Describe the changing nature of the State in the developing societies in the context of inclusive growth in the 21“century.

Describe the changing nature of the State in the developing societies in the context of inclusive growth in the 21“century. (2018, 10 Marks)

The post-colonial state was long described as Gunnar Myrdal‘s “soft state“, strong in legislation but weak in enforcement, or Hamza Alavi‘s “overdeveloped state“, a bureaucratic-military apparatus inherited from colonial rule. In the twenty-first century the agenda of inclusive growth, growth whose benefits reach the poor and excluded, has reshaped what this state does.

From producer to provider and enabler

PhaseRole of the state
1950s–70sPlanner and producer: public sector, import substitution
1980s–90sFacilitator: liberalisation, structural adjustment
2000s onwardProvider and enabler: market-led growth plus entitlements

The state did not shrink as neoliberal reform expected; it was restructured, producing less and regulating, targeting and delivering more.

Features of the inclusive-growth state

  • Rights-based welfare. India legislated entitlements to work (2005), education (2009) and food (2013); Brazil’s Bolsa Família (2003) made conditional cash transfers a global model. India’s free-foodgrain scheme covers about 81 crore people.
  • Targeting to universalism. India’s public health insurance was extended in 2024 to everyone aged 70 and above, irrespective of income.
  • Technology-led delivery. Biometric identity, Jan Dhan accounts and mobile phones enabled direct benefit transfer; India promoted digital public infrastructure as a development model at the New Delhi G20 summit (2023).
  • Participatory governance. Social audits, RTI and decentralised planning made the state more answerable, reflecting Amartya Sen‘s view of development as the expansion of real freedoms.
  • Welfare as governance. Partha Chatterjee (The Politics of the Governed, 2004) reads this as political society: the poor negotiate benefits as governed populations rather than rights-bearing citizens, so welfare also manages consent.
  • Global responsibility. The SDGs (2015), the India-France-led International Solar Alliance and Vaccine Maitri show these states shaping global public goods, not just receiving aid.

Limits and reversals

  • Fiscal squeeze. UNCTAD (2025) counts 3.4 billion people in countries spending more on debt interest than on health or education.
  • Exclusion errors. Authentication failures can deny legally owed benefits.
  • Rights recalibrated. India’s VB-G RAM G Act (2025), in force from 1 July 2026, replaced MGNREGA: 125 guaranteed days, but a 60:40 Centre–state cost split for most states, normative rather than demand-driven allocation and a 60-day pause in peak farm seasons. Critics see a right turning into a budget-capped scheme.
  • Capacity gap. Peter Evans‘s “embedded autonomy” remains rare.

Conclusion

The developing state has moved from a soft, overdeveloped controller to a welfare-and-platform state that blends markets with entitlements. Inclusion now depends less on new statutes than on fiscal space and administrative capacity.