Politics, Institutions, and Development

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Presentation transcript:

Politics, Institutions, and Development Francis Fukuyama Leadership Academy for Development #Lead4dev

The Scope of State Functions Minimal Functions Intermediate Functions Activist Functions Providing pure public goods Defense, Law and order Property rights Macroeconomic management Public health Improving equity Protecting the poor X-axis Addressing externalities Education, environment Regulating Monopoly Overcoming imperfect education Insurance, financial regulation Social Insurance Industrial policy Wealth redistribution

Two Dimensions of Stateness Strength of State Institutions Scope of State Functions

The Quality of Government

The State and Economic Growth Quadrant I Quadrant II Strength of State Institutions Quadrant III Quadrant IV Scope of State Functions

Government Strength v. Scope

Reform Path 1 Strength of State Institutions Scope of State Functions

Reform Path 2 Strength of State Institutions Scope of State Functions

Reform Path 3 Strength of State Institutions Scope of State Functions

Bringing About Policy Change The technocratic approach Bad policies are the result of ignorance Need to import the right model “Getting to Denmark”

Bringing About Policy Change The technocratic approach Bad policies are the result of ignorance Need to import the right model “Getting to Denmark” The political approach Bad policies exist because they serve vested interests Change requires us to think politically

Dealing with Political Constraints Stakeholder Analysis Who are the critical stakeholders? What are their interests? What incentives will change their behavior?

Dealing with Political Constraints Stakeholder Analysis Who are the critical stakeholders? What are their interests? What incentives will change their behavior? Identify vested interests and coalitions for change Within the bureaucracy Within the broader political system

Coalitions for Change Reform generates support What groups are potential supporters? How well are they organized? Can new groups be mobilized in support? What does a change coalition look like? How do I communicate my goals?

Entrenched Stakeholders All change threatens vested interests Who are the opponents? What are their interests? Can you change their preferences? If you can’t change them, can they be neutralized?

Some Concluding Thoughts No single template for successful reform Need to understand the environment Technical, political, cultural Strategies need to derive from concrete problems Solutions are iterative Leadership!