POL 3477 Study Guide - Final Guide: Ex-Ante, Modernization Theory, Moral Hazard
20 Aug 2016
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Institutions: rules of the game that shape incentives. Easier to determine/impact than the long-term or deep causes. Physical capital differences: poor countries have low savings. Human capital differences: poor countries do not invest enough in education. Technological differences: lack of research and development (vicious cycle) Cohesive-capitalist states: cohesive-capitalist states equate rapid economic growth with national security. They also have a successful alliance with capital holders. Their main political instrument is a competent bureaucracy. These states have been efficacious in rapid industrialization and wealth creation in poor societies. They have a high degree of centralized and purposive state power with the capacity to penetrate deep into society. State power is concentrated at the apex and used to discipline society, and consequently, such states are not necessarily desirable from a normative or liberal perspective. Cohesive-capitalist states use legitimating mechanisms such as nationalism, anti-communism, and material rewards. These states are staffed by public-spirited rather than personalistic regimes.
