Political – Economic Interactions: Acemoglu and Robinson’s Extractive and Inclusive Institutions Why nations fail: Geography hypothesis Culture hypothesis.

Slides:

Advertisements

Similar presentations

THE INDUSTRIAL REVOLUTION Capitalism v. Socialism

Advertisements

Government’s Role in Economy

Beyond the Solow Growth Model. Three Reasons to Go Beyond the Solow Growth Model (SGM) The SGM doesn’t fit facts too well Saving and Investment Don’t.

Adam Smith’s Glorious Vision

North, Wallis, Weingast: Interpreting Human History Primitive State | “Natural State” Limited Access Society (e.g., Crony Capitalism) | Open Access Society.

and Washington Consensus

Development Prospects

Russia Former Soviet Union. Leninism World War I –Defeat in Russo-Japanese War of 1904 –Defeat in WWI of Russian Revolution –A series of riot.

1. People can’t have everything they want, so they choose. 2. People make better decisions when they weigh the present and future benefits and costs of.

The Role of the State in ME & NA. Background European Colonialism: Britain : Bahrain, Cyprus, Egypt, Iraq, Israel, Jordan, Kuwait, Oman, Qatar, Sudan,

Dependent on developed countries –Export markets –Source of imports Primary product exports –Agricultural goods, raw materials –Labor-intensive manufactures.

The European Intellectual Revolution: “The Enlightenment” Readings: Spodek, pp , ,

Transition from Command to Free Enterprise. Transitional Economy  Is an economy which is changing from a centrally planned economy (Command) to a free.

Review Political Economy of the Global South Prof. Tyson Roberts.

Global Governance Institutions

Adam Smith & Karl Marx & John Keynes Three men who shaped modern Economics.

Economic Systems Comparing Economic Systems. Warm Up- Economic Systems Free Market Voluntary exchange of goods between individuals and business in a market.

Laissez-Faire Economics

Leadership Development: Creative Policy Making and Innovative Solutions Presented By: Representative Terri McCormick, Wisconsin State Legislature.

Reaction and Reform: New Economic Theories

The Enlightenment.

The Role of Government In a Market Economy.

DETERMINANTS OF FINANCIAL DEVELOPMENT “Finance, Financial Sector Policies, and Long-Run Growth” by Ross Levine and Asli Demirgüç-Kunt PRESENTED BY MARISHA.

Ia Natsvlishvili, Tbilisi State University Tbilisi Georgia

Mexico. Mexican Miracle ▪ Rapidly increasing GNP ▪ Orderly transition from authoritarian to democratic ▪ Newly industrialized ▪ Transitional democracy.

BULGARIAN ECONOMY ON THE ROAD TO EUROPEAN UNION AND ECONOMIC AND MONETARY UNION IVAN ISKROV GOVERNOR BULGARIAN NATIONAL BANK 14 July 2006 Athens.

24.1 Liberal Reforms in Great Britian & Its Empire

Goodbye Washington Consensus, Hello Washington Confusion?

The Washington Consensus and its aftermath The power of markets: Adam Smith and the Wealth of Nations “The invisible Hand” distributes goods and resources.

Human poverty What is human poverty:. What is human poverty: Lack of basic needs: Food Water Shelter Clothing.

The Origins of Liberalism

Enlightenment (In America) Bell Work: What was the scientific revolution? How did this event contribute to the enlightenment movement?

Globalization III: Structural Adjustment Policies Western industrial economies – Deregulation and privatization -post-Fordism; downsizing; restructuring.

Principles of Government

Balance between markets and intervention. Learning outcomes – Discuss the positivenegative outcomes of market- orientated policies, including a more allocation.

Global Determinants of Defense Reform: Economic Liberalization Robert Looney Professor, National Security Affairs Naval Postgraduate School Conference.

Cumulative Causation: Stuck in a Trap Lack of social infrastructure Low payoff to skill  Little skill acquisition  Lack of social infrastructure Lack.

INTRODUCTION Output fell sharply Private enterprises overtook the state sector Exports rose-Moving toward industrial countries Poverty increased sharply.

The Origins of Liberalism (Classical Liberalism) The only part of the conduct of anyone for which he is amenable to society is that which concerns others.

States, Markets, and the Good Society State (central planning by government) Market (free market) What balance between states and markets most enhances.

A. Provide a Legal System to make and enforce laws and to protect private property rights. B. Provide Public Goods that individuals or private businesses.

Transition from Command to Free Enterprise. I. Transitional Economy  An economy which is changing from a centrally planned economy (Command) to a free.

INT 200: Global Capitalism and its Discontents The Global Economic Order.

THE MARKET ECONOMY The Industrial Revolution.  The answer to our question seems to lie in the political and legal institutions of each nation  Rule.

Fairness and the Washington Consensus Joseph E. Stiglitz Century Foundation April 7, 2000.

The role of the state and development Intro. – State before and after Washington Consensus – New Consensus – Recent theories of Development policy formation,

THE TWO PARTY TRADITION. Phase 1: Federalists Government of the wealthy, best educated Strong Central GOV Support commerce, manufacturing Executive.

Chapter 1. Chp. 1 Vocabulary 1. State 2. Nation 3. Sovereignty 4. Government 5. Social contract 6. Constitution 7. Industrialized nation 8. Developing.

Economic Systems Economic Goals Most societies share certain basic economic goals. Societies rank the importance of these goals based on their needs.

INT 200: Global Capitalism and its Discontents The Global Economic Order.

Washington Consensus.

Economic Development and Transition Chapter 18. Levels of Development  Developed Nations –Northern countries –Industrial countries –First and Second.

The Institutional Analysis of Economic Development and Social Progress Peter Boettke Econ 828/Fall November 2005.

The Origins of Liberalism The only part of the conduct of anyone for which he is amenable to society is that which concerns others. In the part which merely.

Economic Systems Chapter 2 Section 4 Modern Economies.

Chapter 5: The Economic Globalization Puzzle: Ten Pieces “We have a tug-of-war, really, between a domestic economic and a global economy.” …Bill Gross,

Sara Hsu.  Societies choose development trajectories based on population, geography, and other factors.  What is development? Concept used after WWII.

Chapter 2 Section 4 Modern Economies

Free Trade vs Protectionism, That is the Question

Scientific Revolution Sparks the Enlightenment ( )

Chapter 2 Section 4 Mixed Economies.

ECONOMIC GLOBALIZATION

Policy Trends & Dynamic Advantage

Government’s Role in Economy

Economic Systems Command Economy

Economics – Chapter 2 Economic system: the method used by a society to produce and distribute goods and services. Factor payments: The income people receive.

Washington consensus:

The Origin and Growth of Liberalism

Economic and Political –isms

The Origin and Growth of Liberalism

Presentation transcript:

Political – Economic Interactions: Acemoglu and Robinson’s Extractive and Inclusive Institutions Why nations fail: Geography hypothesis Culture hypothesis Ignorance hypothesis  Prescriptions Authoritarian growth Modernization Theory – Stages of Growth Washington Consensus

Washington consensus: 1. Fiscal policy discipline; 2. Redirect public spending away from subsidies and toward pro- growth, pro-poor services (education, health, infrastructure investments; 3. Tax reform – broadening the tax base and adopting moderate marginal tax rates; 4. Interest rates that are market determined and positive (but moderate) in real terms; 5. Competitive exchange rates: neither fixed nor free-floating; 6. Trade liberalization ; 7. Liberalization of inward foreign direct investment; 8. Privatization of state enterprises; 9. Deregulation… except prudent oversight of financial institutions; and, 10. Legal security for property rights.

Extractive Institutions  Vicious Circles Why Nations Fail: Institutions Hypothesis Economic institutions Insecure property rights Slavery Plantation system Encomienda Mita/Repartimiento Monopoly La Serrata Dual economy Crony capitalism Marketing boards Political institutions Absolutism Infighting Failed state Ethnic fractionalization Iron Law of Oligarchy Elites Libro d’Oro Indirect rule Patronage networks “Redemption – Jim Crow Apartheid Status Quo

Inclusive Institutions  Virtuous Circles Why Nations Fail: Institutions Hypothesis Economic institutions Enforced property rights Patent protection Rule of law Open Markets Commenda Political institutions Pluralism Constraint on executive Secret ballot Free media Muckrakers Creative Destruction (pursuit of transient rents)

Transition to Inclusion and Growth Critical junctures Disrupt existing institutions Open opportunities... Seize opportunities!... Contingency Critical junctures in Acemoglu and Robinson’s “history” Neolithic revolution Fall of Rome Black plague Atlantic trade Glorious Revolution Industrial Revolution French Revolution Colonialism World War I Post-colonialism Black empowerment Mao’s death Ideas as Critical Junctures Christopher Columbus Isaac Newton/Enlightenment Benjamin Franklin/Adam Smith John Locke/James Madison Vladimir Lenin Maynard Keynes/Friedrich Hayek Martin Luther King, Jr.

Transition to Inclusion and Growth Institutional drift  small differences – Disease environment Critical junctures – Reversal of fortune Centralized state Pluralist coalition