PIA 2020 Introduction to Public Affairs THEORIES OF GOVERNANCE AND POLITICAL ECONOMY Week FIVE

Overview The Public Sector and the Economy: “Contemporary Models” of Governance and Socio-Economic Change Keynes and he European Model, North Atlantic Unity and Japan Neo-Orthodoxy: The Debates Over Development: Africa, Asia and Latin America Models of Governance Institutions Comparative Methodology Issues

Review: The Functions of Government under Keynesian Control 1. Traditional- police and law and order 2. National Defense 3. Social Services- Education and Health and Welfare 4. Resource Mobilization 5. Priming the Pump: Economic Stimulus and Control

The Functions of Government under Keynesian Control- Continued 6. Control the flow of Money in times of recession ana inflation 7. Economic Growth generation: From Roosevelt and the New Deal to Kennedy and Johnson, The Great Society 8. LDCs and Modernization Theory: Agraria vs. Industria (Turner and Holm) 9.The challenge of Public Choice, rationalism and the University of Chicago School: Neo-Orthodoxy- less influence outside of the Anglo-Saxon world: Counter-views from c. 1960

Unification of the North Atlantic- 1930s-1970s- The Primacy of Keynesianism 1. Monetary Policy 2. Fiscal Policy Wage and Price controls Engine of Economic Development

Social Democracy: Debate The Rose as a Symbol Socialism and the Rise of Labor in Europe The Second International All European Countries have a Social Democratic Party (The Second International)

The European Model, North Atlantic Unity and Japan Focus on the State Economic System Collectivist vs. Individualist Approach Europe vs. Anglo-Saxon Debates about Groups: Competitive vs. Cooperative (Corporatist)

American Activism vs. European Socialism (U. S American Activism vs. European Socialism (U.S. Social Democratic Party)

Command Economy The debate: Keynesianism and European Socialism (the Rose)- How much is this part of Command Economy Framework? (Guy Peters) Development Administration: Command Economics in the Third World? (Heady, Riggs vs. Vincent and Eleanor Ostrom) Development Management: An Oxymoron?

5. Neo-Orthodoxy. Rejection of Keynes

Milton Friedman (July 31, 1912 – November 16, 2006) Neo-Orthodoxy

Neo-Orthodoxy or the University of Chicago School People have rational preferences between outcomes that can be identified and associated with values. Individuals maximize utility and firms maximize profits. People act independently on the basis of full and relevant information. Government should not interfere with individual behavior The Invisible Hand of the Market is the key to Economic Growth International Reform is called Structural Adjustment

Summary: Debate over the Economy 1. The International Contemporary State: Continental Europe vs. the U.S. or the U.K. 2. Adam Smith, "the hidden hand" and Classical Economics- An Anglo-Saxon View esp. USA (The Neo-Classical Rebound) 3. How Developmental? LDCs 4. Eastern Europe and Former Soviet Union: History of Command Economy (whole or part):

2011- 2017 Debates About Obamacare?”

What is Next? From 1989-2025 End of Cold War Application of Structural Adjustment to Socialist Countries September 11 Democracy and Governance Public Private Partnerships Evaluation and Contracting Out Three D’s: Diplomacy, Defense and Development Whole of Government Approach

The Public Sector and Development- Weber vs. Marx- Revisited John Maynard Keynes 1883-1946 The Public Sector and Development- Weber vs. Marx- Revisited One of the major goals of this course is to be to examine this issue (Law and Order vs. Social and Economic Change) and Examine the role that the bureaucracy has played in the development process in Europe, the states of the former Soviet Union, the United States and the newly industrializing states of East Asia, Africa and Latin America. OR NOT!!!

International Political Economy and Underdevelopment The Domestic Debate vs. International Order Orthodoxy vs. Law and Order Small Government vs. Colonialism Keynesianism vs. Neo-Orthodoxy vs. Structural Adjustment

Theories of Social Class Just a Little Bit of Theory

The Debate: Colonial World Map-1914

IMAGES AND THEMES 1870-1960 THE COLONIAL WORLD

Independence of Namibia 1989

Majority Rule in South Africa, June 1994

Independence for South Sudan July 2011

International Development and Keynesianism

DEVELOPMENT THEORY FROM THE FRENCH REVOLUTION TO KEYNES WHAT IS POLITICAL ECONOMY THE RELATIONSHIP BETWEEN MARKETS, TRADE AND MONEY WITH LAW, GOVERNANCE AND MONEY

Count Henri de Saint-simon (October 17, 1760-May 19, 1825) Origins of Political Economh

SAINT-SIMONISM STRATEGY OF STATE LEADS INDUSTRIALIZATION THAT DIFFERS FROM ADAM SMITH AND KARL MARX FOCUS ON PRIVATE SECTOR-GOVERNMENT CO-MANAGED PROCESS (Neo-Mercantilism) GOVERNMENT TO CONSTRUCT MEANS OF COMMUNICATION- BRIDGES, ROADS AND INFRASTRUCTURE PROTECT BOTH PRIVATE SECTOR AND WORKERS RIGHTS INFLUENCES LATER IDEAS OF KEYNES ESPECIALLY IN DEVELOPING COUNTRIES

Conceptual: Agraria vs. Industria

The Development Model Post World War II Keynes and Modernization Theory State as Development Manager Industrialization vs. Rural Development The Take Off Point: Capital Accumulation

The Development Model: Keynes from Saint-Simon Use of the Government to promote economic growth and development Thus importance of the Chalmers Johnson book on MITI Japan and China have been "state guided market economies“ Thesis- Economic Development involved an expansion of the official bureaucracy By Indirection- Focus on Africa, Caribbean, Latin America, South Asia and the Middle East

Ministry of International Trade and Industry and the Asia Model

Japan and Ministry of International Trade and Industry (MITI) Asian Model Corporatist- Inter-meshing of state and Private Sector (Mercantilism) Management (not Political) Focus Growth and Export Model for Asian Tigers

Japan and Economic Development Chalmers Johnson Author of the Week

Classification of the countries by developing status Classification of the countries by developing status. Blue - developed countries Green - developing countries Red - underdeveloped countries

Problem Asian Tigers Under Attack, 1997-98 (Fragility of Emerging Market States)

Globalization: U.S. Style? Or Trumpism Defined?

Development Theory and The Public Sector Problem: Inefficiency Corruption Interest Influence Authoritarianism Patronage

ISSUES: THE DEBATES OVER DEVELOPMENT Colonial Heritage Political Nationalization Adapted Keynesianism Foreign Aid Anti-Private Sector Pariah Groups, White Settlers, Chinese, Indians, Lebanese-Arabs (The Jews in Europe Debates)

Debates about development- An overview of “Dead Aid” Arguments

Dambisa Moyo “The Financial Times summarized the book's argument, stating "Limitless development assistance to African governments, [Moyo] argues, has fostered dependency, encouraged corruption and ultimately perpetuated poor governance and poverty."

Critique of Keynes and Development: The So-called “Nanny State”

Contemporary Issue: Privatization and the Political Economy In the last decade, critics of the public service have argued that efficient government is small government. Privatization and Contracting Out has been the order of the day. Eg. Private Security Structural Adjustment and the Washington Consensus Mini-Discussion of Contracting Out

Sustainability and International Public Policy: The Extractive Industries Transparency Initiative- International Monetary Fund (IMF)- An An Alternative Ideal/Theory

Privatization: Contracting, for profits and non-profits The Answer to Bad Governance, Corruption and Inefficiency? This "neo-classical" model of development/Structural Adjustment has been exported overseas Especially to the less developed and transitional states in Africa, Asia, Eastern and Central Europe and Latin America.

Debates about Contracting-Out Bureaucrat Bashing Social Change and the Private Sector For profit privates and the non-profit sector The problem: What South Africans Call “Tenderocracy”

Privatized Water Supplies

Privatization?

Key: Issue of Relationship between government and the economy. Issue of Privatization Public-Private Partnerships- Including NGOs (The new buzz word). Note: John Armstrong's argument that education and training are critical variables in understanding “development" strategies in Western Europe and then Soviet Union. HRD not culture or structure defines economic systems Argument: PPPs get around bureaucratic rigidity and private sector corruption

Privatization in Security Services? Executive outcomes or Blackwater?

President International Stability Operations Association, Doug Brooks, GSPIA PhD Alum

The Problem of Pariah Groups: Compete Unfairly in Private Sector Historically- Jews in Europe Chinese in Asia Koreans in U.S. Cities Indians and Arab Speakers in Africa

Uganda Asians Expelled 1972

LDCs An absence of "clients" or Too many? The Role of patronage, corruption and Crony capitalism. -Indonesia -Korea -West and West Africa -South Africa -China -U.S.?

Privatization Leads to Crony Capitalism in Developed, Transitional and Developing Countries

Human Rights vs. Human Security: Level of Rights and Human Security 1. Basic needs: food, shelter, security 2. Political Rights: Speech, Representation, Religion 3. Social: Health and Education 4. Economic: Employment, income

Conflict and Human Security: Is This the Problem Conflict and Human Security: Is This the Problem? The Lord’s Resistance Army in Uganda

Debate about Development 2001-Present: A Review Micro-Issues: Debate about Development Keynesianism vs. Neo-Othodoxy Human Rights and Human Security Public-Private Partnerships Evaluation and Contracting Out Three Ds: Diplomacy, Defense and Development

The True Nature of the Contract According to Marx

Short Answers Mid-term Short answer questions should be answered in about 3-7 points or sentences To score a 5 out of 5 points- answers should contain most all key points and individual points or extra information like an example 4 out 5 points, 3 out of 5 etc. is explained on the grading rubric on the website if you want more detail After receiving your test back, you should compare your answers to the discussion notes and grading rubric, and if you find any issues, we are glad to go over them and adjust grades accordingly

Short Answers Mid-term At test, bring extra paper if you think you want it and pencils and pens No notes are allowed All electronic devices need to be put away please and other materials 3 hours to complete exam, answering 20 of 25 question options, each worth up to 5 pts. Multiple choice questions are worth 0 or 5 points, so it is a hit or miss Short answer questions can range from 0-5 points Grading rubric is online for those who want more details

Short Answer Trivia Midterm Practice

Rules: no notes allowed Choose a speaker 1 Question will be put up Will have 2 mins to write out with group Group will be randomly selected to share their answer Each answer wins up to 5 points for their answer

Question What is the difference between secular and religious regimes with examples? Secular Society: A society that emphasizes rule of civics (The representation of the needs of a local communities) over religious authority. Treating all citizens equally regardless of religious/nonreligious affiliations. Examples: The United States, Turkey, Australia Non-Secular Society: A society that emphasizes rule of religious authority. Typically, but not limited to, countries with an official state religion Christianity, Islam, Buddhism, Judaism Examples: Greece, Saudi Arabia, Malaysia *Important: Secular Countries also protect non-religious affiliation* Sources: The Future of Freedom, Fareed Zakaria, Pages 80, 60-62. & 35

Question What is the difference between Public Policy and Public Administration? Public Policies are the laws and regulations that tell us what is to be done in the public interest. Public Administration has many definitions due to its wide scope. Essentially, PA is how public policy is to be carried out. Includes the 4 E's of Public Administration: Economy, Efficiency, Effectiveness, and Equity The difference between Public Policy and Public Administration is essentially that policy is "what" is to be done, and administration is "how" it is to be done.

Question What is the summary of Kafka’s story? A land surveyor, K., is meeting with the mayor of a city where he has been summoned. The mayor, who is sick and in bed, tells the surveyor that his services aren't necessary – all of the city's land has already been surveyed. When the surveyor asks how this happened, the mayor explains that the paperwork must have been mishandled or lost by another department. The mayor then asks his wife to sift through his files (which are bundled in no particular order) to find the documentation. The story ends with the mayor explaining the labyrinth of bureaucratic dysfunction which may have caused the error – although he says, no one can be sure what really happened.

Question What is a Social System? A social system represents a specific interrelationship between the different institutions and functions of a society. Social system is not a group of people, but to the complex pattern of the norms of interaction that arises among and between them. A.G.I.L., which represents the four basic functions that all social systems must perform if they are to persist. Adaptation: the capacity of system to interact with the changing environment (Ex. Economy) Goal Attainment: the ability to determine and order the goals and to promote achievement (Ex. Political system) Integration: to ensure cooperative and harmonious social relationships within the system (Ex. Law) Latency: to maintain cultural pattern or value (Ex. Education) Sources: Talcott Parsons, An Outline of the Social System, 1951

Question What is ascription verses achievement? Ascription is the culture where social status is determined at people’s birth. Achievement is the culture where social status is determined by people’s hard work and relationships. In the “ascription culture”, the goal is to get power to have everything done; in the “achievement culture”, the goal is to achieve more.

Question What is the difference between a nation, state, and tribe? Nation = A group of people (population) with a shared culture, language, history, and possibly a religion. • State = A sovereign or politically organized territory with a government recognized by other states; can contain nations or tribes. • Tribe = Ethnic group or ethnic identity. A population with common kinship (ancestral lineage), ethnicity, culture and language. Is not recognized as a legal entity.

Question What are the 3 Types of legitimacy, termed by Max Weber? Traditional legitimacy – citizen's compliance to law result by force of values and ingrained customs Charismatic legitimacy – citizen's compliance to law result of a leader who is passionate with charisma and a personal devotion to the government's rule who is in a position of power or influence Bureaucratic Legitimacy – the modern concept of legitimacy, citizen's compliance rests on citizens' acceptance of the validity of laws and beliefs in the authority of government administrators based on rational rules

Question What are the definitions of developed and developing in terms of countries? Developed – Industrialized, strong governance and institutions capable of providing services for its citizens, high income per capita, high standard of living compared with developing or fragile states. Example – Germany Developing – low levels of industrialization, weak but functioning economies, limited civil services and institutions. Example – Afghanistan