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Unformatted text preview: Notes on Chapter 5: p.109 to 120 Tack l i ng Cor r up t ion • Neoclassical supposes that a reduction in the state will bring a reduction in rent seeking → Top-down and economic → Example: in India a roll back of the state eliminated opportunities of rent seeking and entrepreneurs devoted their time to more productive activities. • Maybe some kind of rent seeking comes from society → Bottom-down and political → Jean-François Bayart : In Africa even if a politician wants to be honest, too much pressure from supporters that political survival depends on using their power to give some favours. → Reducing the state will not eliminate competition, but increase it and make it more violent Why the failures? Theoretical Perspectives on Structural Adjustment Failings of structural adjustment due to neoclassical weaknesses. H u ma ns a re r a t iona l factors We should question the assumption that all human are rational, self-interested, profit- optimizing creatures → Some decisions and policies in the 3 rd world countries were influenced by ideology as much as self-interest → However, Robert Bates argues that individuals with altruistic desires are still making rational decision when t rying to satisfy their desires. They are as selfish as the others since they do what brings them pleasures → Sociologist and Anthropologists argue that humans behave as members of collectives, not as individuals. o Each community will develop its own rules of operation. What works in the West might not work elsewhere. Therefore we cannot apply the same principals to judge their behaviour. o West: rational utility maximizing is a learned behaviour Non-west: economy of affection, where family and community needs are placed before individual needs o Jean-Francois Bayart says corruption in Africa is not a bad thing. I t is their way of settling questions of who gets what and draws the majority of people into politics. Policies to alter the system are futile because it is not dysfunctional. → Critics of this idea o Many 3 rd world countries academics reject the idea the neoclassical theory is intellectual imperialism. o Bayart’s idea is fatalism and almost encourages abuses of power D i f ferences Between the F i rst and T h i r d Worl d....
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- Fall '09
- Economics, structural adjustment, ries, world count ries