State-owned Enterprises and the Political Economy of State-State Relations in the Developing World

The literature on developmental states has built theories of growthenhancing strategies through a mutually constitutive state–business relationship and institutionalised expertise through a professional bureaucracy. Whilst most evidence bears on the East Asian context, recent empirical work has focussed on state agency and new industrial policies in response to global market integration. Our paper contributes to this debate by exploring multiple patterns of state enterprise reforms that have enabled governments to generate competitive domestic firms. These reforms, then, lead to new theoretical insights as regards the diverse institutional arrangements co-constituting state–state relationships across countries and sectors. Overall, the paper views state-owned enterprises (SOEs) as complex organisations that bear new developmental capacities rather than vessels of rent-seeking interests.