ISS NOTES on clapham - ISS 225: clapham1 February 2005, p.1...

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ISS 225: clapham1 February 2005, p.1 Does Dictatorship Lead to Socialism? How Do Contemporary Third-World Dictators Manage Their Economies? -- A 1 Does dictatorship lead to socialism? 2 In this section of the course, we have been looking at how the personal interests of autocrats -- dictators, kings, monarchs, and the like -- lead them to try to control the economy so they can use it for their own ends. 3 We began with Olson’s article on roving bandits and stationary bandits, and with his comparison to democratic procedures and institutions. C. Then we examined revenue-raising behavior of the French kings and royal finance ministers in the 1600’s and 1700’s. D. Now we will finish this section with a look at how contemporary third-world dictators manage their economies. 4 Political history of third world states 5 Clapham’s book is about the characteristics of the so-called “third world” states: 6 These are the poor and undeveloped states of Africa, Asia, and Latin America. 7 They are in contrast to the “first world”, which are the democratic industrialized states” and to the “second world”, which was the old Soviet Union. 8 Clapham cautions us about the hazards of generalizing across all third world countries. 9 There is enormous variety among them. 10 But he suggests that some things can be stated: 11 Essentially none of these countries has any kind democratic tradition. 12 For those countries that were never western colonies, there were various kinds of monarchies (as in Europe ) or dynasties (as in China ), and traditional clan-based or tribe-based modes of government (as in Africa and the Middle East ). 13 For those countries that did become European colonies in the 1600s, 1700s, and 1800s, they were not governed in any kind of democratic fashion . (14) Almost all were governed in a completely authoritarian fashion, on the basis of orders from the home country. (15) Sometimes European rule was direct . (16) Sometimes European rule was indirect , taking place through a native leadership who took orders from the colonial power. (17) Most of these colonies gained independence in the late 1940s, the 1950s, or the 1960s, sometimes due to successful wars of independence (as in Indochina), more often due to more-or-less voluntary grants of independence by the colonial power.
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ISS 225: clapham1 February 2005, p.2 (18) Just prior to being granted independence, democratic institutions were often established in many of these colonies. )But essentially all of these democratic institutions were ultimately destroyed. --Very often, it was done by some kind of military overthrow. 19 In addition, very few of these countries had anything like our economic tradition of “free markets”. 20 For basic commodities (food and clothing) there was an indigenous marketing and trading
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ISS NOTES on clapham - ISS 225: clapham1 February 2005, p.1...

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