New Comparative Advantages: A Re-Evaluation of State-Led Development (World IN REVIEW‪)‬

Both state-led and market-led approaches to development present substantial difficulties in implementation and costs. However, for a country striving for economic development and a better position in the international economy in the long run, the state-led approach seems more advisable. Admittedly, the state-led approach does present more risks in many ways, but the prudent implementation of state-led policies presents a rapid, more stable, and effective way to qualitatively change the economic position of a country, marking the transition from a "developing" to a "middle-income" or to a "newly industrialized" state. The neoclassical or market-led approach to development promises efficient allocation of resources, but does not necessarily facilitate the required industrial "catching up" that many developing states must do to truly join the ranks of the developed world. By locating the unique element of the state-led approach that was crucial to the success of economies such as those of South Korea and Singapore, countries can better formulate policies to minimize costs and maximize the potential for successful state-led development. [ILLUSTRATION OMITTED]