely recognized that Japan, South Korea, Taiwan and other countries successfully developed with strong government intervention in their economies, the rise of neoliberalism in recent years has called into question whether the concept of the developmental state is still relevant, whether it is still a workable model of development and, perhaps most interestingly, whether any truly developmental states still exist. This paper enters into this debate and concludes that the developmental state is not only still possible, but that China provides a successful modern example of a developmental state. It also demonstrates that although the paradox of competition between developed and developing countries in the global market makes uncertainty for China, the Chinese government has been successful in managing the transition to becoming a participant in the global economy. As long as the government can struggle to maintain its agenda and make certain reforms, China will not only survive in global economy, but also promote the transformation through external pressure of globalization.