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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 inhis 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 betweewo individuals of different status ○ Favor is given by patron to clixchange 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 naeen 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 ricecause 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 things 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 prebendalismecause the USA and Soviets would give resources to those that were on their sioliticians in those countries no longer needed public ● Corruption starts to anger people when they thinhey are paying too many bribes and see no reward and when the economy decreases ● In democracies,patronage and clientelism coexnd is connected to top officials ○ Clientelism helps leadore 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 troubleriggered 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 armall 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 developmeities 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 got 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 lausing 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 ○ IdeologyOW TRUST ○ Social Mobilizatio real momentum to lead to effective bureaucracy because focus on famiO MIDDLE CLASS
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