Abstract:
The global diffusion of liberalizing reforms is theorized to reduce the state’s involvement in the economy, yet across the world a remarkable surge of state intervention in the corporate sector has occurred. I propose that this disconnect between theory and empirics can be resolved, in part, by considering an overlooked political phenomenon – the rise of Dominant Party Authoritarian Regimes (DPARs), which now constitute one-third of all political regimes in the world. Leaders of DPARs seek to grow the economy while retaining political control. I argue that state-owned enterprises that combine public and private ownership allow political leaders to balance these competing priorities. I further argue that state intervention in the corporate sector is likely to be more aggressive in DPARs than in other regimes because DPAR leaders permit political opponents to compete in elections, but are unwilling to hand over power. As the power of political opponents increases, DPAR leaders will engage in more aggressive corporate intervention to protect their rule. I support these arguments with empirical cross-national tests, detailed examination of corporate ownership patterns and sovereign wealth funds across East Asia, as well as rigorous case study analysis of individual countries in the region.
About the speaker:
Dr. Carney is a Fellow (Associate Professor) in the Crawford School of Public Policy at the College of Asia and the Pacific at the Australian National University. His recent research focuses on state-owned enterprises and sovereign wealth funds in East Asia, and is forthcoming in a book to be published by Cambridge University Press entitled, The Rise of Authoritarian Corporate Intervention: East Asia and Beyond. His research has broadly focused on business-government ties in East Asia and the comparative institutional context of business. His papers have been published in journals such as the Journal of Financial Economics, Business and Politics, the Review of International Political Economy, and the Journal of East Asian Studies. He is also the author of the book Contested Capitalism: The Political Origins of Financial Institutions, and editor of Lessons from the Asian Financial Crisis. Prior to his move to Australia, Dr. Carney was at the Nanyang Technological University in Singapore. He is also a Fellow of the Research Center for Emerging Market Studies at the China Europe International Business School, and a former Jean Monnet Fellow at the European University Institute. He obtained his PhD from the University of California, San Diego.
