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Week 4

by: Laura Castro Lindarte

Week 4 PSC 2337

Laura Castro Lindarte

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About this Document

Goes over corruption then talks about Greece. Mentioned how for final report you want to talk about several aspects that influence area of research, then find a way to tie them together.
Development Politics
Jessica C. Liao
Class Notes
Development Politics
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This 5 page Class Notes was uploaded by Laura Castro Lindarte on Saturday February 6, 2016. The Class Notes belongs to PSC 2337 at George Washington University taught by Jessica C. Liao in Spring 2016. Since its upload, it has received 9 views.


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Date Created: 02/06/16
February 2, 2016  Corruption   ● Corruption:usingpublic resources for private gain   ○ Fukuyama thinks that corruption only happens in modern time because before  there was no such thing as a public sector since everything belonged to the king   ○ A clear boundary was created between public and private by Rechtsstaat rules in  Prussia   ● In an economic term, rent is the difference between cost of production and price you  pay for it   ○ Started because oscarcity   ■ Ex: oil has high rent because rare and valuable   ○ Artificial scarcity:  ■ Ex: licensing, having to get a license adds rent to those things because  they become rare   ■ Leads distortion in the way that resources are allocated in​his er, t leads to rent which become a way for corruption to ​get bribe for  license)   ○ Rents are needed because they are associated with things like patent and  copyright   ■ All government regulatory functions generate rents   ■ Ex: Asian government manipulate rents to promote economic growth by  controlling amount of competition by giving few companies a monopoly  allowing them to get a lot of profit which they had to reinvest into the  economy   ● Patronage: exchange of favors betwee​wo individuals of different status  ○ Favor is given by patron to cli​xchange for political support   ○ Face to face   ○ Exist in democracy and autocracy   ○ Usually small favors   ● Clientelism is done in a bigger scale with many intermediates   ● Patronage and clientelism is part of human na​een since ancient times   ○ Remains a dominant force in Autocracies   ○ Clientelism can go throubenefiting the whole society to just benefiting the  elites   ○ Primary seen in democracies because large number of votes are needed to win  elections   ○ Programmatic votingvoting for what best for ALL of society   ■ In reality, people think of themselves when voting   ■ Due to thispoliticians will give things to people for votes   ○ This hurts government because owers the quality of government and gives  more power to the elite   ■ DECREASES DEMOCRATIC ACCOUNTABILITY  ○ Patrons need to be able ensure people that they are going to come through  with their promises   ■ Ex: Ethnic voting because ethnically sure that politician will vote for them   ● Fukuyama says that clientelism is a early form of democracy because it leads to  politicians engaging with the public and doing what they want   ○ Creates democratic accountability   ○ Generates mass political participation and mobilizes uneducated voters   ● Clientelism decreases as countries become ric​ecause price of favors increase and  people find other ways to make money   ○ Also richer democracies have a more educated population that has a greater  sense that individual favors aren’t worth vote   ● Prebendalism: using your power to make sure t​hings that are done benefit you   ○ This is when politicians begin to use their power to do what they want without  feeling like they are accountable to the public   ○ Cold War helped prebendalism​ecause the USA and Soviets would give  resources to those that were on their si​oliticians in those countries no  longer needed public  ● Corruption starts to anger people when they thin​hey are  paying too many bribes and see no reward and when the  economy decreases   ● In democracies,patronage and clientelism coex​nd is  connected to top officials   ○ Clientelism helps lead​ore suffrage because able to  get more sources to power      ● Case Examples:   ○ Egypt:During Buhara, focused on patronage; riots begun in 2011 due to  dissatisfactions with high unemployment rates and him wanting his son to be his  heir made the military angry; in the end they went back to patronage with the new  leader   ○ Burma: Similar to Egypt; under military rule it is patronage; opposition party won,  economy decrease so people called for a change  ○ Thailand:Prime Minister Thanksin in 2000s was overthrown by coup because the  military believed that he was corrupt; in reality it was because his ideas were too  popular because they spoke to farmers; Thanksin trying to broaden clietelism  while military trying to hold onto patronage   ○ NigeriaRent is the oil revenue of the delta; the rest of the country gets nothing  from this revenue   ○ BrazilHuge Petrobras scandal; China and Brazil have huge public sector; seems  to be patronage that is growing to a bigger clientelistic network; people get  position in Petrobras by top officials then they support those officials politically   ○ China: China has a very decentralized government with each province taking  care of itself; officials run province like household giving power to family and  friends; use money of province for own things   ○ Greece: Huge amount of tax evasion; few large corporations that get benefits  from politicians and have huge influence on government       February 4, 2016   The Birthplace of Democracy   ● Eurozone crisis:   ○ Greece’s and Italy’s economic trouble​riggered the recession   ○ A country that is not able to print out own money needs to be  careful with how much money people take out because it will run,  by being part of the EU Greece gave up the power to print out  money and control its own fiscal policy  ■ Opposite is also a problem because printing too much  money can lead to inflation   ○ Problem with Eurozone is thatt has a common currency without a  common fiscal policy leading to their debt driving the rest of the  EU into debt as well   ■ Leads to tension with Germany since Germany is head of  the EU’s economy   ○ What explains difference between Northern and Southern  Europe?   ■ Cultural misperception​ orth is hardworking due to the  protestant culture that is responsible and saves money;  Southern is lazy catholic culture and spends instead of  saving   a. Not supported by the fact that Spain and UK were  doing similarly with UK actually having more debt  (Spain is Catholic, UK is protestant)   ■ Difference between clientelistic and non­clientelistic  regions:Mezzogiorno (Southern Italy) is based on family  and little connection to rest of community  a. Compared to Northern Italy, Mezzogiorno had low  social clubs (lack of civil society) and low trust   b. Amoral familism: maximize, short­run advantage of  family and assume others do same   c. No social structure between family and state   ● Japan’s debt isn’t a huge problem because take money in bank that  citizens won’t use so have money available, others depend on foreigners  who take money out in crisis      ● 19th century Greece:   ○ Similar to Mezzogiorno   ○ Loyal to family, distrust of strangers  ■ Neighbors are not friends, they are potential rivals   ○ Business ar​mall and family­owned  ■ No social unions rise to challenge because don’t trust   ○ URBANIZATION BEFORE INDUSTRIALIZATION   ■ Move to city as communities and all lived like they did in  rural area with small busi(“Cities of Peasant and  Urban Villagers”)   ■ In other countries, industrialization occurred first leading to  work being base for new neighborhoods   ■ No social unions rise to challenge because don’t trust   ■ Became worse because offoreign occupation   ● Before Independence:1821  ○ No single unified government or ideology   ○ Humanitarian interventioreigners helped them build a  government so they would no longer be part of the Ottoman  Empire   ■ Wanted to build state governed by foreign king but it did  not work so they Greece have universal male suffrage  in 1864   ■ Bureaucracy came after democracy   ○ Modernization without developme​ities were seen as  commercial sources not sources of employment  ■ Lack of market economy made it hard to start new jobs­  the government decided to fix job shortage by providing  jobs in government   ○ Lost opportunity of reform afterrefugees came back after  Turks lefbrought back foreign ideas of industrialization but didn’t  lead to reform in government  ● Colonization of State:   ○ PASOK: Pan­Hellenic Socialist Movement had impact on  education system and National Bank   ■ Gave jobs in education and government without merit just  for supporting party’s g​ot rid of entrance exams   ○ PASOK’s riva​ ew Democracy (ND) did same thing leading to  whole bureaucracy changing each time there was a change in  power   ■ Decided to create more jobs instead of having to fire  everyone leading to HUGE bureaucracy   ● Summary:   ○ Absence of strong tradition   ○ Capitalism arrived l​ausing government to be main job  provider   ○ Lack of truleads to several problems including Greeks not  wanting to pay taxes because don’t see it as duty but as  government taking their money   ● Fukuyama’s Analysis:    ○ Economic:weak industrialization and lack of private sector   ○ Ideology​OW TRUST   ○ Social Mobilizati​o real momentum to lead to effective  bureaucracy because focus on fami​O MIDDLE CLASS          


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