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

2. 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

3. 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

4. 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

5. 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

8. 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)

9. 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)

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

11. 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?

12. 5. Neo-Orthodoxy. Rejection of Keynes

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

15. 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

16. 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):

18. 2011- 2017 Debates About Obamacare?”

19. 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

20. The Public Sector and Development- Weber vs. Marx- Revisited
John Maynard Keynes
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!!!

21. 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

22. Theories of Social Class
Just a Little Bit of Theory

23. The Debate: Colonial World Map-1914

24. IMAGES AND THEMES
THE COLONIAL WORLD

25. Independence of Namibia 1989

26. Majority Rule in South Africa, June 1994

27. Independence for South Sudan July 2011

28. International Development and Keynesianism

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

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

31. 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

32. Conceptual: Agraria vs. Industria

33. 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

34. 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

35. Ministry of International Trade and Industry and the Asia Model

36. 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

37. Japan and Economic Development Chalmers Johnson Author of the Week

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

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

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

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

42. 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)

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

44. 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."

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

46. 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

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

48. 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.

49. 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”

50. Privatized Water Supplies

51. Privatization?

52. 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

53. Privatization in Security Services? Executive outcomes or Blackwater?

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

55. 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

56. Uganda Asians Expelled 1972

57. 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.?

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

59. 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

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

61. 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

62. The True Nature of the Contract
According to Marx

63. 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

64. 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

65. Short Answer Trivia Midterm Practice

66. 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

67. 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, & 35

68. 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.

69. 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.

70. 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

71. 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.

72. 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.

73. 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

74. 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