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This paper argues that to understand the relevance of developmental states in East Asia and elsewhere, we need to focus on the changing development agenda in the early twenty-first century, especially how this connects with the global challenge of climate change and thereby sustainable, low-carbon development. It combines theories on state capacity and ecological modernisation to form the ‘new developmentalism’ concept. This is applied to study revitalised and refocused forms of state capacity aimed at realising the transformative economic objectives associated with sustainable development. New developmentalism helps us understand not only current state capacity practice in a climate challenged world but also how we have moved beyond original conceptions of developmental statism. It may be understood in the wider context of the sustainable development agenda and climate interventionism. As is argued, new developmentalism is most clearly evident in East Asia but can be applied in a wider geographic sense where strong forms of developmental state capacity are exercised towards meeting transformative sustainable development goals.

Japan remains a developmental state where the state guides and oversees economic development, and the strong bureaucracy and businesses in turn complement each other in leading and shaping policies to achieve developmental goals. Japan retains the institutions deemed necessary to enhance the cooperative behaviour of the bureaucracy, businesses and politicians, and norms about what is important in order for an interventionist state to implement policies aimed at achieving economic development and the autonomy of the state. Externally, Japan has practised economic diplomacy with tools such as development assistance to achieve its economic security and to promote the developmental state model abroad. The process of making foreign policy contextualised and reinforced the norms, for both Japan’s domestic and international audiences. Japan today tries to promote science and technology as a main catalyst for creating industries and supporting its domestic, export-oriented economy. This is based on Japan’s own interpretation of its historical path and economic success and is also used to justify its engagement in the Arctic, a region where Japan does not have any sovereign territories. Japan’s Arctic policy is as an extension of its economic diplomacy and an attempt to export the Japanese developmental state model.