Democratic developmental States? Malaysia and South Africa´s institutional structures for incubating an indigenous entreprenuerial class and reducing poverty

Abstract

The promotion of an inclusive development and incubation of an indigenous entrepreneurial class were some of the key challenges that faced Malaysia after political independence from colonial rule and South Africa after the end of apartheid. It is therefore no surprise that the Malaysian state after its first decade of independence and the South African state immediately after the democratic elections in 1994 set out to reduce poverty and promote an indigenous capitalist class. This paper will focus on the institutional foundation of the Malaysian and South African state that underpinned their development. In particular, it will focus on the internal institutional characteristics of the state and its relations to the indigenous business class. The focus on the latter is important because the participation of societal actors in the policy process is one of the defining characteristics of a democratic developmental state.