The Political Economy of Growth: Democracy and Human Capital

Democracy is more than just another brake or booster for the economy. We argue that there are significant indirect effects of democracy on growth through public health and education. Where economists use life expectancy and education as proxies for human capital, we expect democracy will be an important determinant of the level of public services manifested in these indicators. In addition to whatever direct effect democracy may have on growth, we predict an important indirect effect through public policies that condition the level of human capital in different societies. We conduct statistical investigations into the direct and indirect effects of democracy on growth using a data set consisting of a 30-year panel of 128 countries. We find that democracy has no statistically significant direct effect on growth. Rather, we discover that the effect of democracy is largely indirect through increased life expectancy in poor countries and increased secondary education in non poor countries.     

Productivity Growth and the Political Economy of Social Security

The present paper provides an analysis of unfunded social securityas the outcome of a public decision making process in an endogenousgrowth economy. It employs a model in which there is a non-monotonic relationship beween productivity growth and the scale ofpublic intergenerational redistribution. The paper shows thatalthough unfunded social security need not harm growth in general,it is likely to harm growth in a democracy. This effect isreinforced by population aging.     

The Political Economy of Chile's Fast Economic Growth: An Olsonian Interpretation

A conceptual framework inspired by MancurOlson's contributions to political economyis used to explain Chile's recent economicand political performance, with particularemphasis on the `hidden hand', politicalstability, rent-seeking, policy-makingquality, institutions, cultural attitudesand cultural change, fortunate historicalaccidents, critical masses, and virtuouscircles and other `positive loops'. Theanalysis combines very long-term withshort-term perspectives, examining the warof Arauco, Basque immigration, open economypolicies, families' educational investment,economic technocrats, female labour forceparticipation, managerial perceptions oflabour, and (other) old myth shattering. Some future trends are also predicted.     

The Political Economy: Political Attitudes and Economic Behavior

It has long been recognized that voters bring their political behaviors in line with economic assessments. Recent work, however, suggests that citizens also engage in economic behaviors that align with their confidence—or lack thereof—in the political system. This alignment can happen consciously or, as we suggest, unconsciously, in the same way that positivity carries over to other behaviors on a micro-level. Using monthly time series data from 1978 to 2008, we contribute further evidence of this relationship by demonstrating that political confidence affects consumer behavior at the aggregate level over time. Our analyses employ measures more closely tied to the theoretical concepts of interest while simultaneously accounting for the complex relationships between subjective and objective economic indicators, economic behavior, political attitudes, and the media. Our results suggest that approval of the president not only increases the electorate’s willingness to spend money, but also affects the volatility of this spending. These findings suggest that the economy is influenced by politics beyond elections, and gives the “Chief Economist” another avenue by which they can affect the behavior of the electorate.     

The Political Economy of India's Fiscal Federal System and its Reform

This article examines recent and potential reforms in India'sfiscal federal system. We summarize key federal institutionsin India, including tax and expenditure assignments, and mechanismsfor Center–state transfers. We discuss the institutionalprocess by which reforms can and do take place, including therole of academics, political influences, and especially institutionssuch as the Finance Commission. In contrast to the past, recentcommissions have played a greater role in articulating an agendafor fiscal federal reform, which then proceeds through politicalbargaining. This change has taken place in the context of, andbeen influenced by, broader economic reform in India.     

政治经济学的理论突破与中国经济的第三次大发展

政治经济学的理论突破根源于生产力的突破。我国目前正面临着改革开放以来的第三次大发展的机遇 ,新的发展机遇需要政治经济学的理论突破 ,其核心问题是民营企业是否能与国有企业具有同等地位 ,能否成为中国社会主义经济的“主体”和“主导”的一部分或大部分。     

Forecasting the Political Economy of the Inner Solar System

Social structural methods are applied to forecast the political economy of the inner solar system to the 22nd century. One method considers structural indicators, specifically, population, social organization, environment, and technology. Another method examines the Tongan diaspora as an analog of human expansion into space. This future political economy could emerge as a consequence of user strain on a global electrical power grid that develops by 2050. Alternative energy needs could turn to space-based sources. If on-orbit space-based energy infrastructure provides the rationale, capability, and allure to see humans routinely living and working in space, their presence on the Moon and among the near-Earth asteroids can lead to a human diaspora to Mars and its moons. These events will build the multi-planet economy, the multi-world system of societies, and the transnational state. The development of Mars will reach a maturity of settlement from 2130 onward. As these potential events become history, capital would be transformed, and higher-order space logistics in a multi-world system of societies with its multi-planet economy would lay the foundation for a Solar System Federation. This federation constitutes transnational states among off-world human societies that could fill the vacuum of a fading Westphalian nation-state system on Earth.     

The Political Economy of Development

The approach focuses principally on economic linkages between developed and developing countries. It owes much to studies of Latin America and may be more difficult to apply to other parts of the third world where economic development is not necessarily seen as a primary objective of policy. Studies within the field have not generally succeeded at a global level. They have often been too deterministic to describe a world which is both complex and unpredictable. In any case it is more important to influence policy than to discuss the formation of historical structures. Dependency theory in particular has proved a poor guide to policy-makers. The New Right and public choice theory have been better tailored towards influencing policymakers, although this approach (like much dependency writing) divorces the content of public policy from the political system in which it is made. However, political economy of development studies have worked well at a lower level of abstraction and have contributed to a better understanding of public policy in some developing countries.     

The Political Economy of the Enhanced HIPC-Initiative

Only three years after its endorsement bythe World Bank and the IMF, the HeavilyIndebted Poor Country (HIPC) – Initiativewas considerably altered and enhanced. Thispolicy shift can be explained as a resultof utility maximization behavior bynational and international politicians,international bureaucrats and NGO. Apolitico-economic model suggests that theoverall rise of HIPC default risk and thesymbolic value of the year 2000 have beenthe two major determinants of changes involume, eligibility, and conditionalityrequirements.     

Explaining Capitalism: The Method of Marx's Political Economy

The central thesis of this article is that Marx's explanation of the significant phenomena of the capitalist economy draws upon a basic theoretical syntax of a determinist/latent functionalist type. This conclusion has three consequences. First, it extends the range of functionalist explanation in Marx beyond its traditional loci, namely the theory of history and the analysis of the role of the state and other institutions in stabilizing capitalism, into the very heart of Marx's project, his political economy. Secondly, it has a powerful, though indirect, impact on our understanding of what might loosely be called the normative component of Marx's writings in as much as it identifies a specific sort of unfreedom peculiar to capitalist society. Thirdly, it shows just how great a challenge is mounted against Marx's project by those who seek to recast its method of explanation along methodological individualist lines. For if the first two points are accurate, rational-choice Marxists are drawn into a critique of both the explanatory and normative core of Marxism.     

The Political Economy of Acid Rain

Over the past decade, acid rain has been transformed from arelatively unnoticed area of scientific inquiry into a majorenvironmental issue of regional, national, and internationalconcern. What is acid rain, why has it acquired such relativelysudden political prominence, and what are the prospects forthe adoption of policies addressing this issue? These questionsillustrate how the regional cleavages inherent in transboundaryair pollution problems have fractured the political coalitionswhich supported earlier environmental legislation. Understandingthe basis for that transformation, which requires informationfrom the natural and physical sciences as well as insights intothe economics and politics of the acid rain issue, is centralto developing an appreciation of the constraints on policymakingfor air quality management in the United States.     

The Political Economy of the Sino-Middle Eastern Relations

This paper attempts to understand the Sino-Mideast relations in terms of energy cooperation and the subsequent cooperation in the areas of trade and arms sales. It also examines the political economy of China’s energy policy toward the Middle East. The paper argues that the objective of China’s engagement in the Middle East is energy security rather than undermining the United States’ interests in the region. Contrary to realist assumptions, China is utilizing the existing Western institutions to achieve its goals in the region, a step highly welcomed and encouraged by Middle Eastern states. The paper attempts to develop a tridimensional and triangular approach to the political economy of the region in relation to the rapid pace of China’s involvement in the Middle East. Such involvement is generating substantial intellectual interests and anxiety among major players in the region in terms of its nature, goals and mechanisms. In so doing, China maintains a balance in its relations with protagonists in the region and skillfully navigates its national interest in the region.     

The Public Purpose of Political Economy

ABSTRACT

For too long the discipline of political science has ceded research on the dynamics of the national political economy to the field of economics. In this article, we explore the cost of this cession in the context of the public purpose. Following John Kenneth Galbraith, we define the public purpose in terms of its independence from the market economy and the planning system. Political scientists, and especially political theorists, are uniquely qualified to theorize power relations relative to a host of challenges that have emerged in today’s rapidly transforming national economies. Galbraith’s critique of mainstream economics, coupled with his understanding of power as an inescapable and perpetual dialectical process, provide guidance for theorizations that should attend to rather than deny the contested domain of the public interest and collective good.