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The authors of this book argue that in order to meet the challenges of globalisation and promote their own economic welfare, governments need strong policy instruments that will enable them to take up a strategic role in selected policy arenas. They illustrate how this retooling of policymaking requires a rethinking of the form of government intervention and, especially, an emphasis on its modern developmental role.

The book begins with chapters exploring theoretical issues such as: economic and political aspects of the state, the impact of government expenditure, the case for and against free trade, and neoclassical and Keynesian approaches to public finance. Succeeding chapters examine fiscal policy, development problems in the European Community, and the success of Japan, South Korea, Taiwan, Singapore and Hong Kong. The final chapters present the Developmental State argument not only as a coherent theory but more importantly as a realistic development policy framework.

This will be an important reference text for students and scholars of public sector economics, public finance, East Asian studies, development studies and governance. Policymakers will also find the in-depth discussions a valuable tool.