On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth

Social cohesion - that is, the inclusiveness of a country's communities - is essential for generating the trust needed to implement reforms. Citizens have to trust that the short-term losses that inevitably arise from reform, will be more than...

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Main Authors: Ritzen, Jo, Easterly, William, Woolcock, Michael
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2000/09/693293/good-politicians-bad-policies-social-cohesion-institutions-growth
http://hdl.handle.net/10986/19790
id okr-10986-19790
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURAL EXTENSION
AVAILABLE DATA
AVERAGE GROWTH
BAD POLICIES
BUREAUCRACY
CITIZENS
CIVIL LIBERTIES
CIVIL SOCIETY
CIVIL SOCIETY ORGANIZATIONS
COLLECTIVE ACTION
COMMUNITIES
CONCEPTUAL FRAMEWORK
CORRUPTION
CRISES
CROSS COUNTRY REGRESSION
DATA SET
DEMOCRACY
DEVELOPED COUNTRIES
DEVELOPED WORLD
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING WORLD
DEVELOPMENT ISSUES
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC POLICIES
ECONOMIC POLICY
EDUCATION SYSTEM
EMPIRICAL RESULTS
EMPIRICAL SCRUTINY
ETHNIC DIVERSITY
ETHNIC FRACTIONALIZATION
ETHNIC GROUP
ETHNIC HETEROGENEITY
EXTERNAL SHOCKS
FACTOR ENDOWMENTS
FINANCIAL CRISIS
FORMAL INSTITUTIONS
GINI COEFFICIENT
GLOBAL ECONOMY
GLOBAL MARKETS
GOVERNMENT EFFECTIVENESS
GROWTH COLLAPSE
GROWTH RATES
HOUSEHOLD LEVEL
HUMAN CAPITAL
HUMAN DEVELOPMENT
INCOME
INCOME COUNTRIES
INCOME DISTRIBUTION
INEQUALITY
INEQUALITY INDEX
INSTITUTIONAL QUALITY
INTEREST GROUP
KEY DEVELOPMENT OUTCOMES
LABOR FORCE
LIVING STANDARDS
LOCAL SOCIAL CAPITAL
LONG TERM
LONG-TERM UNEMPLOYMENT
LOW- INCOME COUNTRIES
MACROECONOMIC ENVIRONMENT
MACROECONOMICS
MIDDLE CLASS
MIDDLE CLASS CONSENSUS
MIDDLE CLASS SHARE
NATURAL RESOURCE
PARTICIPATORY PROCESSES
PER CAPITA GROWTH
PER CAPITA INCOME
PHYSICAL CAPITAL
POLICY REFORM
POLICY RESEARCH
POLITICAL CONFLICT
POLITICAL INSTABILITY
POLITICAL INSTITUTIONS
POLITICAL LEADERS
POLITICAL RIGHTS
POLITICAL TENSIONS
POLITICIANS
POOR COUNTRIES
POOR GROWTH
PREDICTED GROWTH
PROPERTY RIGHTS
PUBLIC INSTITUTIONS
RANDOM SAMPLE
REGULATORY BURDEN
RELIGIOUS GROUPS
RESOURCE ENDOWMENTS
RULE OF LAW
RULE OF LAW QUALITY
RURAL AREAS
SAFETY NET
SENSITIVITY ANALYSIS
SOCIAL CAPITAL
SOCIAL CHANGE
SOCIAL COHESION
SOCIAL CONDITIONS
SOCIAL DIVISIONS
SOCIAL EXCLUSION
SOCIAL INDICATORS
SOCIAL INSTITUTIONS
SOCIAL SAFETY
STATISTICAL ANALYSIS
STRUCTURAL FACTORS
TRANSITION ECONOMIES
spellingShingle AGRICULTURAL EXTENSION
AVAILABLE DATA
AVERAGE GROWTH
BAD POLICIES
BUREAUCRACY
CITIZENS
CIVIL LIBERTIES
CIVIL SOCIETY
CIVIL SOCIETY ORGANIZATIONS
COLLECTIVE ACTION
COMMUNITIES
CONCEPTUAL FRAMEWORK
CORRUPTION
CRISES
CROSS COUNTRY REGRESSION
DATA SET
DEMOCRACY
DEVELOPED COUNTRIES
DEVELOPED WORLD
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING WORLD
DEVELOPMENT ISSUES
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC POLICIES
ECONOMIC POLICY
EDUCATION SYSTEM
EMPIRICAL RESULTS
EMPIRICAL SCRUTINY
ETHNIC DIVERSITY
ETHNIC FRACTIONALIZATION
ETHNIC GROUP
ETHNIC HETEROGENEITY
EXTERNAL SHOCKS
FACTOR ENDOWMENTS
FINANCIAL CRISIS
FORMAL INSTITUTIONS
GINI COEFFICIENT
GLOBAL ECONOMY
GLOBAL MARKETS
GOVERNMENT EFFECTIVENESS
GROWTH COLLAPSE
GROWTH RATES
HOUSEHOLD LEVEL
HUMAN CAPITAL
HUMAN DEVELOPMENT
INCOME
INCOME COUNTRIES
INCOME DISTRIBUTION
INEQUALITY
INEQUALITY INDEX
INSTITUTIONAL QUALITY
INTEREST GROUP
KEY DEVELOPMENT OUTCOMES
LABOR FORCE
LIVING STANDARDS
LOCAL SOCIAL CAPITAL
LONG TERM
LONG-TERM UNEMPLOYMENT
LOW- INCOME COUNTRIES
MACROECONOMIC ENVIRONMENT
MACROECONOMICS
MIDDLE CLASS
MIDDLE CLASS CONSENSUS
MIDDLE CLASS SHARE
NATURAL RESOURCE
PARTICIPATORY PROCESSES
PER CAPITA GROWTH
PER CAPITA INCOME
PHYSICAL CAPITAL
POLICY REFORM
POLICY RESEARCH
POLITICAL CONFLICT
POLITICAL INSTABILITY
POLITICAL INSTITUTIONS
POLITICAL LEADERS
POLITICAL RIGHTS
POLITICAL TENSIONS
POLITICIANS
POOR COUNTRIES
POOR GROWTH
PREDICTED GROWTH
PROPERTY RIGHTS
PUBLIC INSTITUTIONS
RANDOM SAMPLE
REGULATORY BURDEN
RELIGIOUS GROUPS
RESOURCE ENDOWMENTS
RULE OF LAW
RULE OF LAW QUALITY
RURAL AREAS
SAFETY NET
SENSITIVITY ANALYSIS
SOCIAL CAPITAL
SOCIAL CHANGE
SOCIAL COHESION
SOCIAL CONDITIONS
SOCIAL DIVISIONS
SOCIAL EXCLUSION
SOCIAL INDICATORS
SOCIAL INSTITUTIONS
SOCIAL SAFETY
STATISTICAL ANALYSIS
STRUCTURAL FACTORS
TRANSITION ECONOMIES
Ritzen, Jo
Easterly, William
Woolcock, Michael
On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth
relation Policy Research Working Paper;No. 2448
description Social cohesion - that is, the inclusiveness of a country's communities - is essential for generating the trust needed to implement reforms. Citizens have to trust that the short-term losses that inevitably arise from reform, will be more than offset by long-term gains. However, in countries divided along class and ethnic lines, and with weak institutions, even the boldest, most civic-minded and well-informed politician (or interest group) will face severe constraints in bringing about policy reform. The authors hypothesize that key development outcomes (particularly economic growth) are most likely to be associated with countries that are both socially cohesive and governed by effective public institutions. They test this hypothesis for the sample of countries with available data. The authors develop a conceptual framework based on the idea of social cohesion, then review the evidence on which it is based. While several earlier studies have shown that differences in growth rates among developing countries are a result of weak rule of law, lack of democracy, and other institutional deficiencies, the authors focus on the social conditions that give rise to these deficiencies. They also seek to establish empirically a causal sequence from social divisions to weak institutions to slow growth. The essence of their argument, supported by new econometric evidence, is that pro-development policies are comparatively rare in the developing world less because of the moral fiber of politicians (though that surely matters) than because good politicians typically lack the room for maneuver needed to make desired reforms. This lack of maneuverability is a product of insufficient social cohesion and weak institutions. The authors also explore the determinants of social cohesion, focusing on historical accidents, initial conditions, and natural resource endowments. Social cohesion should not be seen as a concern primarily of developing and transition economies. Indeed, it is important in the United Kingdom as in Ukraine, in Canada as in Colombia, in the Netherlands as in Australia.
format Publications & Research :: Policy Research Working Paper
author Ritzen, Jo
Easterly, William
Woolcock, Michael
author_facet Ritzen, Jo
Easterly, William
Woolcock, Michael
author_sort Ritzen, Jo
title On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth
title_short On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth
title_full On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth
title_fullStr On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth
title_full_unstemmed On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth
title_sort on "good" politicians and "bad" policies : social cohesion, institutions, and growth
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2000/09/693293/good-politicians-bad-policies-social-cohesion-institutions-growth
http://hdl.handle.net/10986/19790
_version_ 1764440728619974656
spelling okr-10986-197902021-04-23T14:03:44Z On "Good" Politicians and "Bad" Policies : Social Cohesion, Institutions, and Growth Ritzen, Jo Easterly, William Woolcock, Michael AGRICULTURAL EXTENSION AVAILABLE DATA AVERAGE GROWTH BAD POLICIES BUREAUCRACY CITIZENS CIVIL LIBERTIES CIVIL SOCIETY CIVIL SOCIETY ORGANIZATIONS COLLECTIVE ACTION COMMUNITIES CONCEPTUAL FRAMEWORK CORRUPTION CRISES CROSS COUNTRY REGRESSION DATA SET DEMOCRACY DEVELOPED COUNTRIES DEVELOPED WORLD DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT ISSUES DEVELOPMENT POLICIES DEVELOPMENT POLICY ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC POLICY EDUCATION SYSTEM EMPIRICAL RESULTS EMPIRICAL SCRUTINY ETHNIC DIVERSITY ETHNIC FRACTIONALIZATION ETHNIC GROUP ETHNIC HETEROGENEITY EXTERNAL SHOCKS FACTOR ENDOWMENTS FINANCIAL CRISIS FORMAL INSTITUTIONS GINI COEFFICIENT GLOBAL ECONOMY GLOBAL MARKETS GOVERNMENT EFFECTIVENESS GROWTH COLLAPSE GROWTH RATES HOUSEHOLD LEVEL HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME COUNTRIES INCOME DISTRIBUTION INEQUALITY INEQUALITY INDEX INSTITUTIONAL QUALITY INTEREST GROUP KEY DEVELOPMENT OUTCOMES LABOR FORCE LIVING STANDARDS LOCAL SOCIAL CAPITAL LONG TERM LONG-TERM UNEMPLOYMENT LOW- INCOME COUNTRIES MACROECONOMIC ENVIRONMENT MACROECONOMICS MIDDLE CLASS MIDDLE CLASS CONSENSUS MIDDLE CLASS SHARE NATURAL RESOURCE PARTICIPATORY PROCESSES PER CAPITA GROWTH PER CAPITA INCOME PHYSICAL CAPITAL POLICY REFORM POLICY RESEARCH POLITICAL CONFLICT POLITICAL INSTABILITY POLITICAL INSTITUTIONS POLITICAL LEADERS POLITICAL RIGHTS POLITICAL TENSIONS POLITICIANS POOR COUNTRIES POOR GROWTH PREDICTED GROWTH PROPERTY RIGHTS PUBLIC INSTITUTIONS RANDOM SAMPLE REGULATORY BURDEN RELIGIOUS GROUPS RESOURCE ENDOWMENTS RULE OF LAW RULE OF LAW QUALITY RURAL AREAS SAFETY NET SENSITIVITY ANALYSIS SOCIAL CAPITAL SOCIAL CHANGE SOCIAL COHESION SOCIAL CONDITIONS SOCIAL DIVISIONS SOCIAL EXCLUSION SOCIAL INDICATORS SOCIAL INSTITUTIONS SOCIAL SAFETY STATISTICAL ANALYSIS STRUCTURAL FACTORS TRANSITION ECONOMIES Social cohesion - that is, the inclusiveness of a country's communities - is essential for generating the trust needed to implement reforms. Citizens have to trust that the short-term losses that inevitably arise from reform, will be more than offset by long-term gains. However, in countries divided along class and ethnic lines, and with weak institutions, even the boldest, most civic-minded and well-informed politician (or interest group) will face severe constraints in bringing about policy reform. The authors hypothesize that key development outcomes (particularly economic growth) are most likely to be associated with countries that are both socially cohesive and governed by effective public institutions. They test this hypothesis for the sample of countries with available data. The authors develop a conceptual framework based on the idea of social cohesion, then review the evidence on which it is based. While several earlier studies have shown that differences in growth rates among developing countries are a result of weak rule of law, lack of democracy, and other institutional deficiencies, the authors focus on the social conditions that give rise to these deficiencies. They also seek to establish empirically a causal sequence from social divisions to weak institutions to slow growth. The essence of their argument, supported by new econometric evidence, is that pro-development policies are comparatively rare in the developing world less because of the moral fiber of politicians (though that surely matters) than because good politicians typically lack the room for maneuver needed to make desired reforms. This lack of maneuverability is a product of insufficient social cohesion and weak institutions. The authors also explore the determinants of social cohesion, focusing on historical accidents, initial conditions, and natural resource endowments. Social cohesion should not be seen as a concern primarily of developing and transition economies. Indeed, it is important in the United Kingdom as in Ukraine, in Canada as in Colombia, in the Netherlands as in Australia. 2014-08-27T20:50:48Z 2014-08-27T20:50:48Z 2000-09 http://documents.worldbank.org/curated/en/2000/09/693293/good-politicians-bad-policies-social-cohesion-institutions-growth http://hdl.handle.net/10986/19790 English en_US Policy Research Working Paper;No. 2448 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research