Nationalization And Economic Development-small States Under The Diffusion Of Neoliberalism

Why did some small countries get good economic performance afterhaving institutional or structural reform under the impact of neoliberalism,but others not？This paper attempted to point out that economic developmentof late developed countries need proper number of state-owned enterpriseswhich is the most important origin of state capacity to the small countriesespecially facing the shock of neoliberalism conducted by the developedcountries. By comparing the four countries cases: Poland, Romania, Malaysiaand Philippine, I argue that proper number of state-owned companies, on theone hand, can control the price-making power to avoid the dependency on thedeveloped countries, and on the other hand, can advance their hightechnologies rapidly and improve the quality of social welfare. This argumentis also enlightening to China which is at the crucial moment of ecomomictransition. China should pay more attention to the role of the state-owned enterprises on economical development when the private companies have noability to compete with the foreign transnational companies especially in theinternational market.