Now let’s look at the economical theories of development and how they link up with politic development.

First of all Nation Building has for aim not to bring development but to build the mechanisms that fund a State and its administration.

Secondly because I am lazy, I will just take the two main theories of economical development:
- Rostow and linear development (Capitalist theory)
- Samir Hamin and centre and periphery (Socialist theory)

Rostow theory is based on a Western centred historical approach of development.

You start with the prehistoric period to end up in a 7/11 like mall. The basic idea is being that with several stages of economical development (and technological development) comes political development.
1) Stone Age: No technology, no economy: no State
2) Antiquity: basic technology, basic trade economy self centred: the concept of Cite (in Greek in the text).
3) Middle age: limited technology, proto capitalist economy: kingdoms
4) Renaissance: birth of modern technology, birth of capitalism: kingdoms with centred administration.
5) Modern times: limited modern technology, take off period: birth of democracy
6) Contemporaneous times: full modern technology, full capitalist economy: democracy.
(It’s a resume)
The main idea of Rostow is that economy and governance are linked. His approach and assumption is that if a country becomes rich then it will become a democracy.
Rostow basically putted on paper the general gut feeling of what is development in West.
Unfortunately, China has proven he was partially wrong: having a capitalist economy does not imply that you get a democracy. China has even proven the inverse: a strong capitalist economy can lead to a strong dictatorial regime.

But were Rostow is right is on take off period. You need a healthy economy to support a strong State apparatus. That’s the move Chinese made in the early 80 when they started to drop communist economy for capitalist economy. (And what led USSR to its end). Unfortunately, State apparatus and State economy nature are not linked.

Samir Amin theory is the critic of Rostow and is middle East centred (He wanted it third world centred but took Egypt as model…).
It is also an historical based theory of development.
1) Self centred development: you exploit your own resources to build your economy.
2) Predatory development: you exploit neighbours resources to build you economy. Actual example is Rwanda development strategy.
3) Mercantile: you impose to your neighbours to trade with you to develop your economy. Basic example is the colonisation.
4) Centre and periphery: you have economical centres which are in advance and which pull up peripheral areas. Capitalism.

To make it simple: it’s the base of the drop oil theory.
The good thing in Samir Amin is that he completely separates political evolution from economical development.
Personally, I have a tendency to prefer Samir Amin to Rostow. In fact, Rwanda and Uganda are applying Samir Amin theory and it works well.
But the 4 dragons of Asia did apply Rostow (Germany and Japan also in some extends) and it worked out also. But in fact, the 4 Dragons had a mix between Samir Amin and Rostow.
Politically, economic wealth did lead to democracy. But economically, those countries had to 2 policies:
- auto centred heavy industry development (pure Rostow: initiate take off through internal employment and sector 1 development)
- center and periphery industry development for export: they developed economical niches to generate strong external trade to attract hard currencies. (A little like Colbert)

On that, I would recommend Arghiri Emmanuel, David Ricardo and the economic theory of underdevelopment. (basically to know what to not do! Like Haliburton in Iraq...)

Now, let’s look at what we are talking about: Nation Building.

Nation Building is aimed to build a State apparatus in order to create an interlocutor for Weberian modern Nations (China included).
The economical component of it is aimed to:
- fund the State apparatus
- stabilize a country by establishing a strong economy that will reduce the use of violence to survive by ordinary people.

Funding the State apparatus is simple (?): you impose taxes. That requires a strong administration that can collect transparently taxes and a strong legal base to legitimate taxations.
Already we do have a problem:
- Strong administration means qualified and dedicated people.
- Strong legal base means that the State does not act predatorily but on legal base.
In most of failed States and post conflicts context, you are missing both.

Secondly you need to have something to tax! In most failed states, you have a predominance of the informal economy. So there is no legally formal body to tax. And then you have a majority of the population living with such low revenues that you just cannot tax them.

So you need to have development programs to build an economy that will support the State apparatus that you are building.

But as the economy is weak, the State remains weak and then it is an open door to corruption, black economy and so on… Also, the new Elite you have promoted are making much more money in a failed State than in a fully installed modern State ran by Rule of Law (Cf Iraq and Afghanistan). So they do not work hard to establish a formal State. As the State is weak and corrupted, it looses its legitimacy in the eyes of everyday people. So you promote insurgencies which weaken the State… And so on and so on.

Fortunately, there is a solution. (to be found if you listen to me)
The actual model of development used is Canada and the natural resources based development to build a strong Democratic State.
Just 2 critics (not really elaborated):
- Natural resources centred development is basically neo colonialism with a new clown costume. Samir Amin theory.
- Canada as a model is just believing that because you have a democratic model all other countries following that model will be democratic. Rostow theory.

Result: nothing new since 1970!
It’s time for a change!
By the way, Fukuyama is a nice guy who use complex words to reinvent the wheel and explain with capitalist vocabulary what the Marxist economical theorist of development have already said.