The state and economic development

In this article it is argued that one must distinguish between the arbitrary, short-run power of the state and the long-run, infrastructural power of the state. Game theory concepts are used to illustrate these ideas and successful development is linked to the infrastructural power of the state. The evolution of the latter is related to culture/ideology and this is given operational meeting within the context of simple game theory. The historical experience of Japan is utilized to illustrate these ideas. Dr. Richard Grabowski is a professor of economics at Southern Illinois University-Carbondale. His research interests include the role of the developmental state in economic development. His work has appeared inWorld Development, Journal of Developing Areas, Economic Development and Cultural Change.