The concept of the state in relation to development has been analyzed under different theories. First of all the state refers to a modern and western way to operate under a unify authority in each field in order to achieve the interest of the whole society. The state’s principal charge was to accelerate industrialization, modernizing agriculture, providing infrastructure that are necessary for the urbanization and improve living condition (i.e. health, education, welfare). Growth-oriented states pursued their commitment by developing trade and industry with well-designed, consistent, and thoroughly implemented policies. Specific policy measures varied but were generally aimed at easing supply-and-demand constraints faced by private entrepreneurs. Some of these interventions were direct, and others, indirect. On the supply side, for example, the capitalist states helped facilitate the availability of capital, labor, technology, and even entrepreneurship. Thus supply of capital was boosted at times by superior tax collection and public investment, at other times by using publicly controlled banks to direct credit to preferred private firms and sectors, and at yet other times by allowing inflation to shift resources from both agriculture and urban labor to private industrialists. In this essay there will be two ideal-typical historical patterns of how state authority is organized and used in the developing world: neo-patrimonial states and developmental state.
Firstly the term neo-patrimonial has been used for the state that perform on the basis of patron-client relations and personal rules. Neo-patrimonial states often emerged in societies with weak private sectors, but instead of strengthening the private sector, these states appropriated scarce economic resources and diverted them everywhere but toward productive investment. Inconsistent economic policies, failure