Compressed Development D. Hugh Whittaker, Tianbiao Zhu, Timothy J. Sturgeon, Mon Han Tsai, and Toshie Okita MIT IPC Working Paper 08-005 October 2008 The views expressed herein are the authors’ responsibility and do not necessarily reflect those of the MIT Industrial Performance Center or the Massachusetts Institute of Technology. Compressed Development Forthcoming in Studies in Comparative International Development D. Hugh Whittaker Professor, University of Auckland Business School Phone +64-9-373-7599 Ext. 83266 Fax: +64-9-373-7477
[email protected] Tianbiao Zhu Associate Professor, School of Government, Peking University
[email protected] Timothy Sturgeon Senior Research Affiliate, Industrial Performance Centre, MIT
[email protected] Mon Han Tsai Associate Professor, Graduate School of Social Sciences and Humanities, Chiba University
[email protected] Toshie Okita Research Affiliate, NZAI, University of Auckland
[email protected] This paper is dedicated to our late colleague and friend, Seishi Kimura, whose presence in our project is sorely missed. Compressed Development Abstract: In this paper we argue that the path of economic development for would-be developers has changed fundamentally since the 1980s. Focusing on East Asia, and taking a broad perspective that spans the economic and social dimensions of development, we contend that the path charted by the “late development” model has become all but impassible. The path is now better conceived as one of “compressed development.” Key differences are 1) the extent and consequences of compression and 2) the primary mode of engagement with the world economy – via global value chains. Compressed development forces states to address a number of simultaneous challenges, resulting in “policy stretch.” We identify key features of an “adaptive state” suited to navigating the path of compressed development.