Why were some countries able to build "developmental states" in the decades after World War II while others were not? Through a richly detailed examination of India's experience, Locked in Place argues that the critical factor was the reaction of domestic capitalists to the state-building project. During the 1950s and 1960s, India launched an extremely ambitious and highly regarded program of state-led development. But it soon became clear that the Indian state lacked the institutional capacity to carry out rapid industrialization. Drawing on newly available archival sources, Vivek Chibber mounts a forceful challenge to conventional arguments by showing that the insufficient state capacity stemmed mainly from Indian industrialists' massive campaign, in the years after Independence, against a strong developmental state. Chibber contrasts India's experience with the success of a similar program of state-building in South Korea, where political elites managed to harness domestic capitalists to their agenda.
He then develops a theory of the structural conditions that can account for the different reactions of Indian and Korean capitalists as rational responses to the distinct development models adopted in each country. Provocative and marked by clarity of prose, this book is also the first historical study of India's post-colonial industrial strategy. Emphasizing the central role of capital in the state-building process, and restoring class analysis to the core of the political economy of development, Locked in Place is an innovative work of theoretical power that will interest development specialists, political scientists, and historians of the subcontinent.
Vivek Chibber is Associate Professor of Sociology at New York University.
Preface ix Acknowledgments xv List of Abbreviations xix PART I: The Issues and the Argument 1 CHAPTER 1 Introduction 3 CHAPTER 2 Late Development and State-Building 13 The Two Dimensions of Industrial Policy 14 Industrial Policy and State Capacity 17 State Capacity as Dilemma 23 Installing the Developmental State: Four Theses 29 Locked in Place: The Reproduction of the State 44 PART II: Installing the State 49 CHAPTER 3 The Origins of the Developmental State in Korea 51 Introduction 51 The Two Varieties of Statism 53 The Continuity Thesis 55 The Discontinuity Thesis 57 A Critique of the Statist Discontinuity Thesis 62 The Origins of the Developmental State 66 A Look Ahead 82 CHAPTER 4 Precursors to Planning in India: The Myth of the Developmental Bourgeoisie 85 Introduction 85 The Backdrop to the Bombay Plan 88 The Bombay Plan 94 The Capitalist Class and the Demise of the Bombay Plan 98 The Roots of Business Opposition 107 CHAPTER 5 The Demobilization of the Labor Movement 110 Introduction 110 Congress and the Popular Classes 112 The Postwar Labor Upsurge 116 A "Responsible" Labor Movement 118 The Significance of Demobilization 125 CHAPTER 6 The Business Offensive and the Retreat of the State 127 Introduction 127 The Commitment to Import-Substitution 129 Jettisoning Nationalization 132 Disciplinary Planning and the Business Offensive 137 The Institutional Outcome (1): The Planning Commission 146 The Institutional Outcome (2): The Filters on Discipline 152 PART III: Reproducing the State 159 CHAPTER 7 State Structure and Industrial Policy 161 Introduction 161 State Structure and Industrial Policy in Korea 164 State Structure and Industrial Policy in India 170 The Rationality of Non-Disciplinary Industrial Policy 183 CHAPTER 8 Locked in Place: Explaining the Non-Occurrence of Reform 193 Introduction 193 Existing Explanations for the Absence of Reform 194 The Crisis of 1957 and the Search for Solutions 196 The Attempt at Export Promotion 199 Agenda-Setting and the Declining Legitimacy of the Planning Process 206 The Reform Episode of the Mid-Sixties 212 CHAPTER 9 Conclusion 222 Bringing Capital "Back In" 222 Capital and the Developmental State 226 The Routes to and Obstacles against ELI 233 Of Possibilities and Roads Not Taken 239 EPILOGUE The Decline of Development Models 244 Korea: The Revolt against the Developmental State 245 India: The Gradual Implosion of ISI 248 Notes 255 Bibliography 309 Index 327