IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2016-1.html
   My bibliography  Save this paper

The state, the market, and development

Author

Listed:
  • Joseph E. Stiglitz

Abstract

The state has played a major role in the most important developmental successes. This paper discusses the advances in our understanding of the role of the state in the developmental process over the past thirty years, and the contribution to those advances played by changes in economics, changes in the world, and key experiences (in particular the successes in East Asia and the failures in the countries pursuing Washington Consensus policies).

Suggested Citation

  • Joseph E. Stiglitz, 2016. "The state, the market, and development," WIDER Working Paper Series wp-2016-1, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2016-1
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/wp2016-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karla Hoff & Joseph E. Stiglitz, 2010. "Equilibrium Fictions: A Cognitive Approach to Societal Rigidity," American Economic Review, American Economic Association, vol. 100(2), pages 141-146, May.
    2. Torsten Persson & Gerard Roland & Guido Tabellini, 2000. "Comparative Politics and Public Finance," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1121-1161, December.
    3. Karla Hoff & Joseph E. Stiglitz, 2004. "After the Big Bang? Obstacles to the Emergence of the Rule of Law in Post-Communist Societies," American Economic Review, American Economic Association, vol. 94(3), pages 753-763, June.
    4. Arndt, Channing & McKay, Andy & Tarp, Finn (ed.), 2016. "Growth and Poverty in Sub-Saharan Africa," OUP Catalogue, Oxford University Press, number 9780198744795.
    5. Franklin Allen & Douglas Gale, 2000. "Financial Contagion," Journal of Political Economy, University of Chicago Press, vol. 108(1), pages 1-33, February.
    6. Stiglitz, Joseph E., 2015. "Leaders and followers: Perspectives on the Nordic model and the economics of innovation," Journal of Public Economics, Elsevier, vol. 127(C), pages 3-16.
    7. Hoff, Karla & Stiglitz, Joseph E., 2016. "Striving for balance in economics: Towards a theory of the social determination of behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PB), pages 25-57.
    8. Starrett, David A., 1972. "Fundamental nonconvexities in the theory of externalities," Journal of Economic Theory, Elsevier, vol. 4(2), pages 180-199, April.
    9. Benjamin Feigenberg & Erica M. Field & Rohini Pande, 2010. "Building Social Capital Through MicroFinance," NBER Working Papers 16018, National Bureau of Economic Research, Inc.
    10. Justin Yifu Lin, 2013. "From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 1, pages 50-70, Palgrave Macmillan.
    11. Stiglitz, Joseph E, 1990. "Peer Monitoring and Credit Markets," The World Bank Economic Review, World Bank, vol. 4(3), pages 351-366, September.
    12. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    13. Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), 2013. "The Industrial Policy Revolution II," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33523-4, June.
    14. Joseph E. Stiglitz, 1977. "The Theory of Local Public Goods," International Economic Association Series, in: Martin S. Feldstein & Robert P. Inman (ed.), The Economics of Public Services, chapter 12, pages 274-333, Palgrave Macmillan.
    15. Joseph Stiglitz & David Ellerman, 2000. "New Bridges Across the Chasm: Macro- and Micro-Strategies for Russia and other Transitional Economies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 3(1), pages 41-72, May.
    16. Blanchard, Olivier J. & Romer, David & Spence, Michael & Stiglitz, Joseph E. (ed.), 2012. "In the Wake of the Crisis: Leading Economists Reassess Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 026201761x, December.
    17. Justin Yifu Lin, 2012. "New Structural Economics : A Framework for Rethinking Development and Policy," World Bank Publications - Books, The World Bank Group, number 2232.
    18. Joseph E. Stiglitz, 2011. "Rethinking Macroeconomics: What Failed, And How To Repair It," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 591-645, August.
    19. Stiglitz, Joseph E, 1996. "Some Lessons from the East Asian Miracle," The World Bank Research Observer, World Bank, vol. 11(2), pages 151-177, August.
    20. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    21. Olivier Jeanne & Anton Korinek, 2020. "Macroprudential Regulation versus mopping up after the crash," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(3), pages 1470-1497.
    22. Richard J. Arnott & Joseph E. Stiglitz, 1988. "The Basic Analytics of Moral Hazard," NBER Working Papers 2484, National Bureau of Economic Research, Inc.
    23. Bruce C. Greenwald & Joseph E. Stiglitz, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 229-264.
    24. Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
    25. Justin Yifu Lin, 2011. "New Structural Economics: A Framework for Rethinking Development," The World Bank Research Observer, World Bank, vol. 26(2), pages 193-221, August.
    26. Joseph E. Stiglitz, 2012. "Macroeconomic Fluctuations, Inequality, and Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(1), pages 31-58, February.
    27. Serra, Narcis & Stiglitz, Joseph E. (ed.), 2008. "The Washington Consensus Reconsidered: Towards a New Global Governance," OUP Catalogue, Oxford University Press, number 9780199534098.
    28. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, June.
    29. Griffith-Jones, Stephany & Ocampo, Jose Antonio & Stiglitz, Joseph E. (ed.), 2010. "Time for a Visible Hand: Lessons from the 2008 World Financial Crisis," OUP Catalogue, Oxford University Press, number 9780199578818.
    30. Jorge M. Katz (ed.), 1987. "Technology Generation in Latin American Manufacturing Industries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-07210-1.
    31. Paolo Tasca & Stefano Battiston, "undated". "Diversification and Financial Stability," Working Papers CCSS-11-001, ETH Zurich, Chair of Systems Design.
    32. Joseph E. Stiglitz, 1982. "The Theory of Local Public Goods Twenty-Five Years After Tiebout: A Perspective," NBER Working Papers 0954, National Bureau of Economic Research, Inc.
    33. Richard J. Arnott & Joseph E. Stiglitz, 1979. "Aggregate Land Rents, Expenditure on Public Goods, and Optimal City Size," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(4), pages 471-500.
    34. Joseph E. Stiglitz & Martin Guzman (ed.), 2016. "Contemporary Issues in Macroeconomics," International Economic Association Series, Palgrave Macmillan, number 978-1-137-52958-9, June.
    35. Tobin, James, 1970. "On Limiting the Domain of Inequality," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 263-277, October.
    36. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Franto Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    37. Hamid Rashid, 2013. "Does Financial Market Liberalization Promote Financial Development?: Evidence from Sub-Saharan Africa," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 5, pages 321-349, Palgrave Macmillan.
    38. Battiston, Stefano & Gatti, Domenico Delli & Gallegati, Mauro & Greenwald, Bruce & Stiglitz, Joseph E., 2012. "Default cascades: When does risk diversification increase stability?," Journal of Financial Stability, Elsevier, vol. 8(3), pages 138-149.
    39. Angus Maddison, 2005. "Measuring And Interpreting World Economic Performance 1500–2001," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 1-35, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ismail Doga Karatepe & Christoph Scherrer, 2019. "Collective Action as a Prerequisite for Economic and Social Upgrading in Agricultural Production Networks," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 8(1-2), pages 115-135, April.
    2. Joseph E. Stiglitz, 2016. "The Theory of Credit and Macro-economic Stability," NBER Working Papers 22837, National Bureau of Economic Research, Inc.
    3. Augustin Kwasi Fosu & Dede Woade Gafa, 2020. "Development Strategies for the Vulnerable Small Island Developing States (SIDS)," Working Papers 202073, University of Pretoria, Department of Economics.
    4. KS, Chalapati Rao & Dhar, Biswajit, 2018. "India's Recent Inward Foreign Direct Investment: An Assessment," MPRA Paper 88992, University Library of Munich, Germany.
    5. Fanglei Wang & Jianbo Gao & Feiyan Liu, 2024. "Unlocking Africa’s development potential: insights from the perspective of global hierarchy and competition," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    6. Anthony Frank Julies, 2024. "An Alternative Approach to Parliamentary Oversight of Sovereign Guarantees in South Africa: ESKOM as a Polar Case Study," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 12(1), pages 1-27, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph E. Stiglitz, 2016. "The state, the market, and development," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).
    2. Stiglitz, J.E., 2015. "Devolution, independence, and the optimal provision of public goods," Economics of Transportation, Elsevier, vol. 4(1), pages 82-94.
    3. Joseph E. Stiglitz, 2013. "Stable Growth in an Era of Crises; Learning from Economic Theory and History," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 2(1), pages 1-39, January.
    4. Stiglitz Joseph E., 2010. "Contagion, Liberalization, and the Optimal Structure of Globalization," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-47, December.
    5. Stiglitz, Joseph E., 2019. "Addressing climate change through price and non-price interventions," European Economic Review, Elsevier, vol. 119(C), pages 594-612.
    6. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726.
    7. Popov, Vladimir & Chowdhury, Anis, 2015. "What Uzbekistan tells us about industrial policy that we did not know?," MPRA Paper 67013, University Library of Munich, Germany.
    8. Joseph E. Stiglitz, 1981. "Public Goods in Open Economies with Heterogeneous Individuals," NBER Working Papers 0802, National Bureau of Economic Research, Inc.
    9. Martin Guzman & Joseph E Stiglitz, 2020. "Towards a dynamic disequilibrium theory with randomness," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(3), pages 621-674.
    10. V. Popov & В. Попов, 2016. "Секреты И Перспективы Промышленной Политики Узбекистана // What Can Uzbekistan Tell Us About Industrial Policy That We Did Not Already Know," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 4(1), pages 5-25.
    11. Joseph Stiglitz, 2018. "From manufacturing-led export growth to a twenty-first-century inclusive growth strategy: Explaining the demise of a successful growth model and what to do about it," WIDER Working Paper Series 176, World Institute for Development Economic Research (UNU-WIDER).
    12. Justin Yifu Lin & Célestin Monga & Samuel Standaert, 2019. "The Inclusive Sustainable Transformation Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 47-80, May.
    13. Joseph E. Stiglitz, 2018. "From manufacturing-led export growth to a twenty-first-century inclusive growth strategy: Explaining the demise of a successful growth model and what to do about it," WIDER Working Paper Series wp-2018-176, World Institute for Development Economic Research (UNU-WIDER).
    14. Nicholas Stern & Joseph E Stiglitz, 2023. "Climate change and growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(2), pages 277-303.
    15. Popov, Vladimir, 2019. "Successes and failures of industrial policy: Lessons from transition (post-communist) economies of Europe and Asia," MPRA Paper 95332, University Library of Munich, Germany.
    16. Stiglitz, Joseph E., 2018. "Pareto efficient taxation and expenditures: Pre- and re-distribution," Journal of Public Economics, Elsevier, vol. 162(C), pages 101-119.
    17. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    18. Stiglitz, Joseph E. & Yifu, Justin & Monga, Celestin, 2013. "The rejuvenation of industrial policy," Policy Research Working Paper Series 6628, The World Bank.
    19. Alvarez, Fernando & Barlevy, Gadi, 2021. "Mandatory disclosure and financial contagion," Journal of Economic Theory, Elsevier, vol. 194(C).
    20. Hoff, Karla & Stiglitz, Joseph E., 2016. "Striving for balance in economics: Towards a theory of the social determination of behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PB), pages 25-57.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp-2016-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.