| Title | State capacity |
|---|---|
| Contributor | Dan Honig (author) |
| Adnan Khan (author) | |
| Joana Naritomi (author) | |
| DOI | https://doi.org/10.31389/lsepress.tlc.q |
| Landing page | https://doi.org/10.31389/lsepress.tlc.q |
| License | https://creativecommons.org/licenses/by-nc/4.0/ |
| Publisher | LSE Press |
| Published on | 2025-10-16 |
| Short abstract | The Washington Consensus had little to say regarding the internal functioning of the state beyond recognising the importance of securing property rights and general policies, such as ‘broadening the tax base’. The past decades have seen significant advances towards understanding the determinants of state capacity. In this chapter we do not attempt to provide universal prescriptions, but identify a few general principles that we believe apply in all countries, irrespective of wealth or level of development. Effective governance requires more than merely setting correct policies; it demands a state’s ability to implement, adapt, and learn over time. Drawing from historical and political economy perspectives, as well as contemporary managerial approaches, we examine the evolution and variation of state capacity, focusing on sectors like tax administration and health. State capacity is a process, not an event; hence medium-term commitment is critical, as is acting in the understanding of long-term constraints and environment. That process should begin with diagnostics of a particular place and goal, not universal prescriptions. Building state capacity involves a continuous process of, adaptation, and systemic learning; empowered agents, citizen-state trust, and iterative improvements are often key components of success. Ultimately, enhancing state capacity requires not only technical solutions but also alignment with political incentives and stakeholder motivations, recognising that a capable state is foundational to enabling citizens and markets to thrive. This chapter includes responses to Dan Honig, Adnan Khan and Joana Naritomi by Matthew Andrews and Ernesto Dal Bó. |
| Long abstract | The Washington Consensus had little to say regarding the internal functioning of the state beyond recognising the importance of securing property rights and general policies, such as ‘broadening the tax base’. The past decades have seen significant advances towards understanding the determinants of state capacity. In this chapter we do not attempt to provide universal prescriptions, but identify a few general principles that we believe apply in all countries, irrespective of wealth or level of development. Effective governance requires more than merely setting correct policies; it demands a state’s ability to implement, adapt, and learn over time. Drawing from historical and political economy perspectives, as well as contemporary managerial approaches, we examine the evolution and variation of state capacity, focusing on sectors like tax administration and health. State capacity is a process, not an event; hence medium-term commitment is critical, as is acting in the understanding of long-term constraints and environment. That process should begin with diagnostics of a particular place and goal, not universal prescriptions. Building state capacity involves a continuous process of, adaptation, and systemic learning; empowered agents, citizen-state trust, and iterative improvements are often key components of success. Ultimately, enhancing state capacity requires not only technical solutions but also alignment with political incentives and stakeholder motivations, recognising that a capable state is foundational to enabling citizens and markets to thrive. This chapter includes responses to Dan Honig, Adnan Khan and Joana Naritomi by Matthew Andrews and Ernesto Dal Bó. |
| Language | English (Original) |
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Dan Honig is an Associate Professor at UCL’s Department of Political Science and Georgetown University’s McCourt School of Public Policy. His research focuses on the organisational bits of government’s role in enhancing citizens’ welfare – particularly organisational structure, bureaucrats’ motivation, and relations between citizens and state agents.
Adnan Khan is a Professor in Practice at the LSE School of Public Policy, currently on secondment as Chief Economist to the Foreign, Commonwealth and Development Office of the UK. He has spent 30 years in the research and policy worlds – as a researcher, teacher, a catalyser of other people’s research, and as a practitioner and policymaker. His areas of interest include economic development, state capacity and fragility, political economy and taxation, and geoeconomics.
Joana Naritomi is an Associate Professor and the Academic Director of the LSE School of Public Policy. She is a Research Affiliate in BREAD, the CEPR Public Economics and Development Economics programmes, STICERD Public Economics, IFS, IGC, and a J-PAL Latin America and the Caribbean Invited Researcher. Her research lies at the intersection of Public Economics and Development Economics, focusing on taxation, social protection, and state capacity.
Matt Andrews is the Edward S. Mason Senior Lecturer in International Development at Harvard’s Kennedy School of Government. He is also the faculty director of the Building State Capability programme at Harvard, which is where he has developed – with a team – a policy and management method to address complex challenges. This method is called problem driven iterative adaptation (PDIA) and was developed through over a decade of applied action research work by Matt and his team. It is now used by practitioners across the globe.
Ernesto Dal Bó is the Phillips Girgich Professor of Business and Public Policy at the Haas School of Business, UC, Berkeley. A political economist, he is interested in the origin and development of states, political selection, conflict, and democratic governance. He holds a DPhil in Economics from the University of Oxford, is the founding co-director of the Berkeley Center for Economics and Politics, a Research Associate at the National Bureau of Economic Research, and a member of the IGC and the J-PAL.