The Political Economy of Government Responsive-Ness: Theory and Evi-Dence from India

In: Social Issues

Submitted By LauraO
Words 2422
Pages 10
1. Introduction
Extensive research has been conducted on the topic of how media circulation affects political accountability and government policy. Theory predicts that for a higher share of media receivers, political accountability and hence government expenditures increase. Besley & Burgess (2002) give additional insight into this topic by analyzing the impact of media circulation on government responsiveness to falls in food production and crop flood damage in Indian states. The authors use the extent of public food distribution and calamity relief as proxies for government responsiveness. In addition to media factors, political and economic factors are introduced as potential determinants of policies. The predictions of the theory are underlined by the results of the paper: Government responsiveness increases with a higher amount of media users within a state. Further, political factors are also relevant determinants, whereas, economic factors are of low importance.
In the following, the paper will be critically assessed within these sections. First, the theory, the propositions as well as the empirical strategy are introduced and compared to discussions in class. Second, the results of the paper are outlined. Third, the empirical strategy as well as the results will be analyzed and compared to prior research and theory. Finally, a short conclusion and outlook will be given.
2. Theory, Propositions and Empirical Strategy
The theoretical two-period model of Besley & Burgess (2002) is based on several assumptions. There are vulnerable and non-vulnerable citizens. Part of the vulnerable citizens are needy, meaning that they suffer after a shock in a certain period and that public action would improve their situation. Moreover, there are altruistic, selfish, and opportunistic incumbents. For the purpose of the study, opportunistic incumbents are most interesting…...

Similar Documents

International Political Economy

... goal[10]. Finally, a holistic Marxist criticism of the developmental state must be that of taking the argument into the level of international economic and political conditions. A single critical factor which should never be overlooked in the discussion of Philippine economic development is the United States’ influence on the Philippines’ policies and policy makers. The US’ liberal capitalist stance after WWII had placed a significant amount of pressure on the Philippine government, which was its ally during the war. Although the Philippines operated under a nationalist guise, US firms benefitted from import and currency regulations through their subsidiaries which qualified as dollar importers[11]. Also, exported raw materials that were produced by peasants in the rural areas were exported to the US for the production of consumer goods. In the Marxist-Leninist parlance, this resonates the law of uneven development whereby more advanced economies “create dependencies to serve as markets, investment outlets, and source of food and raw materials.”[12] Also, the post WWII environment marked by an ideological war between capitalism and communism could have contributed to gradual liberalization of the economy, which is a basic threat to the interventionist model in East Asia[13]. Even with excluding the prescriptive and revolutionary elements of Marxist criticism, it is evident in the Marxist theoretical analysis above that the developmental state theory is greatly......

Words: 2283 - Pages: 10

Life & Economy of India

... regulator became an essential prerequisite. The Major Port Trusts Act, 1963, which governed these 11 major ports, was amended in 1997 to clear the deck for a regulator, now known as the Tariff Authority for Major Ports (TAMP). Cargo-handling terminals run by government-owned ports themselves as well as private operators at major ports have been required to take clearance from the tariff regulator before fixing and revising tariffs, once in two-three years, for the services rendered at their berths and terminals. The shipping ministry has been resisting demands from private investors to dismantle TAMP and leave tariff setting to market forces, arguing that competition for cargo handling at major ports has not reached the desired level for this. The purpose of the tariffs are to protect the interests of customers and the trade, then the best bet would be to make investments as attractive as possible at both major as well as non-major ports so that it inspires confidence among private firms to invest in port infrastructure in the world’s second fastest growing major economy. The economy of India is the twelfth largest economy in the world by market exchange rates and the fourth largest by purchasing power parity (PPP) basis. India achieved 8.5% GDP growth in 2006, 9.0% in 2007, and 7.3% in 2008. Since independence, India has always tried to keep healthy relation with the neighboring countries, especially when trading is concerned. From the following data we...

Words: 3512 - Pages: 15

Political Economy

...Theories of Political Economy Instructor: Professor Béla Greskovits Office phone: 327-3079 e-mail: Time: tba. Room: tba. Office Hours: tba. This course introduces students into three traditions of thought on the relationship between politics and the economy: both the economic constraints on politics and the political embeddedness of the economy. The conceptual frameworks studied include Neo-Marxist and Marx-inspired theories, historical institutionalism, and economic approaches to politics based on the assumptions of neo-classical economics. Students will be acquainted with these lines of thought by discussing important works by representative authors. Readings by Wallerstein, Cardoso and Faletto, Wright, and Mamalakis, represent world-sytem analysis, the dependencia thought, analytic Marxism, and sectoral theory. Historical institutionalism is discussed on the basis of the path-breaking work of Polanyi, and the comparative studies of Schoenfield, Katzenstein, and Gourevitch, who focus, respectively, on the changing balance of public and private power, variants of corporatism, and state autonomy in capitalist societies. Finally, Downs’ economic theory of democracy, the rival views of collective action by Olson, and Hirschman, and North’s work on the relationship between institutional change and economic performance introduce the economic approaches to politics. Requirements and grading Active participation in in-class discussions (20% of...

Words: 642 - Pages: 3

International Political Economy

..., economic or moral, which is not itself derived from experience but rather starts from a logically incontestable statement (which is something very different from an “arbitrarily postulated axiom”) and proceeds in a purely deductive way (perhaps using some explicitly introduced empirical and empirically testable 9 10 A Theory of Socialism and Capitalism assumption, in addition) to results which are themselves logically unassailable (and thus require no empirical testing whatsoever), will it become possible to organize or interpret an otherwise chaotic, overly complex array of unconnected, isolated facts or opinions about social reality to form a true, coherent economic or moral conceptual system. Hopefully it will be demonstrated that without such a theory, political economy and philosophy can be considered nothing other than groping in the dark, producing, at best, arbitrary opinions on what might have caused this or that, or what is better or worse than something else: opinions, that is, whose opposites can generally be defended as easily as the original positions themselves (which is to say that they cannot be defended in any strict sense at all!). Specifically, a theory of property and property rights will be developed. It will be demonstrated that socialism, by no means an invention of nineteenth century Marxism but much older, must be conceptualized as an institutionalized interference with or aggression against private property and private property claims...

Words: 92669 - Pages: 371

Int' Political Economy

..., and that economic and political identities, in addition to material interests, are significant determinants of economic action. The liberal approach Much work in IPE examines the role of institutions such as the International Monetary Fund and World Bank, which were established at this hotel near Bretton Woods In economic terms, Liberalism is an approach associated with classical economics, neoclassical economics, Austrian School economics, and Chicago school economics. [edit] Favoured policies Minimal or zero government control and regulation of trade is the favored liberal policy, which calls for the privatisation of any organisations producing exportable goods. [edit] History The Liberal approach often is wrongly traced to the work of Adam Smith. Economics, as we know it, has been viewed as dawning with the Smithian revolution against Mercantilism.[2][3] The next major contribution to liberal theory was made by David Ricardo, whose theory of comparative advantage suggested that trade between different nations could benefit both parties even in circumstances where one would feel intuitively that one nation would benefit from trade at the expense of the other. The liberal view point generally has been strong in Western academia since it was first articulated by Smith in the eighteenth century. Only during the 1940s to early 1970s did an alternative system, Keynesianism, command wide support in universities. Keynes was concerned chiefly with domestic macroeconomic...

Words: 6475 - Pages: 26

Political Economy

...Commodification – The process of taking goods and services that are valued for their utility and turning them into commodities. Mosco (1996) defines commodification as “the process of transforming use values into exchange values, of transforming products whose value is determined by their ability to meet individual and social needs into products whose value is set by what they can bring in the marketplace.” Commodification is the term for a process in which a product’s value deriving from human want or need (use value) is transformed into the value it could get from exchange (exchange value) (p.141). An example of this in relation to the mass media would be the commodification of audiences, and, increasingly, cybernetic commodification in the form of electronic information about our consumption habits. Spatialization – The process of overcoming the constraints of space and time in social life (Mosco, 1996). Structuration – The third entry point is structuration, developed from Anthony Giddens theory of structuration, whereby the interconnections of structure and action are understood to reproduce social life (p.212). Mosco examines aspects of the structuration of the communications industry in terms of the dimensions of class, gender and race. These he suggests are mutually constitutive categories in terms of structuration processes (p.239) and that two possibilities for considering them together are to be found in the focus on social movements and hegemonic processes...

Words: 377 - Pages: 2

International Political Economy

...Syllabus INTA 3301: International Political Economy Spring 2013 Class meets MWF 1:05-1:55, Instructional Center 109   Instructor: Michael Murphree Sam Nunn School of International Affairs 137 Habersham Building Email: Office Hours: Monday 2:00-3:00, 137 Habersham, or by appointment TA: Kathleen Thompson Email:   Political economy is the study of the role of government, politics and collective human behavior in shaping economic outcomes. This exciting field is both old and new. Political economy predates both political science and economics but only reemerged as a distinct field in the 1960s and 70s. It is concerned with understanding how political forces (broadly defined) shape and are shaped by economic ones (broadly defined). There are many research and policy-relevant questions addressed in this field: 1. What is globalization and is it really good for everyone? 2. Is free trade really the only “appropriate” means for international exchange? 3. Why are some countries or regions rich while others struggle? 4. How did the global casino of high finance emerge and what is its purpose? 5. Is economic performance the root of power or power the root of economic performance? 6. What should be the role of government in the economy? 7. Is there a best practice for government economic policy or are there many workable practices? 8. Why has Asia seemed to perform so well over the...

Words: 1381 - Pages: 6

Political Economy

...Chapter 2: Political Economy Steven Schrader September 12, 2013 BUS 385 – Online Ed Bruning After reading Chapter 2 in the textbook and watching Jean-Claude Trichet’s lecture about the political economy and the Financial Crisis a few years back, I really grasped more knowledge about the subject matter and the applications discussed can really boost my knowledge as I pursue a degree in the financial field. I really thought that the first guy speaking gave a very pleasant and informative introduction of Mr. Trichet – it really set the stage for the entire lecture. I thought it was very neat how they could bring someone in who was so closely tied in with the entire crisis. The major issue discussed in this video is how Europe and the United States used different tactics with their governmental policies to dig themselves out of one of the worst financial holes the world has ever seen. Mr. Trichet goes deep into his discussion talking about the European government and the certain policies that were applied worldwide to dig themselves out of the crisis. In 2007-2008, there was a Worldwide Financial Crisis that by many, is considered to be the greatest economic collapse the world has seen since the Great Depression back in the 1930’s. Trichet stated many times that this crises was focused on the “advanced” economy. Monetary policy was something that was talked about, and a few years ago, there were situations that stemmed from this policy. According to Trichet, one...

Words: 727 - Pages: 3

Global Political Economy

... GRADUATE DIPLOMA IN INTERNATIONAL RELATIONS AND DIPLOMACY STUDENT GUIDELINE NOTES GLOBAL POLITICAL ECONOMY MODULE Paste the notes here… Political economy originally was the term for studying production, buying and selling, and their relations with law, custom, and government. Political economy originated in moral philosophy (e.g. Adam Smith was Professor of Moral Philosophy at the University of Glasgow), it developed in the 18th century as the study of the economies of states — polities, hence political economy. In late nineteenth century, the term "political economy" was generally replaced by the term economics, used by those seeking to place the study of economy upon mathematical and axiomatic bases, rather than the structural relationships of production and consumption (cf. marginalism, Alfred Marshall). History of the term Originally, political economy meant the study of the conditions under which production was organized in the nation-states. The phrase économie politique (translated in English as political economy) first appeared in France in 1615 with the well known book by Antoyne de Montchrétien: Traicté de l’oeconomie politique. French physiocrats, Adam Smith, David Ricardo and Karl Marx were some of the exponents of political economy. In 1805, Thomas Malthus became England's first professor of political economy, at the East India Company College, Haileybury, Hertfordshire. The world's first professorship in political economy was...

Words: 39122 - Pages: 157

Germany Political and Economy

...Linh Pham Germany – Political Structure and Economy HIS200 Dr. Joanne McKay November 24 2013 Germany – Political Structure and Economy After the World War II, the winner of the war divided Germany and its capital, Berlin, among themselves. East Germany, a brand new country that promised to show the world why socialism was the best political system, was occupied and controlled by The Soviet Union. West Germany, called the Federal Republic, was occupied by the Americans, British and French, who would establish a new democratic government that stood in direct opposition to Communism. Because of the citizen’s emigration to West Germany, East Germany government decided to seal the border to stop their people keep moving to the West. On August 13, 1961, the city of Berlin was cut in two by a wall. Everyone could see that the wall was not protecting this country, but imprisoning and hurting people. It has separated friends, families, and a nation for 28 years. Later, when the Soviet Union fell, East Germany made the decision to get rid of the wall. Finally, the Berlin Wall, symbol of Communist Oppression, fell after 28 years marked by violence and tragedy on November 9, 1989. The country has officially reunited. Since then, Germany political system and economy have changed a lot. Unlike a lot of other countries’ political system which essentially have existed in its current form for a long time ago, the current German political system is a much more recent construct...

Words: 1807 - Pages: 8

Political Economy

... served rather than the way the civil servants want to serve them Decentralizing civil service so as to take the service to the door-step of the citizens Treating citizens as customers based on the principle of consumer or user rights. The government, instead of playing an interventionist role in various sectors, is advised to redefine its role and to transform itself into a catalyst of private investors and business institutions Creating a responsive, pro-active civil service system which will remain free from corruption Promoting and sustaining a civil service system which will remain free from the clutches of narrow partisan political influence Bringing about institutional reforms which would include, in addition to public sector policy and structural changes, strengthening of the civil society, private sector and other key governance actors. The process of change should be based on learning from other national governments lessons, primarily from the countries within the region with a similar socio-cultural, political and economic set up. This is essential for reducing mistakes and conducting reforms in an efficient and cost-effective manner Encouraging an environment of pay for performance in the civil service and an appropriate compensation package and a realistic incentive system must be in place Increasing the efficiency level of the civil service to an ideal standard that is compatible with the requirements of a changing local and global economy Creating an innovation...

Words: 47588 - Pages: 191

A Robust Political Economy

...Robust Political Economy The nirvana fallacy is the informal fallacy of comparing actual things with unrealistic, idealized alternatives. We are always going to come up short when we compare to expectations of the ‘perfect world.’ Economist Harold Demstez, creator of the idea of the nirvana fallacy, states, “The view that now pervades much public policy economics implicitly presents the relevant choice as between an ideal norm and an existing 'imperfect' institutional arrangement.” This nirvana approach differs considerably from a comparative institution approach in which the relevant choice is between alternative real institutional arrangements. Comparative institutional analysis focuses on the rules people operate by and is defined as the assessment of feasible organizational or policy alternatives. Comparative institutional analysis goes conjointly with robustness, which is the normal standard we apply. Robustness asks questions such as, ‘what set of rules produces better outcomes in bad circumstances?’ and ‘how well does it keep the really bad things from happening?’ Mark Pennington on Robust Political Economy, draws on two problems: the knowledge problem and the incentive problem. This goes hand in hand with the economic calculation problem proposed by Ludwig von Mises and later expanded by Friedrich Hayek as well as the comparison between private versus public property in economics. All economic and political systems must challenge both knowledge problems and...

Words: 912 - Pages: 4

International Political Economy

...nternational political economy (IPE), also known as global political economy, is an academic discipline within the social sciences that analyzes international relations in combination with political economy. As an interdisciplinary field it draws on many distinct academic schools, most notably political science and economics, but also sociology, history, and cultural studies. The academic boundaries of IPE are flexible, and along with acceptable epistemologies are the subject of robust debate. This debate is essentially framed by the discipline's status as a new and interdisciplinary field of study. Despite such disagreements, most scholars can concur that IPE ultimately is concerned with the ways in which political forces (states, institutions, individual actors, etc.) shape the systems through which economic interactions are expressed, and conversely the effect that economic interactions (including the power of collective markets and individuals acting both within and outside them) have upon political structures and outcomes. IPE scholars are at the center of the debate and research surrounding globalization, both in the popular and academic spheres. Other topics that command substantial attention among IPE scholars are international trade (with particular attention to the politics surrounding trade deals, but also significant work examining the results of trade deals), development, the relationship between democracy and markets, international finance, global markets,......

Words: 285 - Pages: 2

Political & Economic Environment India

...Political: Corruption India is ranked 85th out of 175 countries (China is ranked 100th) which is an improvement of 2 places compared to 2010 where India was ranked 87th. The new Modi government has also vowed to clamp down on corruption which will definitely improve rankings. (e.V., 2015) Policies encourage manufacturing especially automobiles Under the Modi government, the Make in India initiative was launched in September 2015 to promote manufacturing in India. This initiative introduced new tax cuts, streamlined administrative processes and liberalised FDI. (, n.d.) * Streamlined regulations (easier to do business) * Manufacturing and imports in this sector are exempt from licensing and approvals. * Unified online portal for: * Registration of Labour Identification Number (LIN) * Submission of returns * Grievance redressal * Combined returns under 8 labour laws * Online portals: * Real-time registration * Payments through 56 accredited banks * Online application process for environmental and forest clearances * 14 government services delivered via eBiz, a single-window online portal * Investor Facilitation Cell established * Dedicated Japan+ Cell established * Consent to Establish/NOC no longer required for new electricity connections * Documents reduced from 7 to 3 for exports and imports...

Words: 2161 - Pages: 9

Economy Theory

... before it became fashionable in economics to do so. This is merely one way in which Cantillon was ahead of his time. He preceded Adam Smith by a generation. Both writers made important foundational contributions to economics, but from perspectives that were quite different. Smith was a philosopher and educator. His approach to economics reflected the concerns and approaches of philosophic inquiry stretching back to Thomas Hobbes. The Hobbesian dilemma was how to secure peace and prosperity without submitting to an all-powerful central government. Smith gave an answer based on the nature and function of an exchange economy operating under a rule of law. The Wealth of Nations is full of useful advice to those who hold political power. Hence, Smith earned his sobriquet “father of political economy.” Cantillon was a businessman and banker. His approach to economics reflected the concerns of practical men who set about making a living, and his analysis concentrated on the structure and mechanics of an emerging market economy. The economy he described was an enterprise 5 6 An Essay on Economic Theory economy, not a political one, in which certain individuals played key roles, some passive­ and some active. Government, as we know it, was relatively passive in Cantillon’s economy. The most active and central participant was the entrepreneur, who motivates the entire economic system. Unlike any previous writer, Cantillon explicated the vital role of the...

Words: 66839 - Pages: 268