POLI 2F30 Lecture Notes - Lecture 8: Human Security, Human Capital, Suharto
21 Mar 2018
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Document Summary
Consider the state building democratization paradox: democracies must respond to their constituents, poor often favour consumption over investment. Authoritarian argument: democracy diverts resources away from broad investment, democracy allows interest groups to demand redistribution that undercuts state investment, singapore, s. korea. Impact of regime type on economic development minimal long term: china, s. korea, saudi arabia: all outpaced democratic india. Indonesia: incredibly corrupt under suharto 1967-1998!! (but economic boom) Conclusion: minimal level of economic development necessary but without good governance, unlikely to persist, slow political reform often attends certain thresholds of economic success. Role of the state: protective, economic policy aimed at, achieving economic growth, capital accumulation, social policy, economic organization: command economy versus free market economy. Command: all economic decisions determined by the state. Free market: market determines resource allocation, no completely free market economy, since collapse of su: market e(cid:272)o(cid:374)o(cid:373)y has (cid:862)(cid:449)o(cid:374) out(cid:863)
