The Future of Financial Activism in Taiwan? The Utility of a Mindset-centred Analysis of Developmental States and Their Evolution

Since the end of WWII, the so-called developmental states of East Asia have become famous for their ‘financial activism’: their efforts to link the financial and productive sectors of their economies in ways that advance national development objectives. However it is now widely acknowledged that the twin pressures of global financial integration and financialisation have transformed the policymaking landscape and complicated the pursuit of financial activism. So what do these developments mean for the capacities of East Asian states to pursue developmental ambitions? To address this question, I adopt a novel, mindset-centred analytical framework for the study of developmental state evolution and apply it for the first time to the case of Taiwan. My analysis reveals that the evolutionary trajectory of Taiwan’s developmental state has not been linear; since the early 2000s, the state’s commitment to and capacities for financial activism have waxed and waned. Moreover, two factors emerge as particularly significant in this waxing and waning: social legitimacy and political leadership. This paper demonstrates the analytical utility of a mindset-centred analysis when it comes to investigating the dynamics of developmental state evolution, and why some national variants appear more durable than others at different moments in history

Australia and the Rules of International Trade and Finance

Throughout the second half of the Twentieth Century, Australia was a fierce advocate and defender of the multilateral rules-based economic order. Since the early 2000s however, the Australian government has privileged the pursuit of preferential trade and investment agreements, and now sees the pursuit of preferential deals as central to the advancement of its broader foreign policy goals. In this chapter, I assess Australia's contribution to the rules-based international order in trade and finance from the end of WWII to the present. I also examine the relationship between Australia's trade and investment policy approach and its broader foreign policy objectives by asking: are the economic rules Australia is promoting likely to advance or undermine its stated foreign policy goals? My aim is to advance debate about the most desirable future direction of Australia's foreign economic policy agenda

Economic statecraft at the frontier: Korea’s drive for intelligent robotics

East Asian countries come most to mind when considering the role of governmental institutions in the contemporary economy. Specifically, it is widely assumed that the openness of economies, the maturation of companies, and their participation in global production chains have created extraordinary pressures that erode opportunities and incentives for government-business collaboration. We test this assumption in the South Korean context, with a focus on the case of robotics. This case is fruitful because it highlights the multiple challenges that face South Korean policymakers. These include the capacity to deliver cutting-edge technologies, to create new industry, to address potential downsides with novel solutions, and to engage the private sector in a relationship of ‘governed interdependence’. In examining Korean strategies for grappling with the pressures they face, we seek to illuminate a pattern of state activity that existing concepts fail to capture. By refocusing the concept of geo-economic statecraft to encompass domestically deployed initiatives at the techno frontier, we intend to breach the impasse in the developmental/post developmental state debate and to open up a new research agenda. That agenda should probe the conditions that might motivate states to craft techno-economy building initiatives, and the relationships of governed interdependence which they must forge to achieve them

Power paradox: how the extension of US infrastructural power abroad diminishes state capacity at home

The concept of infrastructural power is arguably one of the most useful in the social sciences. It has helped both to illuminate the extraordinary capacity, reach, and impact of the modern state vis-à-vis its pre-industrial predecessor, and to cast light on why some modern states appear more able than others to execute their decisions and pursue their ambitions. Although sometimes mischaracterized as a ‘weak’ state, the capacity of the state centered on Washington to penetrate social space and implement its decisions, both at home and abroad, has long been recognized. But under what conditions might its infrastructural power diminish? Arguably, US economic power is now stronger than ever, ostensibly bolstered by being home to the world’s most globalized and most profitable companies. However, while globalized production has strengthened US corporations–especially those rich in intellectual property–its contradictory consequences for the state’s infrastructural power deserve close examination. This paper takes a first step in that direction by appraising the extent to which the state’s domestic capacities have been weakened by Washington’s internationalization of intellectual property rights. It also offers a reconceptualization of US power

Overcoming incumbent resistance to the clean energy shift: How local governments act as change agents in coal power station closures in China

Phasing out the use of coal for power generation is an important concern for energy policy in the context of green transition. Despite the efforts of other nations, the role of China in the global phase-out of coal power remains crucial. Our study with a sub-national focus sheds important new light on the drivers and decision-making dynamics of exiting of coal power use in China. Based on a case study of closures of coal power plants in China's Guangdong province, we find that under certain circumstances, governments - especially those in the provincial and city levels - can and do act as change agents when it comes to retirement of coal fired power stations. Our study reveals a number of push and pull mechanisms that governments have utilized to overcome the resistance of incumbent power generation companies, primarily based on developmental considerations. By identifying the drivers and enabling mechanisms of phasing out the use of coal power in a significant sub-national region in China, our study contributes to both of the sustainability transition literature and the energy policy literature