US grand strategy and the origins of the developmental state

ABSTRACT

Scholars have credited a model of state-led capitalism called the ‘developmental state’ with producing the economic miracles of Japan, South Korea, and Taiwan. This article examines how the developmental state was shaped by the Cold War. US grand strategy focused on accelerating economic development among allies that were under the greatest threat from Communist China and North Korea. American aid agencies became involved in the process of state-building in Japan, South Korea, and Taiwan and supported economic planning. I verify this claim by contrasting US policies on Taiwan with US policies in the Philippines, which faced a weaker Communist threat.