... Chalmers Johnson, to describe the economic miracle of Japan after World War II. South Korea and Taiwan later adopted the phrase to describe their similar economic development methodologies. A classical developmental state is one that follows the growth methodologies of these Tigers. Importantly, their growth methodologies were pragmatically developed and implemented in the context of the international regime of the day, as a political economist, T J Pempel says: "It is hard to imagine the economic successes of these three had the United States not been so anxious to assist their economic enrichment."
Much has changed. Opportunities such as favourable access to the United States markets are not available to us. Import substitution and the protectionism they practised are not feasible under the World Trade Organisation regime.
The 21st century international climate simply militates against our ability to follow the mid-20th century developmental methodologies. Consequently, our concept of a developmental state must be a derivative rather than an emulation of the classical one. Yet, much can be learnt from the Asian successes.
Fortunately, since the unlamented demise of the Washington Consensus, no one seriously doubts the pivotal role of the state in economic development. What the particulars of that role are and how they change over time is our own decision - given our history, our diverse cultures and our predilections. We must seek and find our own third way too.
Joseph Stiglitz says that the term "third way" has attained different and, in some cases, quite specific connotations. But, what I mean, as he does, is that a third way lies between socialism, with an intrusive government role, and laissez-faire economics, with a minimal government role. The South African model must employ market-conforming methods of state intervention and a fixed focus on addressing future opportunities - opportunities equally accessible to all.
In a developmental state of the third way, consensus exists between all sectors of society regarding developmental goals and the means to achieve them. The goals are inclusive and not exclusive and selective. That produces an unconditional commitment by all for the developmental project - a focus on economic growth that disproportionately empowers the poor; not through handouts, but through capability enhancement and opportunity creation. It is not developmental to give people houses, water, electricity or food. It may be charitable, but it is not developmental. It is developmental when government enhances people's capabilities - allowing them to afford a house, water, electricity and food. It is developmental when you give people quality health care and education in high-grade facilities.
Capability enhancement is the developmental approach pioneered by the renowned Amartya Sen - an approach that the DA fully subscribes to. With him we say: Development is freedom. Freedom, he says, can only exist in an open democratic society. This we must maintain, develop and protect at all costs. That is why the DA embraces an open society - a society where freedom lives.
Democracy by itself is not freedom and does not guarantee freedom. Democracy plus capability, plus opportunity is freedom. An increase in capabilities is an increase in freedom - freedom to escape poverty; freedom to enjoy full social functionality; and the capability to live a life filled with accomplishment, boundless opportunity and the ability to use it. Thank you. [Applause.] [Interjections.] [Time expired.]