Dr. Nguyen Si Dung: 3 things a developmental state needs to do

February 28, 2017 12:19

(Baonghean.vn)- Dr. Nguyen Si Dung - Former Deputy Head of the National Assembly Office said that the developmental state does not stand outside the market, but does not replace the market either. Instead, the state proactively intervenes in the market to promote development and realize the proposed development goals.

TS. Nguyễn Sĩ Dũng, nguyên Phó Chủ nhiệm Văn phòng Quốc hội.
Dr. Nguyen Si Dung, former Deputy Head of the National Assembly Office. Photo courtesy.

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Developmental government is one of the most trendy and mentioned terms nowadays. However, developmental government is only a part of developmental state and only operates in developmental state. Moreover, the term that the world uses is developmental state, not necessarily (developmental government). So what is developmental state?

Tiến sĩ Nguyễn Sĩ Dũng trao đổi bên lề tại Hội nghị truyền thông về Quốc hội cho sinh viên các trường đại học. Ảnh Internet.
Dr. Nguyen Si Dung spoke on the sidelines of the National Assembly Communication Conference for university students. Photo: Internet.

In fact, the term developmental state was coined by researcher Chalmers Johnson (1931-2010) in 1982, when he studied the miraculous development of Japan. He realized that the role of the state in that miraculous development was very important. The Japanese state not only created the framework for development, but also directed and promoted that development. Later, besides Japan, East Asian countries and many other countries followed this trend and were all considered developmental states.

According to researchers, this is a state model that lies between the regulatory state model (according to the free market theory) and the centralized planning state model (according to the traditional socialist model). The developmental state does not stand outside the market, but does not replace the market either. Instead, the state actively intervenes in the market to promote development and realize the proposed development goals. This is a state model that combines the advantages and at the same time overcomes the disadvantages of both the regulatory state model and the centralized planning state model.

So what should a developmental state do?

First,A developmental state must plan a development path for the country (especially the industrialization path, the program to promote start-ups, hunger eradication and poverty reduction, etc.) and promote the realization of that path. Promoting the realization does not mean doing it for the people and businesses, but creating an incentive system so that social resources can be focused on investing in development goals. That incentive system can be formed from public spending policies, taxes, credit, trade rights, etc.

In addition, the state also needs to promote the advantage of the regulatory state, which is to create an institutional framework so that each citizen and enterprise can easily do business. The most important thing here is: the right to freedom of business, freedom of property, freedom of contract... must be guaranteed; transparency must be enhanced; contracts must be respected and protected; disputes must be resolved quickly and effectively.

Second,The state needs to prioritize investment in education and health care. Because these are the most important foundations for development. At the same time, the state also needs to provide quality, low-cost public services to the public. To do this, it is necessary to build a highly professional and effective administrative-civil service apparatus. This apparatus must be recruited and appointed strictly on the basis of professional qualifications and expertise.

Third,The state must know how to create healthy competition so that all subjects in society must strive and to attract talented people. The criteria for competition in economic life are better quality and cheaper prices. The criteria for competition in political life are more talent and more morality.

With such a conceptual framework, since the renovation (1986), our State has indeed gradually transformed itself into a developmental state model. The problem is that we need to clarify the conceptual framework further to have more coherent and solid steps forward.

Dr. Nguyen Si Dung

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