Underdevelopment and State Capitalism: a Cross-National Study
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Western Michigan University ScholarWorks at WMU Dissertations Graduate College 8-1984 Underdevelopment and State Capitalism: A Cross-National Study Massoud Chalabi Western Michigan University Follow this and additional works at: https://scholarworks.wmich.edu/dissertations Part of the Sociology Commons Recommended Citation Chalabi, Massoud, "Underdevelopment and State Capitalism: A Cross-National Study" (1984). Dissertations. 2383. https://scholarworks.wmich.edu/dissertations/2383 This Dissertation-Open Access is brought to you for free and open access by the Graduate College at ScholarWorks at WMU. It has been accepted for inclusion in Dissertations by an authorized administrator of ScholarWorks at WMU. For more information, please contact [email protected]. UNDERDEVELOPMENT AND STATE CAPITALISM: A CROSS-NATIONAL STUDY by Massoud Chalabi A Dissertation Submitted to the Faculty of The Graduate College in partial fulfillment of the requirements for the Degree of Doctor of Philosophy Department of Sociology Western Michigan University Kalamazoo, Michigan August 1984 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UNDERDEVELOPMENT AND STATE CAPITALISM: A CROSS-NATIONAL STUDY Massoud Chalabi, Ph.D. Western Michigan University, 1984 This is an inquiry into the nature and developmental role of state capitalism (SC) in the Third World. In an effort to enhance understanding of the problem of underdevelopment in general and to gain understanding of state capitalism in particular, contributions and limitations of basic theories of development were examined via a positive critique. State capitalism, as a political movement under the political leadership of middle classes, is a response to the structural crisis and chronic crisis of authority to which misborn capitalism has been facing in the Third World since its emergence. Once state capitalism comes to exist, the state tends to consolidate and expand its guardian role in the economy at the expense of the pri vate sector. In contrast to the private capitalist model, in which national resources are allocated via market under political and bureaucratic constraints, under the state capitalist model national resources are allocated via central bureaucratic planning under market constraints. Given the fact that state capitalism is polyclass, it tends to emphasize integrative politics through populist ideology. State capitalism rationalizes integrative politics by placing emphasis on the common interests of the entire population, nationalism and with selective reference to socialist rhetorics and traditional thoughts. The question which has been addressed at the empirical level is whether or not state capitalism as a model of development can be Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. regarded as a successful alternative as compared to the private capi talist model. To provide at least a tentative answer to this question a cross-national research was conducted. The research sample included all non-Communist countries of Asia, Africa and Latin America, except countries with less than one million population. Five sets of varia bles were used as the overall indicators of socio-economic performance. There are: physical quality of life variables (PQLV), variables of in come inequality and poverty, measures of economic development and growth, dependency variables and military expenditure. Two models were utilized for data analysis: the regression model and the quasi-experi- mental model. The findings showed that there are virtually many more similari ties than differences between state capitalist countries and private capitalist countries in terms of their socio-economic performance. In terms of physical quality of life conditions there is not a signifi cant difference between the two groups of countries. In terms of eco nomic development and growth, the evidence tended to suggest that state capitalist countries are more prone to stagnation than private capital ist countries. On the measure of the external public debt and percent of primary products in exports, the findings tended to suggest that state capitalism is somewhat more costly than private capitalism. Data also suggested that state capitalist countries tend to devote a greater percentage of their gross national products to military expenditure than private capitalist countries. Finally, it was found that both state capitalist countries and private capitalist countries remain integrated parts of the world capitalist system, and their status in Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. this system acts to place strict limits on their process of develop ment. In short, the state capitalist model does not seem to be a viable developmental alternative as compared to the private capitalist model; and social change under this model remains intrasystemic and reformi st. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. INFORMATION TO USERS This reproduction was made from a copy of a document sent to us for microfilming. 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Zeeb Road Ann Arbor, Ml 48106 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 8425227 Chalabi, Massoud UNDERDEVELOPMENT AND STATE CAPITALISM: A CROSS-NATIONAL STUDY Western Michigan University Ph.D. 1984 University Microfilms International300 N. Z eeb Road, Ann Arbor, Ml 48106 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGEMENTS I wish to acknowledge several people who helped me to fulfill my doctoral program. The guidance of Dr. David Lewis has been supportive throughout the doctoral program. For his assistance, 1 am sincerely grateful. The contribution of Drs. David Chaplin and Alfred Ho are greatly appreciated. Special thanks are also extended to my wife, son and parents who have supported me with their sincere other-oriented hel p. Massoud Chalabi Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS ACKNOWLEDGEMENTS ............................................... ii LIST OF T A B L E S ................................................. v CHAPTER I . THE PROBLEM ........................... '.............. 1 General Problem ...................................... 2 Expanding Role of the S t a t e ..........................12 Definitions ...........................................16 Summary and Conclusion ................................ 20 II. CRITICAL REVIEW OF LITERATURE ....................... 2k Theories of Growth .................................... 2k Conception of the S t a t e ............................ 3k Theoretical Position on the Role of State C a p i t a l i s m ...................................... 36 Theories of Growth-with-Equity ........................ 38 Conception of the State .............................. kl Theoretical Position on the Role of State C a p i t a l i s m ......................................... ^8 Modernization Theories ................................ kS Conception of the S t a t e .............................. 62 Theoretical Position of the Role of State C a p i t a l i s m ......................................... 69 Dependency Theories .................................. 82 Dependency