Subsidy Entrepreneurship and a Culture of Rent-Seeking in Singapore’s Developmental State

Abstract

Developmental state scholars argue that through “embedded autonomy”, state activism can steer society towards positive outcomes without capture by private interests. This paper questions this claim through a case study of such activism in Singapore. It argues that not only may rent-seeking have been encouraged by Singapore’s use of industrial policy but that such a policy goes hand in hand with attempts by state actors to create an economic culture that legitimises such behaviour. The wider implication drawn is that mission-oriented state activism may require extensive cultural engineering to foster consensus over the relevant “missions”, but this level of social penetration also increases the risk of private interests capturing the state in less visible ways.