What Does Political Economy Tell Us About Economic Development and Vice Versa?
The author reviews how three pillars of political economy-collective action, institutions, and political market imperfections-help us answer the question: Why do some countries develop and others do not? Each makes tremendous advances in our under...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/3211802/political-economy-tell-economic-development-vice-versa http://hdl.handle.net/10986/14786 |
| Summary: | The author reviews how three pillars of
political economy-collective action, institutions, and
political market imperfections-help us answer the question:
Why do some countries develop and others do not? Each makes
tremendous advances in our understanding of who wins and who
loses in government decision making, generally, but only a
subset of this literature helps us answer the question. The
study of political market imperfections strongly suggests
that the lack of credibility of pre-electoral political
promises and incomplete voter information are especially
robust in explaining development outcomes. From the
institutional literature, the most powerful explanation of
contrasting development outcomes links political checks and
balances to the credibility of government commitments. |
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