This article traces the role of the state in developmental theory and practice, paying particular attention to public sector management. The early orthodoxy of modernisation theory put the state at the centre of development, giving it prime responsibility for generating development. Realisations of the shortcomings of modernisation theory and disappointment with its results led to the rise of neoliberal approaches in development thinking and action, with a focus on the shrinking state. However, in turn, the efficacy of neoliberalism has been questioned, and its human toll has been critiqued. Coupled with evidence of the success of the East Asian developmental states, the result has been a rethinking of the state and a new acknowledgment of its central role in development. Strong institutions and efficient, effective and responsive public sector management have been identified as key ingredients of capable states that made development happen. In outlining this trajectory, the article introduces the case studies that comprise this symposium.

This article examines the role of government in Malaysia’s history of economic development. In addressing two key challenges – inter-ethnic inequalities, conflicts and tensions, and exposure to global trade and economic relations – the Malaysian government has become directly involved in the economy. Strong government has played a role in Malaysia’s economic success in a range of ways, from 5-year plans to specific industry promotion and the creation of organisations for particular economic development purposes. Government has also been aware of environmental changes and in response has modified its strategies, established new organisations and invested in innovative ventures. Thus, while the drivers of economic development in Malaysia have been deeply embedded structural phenomena, the actual economic development path taken has been determined by the actions of the Malaysian government in concert with other stakeholders.

This article examines the phenomenal growth of Korean cultural industries and their export to East Asia and other parts of the world. In the early years of industrialisation, culture was used by the authoritarian regime as a form of ideological support. Strict controls were exercised over cultural production and presentation. Controls were later relaxed as the regime used entertainment and sport as popular distractions. However, the increase in television ownership, the growth of domestic electronics and home appliance industries, and rising incomes (especially among the middle class) provided the material base for the growth of cultural industries following democratisation in the 1990s. Cultural industries became key drivers of economic growth, innovation and employment, and were strongly promoted and supported by government in the style of the developmental state. The result was burgeoning production and international trade across a wide spectrum of cultural industries – film, television drama, animation, video games and music. As a reflection of the increasing integration of Korea into world markets, the government also had to ensure compliance with international trade regulations and clamp down on piracy. Today, the Korean Wave of popular culture has reached consumers in all parts of the world and makes a significant contribution to Korean gross domestic product and exports.

An integral component of public management reform in Korea has been e-government, a field in which Korea has been a pioneer and in which it is the world leader. This article examines the Korean model of public management reform in the context of the developmental state and democratisation to describe and explain the emergence and expansion of e-government practices. The growth of e-government is tracked and the crucial role of the Ministry of Public Administration and Security delineated. Also covered are Government for Citizens initiatives, the provision of particular services, the mushrooming use of smart phones and emerging patterns of citizen participation, especially as related to local-level governance. The article demonstrates how much can be achieved in e-government and provides a model from which other countries can choose appropriate practices.

This article examines the development and usage of e-government in Malaysia. The history of public administration reform in Malaysia demonstrates the government’s willingness to experiment with innovations seen as improving the efficiency, effectiveness and responsiveness of public services. Thus, e-government has been enthusiastically promoted by the Malaysian government and has spread across most government organisations at central and subnational levels. The article provides details of a range of services both within government and for society that are available in e-government modes. However, there are challenges to the development of e-government including adherence to traditional models of service delivery, resistance to organisational culture change by officials, preference for counter services by clients and constraints on the availability of information technology training. Mobile phones are now seen as a new way to encourage citizens to use e-government on a regular basis.

Global financial crises and potential sovereign defaults provide an opportunity for financial regulators and analysts to revise assumptions in their risk models. These conditions are also an opportunity for regulators and analysts to distinguish the ‘hyper-real’ economy, represented by derivatives, from the real economy, which requires assessment through an analysis of human as well as financial capital. Regulators are required to demonstrate that they are skilled in conducting the most thorough analysis of all elements of the finance system in order to help the investing public to manage risk as much as possible. The contribution of this article is to overview the limitations inherent in regulators’ traditional focus on financial analysis, as well as in financial analysts’ failure to consider the relevance of people management data when evaluating the potential performance of knowledge-intensive, service-based organisations. The article argues for a stronger focus on analysis of non-financial capital, including human capital, to provide a more effective ‘early warning’ of potential financial distress.