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The role of the state in development has divided social scientists. Some argue that a strong state suffices, while others have put man made institutions central. History shows that granting rights to people and organizations spurred growth. Development does not result from a central plan carried out by state bureaucracy, but from competition among plural organizations. Market competition requires institutions that organize discourse. Financial markets close in times of war and revolution. Feudal organization and discourse has inspired management thinkers to develop models for modern organizations. Drucker wanted to liberate workers from oppressive bosses by letting markets decide on performance. His models have found widespread acceptance, although many organizations still cling to hierarchy. But, markets need to be complemented with judgment of people and projects. Organizations like Semco and Google have developed organization models that combine markets and individual judgments. These companies demonstrate that development depends foremost on the ability of organizations to turn competition into a positive force that enhances the value of human capital.
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- Discourse and Development in Modern Times
- Chapter 6
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