Capitalism, socialism and state interventionism: system-related controversies over East Asian model of development

Abstract

The East Asian development model, as a result of which some Asian economies
have achieved spectacular developmental results, is based on the concept of
a developmental state. The developmental state is characterized by specific systemic
and institutional arrangements. In principle, it functions in the conditions of

the capitalist system (socialism is not able to generate adequate growth dynamics
in the long term); nevertheless, the authorities apply central planning mechanisms
to implement their development strategy. Thus, state interventionism plays an
important developmental role, although it is not intended to ensure social cohesion.