THE STATE AS AN END IN ITSELF - THE POLIT ICAL-ECONOMY OF POWER WIELDING

Traditionally, the state has been considered a benevolent but exogenou s agent which intervenes in the economic system if the markets do not function properly. This view does not consider the possibility that th ose who make decisions in the name of the state might do so with an ey e on their selfish interest as well as the interest of the general pub lic. This article scrutinises the role of the state in economic develo pment taking this point of view into account. The main thesis of the a rticle is that the economic incentives of the power holders is the cru cial determinant of the role played by the state, rather then the degr ee of dirigism or benevolence.