IDEAS home Printed from https://ideas.repec.org/p/zbw/pfhrps/201402.html
   My bibliography  Save this paper

A liberal developmental state in Georgia? State dominance and Washington Consensus in the post-communist region

Author

Listed:
  • Timm, Christian

Abstract

The article analyzes state dominance in Georgia's economy between 2003 and 2010 from the perspective of the (new) developmental state. The specific interlinkage of economic model, law and administration through which state interventions may generate market-enhancing effects provides the analytical framework for the examination of Georgia's institutional setting. The article argues that Georgia enjoyed favorable exogenous conditions for the emergence of a developmental state and was about to introduce a set of administrative features similar to developmental states. However, two factors significantly shaped state-economy relations different to developmental states. Firstly, Georgia opted for a radical anti-corruption-driven separation of state and economy and pursued, consequently, a strict Washington Consensus economic policy. In doing so, the government simultaneously abandoned effective formal instruments for the politically relevant steering of the distribution of economic advantages. This in turn increased the necessity for informal interventions in economic processes contradicting the chosen economic model. Secondly, the flexibility-approach of the government, which relied rather on capable managers than on structures and procedures, undermined the administrative reforms and prevented the emergence of an 'embedded autonomy' of the public service. The absence of a capable, institutional learning and autonomous administration must be seen as the major obstacle for the elaboration of appropriate strategies after 2008 when the government altered its neo-liberal approach towards state-managed capitalism. Although the government was able to steer private and public investments in the specific sectors by relying on its informal coercive power, the economic success of this economic policy, however, failed to appear. The article argues that the lack of an independent administration and the renunciation of means of formal coordination and of law in general are to be made responsible for this. In doing so, Georgian policy makers also waived the chance to reconcile their agenda of sustainable economic growth with the agenda of political power preservation. The study seeks to contribute to the question of institutional prerequisites for successful state interventions in Low- and Middle-Income Countries and, hence, to the growing literature on Post-Washington Consensus and New Developmentalism.

Suggested Citation

  • Timm, Christian, 2014. "A liberal developmental state in Georgia? State dominance and Washington Consensus in the post-communist region," PFH Forschungspapiere/Research Papers 2014/02, PFH Private University of Applied Sciences, Göttingen.
  • Handle: RePEc:zbw:pfhrps:201402
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/95871/1/780786866.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schrader, Christina & Vollmar, Bernhard H., 2013. "Green Controlling: Ein wesentlicher Schritt auf dem Weg zur nachhaltig orientierten Unternehmensführung," PFH Forschungspapiere/Research Papers 2013/04, PFH Private University of Applied Sciences, Göttingen.
    2. Peter Evans, 1998. "Transferable lessons? Re-examining the institutional prerequisites of East Asian economic policies," Journal of Development Studies, Taylor & Francis Journals, vol. 34(6), pages 66-86.
    3. Schlosser, Martin, 2008. "Standarddeckende Patente als strategisches Instrument," PFH Forschungspapiere/Research Papers 2008/02, PFH Private University of Applied Sciences, Göttingen.
    4. Sierke, Bernt R. A. & Albe, Frank, 2010. "Bericht zur Studie "Arbeitswelten 2020"," PFH Forschungspapiere/Research Papers 2010/02, PFH Private University of Applied Sciences, Göttingen.
    5. Wolters, Alexander, 2013. "Islamic finance in the states of Central Asia: Strategies, institutions, first experiences," PFH Forschungspapiere/Research Papers 2013/01, PFH Private University of Applied Sciences, Göttingen.
    6. Ahrens, Joachim, 2008. "Transition towards a social market economy? Limits and opportunities," Discourses in Social Market Economy 2008-05, OrdnungsPolitisches Portal (OPO).
    7. Spechler, Martin C. & Spechler, Dina R., 2009. "Is Russia winning in Central Asia?," PFH Forschungspapiere/Research Papers 2009/01, PFH Private University of Applied Sciences, Göttingen.
    8. World Bank, 2012. "Fighting Corruption in Public Services : Chronicling Georgia's Reforms," World Bank Publications - Books, The World Bank Group, number 2234.
    9. Ahrens, Joachim, 2008. "Transition towards a social market economy: Limits and opportunities," PFH Forschungspapiere/Research Papers 2008/01, PFH Private University of Applied Sciences, Göttingen.
    10. Doner, Richard F. & Ritchie, Bryan K. & Slater, Dan, 2005. "Systemic Vulnerability and the Origins of Developmental States: Northeast and Southeast Asia in Comparative Perspective," International Organization, Cambridge University Press, vol. 59(2), pages 327-361, April.
    11. Riekhof, Hans-Christian & Schäfers, Tobias & Eiben, Immo, 2009. "Behavioral Targeting: Ein effizienter Einsatz des Online-Werbebudgets?," PFH Forschungspapiere/Research Papers 2009/06, PFH Private University of Applied Sciences, Göttingen.
    12. Joachim Ahrens, 2002. "Governance and Economic Development," Books, Edward Elgar Publishing, number 2681.
    Full references (including those not matched with items on IDEAS)

    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. Dosmagambet, Yergali, 2015. "Optimal policy for secondary education in developing countries," PFH Forschungspapiere/Research Papers 2015/01, PFH Private University of Applied Sciences, Göttingen.
    2. Wolters, Alexander, 2014. "The state and islam in central asia: Administering the religious threat or engaging Muslim communities?," PFH Forschungspapiere/Research Papers 2014/03, PFH Private University of Applied Sciences, Göttingen.
    3. Ahrens, Joachim & Stark, Manuel, 2012. "Unabhängige Organisationen in autoritären Regimes: Widerspruch in sich oder effektives Instrument von Developmental States?," PFH Forschungspapiere/Research Papers 2012/09, PFH Private University of Applied Sciences, Göttingen.
    4. Bryan K. Ritchie, 2010. "Systemic Vulnerability and Sustainable Economic Growth," Books, Edward Elgar Publishing, number 13731.
    5. Riekhof, Hans-Christian & Jacobi, Teresa, 2016. "Content-Marketing-Strategien in der Unternehmenspraxis: Eine empirische Analyse," PFH Forschungspapiere/Research Papers 2016/01, PFH Private University of Applied Sciences, Göttingen.
    6. Dostmann, Lisa J. & Vollmar, Bernhard H., 2014. "Frauen in der Unternehmensführung von Familienunternehmen: Eine kritische Reflektion," PFH Forschungspapiere/Research Papers 2014/01, PFH Private University of Applied Sciences, Göttingen.
    7. Bolesta, Andrzej, 2014. "The East Asian industrial policy: a critical analysis of the developmental state," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 1(2), pages 1-23, June.
    8. Laura Routley, 2012. "Developmental states: a review of the literature," Global Development Institute Working Paper Series esid-003-12, GDI, The University of Manchester.
    9. Riekhof, Hans-Christian & Brinkhoff, Stefan, 2014. "Absatzprognosen: Eine empirische Bestandsaufnahme der unternehmerischen Praxis," PFH Forschungspapiere/Research Papers 2014/04, PFH Private University of Applied Sciences, Göttingen.
    10. Laura Routley, 2014. "Developmental States in Africa? A Review of Ongoing Debates and Buzzwords," Development Policy Review, Overseas Development Institute, vol. 32(2), pages 159-177, March.
    11. Gary Goertz & Tony Hak & Jan Dul, 2013. "Ceilings and Floors," Sociological Methods & Research, , vol. 42(1), pages 3-40, February.
    12. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," William Davidson Institute Working Papers Series wp1057, William Davidson Institute at the University of Michigan.
    13. Joachim Ahrens & Patrick Jünemann, 2011. "Adaptive Efficiency and Pragmatic Flexibility: Characteristics of Institutional Change in Capitalism, Chinese-style," Chapters, in: Werner Pascha & Cornelia Storz & Markus Taube (ed.), Institutional Variety in East Asia, chapter 2, Edward Elgar Publishing.
    14. Tom Lavers, 2016. "Understanding elite commitment to social protection: Rwanda’s Vision 2020 Umurenge Programme," Global Development Institute Working Paper Series esid-068-16, GDI, The University of Manchester.
    15. Joachim Ahrens & Martin Meurers, 2003. "EU-Osterweiterung: Erfordert eine steigende Heterogenität der Mitglieder flexiblere EU-Institutionen?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 56(19), pages 23-33, October.
    16. Belev, Boyan, 2003. "Institutional investors in Bulgarian corporate governance reform: obstacles or facilitators?," Journal of World Business, Elsevier, vol. 38(4), pages 361-374, November.
    17. Tianbiao Zhu, 2006. "Rethinking Import-substituting Industrialization: Development Strategies and Institutions in Taiwan and China," WIDER Working Paper Series RP2006-76, World Institute for Development Economic Research (UNU-WIDER).
    18. Jan Babecky & Tomas Havranek, 2014. "Structural reforms and growth in transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 13-42, January.
    19. Zurab Abramishvili, 2017. "An Impact Evaluation of Mass Replacement of School Principals in Georgia," Working Papers 006-17 JEL Codes: H4, I21, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    20. Karine Torosyan & Randall K. Filer, 2014. "Tax reform in Georgia and the size of the shadow economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 179-210, January.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:zbw:pfhrps:201402. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.pfh.de/en/ .

    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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.pfh.de/en/ .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.