This is only true if you do it wrong. Read "How Asia Works" to find out how SK and Japan built good nearly-state-owned companies through export discipline.
The article notes much more foundational properties of the booming Japanese economy, like a smaller portion of private sector output being taxed to support the public sector, as more likely causes of its growth.
This is only true if you do it wrong. Read "How Asia Works" to find out how SK and Japan built good nearly-state-owned companies through export discipline.