Statedriven

Statedriven, often written as state-driven, is an adjective used in political science, economics, and public administration to describe systems, policies, or processes that are primarily guided or controlled by a government or state authority. In this sense, the state sets strategic aims, directs investment, and coordinates activities across sectors, rather than relying on spontaneous market forces.

In economics and development, state-driven approaches contrast with market-driven models. State-driven development involves industrial policy, public investment, and supports for key sectors to foster growth, technological progress, and employment. Examples include East Asian developmental states that used policy-led investment strategies; public ownership or dominant state participation in natural resources; and social welfare systems funded and administered by the state.

In governance and public administration, state-driven policy emphasizes central planning, regulatory frameworks, and coordination across ministries and agencies to achieve social or economic objectives. This approach is often discussed in debates over the appropriate balance between market mechanisms and public intervention, as well as in studies of state capacity and policy coherence.

Critics argue state-driven approaches can suffer from inefficiency, bureaucratic delays, political capture, and misallocation of resources. Proponents argue they enable strategic investment, address market failures, support long-term objectives, and ensure universal access to essential services.

Related terms include state-led development, planned economy, industrial policy, and welfare state.