In this paper, I ask following theoretical questions: how should we adjudicate the two opposite perspectives toward the relationship between t he state and the economy? Are the state and the economy separate analytic and autonomous spheres? How are th...
In this paper, I ask following theoretical questions: how should we adjudicate the two opposite perspectives toward the relationship between t he state and the economy? Are the state and the economy separate analytic and autonomous spheres? How are they related to each other? What would be the best way to formulate the relationship to understand it properly? To answer the aforementioned questions, I will examine Chilean capitalist development, especially in the arena of welfare policies. The Chilean capitalist development is particularly interesting because it is often praised as the most successful orthodox model in developing regions. It is meaningful to investigate this developing country case through the prism of the theoretical discussion of state-economy relationship because the theoretical discussion is heavily grounded on the development of the Global North. To this end, I discuss market self-regulation approach and state-centered approach in order to argue for state-in-economy approach. I examine the case of Chilean “double movement” by presenting welfare reforms based on orthodox ideology, highlighting the FOSIS and the Chile Solidario.