Global Political Economy of Development

Global Political Economy of

Development

Dr. Allyson Benton Department of International Politics

City, University of London

How does democracy matter for development?

Information

Policies

Institutions

Democracy Growth

& Development

Representative Democracy Promotes Economic Growth and Development

Examples of Policies Economic Policies

• Sectoral Policy (industry, agriculture, services)

• Labor/Employer Relations Policy

• Macroeconomic Policy (fiscal, tax/spend, currency)

• Trade Policy Social Policies

• Public Policies

• Public Infrastructure

Examples of Institutions Regulatory Institutions

• Legal Institutions (Property Rights and Contract Enforcement)

• Regulatory Agencies (of conduct/quality in goods, services, labor, finance) Stabilizing Institutions

• Monetary institutions (to ensure macroeconomic stability)

• Social Insurance Systems (unemployment, retirement, public goods) Legitimizing Institutions

• Conflict Management (independent judiciary, independent trade unions)

Regulatory Institutions

Stabilizing Institutions

Legitimizing Institutions

Democracy Growth

& Development

Free & Fair Elections Universal Suffrage

Alternation in Power

Citizens gather information, organize, and select parties and

representatives to advocate for their interests in

government

Elected representatives are accountable to citizens through

the election process

Governments support the creation of additional

institutions to protect their citizens’ interests, which

protects the market

Representative Democracy Promotes Economic Growth and Development

This Assumes Representative Democracy is Inclusive

Wealthy Citizens

Middle Class Citizens

Poorer Citizens

Representative Democracy

Female Citizens Male

Citizens

Ethnic Majority Citizens

Ethnic Minority Citizens

Religious Majority Citizens

Religious Minority Citizens

Urban CitizensRural

Citizens

Wealthy Citizens

Middle Class Citizens

Poorer Citizens

Female Citizens Male

Citizens

Ethnic Majority Citizens

Ethnic Minority Citizens

Religious Majority Citizens

Religious Minority Citizens

Urban CitizensRural

Citizens

Representative Democracy

But Not Everyone Sees their Interests Taken into Account

Wealthy Citizens

Middle Class Citizens

Poorer Citizens

Female Citizens Male

Citizens

Ethnic Majority Citizens

Ethnic Minority Citizens

Religious Majority Citizens

Religious Minority Citizens

Urban CitizensRural

Citizens

Even fewer have the chance to interact with representatives to exchange views

Representative Democracy

Two Additional Pathways Needed for Connecting Democracy to Development

(1) Participatory Governance

(2) Social Welfare Systems

Participatory Governance

State-sanctioned institutions that devolve decision- making authority to venues that incorporate both

citizen and government officials and create opportunities for policy ideas, feedback, and oversight.

Within Decentralized Government: Local Participatory Budgeting

Local Policy Councils (Health, Women, Housing, Safety) Town Hall Meetings

Social Welfare Social welfare policies empower

(formerly disenfranchised and/or marginalized) citizens and thereby create a sense of inclusion

and belonging that encourages political and policy participation.

Citizen associations more effectively pressure government to fulfill its policy promises.

Citizen participation leads to the formation of associations to advocate for their preferred policy

goals.

Participatory Governance

Representative Government

Social Welfare Systems

Policy Representativeness

Policy Feedback

Policy Accountability

DEVELOPMENT

Powerful Together Social Welfare Systems

No Yes

Participatory Governance

No Lowest Impact on

Human Development

Medium Impact on Human

Development

Yes Medium Impact on

Human Development

Greatest Impact on Human

Development

How can democracy be promoted (from abroad)?

The International “Spread” of Democracy

International Diffusion

Democracy diffuses across nations via different

mechanisms

Coercion, Competition, Learning, Emulation

Democracy can spread within countries (across regions) as well

Do you think participatory democracy and social

welfare programs can be imposed through coercion?

What might be a better way to promote them instead?

The International “Spread” of Democracy

International Promotion

Democratic governments promote democracy abroad

Democracy promotion is strategic (countries more

likely to make the transition appear to receive help

Governments can promote democracy within countries (across regions) as well

Why do international governments often promote

democracy alongside poverty programs?

Why do they choose to do this in some countries over

others?

Questions • Is representative democracy enough for ensuring economic

growth and development?

• How might participatory democracy contribute to development?

• How might social welfare programs contribute to development?

• What types of institutions and programs might international governments, agencies, or organizations promote to ensure development in the short and longer run?

• Where do these types of institutions and programs tend to be promoted? Where might they be most successful?

Tutorial Question 1 The British government has allocated a small pool of funds to support human development abroad. You are part of a team competing to be chosen to design a pilot program. If your pilot program is chosen and successful in meeting a human development need, it would determine whether and how future development funds are allocated abroad.

Building on today’s lecture and readings:

• What type of social program(s) might you design and why?

• What type of participatory democracy institution might help in the implementation and success of your program? How would you use or create that institution?

• What type of country would you choose for your pilot study? What type of country would likely see the biggest benefit from your program? (Remember, you are using a pilot study and need to demonstrate that your program has an effect. If you have an effect, then you are more likely to get more funding to do a bigger program.)

• What would be a short-term indicator of the success of your program? What would be the expected long-term effect?

Tutorial Question 2 The British government has allocated a small pool of funds to support democracy building abroad. You are part of a team competing to be chosen to design a pilot program. If your pilot program is chosen and successful, it would determine whether and how future funds are allocated abroad.

Building on today’s lecture and readings:

• What type of political (participatory) institution might you design and why?

• What type of additional social program might help in the implementation and success of your democracy program? How would you use or create that social program?

• What type of country would you choose for your pilot study? What type of country would likely see the biggest benefit from your program? (Remember, you are conducting a pilot study and need to demonstrate that your program has an effect. If you have an effect, then you are more likely to get more funding to do a bigger program.)

• What would be a short-term indicator of the success of your program? What would be the expected long-term effect?