Developmental states are often associated with high economic growth. Japan, South Korea, China and Brazil are all examples, most of which grew at phenomenal rates. The National Development Plan in South Africa sets out the intention of the South African government to transform the government into a “capable and developmental state able to intervene to correct our historical inequities …” However, what the South African government means by the term “developmental state” is not entirely clear. To help bring some clarity, this paper distinguishes between the East Asian developmental state and the Scandinavian developmentalist welfare state. The paper furthermore draws on Bernard and Boucher's distinction between a “social investment state” and a “transfer welfare state.” The former is a more precise description of the Scandinavian developmentalist welfare state. Subsequently, the paper discusses the applicability of the developmental state framework to South Africa. Specifically, it argues that the East Asian model neither is a model that would work in South Africa, nor is it a model that South Africa would wish to apply. South Africa currently resembles more a transfer welfare state than the Scandinavian–Brazilian social investment state. The social investment state, though, is closer to what South Africa needs.