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State-building is a term used in state theory. It describes the construction of a functioning state. This concept was first used in connection to the creation of states in Western Europe and focused on the power enforcement of state in society (Tilly 1975). Tilly (1975: 70f.) described the advantages of state building in Europe as follows:
"State building provided for the emergence of specialized personnel, control over consolidated territory, loyalty, and durability, permanent institutions with a centralized and autonomous state that held the monopoly of violence over a given population".
There are two main theoretical approaches to definitions of state-building. First, state-building is seen by some theorists as an activity undertaken by external actors (foreign countries) attempting to build, or re-build, the institutions of a weaker, post-conflict or failing state. This `exogenous' school views state-building as the activity of one country in relation to another, usually following some form of intervention (such as a UN peacekeeping operation). A view that has featured in media debates on Iraq and Afghanistan and has influenced documents such as the UN report:“A more secure world: Our shared responsibility” Report of the High-level Panel on Threats, Challenges and Change A/59/565, or the Rand Corporations's Beginners Guide to Nation Building (see a discussion of nation building vs state-building). [2]
The second strand of theory and definitions gained momentum following the signing in 2007 of an international accord between donor nations on their work in conflict affected and weak states. [3] This accord committed richer countries to consider supporting `state-building' as their `central objective' in conflict affected countries. The result has been a steady stream of new work commissioned by donor countries on definitions, knowledge and practice in state-building, much of this co-ordinated by a Task Team of the Organisation for Economic Co-operation and Development. This work has tended to draw heavily on political science. It has produced definitions that view state-building as an indigenous, national process driven by state-society relations. This `endogenous' view believes that countries cannot do state-building outside their own borders, they can only influence, support or hinder such processes. Illustrations of this approach include a think-piece commissioned for OECD [4] and a research study produced by the Overseas Development Institute.[1]
In 2008 the British Government's Department for International Development released a Working Paper on state-building that helped bring together new thinking in this field and became synonymous with the endogenous viewpont. It drew heavily on the more recent studies, and also on views of a panel of academic experts [5]. The paper moved the debate forward by offering models of how indegenous state-building dynamics may work in practice (the Whaites model). The paper argues that state-building is primarily a `political' process rather than just a question of technical capacity enhancements. It sees state-building as involving a threefold dynamic of: political (usually elite) deals, the prioritization of core government functions and the willingness to respond to public expectations.[2] (see also Political settlement)
Across the two streams of theory and writing there is a broader consensus that lessons on how to support state-building processes have not yet been fully learnt. Some believe that supporting state-building requires the fostering of legitimate and sustainable state institutions, but many accept that strategies to achieve this have not yet been fully developed. Little of the post-conflict support to state-building undertaken so far has been entirely successful. From an exogenous perspective it can be argued that sustained focus on supporting state-building has tended to happen in states frequently characterized by brutalized civilian populations, destroyed economies, institutions, infrastructure, and environments, widely accessible small arms, large numbers of disgruntled soldiers to be demobilized and reintegrated, and ethnically or religiously divided peoples. These obstacles are compounded by the fundamental difficulty of grafting democratic and human rights values onto countries with different political, cultural, and religious heritages.[citation needed]
Both schools of thinking have generated critiques and studies seeking to test the propositions made. The endogenous model, with its emphasis on composite state-building processes, would have major implications for donor programmes, diplomacy and peace-keeping. As a result the OECD has sponsored research to test some of the ideas involved[3] and DFID followed its original working paper by issuing a guidance note for its own programmes.[4] Important critiques were developed by NGOs such as Conciliation Resources[5] and The Asia Foundation,[6] focused primarily on Whaites proposition that a `political settlement' drives state-building. There have also been attempts to test out the thesis by looking at individual areas of state provision, particularly the area of healthcare.[7]
While approaches such as the Whaites model (DFID) have tried to argue that state-building takes place in all countries and that much can be learnt from successful state-building there is a tendency to narrow the discussion to the most problematic contexts. As a result much of the literature on state-building is preoccupied with post conflict issues. See e.g. (Dahrendorf, 2003), (The Commission on Post-Conflict Reconstruction, 2003), (Collier, 2003) (Fukuyama, 2004), (Paris, 2004), (Samuels 2005). Critiques common to both schools include inadequate strategy and a lack of coordination, staffing weaknesses, and that funding is insufficient or poorly timed. Moreover, it is increasingly recognized that many of the tasks sought to be achieved are extremely complex and there is little clarity on how to best proceed. For instance, it is extremely difficult to provide security in a conflictual environment, or to disarm, demobilize and reintegrate armies successfully. It remains practically impossible to address vast unemployment in states where the economy is destroyed and there is high illiteracy, or to strengthen the rule of law in a society where it has collapsed. Moreover, the unintended negative consequences of international aid are more and more evident. These range from distortion of the economy to skewing relationship of accountability by the political elite towards internationals rather than domestic population.
The first `exogenous' approach to State-building, (an activity by external actors/countries), is perhaps the more controversial of the two strands of thinking. It is viewed as having overtones of imperialism and colonialism, whereby local populations view the foreign power as an oppressor attempting to impose a foreign system and culture. In this sense, critics argue that wars could even be lengthened to cause additional damage to the adversary's infrastructure. By doing so, critics contend, economic opportunities emerge. Examples of such occurrences put forward by proponents of such a theory include the rebuilding of Germany in the aftermath of World War II via the Marshall Plan, the rebuilding of Japan following the United States' fire-bombing campaign, and more recently, the use of private corporations.
The second `endogenous' strand of thinking (an indigenous process of state-society relations) has less interventionist overtones and makes clear that national leadership and vision is centrally important. It does, however, potentially leave a gap in terms of strategies for the international community to support positive state-building processes in poor, post-conflict and weak states. More work is needed to convert the ideas and models of the second strand of thinking into clear policies to help conflict affected states.
Building state capacity includes the process of creating the political capacity, resource mobilization capacity, and allocation of resources to productive and welfare enhancing sectors of a state. The United Nations Research Institute for Social Development (UNRISD) determined that basic state capacities are to
i. Assist in the acquisition of new technologies
ii. Mobilize and channel resources to productive sectors
iii. Enforce standards and regulations
iv. Establish social pacts
v. Fund deliver and regulate services and social progammes [8]
States must be able to create the
1. Political Capacity to address the extent to which the necessary coalitions or political settlements can be built
2. Resource Mobilization Capacity to generate resources for investment and social development
3. Allocate Resources To Productive And Welfare-Enhancing Sectors [9]
When developing this infrastructure a state can meet several roadblocks including policy capture from powerful segments of the population, opposition from interest groups, and ethnic and religious division. Developing countries have tried to implement different forms of government established in advanced democracies. However, these initiatives have not been fully successful. Scholars have looked back at the development of Europe to determine the key factors that helped create bureaucracies that were sustainable throughout the centuries.
When studying the development of European states, Charles Tilly identified that European countries engaged in four activities:
1. war making - eliminating or neutralizing their own rivals
2. state making - eliminating or neutralizing their rivals inside their own territory
3. protection - eliminating or neutralizing the enemies of their clients
4. extraction - acquiring the means of carrying out the first three activities. [10]
Out of these four activities, war making was the main stimulus to increasing the level of taxation, thus increasing the capacity of the state to extract resources. [11]The increased capacity of the state to extract taxes from its citizens while facing external threats prompted Jeffrey I. Herbst to propose that allowing failed states to dissolve or engage in war to re-create the process endured by European countries. [12]Although the logic was consistent with the predatory theory of the state in early modern Europe, [13] Herbst’s point-of-view was criticized by several scholars including Richard Joseph who were concerned that the application of predatory theory was an excessive approach of Darwinism. [14] Many have disregarded the limited view of this theory and have instead extended it to include strong external threats of any kind. External threats to the state produce stronger institutional capacities to extract resources from the state. [15]
In harnessing this increased capacity, Centeno describes the state as a machine that requires a “driver” that is able to use the increased capacity to expand influence and power of government. The driver can be state personnel, a dominant class, or a charismatic individual. Without these drivers, the political and military machine of the state has no direction to follow and therefore, without this direction, war and the increased resources extracted from war can not be used for growth. [16]On the other hand, internal wars, i.e. civil wars, have a negative effect on extraction of a state. Internal rivals to the state decrease the state’s capacity to unify and extract from its citizens. Rivals usually will bargain with the state to lower their tax burden, gain economic or political privileges. [17]
In the American context, some commentators use the term "nation-building" interchangeably with "state-building" (e.g. Rand report on America's role in nation-building). However in both major schools of theory the state is the focus of thinking rather than the "nation" (nation conventionally refers to the population itself, as united by identity history, culture and language). The issues debated related to the structures of the state (and its relationship to society) and as result state-building is the more broadly accepted term. In political science 'nation-building' usually has a quite distinct meaning, defined as the process of encouraging a sense of national identity within a given group of people, a definition that relates more to socialisation than state capacity (see the ODI, OECD, and DFID reports cited above).
Similarly, state-building (nation-building) has at times been conflated with military intervention or regime change (again often in the American context). This derives in part from the military actions in Germany and Japan in World War II and resulting states, and became especially prevalent following the military interventions in Afghanistan (October 2001) and Iraq (March 2003). However, the conflation of these two concepts has been highly controversial, and has been used by opposing ideological and political forces to attempt to justify, or reject as an illegal military occupation, the actions in Iraq and Afghanistan. Hence, regime change by outside intervention should be differentiated from state-building.
State building may not always automatically lead to peace building and due to state building's inherently political nature, it may in fact spark off further conflict.[18] Efforts to "appease" or 'buy off' certain interest groups in the interest of peace may undermine state-building exercises, as may power sharing exercises that may engender a political settlement, but not effective state institutions. Sometimes peace-building efforts bypass the state in an effort bring peace and development more quickly, for example, it was found that many NGOs in the Democratic Republic of Congo were building schools without involving the state. The state also may be part of the problem and over-reliance on the state by international actors can worsen security inside the country.
Aid is an important part to the development dialogue. In the 1980s and 1990s due to a series of economic crises and unsuccessful attempts in intervention programs in Africa, Latin America, and Eastern Europe, the international community shifted towards a market-oriented model of foreign aid. [19]Donor countries believed that a reduction in the size and the reach of the state could provide a more efficient outcome. [20]However, the success of East Asia, East Europe, Brazil, and India has demonstrated that even-market economies require a capable state to grow sustainably. [21] Moreover, international donors became concerned over seriously malfunctioning states in the 1990s, i.e. Sierra Leone and Afghanistan. Thirdly, the international community has recognized the importance of states establishing social service programs that will meet the basic needs of their populations, including public health and anti-poverty programs. Moreover, the international community has tried to address the fragmentation of the international aid system that can at times be part of the problem in building state capacity. [22]
The term "state" can be used to mean both a geographic sovereign political entity with a permanent population, a defined territory, a government, and the capacity to enter into relations with the other states, as defined under international law (Montevideo Convention on the Rights and Duties of States, December 26, 1933, Article 1), as well as a set of social institutions claiming a monopoly of the legitimate use of force within a given territory (Max Weber, 1919).
For the purposes of state-building in environments of instability, the sub-structures of states can be defined as a political regime (or system of government), a governance framework (or constitution), and a set of state institutions (or organizations) such as the armed forces, the parliament, and the justice system. State capacity refers to the strength and capability of the state institutions. Nation conventionally refers to the population itself, as united by identity, history, culture and language.
Governments that have implemented the top-down method present the idea that there is a great external threat that can diminish the capabilities of a state and its citizens. The perceived threat creates an incentive that focuses policy, make elites cooperate, and facilitates the adoption of a nationalistic ideology. In an authoritarian government, political, military, and ideological power is concentrated is conducive to policy continuation. The bureaucracies implemented are well trained, well paid, and highly competitive in recruitment and promotion. </ref> Evans, P.; Rauch, J. E., Bureaucracy and growth: A cross-national analysis of the effects of "Weberian" state structures on economic growth. American Sociological Review 1999, 64 (5), 748-765.</ref>When authoritarian governments are at their best, i.e. east asian countries, have taken on programs to create infrastructure, subsidize the farming sector, provide credit, support spending on targeted research, and invest in health and education. However, most governments are non-developmental and unstable. Furthermore, even when countries have tried to pursue authoritarian strategies that have worked, specifically Brazil, different a divided military, regional oligarchs in power, and vast disparities in inequality delegitimized the regime. </ref> Kay, C., Why East Asia overtook Latin America: agrarian reform, industrialisation and development. Third World Q 2002, 23 (6), 1073-1102.</ref>
A democratic regime engages citizens more actively than a top-down government. It respects the right of citizen to contest policies. Successful democracies developed political capacities by nurturing active citizenship, maintaining electoral competitiveness that gave value to the votes of the poor, fostered political parties that were strongly oriented towards equality, and had strong party-social movement ties.
While many specific techniques exist for creating a successful state building strategy, three specific approaches have been identified by the recent 2010 UNRISD report.[23] These three approaches would all fall under the endogenous school of thinking, and are: Good Governance, New Public Management, and Decentralization.[24]
Good governance is a very broadly used term for successful ways a government can create public institutions that protect people’s rights. There has been a shift in good governance ideals, and as Kahn [25] states, “The dominant ‘good governance’ paradigm identifies a series of capabilities that, it argues are necessary governance capabilities for a market-friendly state. These include, in particular, the capabilities to protect stable property rights, enforce the rule of law, effectively implement anti-corruption policies and achieve government accountability.” This good governance paradigm is a market enhancing process which emerged in the 1990s. This approach involves enforcing the rule of law, creating stronger property rights, and reducing corruption. By focusing on improving these three traits, a country can improve its market efficiency. There is a theoretical cycle of market failure [26] which explains how a lack of property rights and strong corruption, among other problems, leads to market failure:
1.The cycle starts with economic stagnation, which can enhance and expose the inefficiencies of a weak government and rule of law that cannot effectively respond to the problem.
2.Because a government is unaccountable or weak, small interest groups can use the government for their specific interests, resulting in rent seeking and corruption.
3.Corruption and rent seeking from interest groups will lead to weak property rights that prevent citizens and smaller businesses from the assurance that their property is safe under national law. Also the corruption will result in welfare-reducing interventions.
4.These weak property rights and welfare-reducing interventions lead to high transaction cost markets.
5.High transaction cost markets lead back to economic stagnation.
While it is understood that improving rule of law and reducing corruption are important methods to increasing the stability and legitimacy of a government, it is not certain whether or not this approach is a good basis for a state building approach. Researchers [27] have looked at this approach by measuring property rights, regulatory quality, corruption, and voice and accountability. There was little correlation found between increasing property rights and growth rates per capita GDP.[28]
In response to the unsuccessful attempts to strengthen government administrations, developing countries began to adopt market-oriented managerial reforms under the pressure of the IMF and the World Bank. New Public Management approach first emerged in New Zealand and the United Kingdom in the 1980s.[29] New Public management uses market like reforms within the public sector to provide the government with the necessary power to implement a development plan on the economy while also using competitive market based techniques to enhance public sector production. It changed public sector employment practices from career tenure positions towards limited-term contracts for senior staff, locally determined pay, and performance-related pay. [30] Secondly, the provision of government services shifted towards contracts, franchising, vouchers, and user charges in an effort to promote efficiency in service provision to citizens. [31]
In this type of government, large bureaucracies within a ministry (the principal) no longer maintain their hierarchical structure but rather are composed of operational arms of ministries that perform the role of an individual agent. The strategy has been more prominent in liberal market-driven policy regimes like New Zealand, United Kingdom, and the United States. Continental Europe has been more resistant to implementing this type of policy. In developing countries, the implementation of these types of infrastructure has been difficult because the markets for the delivery of services are imperfect and increase the danger of regulatory capture by companies. For successful implementation, governments must have the infrastructure to measure reliable performance indicators and the capacity to regulate the behavior of private providers. [32]
In reference to state building approaches decentralization is beneficial because “It seeks to reduce rent-seeking behavior and inefficient resource allocation associated with centralized power by dispersing such power to lower levels of government, where the poor are likely to exercise influence and a variety of actors may participate in the provision of services.”.[33]
Limitations to decentralization are the reduction of the meritocratic basis can limit the states capacity to serve citizens, limited control of the fiscal funds at the local level can prevent effectiveness, and substantial inequalities in fiscal capacity among different regions can create ineffective redistribution of resources. Therefore, for these policies to work there must be coordination efforts to ensure that growth-oriented and redistributive strategies initiated at the central government are implemented regionally. Furthermore, government elites must be in favor of low-income groups and grass root groups should be able to engage with local authorities during policy making. [34]
- Haiti - 1995
2010- Following the 2010 earthquake, Haiti has been a popular philanthropic cause. The United Nations member states have pledged $5.3 billion over the 18 months following the earthquake.[35] There are over 3000 Non Governmental Organizations operation in Haiti.[36] This is beneficial for short term recovery, but many worry that with declining media will also come declining philanthropic donations to a country which some have called a “republic of NGO’s.”[37] The government is working to organize the enormous amount of aid coming to the state into a long term effort organized by the government A new study submitted by the RAND Corporation shows the findings of researchers who discuss what is necessary for this long term investment.[38] The researchers cite some important initiatives that need to be taken in the rebuilding process: 1. Providing stability through a strong judicial system that protects the rights of the people, and a strong police force to enforce the law. 2. Transparent administration. This can be done by clearly defining procedures for administration officials, giving performance incentives, and giving specific job descriptions. This will remove any vague government official positions and hold people accountable for the state, promoting efficiency in the government. 3. Removal of rubble in the capital of Port-au-Prince to restore national pride in the country. 4. Eliminate the inefficiencies in registering for businesses and property to promote business formation and a stable system of property ownership. 5. In the education and health sector, have the government provide contracts to the many NGOs currently working in Haiti. This will not only utilize the NGO’s resources, but will allow the government control over the process, creating a coordinated process of development.
- Afghanistan - 2001–present
- Iraq - 2003–present
- Germany - 1945-1989
- Japan - Post World War II
- Republic of Macedonia - 1991–present
- Bosnia - 1995–present
- Kosovo - 1999–present
- South Korea- 1972–present
South Korea has reformed in a way that has opened their economy to foreign investors, and has become an export oriented economy. They are now a leader in the automobile and most recently, high tech industries.[39] South Korea has achieved this economic growht by allowing liberalization of their economy, while keeping control of their central banks. This allows them control over which industries and corporations get certain loans. This control has provided the South Korean government with control over the direction of the economy, while also allowing it to expand under liberal economic policies. South Korea is not a mineral rich country, and does not have significant natural resources they can use to build their economy. Also, South Korea, while using a more free market, still kept a concerted plan for the nation’s growth and kept control of the central bank to help guide the plan.[40]
- Singapore- 1989–present
Since 1989, Singapore has carried out managerial reforms known as Public Service for the 21st Century which uses its public administration system, known for its meritocracy, high status and professional ethics, to create a system of public management. The most of the civil service is now run by executive agencies.[41]
- Latin America and the Predatory Theory
Studies on have demonstrated that both external and internal rivals have an impact on the ability of a state to develop and extract resources from its citizens. Interstate rivals had a positive effect on the state's capacity to extract resources while intrastate rivals had a negative effect on state building. [42]Wars with external rivals are able to induce a “ratchet effect” that shifts the amount of extraction to a higher level creating an expansion of a state’s fiscal and administrative powers. [43]During the development of European countries, the largest contribution to accumulation of resources came from the rise of taxes; however, for Latin American countries in the twenty first century, when it became economically and politically difficult to increase tax revenues, states turned to debt for the necessary resources to pay for war. Therefore, by relying on foreign debt, Latin American countries did not establish the same tax basis that their European counterparts did.
- Africa and the Predatory Theory
The external threat theory can applied to developing countries in Africa. The presence of both external state rivals and internal ethnic rivals prompted states to increase their extraction of taxes from citizens while internal political rivals failed to affect the extraction of taxes. [44]The leaders in power try to maintain their position by catering to the majority ethnic group and increase taxes to gain the resources to diminish threats from minority ethnic groups. [45]Thus, the presence of internal ethnic rivals creates the capacity to significantly increase the tax ratio. On other hand, the presence of political rivals may create a decline in the tax revenue because of different military or political tactics employed by the rival group. These include coups, disruptive regime transitions, revolutionary wars, and negotiations to implement economic, political, and social reforms that will favor the minority group. [46]Several researchers have emphasized that the internal violence seen in Africa was characteristic to early modern European politics and this type of structure may resolve to produce a higher level of political order. [47]
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![Bomber Crashes into Empire State Building, July 1945 [Full Resolution]](http://web.archive.org./web/20130907073756im_/http://i.ytimg.com/vi/ZD69sP51u-s/default.jpg "Bomber Crashes into Empire State Building, July 1945 [Full Resolution]")
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