Political Economy of State Formation

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Statebuilding versus state formation: the political economy of transition in Iraq and Libya

Statebuilding versus state formation: the political economy of transition in Iraq and Libya

Also in this field, the literature offers salient starting points for the analysis. First, the criticism levelled against the excessive economic determinism of post-conflict reforms acknowledges that conflict resolution does not mark the end of “war economies”, and the beginning of “peace economies”. Rather, it claims that economic dynamics continue to adapt and change during transitions from conflict to peace (Cramer 2009; Strazzari and Kamphuis 2012). The abrupt introduction of institutions and policies for economic growth competes with a profound realignment and readjustment of economic (but not only) interests and trajectories. The continuous preponderance of informality is evident of clashes between economic rules implemented during statebuilding interventions and strategies adopted by domestic actors––a point which is raised by both critical and problem-solving approaches. These arguments seek to explain what occurs beyond formality in an attempt to overcome a limitation of statebuilding interventions: an over-reliance on models that neglect the empirical functioning of post-conflict societies. Beyond these valuable starting points, the literature on the political economy of statebuilding has only partially grasped the implications of a new development in the statebuilding agenda that is intimately connected to the interaction between international interventions and domestic actors. This new development entails an exceptional focus on the private sector as an actor for change in the economic and political domains of post-conflict countries. The practitioner literature has treated private sector development in prescriptive terms and by doing so it has overlooked key aspects that highlight changes in perspectives regarding statebuilding interventions. This study aims to shed light on this phenomenon––private sector development––that, despite ranking high among the goals of external actors, remains largely unexplored in the academic literature. It seeks to do so through an empirical analysis that considers the private sector within the broader encounter between statebuilding and state formation.
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The political economy of the Ganga River : highway of state formation in Mughal India, c.1600-1800

The political economy of the Ganga River : highway of state formation in Mughal India, c.1600-1800

the process of global inter-connection also acquired unprecedented momentum. While the Portuguese and Spaniards had already maritime networks of global trade in the 1500s, towards the end of the century Dutch and English merchants began to participate in global maritime trade. In order to inquire into this coincidence of “run to the coast” by both the Mughals and Europeans, I shall briefly reflect on the broader phenomenon of globalization, by which I mean an increasing inter-connectedness of world regions. Scholars such as Ronald Findlay and Kevin O’Rourke have recently suggested that globalization might have started after the Mongol conquests unified the central Eurasian landmass in the thirteenth century. 6 However, forces were already working towards such unification and regional inter-connection within the Eurasian landmass in an earlier period. 7 Some scholars even consider the history of the modern world system going back at least five thousand years. For them there were many world systems without a worldwide reach. Indeed, looked at from this perspective the origins of globalization in the sense of growing economic, political and cultural interactions among societies or regions of the world could stretch back to many millennia. 8 In a way, such interactions certainly brought different societies of the world closer. 9 The Indian subcontinent had been historically an open society with links to the outside world millennia before Europeans arrived by sea in the late fifteenth century. 10 In this study, however, our definition of globalization will imply the economic interconnectedness of the Indian subcontinent and its commercial interaction with the outside world in the age of maritime commerce. I shall argue that rather than being a passive recipient of the globalizing impulses coming from the West, the Ganga plain was a prominent node of global interconnectedness, and that the region had its own economic and political dynamism. In the age of maritime commerce, the Ganga plain’s capacity to furnish trade goods and attract bullion should be seen as a prominent feature
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The Fifth Republic at fifty : the changing face of French politics and political economy

The Fifth Republic at fifty : the changing face of French politics and political economy

The linking of presidential and parliamentary majorities was crucial to the evolution of the Fifth Republic party system, and a corollary of the re-interpretation of the relationship between the two heads of the French executive discussed above. The presidential majority cast the mould for future relations between President and Prime Minister. From 1962 until cohabitation in 1986, the construction of a majority in the second round of the presidential election, and the linking of those presidential electors with a majority in the Assemblée Nationale, the result of a construction of a coalition of support for the President became the name of the game (Avril 1988). This saw the birth of a French constitutional convention which Charlot describes as ‘the principle of presidential initiative’ (1983: 28) which subordinates the party to president in policy formation, policy selection, and electoral campaigning. The President’s electoral campaign platform became the blueprint for the subsequent government programme. This ensured a thorough presidentialisation of the French party system, and an end to the discredited regime des partis of the fourth republic, a point De Gaulle himself reiterated in his 1965 Presidential election campaign in presenting himself as ‘a head of state not beholden to a party’ (Avril, 1995, 48).
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Private sector influence and the international political economy of banking regulation: The formation of the Basel II Accord 1998 2004

Private sector influence and the international political economy of banking regulation: The formation of the Basel II Accord 1998 2004

This section analyses whether or not the sample of countries included in the study have characteristics which generate a form of selection bias regarding structural power. Considering such selection bias is important since structural power is a much less readily observable property than other phenomena o f interest to the study. In conducting the analysis of such ‘structural power selection effects’, it is first necessary to establish the parameters o f variation among BCBS countries, which necessitates measuring structural power in both o f its main state-varying forms, that being the ‘relative structural power o f the state in finance’ and the ‘structural dependence o f the state on finance capital’ {policy-level structural power selection affects are addressed at the beginning o f Chapter 10). First, I considered the structural power o f each BCBS state, considering in particular the relative strength and dominance of different BCBS countries. I employed a variety o f data for this purpose from both the World Bank World Development Indicators and data from The Banker database. For each BCBS country, this dataset includes the standardized, US dollar-values (current prices) for Gross National Income, the average Tier 1 capital of the largest 10 banks, the average assets of the largest 10 banks, the percentage o f Tier 1 capital o f the top 100 banks in the world, and a measure o f how many of the top 10 banks in a given country are in the The Banker top 100 list (each o f these values is taken from 2001, the mid-point year o f the study). Each o f these values is intended to measure the financial sector resources within each BCBS country, and thus each can be understood as an indicator o f the structural power resources o f the state in question. Since the Structural Power o f the State is understood in relational, rather than absolute terms, there is a need to produce a relationally- based indicator which indicates which BCBS countries are strong in this dimension, and which are weak. Consequently, I conducted a statistical factor analysis of the data described above, using a principle-component factoring model.204 This factor analysis revealed that for each o f the quantitative indictors described above, there is a common element or underlying ‘factor’ common to all variables. Figure 2.10 below reports the predicted factor scores for each BCBS country produced through this analysis.
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The Malleable Politics of Welfare to Work Reform: Germany's "Hartz" activation compared with Dutch, British and Irish cases  ACES Cases No  2009 1

The Malleable Politics of Welfare to Work Reform: Germany's "Hartz" activation compared with Dutch, British and Irish cases ACES Cases No 2009 1

In terms of the core features of its political economy Ireland was little more than a politically independent region of the British political economy from 1922 to 1987: a liberal market economy, a liberal welfare state, and an industrial relations system that could sustain only a very weak corporatism. Independence had led to a political system characterized on the one hand by a “British-style” administrative apparatus (unitary, with a dominating Finance Ministry, limited autonomy and weak capacity (Lee, 2008)) and on the other, thanks to the electoral system, parties which were heavily clientelistic rather than programmatic. The party system was a 2-bloc (but not left-right) until the 1980‟s, but then moved to a pivot system. By 1987 this political system had yielded little but low growth and emigration, the 1958 shift to an open economic strategy and heavy investment in education in the 1970‟s notwithstanding. But Ireland didn‟t do Thatcherism. EU membership opened up new fiscal and, more importantly, new ideological possibilities. Whilst Mrs. Thatcher was dismantling “Rhenish” practices in Britain, Ireland was assembling them, despite lacking the usual preconditions. Recent DNA evidence has even revealed Helmut Schmidt as the grandfather of Irish social partnership 20 .
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The JOBS Act:  Investor Protection, Capital Formation, and Employment in an Increasingly Political Economy

The JOBS Act: Investor Protection, Capital Formation, and Employment in an Increasingly Political Economy

Employment has been at the forefront of political and economic debate as a result of the recent recession. The JOBS Act was passed with the express purpose of increasing employment. As commentators and representatives of various industries assailed the new legislation as dangerous to investor protection, many did not see the simple truth directly in front of them: the act may not fulfill its purpose of creating jobs. 206 Some other areas of the law seem not to add up as well. One example discussed was that while many think allowing hedge funds to no longer face a ban on general solicitation will harm investors, others think the industry will not be affected. 207 Additionally, companies are choosing to go beyond what is necessary when disclosing to investors because they know the entity’s value will increase. 208
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Back to the future? Thoughts on the political economy of expanding state ownership in Russia

Back to the future? Thoughts on the political economy of expanding state ownership in Russia

The legal and political onslaught against the oil company Yukos has, of course, been the most visible and controversial sign of the shift towards greater state control. The expropriation of Yukos assets in a series of auctions to settle tax debts and bankruptcy claims has represented the largest and most crudely engineered instance of re-nationalisation to date. 5 Nevertheless, the Yukos case remains unique as an instance of straightforward, judicially administered expropriation: no other company has found itself under the kind of pressure brought to bear on Yukos, and most other state acquisitions have involved at least the appearance of orderly commercial transactions. However, it would be difficult to argue that the state has been paying fair market value for its new acquisitions: many of the businesses listed in Table 1 changed hands after their previous owners came under mounting regulatory, legal and political pressure. Various members of the Sakhalin oil and gas consortia came under such pressure prior to selling stakes to Gazprom and Rosneft, and so did the owners of Tambeyneftegaz, Nortgaz and Novatek, to name but three. In the case of AvtoVAZ, the takeover was executed without any formal purchase being necessary. Thus, while the methods used to bring assets back into state ownership have generally been somewhat more civilised than the heavy-handed tactics used against Yukos, they have often involved a degree of coercion that would be hard to reconcile with any respect for property rights. The methods by which the state has been making acquisitions are thus as much a source of concern as is the fact of increasing state ownership.
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Police Powers, Human Rights, and the State in Kenya and Uganda: A Comparative Analysis

Police Powers, Human Rights, and the State in Kenya and Uganda: A Comparative Analysis

Absent a thorough understanding of the nature of the state and its links to the political economy of underdevelopment, the parameters of police powers and the coext[r]

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Political Economy

Political Economy

In the old countries there is a large sprinkling of men whose minds, even if they have had no special training, are yet prepared by high cultivation to appreciate the force of the abstra[r]

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The moral and political economy of producers and consumers

The moral and political economy of producers and consumers

Abstract. There appears to be a kind of master discourse of consumption, consumers and consumer society, generated and sustained, primarily, by discourses of consumer sovereignty, and the customer-driven firm. To the extent that we, as consumers, accept (all or some of) this master discourse then we are partly responsible for the negative consequences that befall many workers producing the goods and services we consume – e.g. we often see relatively inexpensive commodities in terms of a ‘bargain’ rather than the result of someone else’s low pay. There is, however, a contradiction at work because we often do not accept all (or some) of this master discourse. We often do care about the plight of those who produce the goods and services we consume. The problem is the master discourse does nothing to encourage these ethical predispositions or to challenge us to probe our ignorance. The aim of this paper is to explore this contradiction. After reminding ourselves, in part one, of some fundamental facts of political economic life, part two introduces moral economy. Part three uses this political and moral economic perspective to focus attention on the negative consequences that can arise for workers, when consumers accept (all or some of) this fetishized master discourse. Part four explores the contradiction by considering cases where consumers do care about the plight of those who produce the goods and services they consume.
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The rites and relics of value : sacrifice and communality in nineteenth-century political economy, anthropology, and fiction

The rites and relics of value : sacrifice and communality in nineteenth-century political economy, anthropology, and fiction

other anthropologists the atomized relations of competitive capitalism replace the communality, interdependence, and reciprocity of ancient societies, this developmental narrative becomes inverted in political economic texts. Mill links the accumulation of wealth and advancing modes of subsistence to increasing levels of interdependence and sacrifice. In the “Preliminary Remarks” to the Principles of Political Economy, Mill claims that unlike the “savage state,” the demands of an increasing population in progressive societies cause scarcities and unequal distribution of goods that can only be offset by more labor and sacrifice (2: 11-12). Both in the System of Logic and the Principles, Mill connects the progress of society with co-operation and the ability to restrain selfish impulses. “What is lost in the separate efficiency of each, is far more than made up by the great capacity of united action. In proportion as they put off the qualities of the savage, they become amenable to discipline….The peculiar characteristic, in short, of civilized beings, is the capacity of co-operation….” (3: 708). Advanced capitalist societies are more interdependent whereas, in the “savage state,” individuals can survive in isolation. Unlike the ‘savage’ who has few wants and lacks the capacity for self- restraint, the English are successful because of their capacity for productiveness and self- denial (Mill 2: 103-104). This view is echoed by Marshall, who claims that in those societies where “a tribal sense of duty in strengthening the tribe” is strongest, self- sacrifice is “deliberately adopted as a basis of action” (Marshall Principles 243). Those races win the Darwinian struggle for survival wherein “the individual is most willing to sacrifice himself for the benefit of those around him […]” (Marshall Principles 243). Not only is the progress of a society dependent on its capacity for self-sacrifice and
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Political Economy

Political Economy

The topic of this year’s annual meeting, “Political Economy”, has, at least, two dimensions. The first one is the new discussion of the role of government in a modern democratic market society. As I discussed two years ago at the same occasion, the great financial and economic crisis of the recent years lead us to reconsider this role. The second dimension is to what extent political processes are topics of economic analyses or, to state it somewhat differently, the relation between ‘Economics’ (Volkswirtschaftslehre) on the one and ‘Political Economy’ (Politische Ökonomie) on the other hand. Both topics are interrelated.
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EFFECT    OF ELECTORAL MALPRACTICES ON SUSTAINABLE DEMOCRACY IN NIGERIAAuthor(s): Muhammed Bello Umar and Musa    Zakari

EFFECT OF ELECTORAL MALPRACTICES ON SUSTAINABLE DEMOCRACY IN NIGERIAAuthor(s): Muhammed Bello Umar and Musa Zakari

The concept of social contract, if well established, creates an avenue that increase benefits between the party to the contract in areas such as economy, moral values and the political. In other words, social contract has a strong temporal dimension such as the willingness of people to work together to maintain the social contract is strongly influenced by how they view the future. If the future starts to become very uncertain and citizens doubt the safety of their lives, then they can see little worth in cooperation with their rulers to keep the social contract in order. This is because democracy is based on social contract between the government and the governed. The citizens willingly surrender their mandate to the elected or chosen officials to represent them and to govern based on collective interest of all, for a common goal (societal well-being) thus, failure to fulfil the agreement spells a betrayal of the social contract and thus, may lead to withdrawal of allegiance by the citizens.
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The Development of the Public Private Partnership Concept in Economic Theory

The Development of the Public Private Partnership Concept in Economic Theory

The founder of this theory is an American the Nobel Prize-winning economist James McGill Buchanan, according to which, a person who is engaging in political activities, participating in the development and implementation of economic decisions, who serves as a public office (public servant, parliamentarian, and president) is not neces- sarily guided by the interests of public welfare. By using political (bureaucratic) institu- tions, a person tries to realize self-interests, gain political or economic “rents”. Often the practice of lobbying (actions aimed at supporting public decisions in order to meet the interests of elites) and the theory of logrolling (mutual support of decisions by cer- tain related groups in order to satisfy the interests of all members), trading votes (vote buying) are using. The main objective of rent seeking is to get some privileges, prefe- rences, government loans, information or to limit competition. Representatives of this theory concluded that there is a political inequality and possibility of adopting irration- al decisions for society. Therefore, they are not denying the role of the state, which should assure the development of free market under civilized legal basis (Buchanan & Tullock, 1962).
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'The Political Economy of Ethnicity',

'The Political Economy of Ethnicity',

‘all identities ... have been socially constructed ... quite often such identities, particularly minority identities, are at first imagined by powerful states … To the degree that the identity is stigmatized by the larger state ... it is likely to become for many a resistant and defiant identity. Here invented identities combine with self- making of a heroic kind …

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Essays in political economy

Essays in political economy

For crisis to occur there is a need for coordination. This is well known: what is less clear is what trigger coordination? This paper has investigated the role of news in affecting investors’ beliefs and in anticipating the beginning of the European Sovereign Crisis. In doing so it has introduced a series of contribution which ranges from the provision of a newly collected dataset and to a new approach to the analysis of the European Sovereign Crisis. The study attempted to provide a rigorous explanation on why did the crisis start when it did. In doing so it argues that, in order to understand the onset of the crisis, there is a need to go beyond a mere analysis of economic fundamental. I build on the existing literature on sovereign crisis, by showing that a significant part of the surge on government bond spreads in the Eurozone was disconnected from underlying changes in a number of economic indicators. I then propose a new approach by studying whether the amount and the type of news related to sovereign debt might have played a role in the triggering of the crisis by increasing the level of uncertainty among investors. Testing these claims empirically is not trivial because there is no existing attempt to measure news media that might be relevant for financial investors. Hence, this paper has proposed a unique and newly collected dataset on news from the main media outlets in a set of 5 European Countries from September 2007 to September 2014. I have mostly focused on political information which, by their nature, is not immediately quantifiable, more subjective and difficult to interpret. I defined political information as all the news about political stories/events related to the country sovereign debt. Using different estimation techniques, which range from time series to dynamic panel estimations, my estimates shows that the amount of news fosters the coordination between investors and eventually leads to an increase in bond prices.
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The political economy of development

The political economy of development

At the same time, Cliffe Leslie, another past member whom we are proud to claim3 stressed the importance of " the collective agency of the community, through its positive institutions as[r]

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Essays in Political Economy

Essays in Political Economy

A particularly interesting feature of these committees is a sudden change in their governing rules. Before September 2013, the central government had the right to veto any project. Hence, a project needed a majority with the vote of the central government. With three voting members, the only way a project was approved in a municipal OCAD before Septem- ber 2013 was with the votes of both the mayor and the central representative. The vote of the center was required because of its veto power and the vote of the mayor was guaranteed because she is the proposer. Similarly, in state and regional OCADs, the winning coalition was the governor and the central representative. However, the Colombian Supreme Court found the veto right unconstitutional on 11 September 2013 following an application of a lawyer. This implied that the votes of any majority became sufficient to implement a project. In the municipal OCADs, the implication of this decision was that the governor and the mayor could pass projects without requiring the vote of the central government. In what follows, I assume that the Supreme Court decision provides an exogenous shift to the vote aggregation mechanism used in the OCAD committees. There are several indications toward this point. The first is the numerous interviews conducted at Bogota, where the bureacrats were either unaware of the case alltogether, or did not expect the decision to go against the center. In addition, in none of the nationally circulated newspapers, El Tiempo, El Espectador or El Periodoco had news about the Supreme Court case prior to the decision. Hence, the Supreme Court decision provides a plausibly exogenous shift to how OCADs aggregate preferences and hence provides me the power of identification that I will describe later.
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The political economy of ideas

The political economy of ideas

We develop a conceptual framework to highlight the role of ideas as a catalyst for policy and institutional change. We make an explicit distinction between ideas and vested interests and show how they feed into each other. In doing so the paper integrates the Keynes-Hayek perspective on the importance of ideas with the currently more fashionable Stigler-Becker (in- terests only) approach to political economy. We distinguish between two kinds of ideational politics – the battle among different worldviews on the efficacy of policy (worldview politics) versus the politics of victimhood, pride and identity (identity politics). Political entrepreneurs discover identity and policy ‘memes’ (narratives, cues, framing) that shift beliefs about how the world works or a person’s belief of who he is (i.e. identity). Our framework identifies a complementarity between worldview politics and identity politics and illustrates how they may reinforce each other. In particular, an increase in identity polarization may be associated with a shift in views about how the world works. Furthermore, an increase in income inequality is likely to result in a greater incidence of ideational politics. Finally, we show how ideas may not just constrain, but also ‘bite’ the interests that helped propagate them in the first instance.
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Essays in Political Economy

Essays in Political Economy

I find that overall compensation growth is larger under Democrats and in better economic states, as measured by the unemployment rate. In particular, I find that wage growth under Democrats is approximately 0.43 percentage points larger than than under Republicans, while pension growth is about 1.33 percentage points larger. Delay in reaching agreement is also significantly lower under Democrats by approximately 1.45 months. Additionally, the model implies that increases in the unemployment rate at the time bargaining begins tend to decrease both wages and pensions. Simulations from the calibrated model show that, for a representative bargaining spell, an approximately one percentage point decrease in initial unemployment rate generates higher wage growth by about 0.53 percentage points for Democrats or 0.44 percentage points for Republicans. Pension growth responds by about 0.31 percentage points for Democrats and 0.06 percentage points for Republicans, depending on the level of unemployment. Finally, as consistent with previous work, pension growth is larger for bargaining spells that begin with more well-funded pension plans. This chapter contributes to three main strands of the literature. First, the model is a version of the general stochastic bargaining model developed in Merlo and Wilson (1995), which can rationalize delay in bargaining settings. Most applications of the model, includ- ing Merlo (1997) and Diaz-Moreno and Galdon-Sanchez (2005), assume transferable utility and bargaining over a unidimensional, perfectly divisible object. 7 In this chapter, however, the governor and union have different, non-linear utilities over bargaining outcomes, which are multi-dimensional wage-pension pairs. Non-transferable utility makes sense in this case relative to other applications, since the union cares about the wage and pensions insofar as they increase consumption, while the governor cares about wages and pensions primarily through its effect on elections and the state budget. Thus, whereas in private union bar-
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