The Role of the State in Economic Change

This volume explores the complex relationship between state intervention and economic change, analyzing historical and political contexts while critiquing Neo-Liberalism and advocating for a more nuanced understanding of state roles.

The Role of the State in Economic Change explores the significant impact of state intervention in the evolution of economics as a distinct discipline. The contributors to this volume delve into various historical, political, and institutional contexts to analyze the patterns of both interventionism and anti-interventionism. This topic remains a contentious issue among contemporary economists and political theorists, as the role of the state in economic matters continues to provoke debate.

In the aftermath of World War II, economic theory experienced a notable shift towards interventionism, driven by the pressing needs for reconstruction in advanced capitalist nations, the rise of socialism in parts of Asia and Eastern Europe, and the decolonization of many developing countries. However, after decades of interventionist policies, a significant backlash emerged against state involvement in the economy. This shift was marked by the discrediting of welfare states in advanced capitalist countries and the promotion of liberalization in developing nations during the 1980s, culminating in the dismantling of socialist central planning after 1989.

The contributors examine the internal factors influencing the state's role and its effectiveness in fostering economic change. They highlight the growing skepticism surrounding the Neo-Liberal, anti-interventionist agenda, even in regions where free-market optimism once thrived. The book concludes that the simplistic political notions underpinning Neo-Liberal arguments are often misleading. Ultimately, it calls for a new synthesis that incorporates the valuable insights of Neo-Liberalism while removing ideological biases, allowing for a more nuanced understanding of state intervention tailored to specific historical and contextual realities.