EN
The debate on relation between states and market has always been pivotal to development economics. The role of the state changes with a country's stage of economic development as well as changes in the external environment. The proposed solutions have varied between the socialist state planning model and the liberal model based on the Washington consensus. In between these two extremes there is a concept of developmental state linking active state intervention with a well developed private sector. The role of the state in development has undergone an extensive revaluation after to the recent economic crises and failure of a liberal approach. As a result, contemporary development economics abandons the dichotomy between states and markets.