'Developmental' states often obfuscate the distinction between the state and the market, as state actors prefer political over economic solutions to market problems (market bypassing). Market bypassing is a process of replacing monopolies in the private sector with state monopolies; in so doing, the state transforms itself into a mafioso state. The business of the mafioso state is selling 'protection' to businesses and collecting extracts, either legal or illegal, in return. The result of the mafioso state in the economy is the conglomeration of businesses, as is clearly the case in both South Korea and Turkey.
The Mafioso State: State-led market bypassing in South Korea and Turkey
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