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This is a scenario where the state assumes the role of leader and manager. State planning and co-ordination are seen as central mechanisms for accelerating development and delivery to citizens, especially poor, unemployed and vulnerable people. The ruling party argues that strong state intervention in the economy is in accordance with global trends, and the electorate, concerned about the impacts of the global economic crisis, gives the ruling party a powerful mandate. Strong state intervention crowds out private initiative by business and civil society. The risks of this scenario are twofold: one is that the country accumulates unsustainable debt; the other is that the state becomes increasingly authoritarian. |
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State-led development cannot succeed if state capacity is seriously lacking. In addition, pervasive state intervention, where the state is everything and all else is subordinate, breeds complacency and dependency among the citizenry. Strong state intervention crowds out private initiative by business and civil society. |
