Reflection of ‘Arche’

Looking at the dialogues in discussion about the current development of the tent, we can see a reflection of the situation when the natural philosophers of ancient Greece were trying to find ‘Arche’. The literal meaning of the Greek word ‘Arche’ is beginning, origin, principle, etc. Ancient natural philosophers like Thales, Anaximander, Anaximenes started the search for ‘Arche’.

Before they reproduced the philosophy about ‘Arche’, questions about nature, such as the sun setting after dusk or lightning flashing in the sky, were explained based on mythological stories and were called ‘Mythos’. Such stories that seemed interesting did not have evidence and arguments. These philosophers tried to quench people’s curiosity based on logical sources. It was called ‘Logos’.

Due to the increase in population around Greece, there was continuous war for arable land for about two centuries from 750 BC. Due to war, incomparable changes also begin in society. In a world where all things change, the search for the unchanging, basic subject, i.e. the 'arche', began. That is, the philosophical search for eternal truth began. This is considered the beginning of Western philosophical search. 

Our current development debate is also similar. On the one hand, like the philosophers of ancient Greece, it seems that there is some predetermined formula for development and if it is discovered, all problems will be solved at once. On the other hand, just as they completely rejected the previous system of thinking in their search and developed a new system of thinking, we too feel that we are running in search of something completely new.

But to understand the development models that modern states are currently adopting, it is sufficient for the time being to look at the history of the industrial revolution that began in the late 18th century. If we look at it even more narrowly, the experience of the countries that have experienced rapid economic development (or just growth) around us after World War II is not weak.

It may be a quick and appropriate way to create our model by carefully analyzing the experiences of one or two countries that are similar to our current situation and thinking, focusing on the problems they faced and the side effects they caused in such countries in this process. This may be more relevant to the government that has taken the mandate of socio-economic transformation that the citizens will immediately feel. The developmental state, which has succeeded in East and Southeast Asia but failed in Latin America, may be a relevant starting point for our non-archaic discussion.

Economic politics and the developmental state

The debate on classifying states based on the model of economic development is fundamentally a part of the debate on state and society in political science. Exaggerating this and discussing it only in economic terms makes the entire explanation and discussion incomplete. Generally, focusing on the role of the state in the market, there is a tendency to classify states into two main parts based on the relationship between the state and society in economic politics – interventionist and coordinating/regulatory states. The developmental state, or ‘developmental state’, discussed in this article, envisages an interventionist relationship between the state and society. Now comes the question of how to intervene in which issues or not?

Before discussing the developmental state in detail, we need to be clear that the current conditions determine which development model the state will adopt. The main argument of Steven Levitsky and Daniel Ziblat, authors of the book ‘How Democracy Die’ published in 2018, that the ‘force of predetermined answers’ kills democracy, needs to be taken to heart in every political discussion. On the verge of choosing a new development model, it is inevitable for us to jointly consider three economic and political dimensions. First, the current constitution’s principle of capacity-development-centered multiculturalism does not allow for anything but, but, or anything. Second, the state’s interventionist role in the market is the mandate of the current election. Third, the economic growth ratio is the main basis for evaluating the government and the entire state.

In particular, Nepal’s biggest challenge lies here. Generally, today's developed countries first achieved economic growth and then followed the path of (social) development. But we have to achieve both outcomes at once. In such a situation, the presence and role of the state in society certainly increases. A strong presence of the government at every level of the state, which political scientist Joel Migdel calls 'penetration', is the biggest demand of the Nepali citizens.

Our vision will never be fulfilled in the concept of a limited state in neoliberal policies. We are not discussing the improved model freely. In addition, there are many types of practices of the developmental state. We need to be clear about which country has achieved success and why and which improved or Nepalized model to follow.

Now let us return to the role of state intervention. To understand this, it is necessary to consider in which international context and discussion the discussion and policy of the developmental state found a place in East and Southeast Asia, came into practice and achieved success. Since the technological state of the country they are trying to catch or conquer is weaker than their own, this model seems to be followed when they try to develop and protect the necessary capabilities of the employees and the private sector, and develop regional or global competitive capabilities in a certain economic sector, focusing on it. Stephen Haggard, who has studied this field for a long time, has said that such countries have a common psychology of being late to industrialize. He has presented countries such as Korea, which prepared their model by looking at the UK, France, Germany, or Japan as examples.

Lee Yeon-ho, a Korean professor at Yonsei University, has defined the developmental state as follows: A development model in which the state (in the narrow sense of the government) guides the market through strategic intervention and achieves rapid economic growth focused on a certain period. If this definition is broadened a little, it might be like this: A development model in which the state itself guides the entire state on the path of economic growth for a certain period by improving the policies, rules, capabilities, and customs that are obstacles to rapid economic growth, protecting the necessary sectors, and guiding the entire state on the path of economic growth for a certain period can be called a developmental state.

Its basic model is as follows. First, the state has or arranges a quality or elite bureaucracy that can formulate, implement and evaluate economic policies. There are studies that show that certain offices play an incomparable role in economic growth in every country. American political scientist Chalmers Johnson's book 'Miti and the Japanese Miracle: The Growth of Industrial Policy (1925–1975)' is a book that is discussed by scholars working in almost all developing economies. Here, 'Miti' refers to Japan's Ministry of International Trade and Industry, which has played the most decisive role in the construction of today's Japan.

Second, the identification of areas that lead economic growth and strategies for cooperation or intervention and protection in such areas are formulated. Under cooperation or intervention, the state continuously shows interest, awareness and support, from capacity development of the industries in that area to modernization of management. That is, the state not only supports the private sectors of the industrial sectors that are under the state's strategy, but also forces them to adopt the state's special strategies.

According to Stephen Haggard, the lack of liberalization of the private sector, i.e., traditional management, is an obstacle to the development of the private sector, so the state takes the initiative and leads it to modern management, which becomes the main basis for success. Every policy of social development, including higher education, and physical policies such as road and rail networks are also focused on the success of such priority industries.

According to Chalmers Johnson, the state selects the industries that will lead economic growth, distributes resources directed by the state, and adopts a policy of sustainable development or promotion of the industry in that sector. The South Korean steel company POSCO is discussed as a model. The company, founded in 1968 in Korea, which did not have iron ore mines, is currently the sixth/seventh largest in the world in terms of production, and aims to reach the top five steel companies in the world by 2030. It is because the state established basic industries in this way that Korea has achieved unparalleled success in experimental industries such as vehicle production over time.

Third, the state has used all its power, from its economic diplomacy, to make the industrial sector, which has been nurtured under the special cooperation and supervision of the state, competitive in the global market. This particular practice has been practiced by even developed countries unknowingly after the economic recession of 2007-08, the Corona era, and the rise of Trump. 

Fourth, the most decisive difference compared to East Asia and Latin America is the capacity of the state. There is a clear difference in results between the ability of states that are alert to reduce the sectoral, class, occupational, etc. inequalities that arise in the course of industrial development and to reduce dependence on foreign investment entering the process of industrialization and the states that have not been able to do so.

The alert East Asian countries have achieved a development rhythm that the world admires. Many countries in Latin America, which have failed to focus only on growth, have also paid a heavy price. Nepal, which is excited to embark on a new path, should not be stingy at all in learning from such modern experiences.

Why and how can this model be a multifaceted solution?

Increasing the confidence of the general public is the first duty of Nepali society, economy and politics. Only by creating the feeling that we can do it, a sense of sacrifice and sacrifice is created in the general public. The vision of a beautiful future for ourselves and our descendants increases the general public's trust in the state and nation. Similarly, trust among the general public is the main source of the state's confidence.

Such an environment of trust not only enhances social capital, but also strengthens the basic pillars of the state and nationality. Without such pillars, no political system can be institutionalized, and sustainable economic development is also difficult. In this sense, the new economic development model adopted by the general public can be a major tool for the political solution of the development of the basic institutions that institutionalize Nepali politics.

Second, even though we have discussed and practiced political change for a long time, we have not been able to clarify the economic definition of the new political system after the political change. When there is a general consensus on the economic definition that is the foundation of the political system, the state gains momentum through all-round development. In this way, the discussion of the new economic development model also provides a golden opportunity to discuss the fundamental questions of the state, nationality, and the relationship between the state and society that Nepali politics and society have long been in the shadow of. This can be an opportunity to reach the roots of society and reform the entire state. 

Let us remember here that today's Nepal is more eager and eager to discuss economic issues than political and social issues. This state of society is clearly telling us - if we are to reform, then do it with economic reform at the center. Among them, the popular voice that many types of unhealthy competition seen in the market and that industries that bring about radical changes in the country's economy should be made highly competitive, at least in South Asia, can be a suitable starting point when considering the popular voice that the development state model that East and Southeast Asia have achieved success in can be a suitable starting point.

Not only nationally, but also internationally, this model can become a major tool to get out of our current rut. Believe it or not, Nepal's identity in the world is that of a country that enjoys a balance of power rather than focusing on economic development. आफ्नो क्षमताभन्दा अलि धेरै राजनीति गर्न इच्छुक हुने प्रकारको छ । आर्थिक विकासलाई केन्द्रबिन्दुमा राखेर आर्थिक कूटनीतिलाई उच्च प्राथमिकता दिने राज्यको पहिचान हाम्रा छिमिकीसँगको सम्बन्धलाई नितान्त नयाँ धारबाट सुरु गर्ने एक स्वर्णिम अवसर हुन सक्छ ।