The organizational path was less well laid out. Given that the late developers had little faith that their small and underdeveloped private-sector firms could lead growth at a pace that would satisfy their needs, they had two options: they could create government enterprises to undertake business activity, or they could intervene in the functioning of markets to create space for a favored few private firms to grow relatively unhindered by competition. In either situation, the country's savings were directed through a largely captive financial system to the favored few firms. Governments also
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option for late developing nations: state owned enterprises or handpicked 'winners' that receive govt help through investment and policies.
few examples of success with SOEs (france, taiwan, soviet union--though in last case claims this progress was not sustainable as it hinged on revolutionary fervor (only lasts so long) and terror)
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