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Condition of State in Advanced Industrial States


Advanced industrial states refer to countries where industries dominate the mode of production, such as the UK, France, USA, Canada, Germany, and Russia. These developed countries, also known as the global north or OECD countries, have been imperial powers in the past and continue to have dominance in politics, economics, cultural, and ideological spheres. This article provides an overview of the current condition of advanced industrial states, focusing on their political and economic challenges.

State in Comparative Perspective | PSIR Optional for UPSC (Notes)

  1. Post-Cold War Scenario: After the end of the Cold War, advanced industrial states were divided into two blocks: the capitalist block and the socialist block. The socialist block countries could not sustain themselves, and with the collapse of communism, they also adopted the western model of politics and economy. Most of these countries are now considered developing countries despite having an industrial base.
  2. Decline in Western Hegemony and the Rise of the East: Since the beginning of the 21st century, there has been a decline in the hegemony of the West, marked by the rise of the East. The center of gravity started shifting towards the Asia-Pacific region from the Atlantic. Countries like Brazil, Russia, India, China, and South Africa (BRICS) started challenging the advanced industrial states in various sectors, particularly manufacturing. The most affected section in these countries is low-skilled workers.
  3. Economic Crisis since 2008: The global financial crisis of 2008 has led to economic challenges for advanced industrial states. The crisis has resulted in a decline in manufacturing, job losses, and increasing income inequality. This has fueled the rise of populist and neo-rightist political movements in many of these countries.
  4. Political Crisis and the Rise of Neo-Rightist Movements: The economic crisis, combined with migration issues, transnational terrorism, and Islamophobia, has provided fertile ground for the rise of populist and neo-fascist political movements. The victory of right-wing parties started from Poland and Hungary, reaching France, Germany, the Netherlands, and even Sweden. The same is the situation in the USA, where the rise of populist politics has also been observed.
  5. State of Transition in Advanced Industrial States: In conclusion, advanced industrial states are currently in a state of transition. They are facing economic and political challenges, with the rise of new powers in the East and the growing influence of populist political movements. The future of these countries will depend on their ability to adapt to these changes and maintain their dominance in the global political and economic landscape.

Nature of State in Capitalist Economies

The nature of state in capitalist economies is shaped by various factors such as democracy, the role of elites, and social movements. 

  • Democratic Foundations: Capitalist countries are often characterized by strong democratic institutions. Citizens in these countries have fought hard to establish a democratic system that upholds their rights and privileges. This has led to a high level of awareness about their entitlements among the population.
  • Limitations of Democracy in Capitalist Economies: Despite the strong democratic foundations, the realization of rights and privileges is not always guaranteed in capitalist economies. Marxist scholars argue that states in these countries primarily serve as instruments for the capitalist class, suggesting that state policies may not be designed to benefit all citizens equally.
  • The Role of Elites: Elitist scholars argue that power in capitalist countries is concentrated among a select few, who use it to further their own interests. This means that even though democratic systems may be in place, the actual decision-making process may still be dominated by a small group of elites, ultimately benefiting them rather than the general population.
  • The Impact of Globalization and Outsourcing: Globalization and outsourcing have led to significant job losses and unemployment in capitalist countries, as companies move their operations to other countries with lower labor costs. This has resulted in economic stagnation and growing dissatisfaction among the population, who feel that their governments are not doing enough to protect their interests.
  • Social Movements as a Response to Capitalist States: The limitations of democracy, the influence of elites, and the impact of globalization have given rise to various social movements in capitalist countries. Examples of these movements include Occupy Wall Street, the Yellow Vest movement, and 'Black Lives Matter'. These movements aim to challenge the existing power structures, and demand a more equitable distribution of resources and opportunities.

Question for State in Comparative Perspective
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Changing nature of state in Capitalist Economies

In capitalist economies, crises often lead to the emergence of two distinct political trends - a shift towards the left or the right. In some countries, such as France, Greece, and Britain, we have witnessed a growing trend of left-leaning politics. On the other hand, the rise of right-leaning politics has been observed in countries like the United States, Britain, France, the Netherlands, and Sweden.
As a result of the financial crisis and growing economic pressures, there is a growing concern about the potential rise of neo-fascism in capitalist nations worldwide.

The Nature of State in Socialist Countries: An Analysis

  • Emergence of Powerful States Post-Communist Revolutions: Socialist countries initially aimed for the state to wither away, but following the communist revolutions, these states became powerful entities. Instead of promoting the dictatorship of the proletariat, these states transformed into dictatorships of communist parties.
  • Collapse of Communism and Adoption of Democracy in Eastern Europe: In countries like Russia and other Eastern European nations, communism collapsed, and they adopted democratic systems. This phenomenon is referred to as the third wave of democracy, as explained by Samuel P. Huntington.
  • Persistence of Authoritarianism and Semi-Authoritarianism: However, the transition from authoritarianism to democracy remains elusive for many countries. A majority of these nations have reverted to authoritarian or semi-authoritarian systems, such as Russia, Central Asian countries, and Eastern European nations like Belarus, Ukraine, and Hungary. These countries also exhibit neo-fascist authoritarian trends.
  • Tightening Control of Communist Parties in China and North Korea: In China, there has been an increase in the control of the Communist Party over society and the party's control by the leader. Similarly, there is no change in the dictatorial trend in North Korea.
  • Continuation of One-Party State in Cuba: Cuba, another socialist country, continues to be a one-party state, although it is not as exploitative as other socialist countries.
  • Rise of Socialist Parties in Latin America: There has been an emergence of socialist parties in Latin American countries such as Venezuela and Bolivia. However, Venezuela is currently facing multiple crises due to both external and internal factors.

Characteristic and changing nature of state in developing countries

1. Characteristics of States in Developing Countries

  • Prismatic Societies: According to F.W. Riggs, developing countries can be described as 'prismatic societies.' These societies have a mix of traditional and modern elements, making them difficult to classify into one specific political or social category. There is often a lack of clear distinction between public and private spheres, and the presence of both formal and informal institutions.
  • Soft States: Gunnar Myrdal introduced the concept of a 'soft state' in the context of India. Soft states are characterized by weak enforcement of laws, high levels of corruption, and a lack of political will to implement policies effectively. This leads to an inefficient and unresponsive government.
  • Political Decay: Samuel P. Huntington argues that many developing countries have experienced 'political decay.' This refers to a decline in political institutions, a loss of political authority, and a weakening of political order. The result is often political instability and a lack of effective governance.
  • Dependency and Peripheral States: Neo-Marxist scholars and the dependency school view developing countries as peripheral states, with their ruling classes acting as instruments of the bourgeoisie in core regions. These states are economically and politically dependent on more developed countries, which often leads to a perpetuation of underdevelopment.
  • Overdeveloped States: Hamza Alavi used a structuralist approach to describe post-colonial states as overdeveloped. This refers to the disproportionate growth of state institutions and bureaucracy relative to the society and economy, leading to an imbalance in power and influence.

2. Changing Nature of States in Developing Countries

  • Transition and Democratization: Developing countries have experienced various transitions in their political systems. Many have adopted democracy, though often with fragile institutions and a lack of deep-rooted democratic culture. The trend since the 1990s has been towards liberal democracy, though some countries remain under authoritarian rule or have shifted towards semi-authoritarian systems.
  • The Rise of Authoritarianism and Rightist Parties: In line with the global trend, developing countries have also seen a rise in right-wing parties and authoritarian leaders. This can be attributed to various factors, such as economic insecurity, identity politics, and dissatisfaction with the perceived failures of liberal democracy.

3. Challenges and Prospects

  • Developing countries face numerous challenges in their political development, such as corruption, weak institutions, and political instability. However, there are also opportunities for growth and progress, as globalization and technological advancements offer new avenues for engagement and cooperation.

Question for State in Comparative Perspective
Try yourself:Which of the following is a characteristic of states in developing countries, according to F.W. Riggs?
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Conclusion

In conclusion, advanced industrial states, capitalist economies, and developing countries are all experiencing various political and economic challenges and transitions. The decline of Western hegemony, the rise of the East, and the emergence of populist political movements are shaping the global landscape. Meanwhile, capitalist and socialist countries are grappling with the limitations of democracy, the influence of elites, and the impact of globalization. Developing countries face issues of political decay, dependency, and weak institutions, yet also have opportunities for growth and progress. As the world continues to evolve, it is crucial for these nations to adapt and respond to these challenges in order to maintain their global influence and ensure the well-being of their citizens.

The document State in Comparative Perspective | PSIR Optional for UPSC (Notes) is a part of the UPSC Course PSIR Optional for UPSC (Notes).
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FAQs on State in Comparative Perspective - PSIR Optional for UPSC (Notes)

1. What are the key characteristics of the state in advanced industrial states?
Ans. The state in advanced industrial states is characterized by a strong regulatory framework, high levels of public welfare and services, and an ability to manage economic fluctuations. These states often exhibit democratic governance structures, robust institutions, and a commitment to social justice and equality. The role of the state includes promoting economic growth, ensuring social welfare, and maintaining law and order.
2. How does the nature of the state differ in capitalist economies compared to socialist countries?
Ans. In capitalist economies, the state primarily functions to facilitate free market operations, protect property rights, and ensure competition. The emphasis is on individual entrepreneurship and minimal state intervention in the economy. Conversely, in socialist countries, the state plays a central role in economic planning and control, aiming to redistribute resources and promote social equity. The state often owns the means of production and prioritizes collective welfare over individual profit.
3. What are the challenges faced by states in advanced industrial economies?
Ans. States in advanced industrial economies face several challenges, including economic inequality, aging populations, and environmental sustainability. The increasing globalization of trade can also lead to economic vulnerabilities. Additionally, the rise of populism and political polarization can threaten the stability of democratic institutions and governance.
4. How does the role of the state in socialist countries impact economic development?
Ans. In socialist countries, the state's role in economic development is significant as it directs investment and production towards fulfilling social needs rather than profit motives. This can lead to equitable distribution of resources and improved access to basic services. However, it may also result in inefficiencies and lack of innovation due to reduced competition and bureaucratic control.
5. What can be learned from the comparative analysis of states in different economic systems?
Ans. The comparative analysis of states in different economic systems reveals that there is no one-size-fits-all model for governance. Each system has its strengths and weaknesses, and understanding these can help policymakers craft better strategies. It highlights the importance of adapting state functions to the specific economic, social, and cultural contexts, ensuring that governance promotes both growth and equity.
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