Explaining the relative success of a developmental state in economic development: a comparison of Malaysia and Ghana

Malaysia and Ghana are two countries that both experienced European colonial rule and shared similar socio-political settings prior to independence. Both inherited underdeveloped economic and political systems from the exploitative colonial administrations. For both countries, the post-independence era saw the implementation of ambitious programs for national development, mainly through the adoption of the Developmental State model, which involves state-led macroeconomic planning for economic development. Currently, however, the two countries present contrasting levels of economic development, with Malaysia outpacing Ghana on several economic indicators. This study explains the differential levels of development by using the Applied Thematic Analysis Approach and concludes that Malaysia’s economic success has its basis in a relatively conducive socio-political setting, stable political environment, viable institutional and bureaucratic structures that engendered efficient harnessing of resources, and continuity in implementing development plans.