The International Political Economy and the Developing Countries surveys the major post-war debates on the place of the Third World in the world economy. Beginning with the initial contributions to development economics by such pioneers as W. Arthur Lewis, Paul Prebisch and Hans Singer, the collection surveys the neostructuralist, dependency and world systems approaches that emerged in the 1960s and 1970s, and the neoclassical revival that gained ground in the 1970s.

Assaults on democracy are increasingly coming from the actions of duly elected governments, rather than coups. Backsliding examines the processes through which elected rulers weaken checks on executive power, curtail political and civil liberties, and undermine the integrity of the electoral system. Drawing on detailed case studies, including the United States and countries in Latin America, Eastern Europe, and Africa, the book focuses on three, inter-related causal mechanisms: the pernicious effects of polarization; realignments of party systems that enable elected autocrats to gain legislative power; and the incremental nature of derogations, which divides oppositions and keeps them off balance. A concluding chapter looks at the international context of backsliding and the role of new technologies in these processes. An online appendix provides detailed accounts of backsliding in 16 countries, which can be found at www.cambridge.org/backsliding.

Contents:
1. Cross-Border Production Networks and the Industrial Integration of the Asia-Pacific Michael Borrus, Dieter Ernst and Stephan Haggard
2. International Competitiveness, Regional Integration and Corporate Strategies in the East Asian Electronic Industry Paolo Guerrieri
3. The Resurgence of U.S. Electronics: Asian Production Networks and the Rise of Wintelism Michael Borrus
4. Globalization, Convergence and Diversity: The Asian Production Networks of Japanese Electronics Firms Dieter Ernst
5. What Permits David to Defeat Goliath? The Taiwanese Model in the Computer Industry Dieter Ernst
6. Technological Capabilities and Samsung Electronics' International Production Network in Asia Youngsoo Kim
7. Riding the Waves. Technological Change, Competing US-Japan Production Networks and the Growth of Singapore's Electronics Industry Pog-Kam Wong
8. Japan and the United States in the Malaysian Electronics Sector Greg Linden
9. Convergence, and Diversity: HowGlobalization Reshaped Asian Production Networks Dieter Ernst and John Ravenhill

The concept of the developmental state emerged to explain the rapid growth of a number of countries in East Asia in the postwar period. Yet the developmental state literature also offered a theoretical approach to growth that was heterodox with respect to prevailing approaches in both economics and political science. Arguing for the distinctive features of developmental states, its proponents emphasized the role of government intervention and industrial policy as well as the significance of strong states and particular social coalitions. This literature blossomed into a wider approach, firmly planted in a much longer heterodox tradition, that explored comparisons with states that were decidedly not developmentalist, thus contributing to our historical understanding of long-run growth. This Element provides a critical but sympathetic overview of this literature and ends with its revival and a look forward at the possibility for developmentalist approaches, both in the advanced and developing world.

Because authoritarian regimes like North Korea can impose the costs of sanctions on their citizens, these regimes constitute "hard targets." Yet authoritarian regimes may also be immune-and even hostile-to economic inducements if such inducements imply reform and opening. This book captures the effects of sanctions and inducements on North Korea and provides a detailed reconstruction of the role of economic incentives in the bargaining around the country's nuclear program. Stephan Haggard and Marcus Noland draw on an array of evidence to show the reluctance of the North Korean leadership to weaken its grip on foreign economic activity. They argue that inducements have limited effect on the regime, and instead urge policymakers to think in terms of gradual strategies. Hard Target connects economic statecraft to the marketization process to understand North Korea and addresses a larger debate over the merits and demerits of "engagement" with adversaries.

Momentous developments in the global economy over the last two decades have dramatically increased the availability of industrial investment sites and lowered the cost of relocating core activities to new countries. But how should these developments be exploited for competitive advantage? Firms face competing pressures: scale economies and the advantages of proximity push them to concentrate activities in one or only a few locations, while low wages and new markets invite dispersal across several countries.
This book examines how location decisions have contributed to the global dominance of U.S. firms in the hard disk drive industry. In analyzing the industry since its beginnings some forty years ago, the book explains how American leadership in disk drives has rested on the formation of two complementary industrial clusters. Fundamental research and product development has been located almost entirely in the United States, principally California. Manufacturing has been concentrated in Southeast Asia (initially in Singapore and later in Thailand and Malaysia as well). This duality has proven key to the successful competitive position of the U.S. disk drive industry.
Beyond the particulars of the disk drive industry, the authors present new perspectives on the sources of industrial leadership, the strategic behavior of multinational corporations, the geographic evolution of industry, and the creation and endurance of industrial clusters. Managers will gain insight into how location decisions can contribute to organizational effectiveness, and will learn that globalizing production, while keeping innovative activities at home, can contribute to their firms' competitive advantage. Policy makers will find that first mover advantages may be as important for countries as for companies, since early and systematic efforts to attract a specific industry can generate a critical mass of investments that, over time, will make a location resistant to inducements offered by other countries.

Asian business conglomerates have clearly been successful agents of growth, mobilizing capital, borrowing technology from abroad and spearheading Asia's exports. However, these firms have long had a number of organisational and financial weaknesses, including heavy reliance on debt, that make them vulnerable to shocks. Nowhere was this more true than in Korea, where the large corporate groups known as chaebol have dominated the economic landscape. This collection of essays by leading political scientists and economists provides a comprehensive look at the chaebol problem in the wake of the Asian financial crisis. The authors consider the historical evolution of the chaebol and their contribution to the onset of economic turmoil in 1997. The book analyses the government's short-run response to corporate and financial distress, and outlines an agenda for longer-term reform of the financial system, corporate governance and the politics of business-government relations.

Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.

Advocates of parliamentary rule have been highly critical of presidentialism for dividing powers and providing the opportunity for gridlock between branches. Yet the great theorists of presidential rule saw in the same institutions a desirable combination of strong leadership with checks on executive discretion. These diverse assessments arise because we have surprisingly little comparative work on how presidential democracies function. The essays in this volume show, through case studies from Asia, Latin America, and Central Europe, how presidential democracies deal with the challenges of economic reform.

Advocates of parliamentary rule have been highly critical of presidentialism for dividing powers and providing the opportunity for gridlock between branches. Yet the great theorists of presidential rule saw in the same institutions a desirable combination of strong leadership with checks on executive discretion. These diverse assessments arise because we have surprisingly little comparative work on how presidential democracies function. The essays in this volume show, through case studies from Asia, Latin America, and Central Europe, how presidential democracies deal with the challenges of economic reform.

The Asian crisis has sparked a thoroughgoing reappraisal of current international financial norms, the policy prescriptions of the International Monetary Fund, and the adequacy of the existing financial architecture. To draw proper policy conclusions from the crisis, it is necessary to understand exactly what happened and why from both a political and an economic perspective. In this study, renowned political scientist Stephan Haggard examines the political aspects of the crisis in the countries most affected-Korea, Thailand, Malaysia, and Indonesia. Haggard focuses on the political economy of the crisis, emphasizing the longer-run problems of moral hazard and corruption, as well as the politics of crisis management and the political fallout that ensued. He looks at the degree to which each government has rewoven the social safety net and discusses corporate and financial restructuring and greater transparency in business-government relations. Professor Haggard provides a counterpoint to the analysis by examining why Singapore, Taiwan, and the Philippines escaped financial calamity. The volume...provides an excellent overview of both the theories and facts of the crisis. Strongly recommended for academic collections, lower-division undergraduate through research.

This innovative volume provides an introduction to twelve seminal events in the international relations of East Asia prior to 1900: twelve events that everyone interested in the history of world politics should know. The East Asian historical experience provides a wealth of new and different cases, patterns, and findings that will expand horizons from the Western, Eurocentric experience. Written by an international team of historians and political scientists, these essays draw attention to the China-centered East Asian order - with its long history of dominance - and what this order might tell us about the current epoch.

This innovative volume provides an introduction to twelve seminal events in the international relations of East Asia prior to 1900: twelve events that everyone interested in the history of world politics should know. The East Asian historical experience provides a wealth of new and different cases, patterns, and findings that will expand horizons from the Western, Eurocentric experience. Written by an international team of historians and political scientists, these essays draw attention to the China-centered East Asian order - with its long history of dominance - and what this order might tell us about the current epoch.

From the 1980s through the first decade of the twenty-first century, the spread of democracy across the developing and post-Communist worlds transformed the global political landscape. What drove these changes and what determined whether the emerging democracies would stabilize or revert to authoritarian rule? Dictators and Democrats takes a comprehensive look at the transitions to and from democracy in recent decades. Deploying both statistical and qualitative analysis, Stephen Haggard and Robert Kaufman engage with theories of democratic change and advocate approaches that emphasize political and institutional factors. While inequality has been a prominent explanation for democratic transitions, the authors argue that its role has been limited, and elites as well as masses can drive regime change. Examining seventy-eight cases of democratic transition and twenty-five reversions since 1980, Haggard and Kaufman show how differences in authoritarian regimes and organizational capabilities shape popular protest and elite initiatives in transitions to democracy, and how institutional weaknesses cause some democracies to fail. The determinants of democracy lie in the strength of existing institutions and the public's capacity to engage in collective action. There are multiple routes to democracy, but those growing out of mass mobilization may provide more checks on incumbents than those emerging from intra-elite bargains. Moving beyond well-known beliefs regarding regime changes, Dictators and Democrats explores the conditions under which transitions to democracy are likely to arise.

Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.

Pathways from the Periphery is an innovative interpretation of the development of the newly industrializing countries (NICs) which now dominate Third World industry and manufacturing trade. While such countries as Brazil and Mexico have achieved industrialization through strategies intended to foster self-reliance, the East Asian NICs-South Korea, Taiwan, Hong Kong, and Singapore-have grown rapidly through an aggressive policy promoting the export of manufactured goods. Stephan Haggard provides the first comprehensive comparison of the politics of industrialization in these East Asian and Latin American countries and offers new evidence on current issues in comparative political economy, including the implications of different growth paths for dependency, equity, and democracy. Recognizing the influence on development strategies of external shocks-such as depression, war, and reduced access to foreign capital-Haggard emphasizes the importance of domestic political institutions for economic decision-making. The East Asian NICs are characterized by close but regulated business-government alliances, weak labor movements, and politically insulated and administratively capable states: factors, Haggard shows, that have facilitated flexible and coherent industrial policies. He argues that "domestic" policy choices can shape the external constraints states face. The author considers in detail why Latin America's long-standing efforts to achieve self-reliance have ironically resulted in a dependence on international capital greater than that of the East Asian countries. Addressing a long-standing debate on the relationship between industrialization strategy and regime type, Haggard carefully assesses the connection between growth and democratic politics. Despite their authoritarian growth models the Asian NICs have, he observes, achieved greater equity than their Latin American counterparts. Although the "success" of export-led growth has in the past been associated with authoritarian rule, Haggard argues that no compelling theoretical reasons preclude democratic governments from achieving strong economic performance. Breaking new ground in theoretical inquiry and empirical research, Pathways from the Periphery will be welcomed by political economists, scholars and students of comparative politics, historians of Asian and Latin American public policy, and others concerned with the challenge of economic development.

Momentous developments in the global economy over the last two decades have dramatically increased the availability of industrial investment sites and lowered the cost of relocating core activities to new countries. But how should these developments be exploited for competitive advantage? Firms face competing pressures: scale economies and the advantages of proximity push them to concentrate activities in one or only a few locations, while low wages and new markets invite dispersal across several countries.
This book examines how location decisions have contributed to the global dominance of U.S. firms in the hard disk drive industry. In analyzing the industry since its beginnings some forty years ago, the book explains how American leadership in disk drives has rested on the formation of two complementary industrial clusters. Fundamental research and product development has been located almost entirely in the United States, principally California. Manufacturing has been concentrated in Southeast Asia (initially in Singapore and later in Thailand and Malaysia as well). This duality has proven key to the successful competitive position of the U.S. disk drive industry.
Beyond the particulars of the disk drive industry, the authors present new perspectives on the sources of industrial leadership, the strategic behavior of multinational corporations, the geographic evolution of industry, and the creation and endurance of industrial clusters. Managers will gain insight into how location decisions can contribute to organizational effectiveness, and will learn that globalizing production, while keeping innovative activities at home, can contribute to their firms' competitive advantage. Policy makers will find that first mover advantages may be as important for countries as for companies, since early and systematic efforts to attract a specific industry can generate a critical mass of investments that, over time, will make a location resistant to inducements offered by other countries.

Victor D. Cha and David C. Kang's Nuclear North Korea was first published in 2003 amid the outbreak of a lasting crisis over the North Korean nuclear program. It promptly became a landmark of an ongoing debate in academic and policy circles about whether to engage or contain North Korea. Fifteen years later, as North Korea tests intercontinental ballistic missiles and the U.S. president angrily refers to Kim Jong-un as "Rocket Man," Nuclear North Korea remains an essential guide to the difficult choices we face. Coming from different perspectives-Kang believes the threat posed by Pyongyang has been inflated and endorses a more open approach, while Cha is more skeptical and advocates harsher measures, though both believe that some form of engagement is necessary-the authors together present authoritative analysis of one of the world's thorniest challenges. They refute a number of misconceptions and challenge the faulty thinking that surrounds the discussion of North Korea, particularly the idea that North Korea is an irrational actor. Cha and Kang look at the implications of a nuclear North Korea, assess recent and current approaches to sanctions and engagement, and provide a functional framework for constructive policy. With a new chapter on the way forward for the international community in light of continued nuclear tensions, this book is of lasting relevance to understanding the state of affairs on the Korean peninsula.

From the 1980s through the first decade of the twenty-first century, the spread of democracy across the developing and post-Communist worlds transformed the global political landscape. What drove these changes and what determined whether the emerging democracies would stabilize or revert to authoritarian rule? Dictators and Democrats takes a comprehensive look at the transitions to and from democracy in recent decades. Deploying both statistical and qualitative analysis, Stephen Haggard and Robert Kaufman engage with theories of democratic change and advocate approaches that emphasize political and institutional factors. While inequality has been a prominent explanation for democratic transitions, the authors argue that its role has been limited, and elites as well as masses can drive regime change. Examining seventy-eight cases of democratic transition and twenty-five reversions since 1980, Haggard and Kaufman show how differences in authoritarian regimes and organizational capabilities shape popular protest and elite initiatives in transitions to democracy, and how institutional weaknesses cause some democracies to fail. The determinants of democracy lie in the strength of existing institutions and the public's capacity to engage in collective action. There are multiple routes to democracy, but those growing out of mass mobilization may provide more checks on incumbents than those emerging from intra-elite bargains. Moving beyond well-known beliefs regarding regime changes, Dictators and Democrats explores the conditions under which transitions to democracy are likely to arise.

Because authoritarian regimes like North Korea can impose the costs of sanctions on their citizens, these regimes constitute "hard targets." Yet authoritarian regimes may also be immune—and even hostile—to economic inducements if such inducements imply reform and opening. This book captures the effects of sanctions and inducements on North Korea and provides a detailed reconstruction of the role of economic incentives in the bargaining around the country's nuclear program. Stephan Haggard and Marcus Noland draw on an array of evidence to show the reluctance of the North Korean leadership to weaken its grip on foreign economic activity. They argue that inducements have limited effect on the regime, and instead urge policymakers to think in terms of gradual strategies. Hard Target connects economic statecraft to the marketization process to understand North Korea and addresses a larger debate over the merits and demerits of "engagement" with adversaries.

In the last two decades, there has been a widespread movement from authoritarian to democratic rule among developing countries, often occurring against a backdrop of severe economic crises and the adoption of market-oriented reforms. The coincidence of these events raises long-standing questions about the relationship between economic and political change. In this book, Stephan Haggard and Robert Kaufman explore this relationship, addressing a variety of questions: What role have economic crises played in the current wave of political liberalization and democratization? Can new democracies manage the daunting political challenges posed by economic reform? Under what economic and institutional conditions is democracy most likely to be consolidated? Drawing on contemporary political economy and the experiences of twelve Latin American and Asian countries, they develop a new approach to understanding democratic transitions.

Haggard and Kaufman first analyze the relationship between economic crisis and authoritarian withdrawal and then examine how the economic and institutional legacies of authoritarian rule affect the capacity of new democratic governments to initiate and sustain economic policy reform. Finally, the authors analyze the consolidation of political and economic reform over the long run. Throughout, they emphasize the relationship between economic conditions, the interests and power of contending social groups, and the mediating role of representative institutions, particularly political parties.

In the 1980s some developing countries adopted orthodox market-oriented policies in response to international economic crises, others experimented with alternative programs, and still others failed to develop coherent adjustment strategies of any sort. Building on the case studies in Economic Crisis and Policy Choice, these essays offer comparative analysis of these divergent experiences with macroeconomic stabilization and structural adjustment. Barbara Stallings and Miles Kahler explore the external pressures on governments. Peter Evans and John Waterbury examine the role of the state in the adjustment process, Evans through the lens of earlier historical experience with economic restructuring, Waterbury by focusing on the politics of privatization. Joan Nelson analyzes the politics of income distribution in the adjustment process, and Haggard and Kaufman investigate the political correlates of inflation and stabilization. A final essay assesses the prospects for combining market-oriented reforms with political democratization.

Despite its nuclear capability, in certain respects North Korea resembles a failed state sitting uneasily atop a shifting internal foundation. This instability is due in part to the devastating famine of the 1990s and the state's inability to fulfill the economic obligations that it had assumed, forcing institutions, enterprises, and households to cope with the ensuing challenges of maintaining stability with limited cooperation between the Korean government and the international community. The ineffective response to the humanitarian crisis triggered by the famine resulted in the outflow of perhaps tens of thousands of refugees whose narratives are largely overlooked in evaluating the efficacy of the humanitarian aid program.Witness to Transformation: Refugee Insights into North Korea uses extensive surveys with refugees who now reside in China or South Korea to provide extraordinary insight into the changing pathways to power, wealth, and status within North Korea. These refugee testimonies provide an invaluable interpretation of the regime, its motivations, and its capabilities and assess the situation on the ground with the rise of inequality, corruption, and disaffection in the decade since the famine. Through the lens of these surveys, preeminent North Korean experts Stephan Haggard and Marcus Noland carefully document the country's transition from a centrally planned economy to a highly distorted market economy, characterized by endemic corruption and widening inequality. The authors chart refugees' reactions to the current conditions and consider the disparity between the perceived and real benefit of the international humanitarian aid program experienced by this displaced population. Finally, the book examines these refugees' future prospects for integration into a new society.

"While many authors cannot see beyond the borders of their own country, Haggard and Kaufman masterfully compare Latin America, East Asia, and East Europe from a global perspective. These two great scholars analyze urgent contemporary problems, the status and future fate of the welfare state, and the relationship of changes with the creation and development of democracy with remarkable expertise, precision, and human empathy."--Janos Kornai, professor emeritus, Harvard University and Collegium Budapest

"This ambitious book extends the theoretical framework of the literature on welfare states in the advanced capitalist countries, and situates the experience of these countries in a broader comparative context. Haggard and Kaufman bring out the multifaceted implications of development models and regime types for social policy. Their synthetic account is truly a tour de force and a testimony to the fruitfulness of cross-regional comparison."--Jonas Pontusson, Princeton University

"A masterly analysis of how political interests, economic circumstances, development strategies, and local history have shaped what are surprisingly different versions of the welfare state across the developing world. The authors combine fine-grained country analyses with intelligent use of data, and explain and extend the theory and literature on the modern welfare state. The book is both scholarly and readable."--Nancy Birdsall, president of the Center for Global Development

"This book has no equal in the welfare-state literature, a truly impressive achievement. Haggard and Kaufman combine meticulous scholarship with sophisticated theoretical guidance in this study of welfare state evolution in LatinAmerica, Asia, and East Europe. The book not only fills a huge void in our knowledge, it also compels us to seriously rethink prevailing theory."--Gosta Esping-Andersen, Universitat Pompeu Fabra, Barcelona

"A very, very valuable book. Haggard and Kaufman are up to their old tricks--helping establish a new line of investigation in a desperately understudied field. This book will be widely read, heavily cited, and will inspire a generation of research. It is going to have an important impact in comparative politics and beyond."--Erik Wibbels, Duke University

"A major undertaking that will make a significant contribution to the scholarship on welfare states in political science and sociology. This ambitious book provides a wealth of information on twenty-one countries' social welfare trajectories from the end of World War II to the present. Haggard and Kaufman provide quantitative analysis of trends with detailed country histories, which makes for an empirically rich account."--Nina Bandelj, University of California, Irvine