Development after Statism

Explores how industrial firms in South Asia manage the challenges of production after government withdrawal from directing industry.

This book explores how industrial firms in South Asia manage the challenges of production after the withdrawal of the government from directing industry in the 1980s. Naseemullah argues that in Pakistan and India, manufacturers manage capital and labor differently based on their backgrounds, complicating industrial transformation by the state.How can industrial production be managed without the guidance of the state? Adnan Naseemullah discusses industrial development in a new era of drastically constricted state capacity, from the perspective of the manufacturing firm. India's manufacturing economy has been growing after state promotion has receded. How, then, does Indian manufacturing develop in this context? Naseemullah argues that Indian firms must create production structures themselves, investing in networks of capital and labor without signals from above. Depending on manufacturers' backgrounds, these relationships are based either on formal rules or through personal ties, creating a patchwork of institutions that crosscut region and sector. As a result, many firms have been able to regain some certainty for investment, but at the cost of national coherence and the possibility of broader transformation. As a mirror case, this book also explores Pakistan's industrial trajectories, in which similar dynamics suggest the broader applicability of this framework.