ARECMidterm2

ARECMidterm2 - Arec Midterm 2: Hey Guys! The Midterm is...

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Arec Midterm 2: Hey Guys! The Midterm is going to be on Wednesday. Since we covered a lot of ground for this test and since there were a lot of readings, I figured we could divide the work between us. If you feel pretty good about a lecture or have some possible IDS, just summarize it/list it below: READINGS Bates, Robert H. (1981) Markets and States in Tropical Africa: The Political Basis of Agricultural Policies, pp: 1-77. In Africa, the mix of policies chosen to secure economic development had permitted the entrenchment of enormously powerful private interests The ability to ration capital has not only led to personal gain, but has also been employed to build political coalitions In their efforts to promote the growth of urban-based industries, govts in Africa do not only intervene in the market for capital; they also artificially increase the value of the domestic currency Increasing the currency value cheapens the costs of capital equipment which is scarce domestically and must be imported from abroad Govt policies that protect urban industry markets result in noncompetitive rents (to be consumed by the elite) By intervening in markets for capital and foreign exchange, and by influencing the structure of markets, the govts of Africa have sought to use govt power to promote urban industrial development Industrial development is equated with “public good” Policy choices made to serve this “public good” have created a network of self-interest These policies create economic environments that generate rents à these rents are both economically valuable and politically useful Van de Walle, Nicolas. (2001) African Economies and the Politics of Permanent Crisis, 1979-1999, pp. 1-112. Note: pp: 20-63 are optional, but well worth reading. 3 obstacles to policy reforms in Africa 1.) Material interests of senior states elites (neopatrimonialism) Characteristics of neopatrimonial regimes: clientelism; access to state resources by elites; centralization of power; hybrid regimes in which informal institutions coexist with the formal trappings of the state 2.) Ideological constraints Emerging dominance of the ideology embodied in structural adjustment programs “The New Liberal Orthodoxy” (NLO) --- 3 core principles: fiscal discipline, outward 3.) Low and declining capacity within the state Low capacities facilitated by corruption, politicization, declining legitimacy, low morale, and lack of educated professionals Economic policy decisions in Africa can be understood as resulting from the combination of the states’ neopatrimonial tendencies, its low capacities, and its ideological biases, and the negative synergies among these three factors that evolved following independence E.g. low capacity reinforces neopatrimonial tendencies, which maintain the tendency to under- invest in capacity
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To establish political order and sustain their hold on power, the new rulers of post-independence states
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This note was uploaded on 11/24/2011 for the course ECON 345 taught by Professor Jakiela during the Fall '11 term at Maryland.

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ARECMidterm2 - Arec Midterm 2: Hey Guys! The Midterm is...

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