Dr. Nguyen Sy Dung: What to do to build a creative and developing state?

Attending the conference were comrade Nguyen Thi Thu Huong - Member of the Provincial Party Standing Committee, Secretary of the Party Committee of the Bloc; leaders of provincial departments, branches, and sectors, heads and deputy heads of departments and units under the Party Committee of the Provincial Agencies Bloc. Photo: Hoai Thu

The conference provided listeners with information and theoretical knowledge related to the development of state forms in the world, thereby learning about the development of Vietnam's economic models, including the construction of a model of a developmental state (KTPT).

Emphasizing the importance of the model for each country, Dr. Nguyen Sy Dung introduced a number of state models that have been and are being applied in the world, including the regulatory state model, the development economic state model, and the centrally planned state model.

The Regulatory State model is being applied in countries such as the US, UK...; The Economic Development State model is being applied in countries such as Japan, Korea, China, Taiwan...

In the past, traditional socialist countries applied the model of a centrally planned state, a type of state that did not recognize a market economy. This model proposed plans and policies for economic development, but they were directly implemented by the state. Therefore, the model of a centrally planned state was only successful in the early stages, then failed.

As for the KTPT state model, the planning and economic development policies are implemented by the people, and are currently bringing success to many countries.

The model of the Economic Development State lies between the model of the Regulatory State and the Centrally Planned State. That is, the Economic Development State sets out development policies and actively impacts the market to promote market development.

Many delegates attended the conference. Photo: Hoai Thu

Clarifying the characteristics of the KTPT state model, Dr. Nguyen Sy Dung cited the opinions of experts such as Chalmers Johnson.,Adrian Leftwith, of the UNDP (United Nations Development Programme).According to Chalmers Johnson, the KTPT State has the following characteristics:

1. Having a lean but effective administrative apparatus. Recruiting talented people will help create an effective, professional and elite public administration apparatus. This is one of the important characteristics of the KTPT State model.

2.There is a fully empowered administration to initiate and operate effectively. The state intervenes in the market through financial institutions and administrative guidelines.

3. Have a strong ministry of international trade and industry to coordinate industrial development policy.

According to Adrian Leftwith, the KTPT State has the following characteristics:

1. There is an elite administrative civil servant class that supports the state. The state's development policy is influenced by this elite civil servant class.

2. The State has a high degree of independence and autonomy against pressure from interest groups and always puts national interests first. To do this, leaders must overcome the mindset of tenure to be successful.

3. The State coordinates the economy through a number of specialized and powerful institutions, that is, it puts power in the hands of professionals and politicians who understand the people's hearts and trends to balance and develop policies.

4. Weak civil society, strong government and tight control over civil society, especially in the early stages. This is a very necessary characteristic in Vietnam and needs to be closely monitored and controlled.

5. The state is less influenced by private economic interests.

6. Civil rights were limited, especially in the early period.

According to UNDP (United Nations Development Program), the KTPT State model includes:

1. A strong, authoritative, non-politicized bureaucracy, free from the pressures of elections and business.

2. Strong, visionary, committed and competent leadership.

3. Effective and on-track national development plan.

4. Ability to coordinate economic activities and resources.

5. Support the nation's entrepreneurial class, which will develop into the national bourgeoisie.

6. Invest in improving human capacity through health, education and social infrastructure.

7. Promote the rule of law, justice and maintain political stability to ensure market confidence.

The topic was presented by Dr. Nguyen Sy Dung. Photo: Hoai Thu

In reality, the advantage of the KTPT State model is that it helps the industrialization process take place quickly; it helps the economy develop rapidly. However, the limitation is that it is difficult to determine the level of state intervention in the market.

In Vietnam, according to Dr. Nguyen Sy Dung, the term “Development Economic Government” was first mentioned by former Prime Minister Nguyen Tan Dung. And the term “Development Economic Government” became famous thanks to Prime Minister Nguyen Xuan Phuc.

In fact, since implementing the renovation policy in 1986, our country has developed in the direction of a State-run economy. That is, the implementation of the state's industrialization policy; the market mechanism is recognized but with state intervention, meaning the state actively intervenes in the market.

However, we have not really succeeded because we have mainly carried out industrialization based on state-owned enterprises; we do not have a team of talented and independent administrative and civil service officials.

Dr. Nguyen Sy Dung emphasized: To effectively implement the KTPT State model, we need to create a modern national governance system including:

Unification between Party and State.

Create conditions for private enterprises to grow.

There is a mechanism to select talented people.

Building a team of professional, talented and honest administrative officials.

Building an independent and effective court system.

Carry out national reconciliation.

Democratization according to economic development.

Strengthening the rule of law.