The Role of the State as an Agent of Development: A Critical Evaluation across the Global
North and South
Student’s Name
Student’s ID
1
, 1.0 Introduction
Development is a broad concept that entails enhancement of human well-being, political
stability, economic growth and social progress. The role of the state as an agent of development
has been a critical concern for long in both practice and development. In this context, the state
has played important role in shaping development paths across both in the Global South and the
Global North. Initially the role of state as an agent of development was seen as the key drivers of
national development, through intervention in infrastructure, social services, and economic
planning. However, since the end of World War II, this topic has become the subject of intense
discussion that revolves around various paradigms influenced by global realignments,
ideological transformations, and historical shifts. In the late 20 th century, the rise of neoliberal
ideologies saw a retreat of the state towards market driven development hence, causing different
outcomes across various regions (Ignjatović & Filipović, 2022). The aim of this essay is to
critically evaluate the role of state as an agent of development through analysis of the historical
and contemporary examples from the global North and South. Using both thematic and
chronological approaches, the essay examines how different policy regimes from the Keynesian
consensus to the New Policy Agenda, have shaped development strategies of a state. It also
examines how globalization rise, industry disillusion and influence of multinational corporations
reshape the limitation and scope of state action. By integrating several case studies like Japan
and various African countries, the essay seeks to find out if the state is still in a desirable and
effective position in driving development. The essay also addresses important concepts such as
mixed economy of development as well as impacts of multinational corporations and
globalization. This discussion supports the argument that state’s role is crucial especially in
addressing the development concerns of the 21st century.
2.0 Theoretical and Historical Foundations
The role of the state in development has been explored using a range of theoretical perspective.
Each theory explains how the states interact with international institutions, markets and societies.
However, these frameworks have changed over time reflecting the shift in economic and political
ideologies that play crucial role in shaping development disclosure. The foundation of
understanding the role of the state in development can be traced back to literature work of Karl
Polanyi, The Great Transformation (1944) (Shehu & Germain, 2025). He argued that market
2
North and South
Student’s Name
Student’s ID
1
, 1.0 Introduction
Development is a broad concept that entails enhancement of human well-being, political
stability, economic growth and social progress. The role of the state as an agent of development
has been a critical concern for long in both practice and development. In this context, the state
has played important role in shaping development paths across both in the Global South and the
Global North. Initially the role of state as an agent of development was seen as the key drivers of
national development, through intervention in infrastructure, social services, and economic
planning. However, since the end of World War II, this topic has become the subject of intense
discussion that revolves around various paradigms influenced by global realignments,
ideological transformations, and historical shifts. In the late 20 th century, the rise of neoliberal
ideologies saw a retreat of the state towards market driven development hence, causing different
outcomes across various regions (Ignjatović & Filipović, 2022). The aim of this essay is to
critically evaluate the role of state as an agent of development through analysis of the historical
and contemporary examples from the global North and South. Using both thematic and
chronological approaches, the essay examines how different policy regimes from the Keynesian
consensus to the New Policy Agenda, have shaped development strategies of a state. It also
examines how globalization rise, industry disillusion and influence of multinational corporations
reshape the limitation and scope of state action. By integrating several case studies like Japan
and various African countries, the essay seeks to find out if the state is still in a desirable and
effective position in driving development. The essay also addresses important concepts such as
mixed economy of development as well as impacts of multinational corporations and
globalization. This discussion supports the argument that state’s role is crucial especially in
addressing the development concerns of the 21st century.
2.0 Theoretical and Historical Foundations
The role of the state in development has been explored using a range of theoretical perspective.
Each theory explains how the states interact with international institutions, markets and societies.
However, these frameworks have changed over time reflecting the shift in economic and political
ideologies that play crucial role in shaping development disclosure. The foundation of
understanding the role of the state in development can be traced back to literature work of Karl
Polanyi, The Great Transformation (1944) (Shehu & Germain, 2025). He argued that market
2
