The impact of state intervention on economic development: the Brazilian and Malaysian experience
Journal: Journal of Economic Growth and Entrepreneurship (Vol.4, No. 5)Publication Date: 2021-06-11
Authors : Benhergal Tayeb Tchiko Faouzi;
Page : 8-18
Keywords : Development; The State Intervention; Brazil; Malaysia;
Abstract
Development can be noticed as the enrichment of individuals' lives by expanding their horizons. Economic development requires a state that can create and regulate the appropriate conditions for development. This article presents the Brezilian experience, during the Lula de Silva era, which made Brazil among the world's economic superpowers.eighth place in 2008, seventh place in 2011. Fighting poverty through the “ Bolsa Famila”.Moreover the Malaysian experience through the New Economic Policy (NEP), which made the country the fourth largest economy in Southeast Asia, characterized by high standards of living. This has revived the debate about the state's role in development, both among theorists and even international institutions. The World Bank's 1997 report on world development came under the title “The State in the Changing World. For the majority of economists, sociologists or political scientists who have examined the importance of the role of the state in development. the problem is no longer whether the state should intervene or not?, but what is the nature of this intervention? and what are the administrative, economic or legal mechanisms for its action. What were the forms of this involvement, in which sectors? . How does the state relate to society and the market? What autonomy does it enjoy to play a positive economic role? Are the costs of these distortions greater than the increased benefits generated by this public / private cooperation?
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