DIIS Seminar Series on State-Business Relations and Economic Development, Spring 2011. Development coalitions, foreign business and industrial policy in Malaysia. By Peter Wad, DICM/CBDS, CBS. Agenda. Long waves of economic development: Income-traps and trap-bypassing.
Development coalitions, foreign business and industrial policy in Malaysia.
By Peter Wad, DICM/CBDS, CBS
Industrial clusters require:
Industrial Country: UK
Developing Country: Malaysia 1950s-60s
Primary Secondary (Tertiary?)
Industrial Country: Global North
Developing Country: Malaysia 1970s-2010
Average salary increases based on positions for executives and non-executives (1996-2005) (in %). Source: MHR 2008, 32 (after MEF salary surveys). Note: (¤) average own calculations.
Phase 1 Phase 2 Phase 3 Phase 4
Phase 1 Phase 2 Phase 3 Phase 4?
& Bumi SMEs
foreign resource exporters
Varieties of capitalism & labour markets: (D)ME (Malaysia 1971-2010)LME, CME, HME and MalaysiaSource: Schneider 2009, 562 (LME, CME, LA). Malaysia: Union density (own calculation); Job tenure: MHR 2008, 28; Labour market regulation index: Botero et al. 2004, 1663 (Malaysia 1997); Informal economy (percent of households surveyed 2006): DOS 2009.
Sustained economic growth per capita.
Political stability &semi-democratic political system.
Planning for technological transition.
Defending Third World interests internationally.
TNC & FDI dependence
Weak policy implementation
Strong executive power and weak judiciary system.
Civil society exists, but it is controlled or suppressed.Conclusion:Malaysia - success and failure