Neo-liberal policies of 1980's and 1990's have resulted in serious financial crises and balance of payments problems in all over the world. These policies have remained insufficient and defective in the face of modern capitalist system. Under these circumstances, the notion of nation-state has begun to be eroded and this fact leads some social scientists to neo-logical efforts of neo-liberalism. As a result, the functions of the state in modern capitalist world and new liberal development policies have been reconsidered. In this study, we shall question the implications of 'industrial district models' that can be regarded as a new industrial development model of new liberal paradigm.