State and Finance in Economic Development: Analytical Issues Relevant to the East Asian 'Miracle'

The development successes of East Asia and South East Asia Have encouraged the emergence of a theoretical critique of the role of freely-operating markets in the process of development. Move recently, Stiglitz and Uy have brought together several of the current's analytical strands, at the same time drawing support from economic theory by relying on the literature on market failure, particularly that on asymmetric information. However, it is also necessary to identify some analytical and theoretical weakness that bedevil the current's intellectual output. The most fundamental problem is the absence of an analytical framework within which to analyze the interplay of economics. political, and social forces in the process of development. The main claim of this paper is that appropriate analytical principles for this task are to be found instead in the approach of radical political economy.