Final Flashcards
1
Q
define nationalism
A
an imagine political community- imagined as both limited and sovereign
2
Q
explain imagined nationalism
A
members may never meet their fellow members, they are imagined to share commonalities. deep horizontal comradeship in spite of evident inequalities and diversity
3
Q
all nations, even the biggest are ________; they have _________
A
limited; boundaries
4
Q
define sovereign
A
not subsumed under a higher authority or power
5
Q
how is comradeship expressed
A
in terms of ties that are natural and unchosen
6
Q
what is a consequence of comradeship
A
because the ties are unchosen and deeply rooted, they can require sacrifice
7
Q
why is nationalism so politically powerful
A
it has strong cultural roots, arose in Europe as religion and tribal identities were decline
8
Q
prior to the advent of nationality, the primary cultural systems were
A
religious communities or dynastic realms
9
Q
religious communities
A
linked by sacred language/text, potentially encompass all humanity through conversion, suggested a unique hierarchy, uniqueness eroded by world exploration
10
Q
dynastic realms
A
ruled over heterogeneous populations, population composed of subjects not citizens, gradually took on nationalist features
11
Q
role of print-capitalism
A
print gave language a new fixity, helped create standardization, facilitated the spread of literacy into local vernaculars
12
Q
what is a nation state
A
political Authority that maintain social order within the demarcated territory. Has sovereignty within territory: approaches monopoly on use of force, and usually has final say over domestic law and policy
13
Q
what is a state defined by
A
territory and order
14
Q
define sovereignty
A
nation-states recognize each others right to exit and rule their territory
15
Q
what are some external relationships with other nation-states
A
cooperation (trade, diplomacy) and conflict (war)
16
Q
list things that modern states do
A
Raise taxes and spend public revenues, conduct, monetary policy, regulate markets for labor, capital, and raw materials, provide public goods and services, make public investments, buy and sell goods and services, influence, health and reproduction, influence, education, sports, science and technology, influence, identity, culture, and religion
17
Q
list the political structures before nation state
A
tribes, city-states and federations of city-states, empires
18
Q
define tribes
A
social and political association based on common descent and intermarriage
19
Q
define city-states and federations of city-states
A
independent cities dedicated to trade that often relied on stronger political actors for protections from invaders and thieves
20
Q
define empires
A
powerful city levying tribute upon groups that are self-governing and lie far away from imperial seat of power
21
Q
how do tribes function
A
Tribal elders make collective decisions, adjudicate, disputes, perform administrative tasks, and interpret supernatural phenomena. Lineage and ancestry are what matters. Tribal elders believed to have direct line of communication with spirits. Legitimacy defined by descent. Bound by custom not formal rules
22
Q
describe tribal trust and cooperation
A
Dense family networks that span several generations build trust between individuals. Informal norms govern individual interactions. Tribal members police adherence to norms.
23
Q
how do nation-states function
A
Impersonal, institutionalized laws and rules. Civil/criminal punishment deters deviation from rules. Disputes adjudicated by specialist and justice. Administration carried out by bureaucrats who follow routinized, impartial procedures. Make no claim to special relationship with supernatural.
24
Q
what happened after the fall of the Roman Empire
A
agriculture and trade declined. tribes fought each other for hundreds of years
25
describe the last western european empire
Charles the Great conquered huge areas of Europe. helped forge common European identity. lorded over feudal system of gov
26
describe the return of agriculture
began around 1100 AD. agricultural surpluses can be stored and traded for things other than food. leads to specialization and more wealth. agricultural surpluses can be taxed. leads to demand for currency and public goods
27
describe feudalism
fedual lords became experts at violence, skilled in use of horses and armor. provided farmers with protection from marauding groups. they did so in exchange for in-kind taxes: peasant labor, agricultural products, weapons, and crafts
28
how did feudalism bring the end of tribes
gulf between military specialists and farmers widened due to accumulation of wealth. specialists in violence appropriated noble titles and reduced farmers to serfs, undermining tribal identity. this resulted in the notion that society is divided into orders, one of which has blue blood
29
describe the feudal social structure
king granted portions of land to lords in exchange for loyalty and promise to support his armies by loaning out their knights. being a king or lord was inherited and reinforced vis intermarriage. lords provided knights with housing, food, armor, weapons and horses. in return, knight served lord. rising to knight could be earned via skill and bravery. serfs farmed land and provided lord with wealth. serfs bound to land. in the lords interest to protect them.
30
lords and vassals based on ________ _________ not ____________ __________-
loyalty relationships; territorial control
31
describe traders and how they were different than serfs
not tied to land. did not owe allegiance to lords. traders created self-governing corporations. formed into guilds, frats, unis, communes, and city-states, built walls around cities to protect themselves and hired knights
32
what did merchants trade
pack horses carried silk textiles, spices, perfumes, jewels. ships carried metals, tar, timbers, furs, rope, wool, glass, wine, fish, honey
33
when did trade intensify and why
after Crusades due to exposure to new goods like lemons apricots, sugar, cotton
34
what were the barriers to trade during feudalism
bad communication, bandits and pirates, lack of common currency, heavy tolls and custom tariffs, no postal service
35
who were the first-movers in the emergence of states and why
merchants supported centralization of political power because it lowered transaction costs
36
describe the centralization of political power for merchants
only gov could create and impose uniform weights and measures, single currency, uniform legal code. only gov could impose third-party solution to tragedy of mistrust (due to language differences, poor tracking, and poor agreement enforcement, there were high incentives to cheat during transactions)
37
who were the second-movers in the emergence of states and why
monarchs seeking greater revenues: encourage trade= more taxes.
38
what did the centralization of political power mean for monarchs
increased value of controlling territory: ports and trade routes. rising population density drove up land prices
39
describe some of the early institutional innovation regarding the emergence of states
at first, bureaucracy was fused together with the legislative branch. by 13th century, European principalities had representative bodies to approve taxation; local frats and merchant guilds were represented. kings delegated administration of justice to parliaments. parliaments were used to mobilize revenues beyond those available to the king from his own property
40
what did the permanent collection of taxes require
a chancery (record office), educated, professional, and salaried workforce of tax assessors that was both literate and numerate
41
describe the administrative innovations and effects arising from taxation
standardization of currency (royal mint), clearer delineation of property rights to tax property (property registry and property assessors), more liquid and predictable real estate market, establishment of financial system (collateral)
42
describe the rise of a rationalized legal system
states gave rise to justice based on objective legal criteria. the kind directly administered justice in capital cases ina. systematic way, or delegated it to royal officials
43
describe the advent of citizenship and representation
the territorial state strived for political legitimacy and allegiance of all people who resided within its borders. development of the state's ability to tax = public good provision improved. european states became increasingly democratic: exchanged representation for increased taxation and conscription into army
44
describe the role of evolutionary pressure (war and revenue) on state expansion across Europe
nascent nation-states began to pose a security threat to each other with population expansion. territorial wars and constant threat of war incentivized rulers to search for revenues and erect standing armies. advent of gunpowder/firearms n 16th century rendered knights obsolete. scale of war increased- advantage to states that could field large armies and tax merchants to finance wars
45
what was the shift in revenue collection
monarchs transitioned away from tax farming and selling land and noble offices and towards permanent taxation
46
what were the consequences of the shift in revenue collection
spurred an administrative revolution. permanent bureaucracy to collect taxes, standardization of currency, delineation of property therefore enumerating citizens and gathering data on them, way to adjudicate disputes
47
describe the evolutionary pressure in how strong states drove out the weak
larger and stronger political units drove out weaker units by destroying them or incorporating them. units that were not destroyed were those that adapted by building up their defenses.
48
bigger and stronger armies depended on ______ ____ ______ and ______ __ ________
greater tax revenues; professionalization of military
49
monarchs used _________ to create large standing armies
conscription
50
give examples of how a regional contender for military and political supremacy defeats all other claimants
italy- the piedmont region, germany- the prussian region, UK-england, spain-castille
51
state consolidation
territorial states eventually developed a monopoly on the use of violence within their boundaries by vanquishing other entities that used violence
52
describe how African state-building is fundamentally different from Europe
africa is sparsely populated. africa has experienced little territorial war (rather wars were over people). current African states were created well before many of the capital cities had reached maturity
53
why is broadcasting power in africa difficult
the continent has low population densities because of inhospitable ecological conditions. varied environmental conditions. geographical features that make transport over great distances difficult.
54
describe the pre colonial contestation over people rather than territory in Africa
land was plentiful and agriculture was rain based. most valuable resource was people. leaders exerted control over populations rather than territory. hinterland regions between regions were effectively zones of shared sovereignty
55
african leaders in the post-independence period ______ pre-colonial notions of diffuse sovereignty and _____ artificial colonial boundaries that did not necessarily reflect their control over territories
rejected; retained
56
african leaders appeals to _____ ________ concept of statehood to prevent ________ challenges
rights-based; outside
57
the process of state-building in Africa led to states with _____ boundaries but with _____ internal control
firm;weak
58
boundaries became effective in preserving state integrity because African leaders recognized that any _______ _________ would _______ their own positions
territorial agression; threaten
59
language is a powerful means to root a _______ to a _____ because languages can be viewed as ______ and _______ and suggests a ___________ between a contemporary society and its dead ancestors
nation; past; natural; organic; community
60
the power of language is channeled through _____ _______ and _______ to capture the spirit of a ________
poetry; literature; songs; community
61
nationalism _____ and _________ with state-building
deepened; spread
62
industrialization further ________ traditional hierarchies and ___________ mixed diverse populations
eroded; urbanization
63
describe the role of industrialization in a more functionalist view
communication easier with shared culture, this created more demand for a common script. economic
64
economic modernization created demand for _______ to disseminate training and skills for _______ ______; this is easier and creates more ____________ workers in a common _______
education; modern work; interchangeable; language
65
list some tools to inculcate nationalism
language, national myths, symbols, censuses (defining citizens versus others), maps (focusing on national borders over cities or regions and symbolizing home), museums (suggingesting common heritage and history), educational curricula (stressing importance of nation)
66
describe colonial governance in Spanish America
colonies in the Americas were set up as administrative units. Run by peninsulares (Spanish born elites). day to day governance by criollos.
67
describe criollos
were excluded from positions of power and were looked down upon because they were deemed contaminated by being born in America. barred from improving their status or position
68
describe the rise of criollo solidarity and identity
when criollos traveled between the hinterlands to the capitals of the colonial administrative units they gained a sense of solidarity- shared fate. had a common enemy to upward mobility- the Spanish Crown
69
the criollo sense of ________ ______ interacted with ____ _________
shared fate; print capitalism
70
describe the importance of printing in criollo identity building
newspapers carried commercial and social news about the colonial administrative units; this was a vehicle for an imagined community. conversely spanish-born administrators and immigrants continued to read their own newspapers about the Spanish mainland
71
Criollos led the way in the fight for ____________ from spain; took advantage of a _______ in the Metropole due to napoleon's invasion
independence; crisis
72
the criollos leveraged their _____ __________ to recruit in the fight against the Spanish Crown;___________ played a key role in stirring resentment and facilitating recruitment
imagined community; newspapers
73
name a quintissential criollo
Simón Bolívar
74
describe the case of Belgium
Flanders (northern half)- dutch speaking; Wallonia (southern half)- French Speaking; Brussels- Dutch speaking until 1950s due to "frenchification" policy of Belgiun authorities, now French Speaking.
Belgium artificial state of 10.5 million inhabitants. Country put together in 1830-31 as political compromise and experiment in building one state out of two nationalities. Formerly part of Netherlands.
there are subnational dialects and identities in Wallonia. The Wallonian gov which has a lot of autonomy and is French speaking recognizes all of the language groups.
75
institutions are responsible for translating _______ cleavages into ________ cleavages: Politicians respond to __________ incentives and _________ constituents based on one of these other social dimensions
social; political; institutional; mobilize
76
social divisions -> institutions -> politicization of cleavage: political parties and other organizations compete based on _________ constituents who ______ along these _______
mobilizing; identify; divisions
77
describe the institutions that play a role in mobilizing identity (legal system, constitutions, educational system)
they help to contruct an initial pattern of diversity by imposing a rule of interpretation on an otherwise unorganized pattern of social heterogeneity
78
politicians who appeal to voters on _____________ cleavages can credibly promise concrete __________ to constituents within the existing rules of the game. this _________ individuals to _________ with one group that already exists over another
institutionalized; rewards; encourages; identify
79
what is the role of politicians
respond to institutional incentives. mobilize constituents based on their differences. Credibly, Promise concrete rewards to constituents and control the levels of power.
80
describe political rewards
encourage individuals to highlight one aspect of their self over others
81
political parties compete based on
mobilizing constituents who identify along these hardened divisions
82
in politics, gaining access to resources depend on
building political coalition that can capture political power. becoming a strong enough political force to exert pressure on person who hold power
83
describe the logic of coalition building
construct a coalitions large enough to gain political influence but small enough so that spoils of office can be shared by as few individuals as possible
84
ethnic identity refers to membership in ascriptive category:
race, language, caste, religion, region
85
what do members of ethnic groups share in common
Usually membership in the group is inherited. Shared interests and a conviction of common fate. Cultural symbolism: collection, myths of origin, the assertion of ties of kinship or blood. Conscious elaboration of uniqueness or superiority. the group contains a cross-section of persons from every stage of life and every socioeconomic level. individuals choose to sort into these groups rather than others
86
multiplicity of ethnicity enables choice, list examples
Sikh from the Mazhabi caste in Punjab, India; Yoruba Christian from southern Nigeria; African American Muslim from Chicago
87
describe how politics can define the salience of an ethnic group
a constitution and political institutions can heighten or lessen ethnic self-assertion. electoral systems that favors many parties can increase incentives to mobilize people based on ethnicity. political system in which government distributes scarce goods that are divided amongst subset of population. census and/or government agencies that collect demographic data
88
describe the census examples of ethnic saliency in US and Mexico
US- new multiracial category enable individuals to define themselves as a mix of ethnic identities- increases salience of multiracial identity
Mexico- 10% of population descended from African slaves. was not a category on the census until 2020. very few people identify as black- it's not a salient category, but following the census is increasingly salient
89
list the different identities activated in different political contexts in India
members of the upper caste vs backward cast. Hindi speakers vs non-hind speakers. hindus vs muslims. northern Indians vs southern Indians.
90
describe the Chewas and Tumbukas in Zambia and Malawi
Chewas and Tumbukas are culturally identical across the Malawi-Zambia border. colonial border divided these groups without concern for where they were located: split them in two.In Malawi the two groups are large demographic groups and can be mobilized for political coalition-building (antagonistic relationship between them hardened by politics). IN Zambia, these groups are small relative to the overall population and therefore are not useful political building blocks (relations between them warm: vote for same political parties and considered ethnic brethren)
91
politicians want to mobilize ________ winning political coalitions
minimum
92
changes in ____________, ________ ____________, or __________ can change the minimum winning coalition and lead a _____ ___________ to become salient
institutions, political boundaries, or demographics; new cleavage
93
list the pernicious effects of inequality
economic immobility, crime, distortions in political influence, unhappiness
94
what is the wealth distribution skew
the poor outnumber the rich
95
define Piketty's Fundamental Force for Divergence
r>g where r is the avg annual rate of return on capital and g is the growth rate of the economy
96
what happens when r>g (Picketty)
inherited wealth grows faster than output and income and capital becomes extremely concentrated increasing inequality
97
define Picketty's Second "Law of Capitalism"
B=s/g where B is the capital/income ratio, s is the savings rate, and g is the growth rate
98
what is the implication of Picketty's second "law of capitalism"
when g is low, capital becomes increasingly important relative to income which impacts social structures and wealth distribution (inequality)
99
what are some of the things we don't know about inequality
for most OECD countries there is no good data on inequality prior to late 1800s. for most developing countries there is no good data on inequality prior to 1960. for some countries in Africa and the Middle East, there is no credible inequality data
100
define the Gini Coefficient for measuring inequality
a measure of statistical dispersion intended to represent the income inequality or the wealth inequality within a nation or a social group
101
list the major explanations for equality
initial geographic endowments and incentives, democracy, ethnic homogeneity, war involvement
102
describe the initial geographic endowments for the americas
where crops exhibited economies of scale and climates were unfavorable for European settlement, colonizers set up unequal systems that concentrated political and economic power in a few white slave owners. Smallholder societies had greater political and economic equality. Early egalitarian societies created better institutions that protected property and were positioned to better take advantage of industrialization whereas the slave societies stagnated.
103
describe the effects of the initial geographic endowments for the Americas
long lingering effects. government policies and other institutions tended to reproduce the fundamental characteristics of new world economies
104
describe mechanisms of persistence in inequality
control over voting rules, resources, and education assured elites disproportionate political power. very modest commitments to public investments kept taxes low and competition in labor markets for individuals from good backgrounds limited. land policies kept land ownership in the hands of a relative few. government services were funded mainly through means other than direct taxation of income, wealth, or property
105
authoritarian elites can _____ themselves and face little pressure to ____________
enrich; redistribute
106
describe the median voter theorem
democracy empowers citizens, and since the wealth of the median voter is less than the mean wealth, there should be pressure of redistribution and greater equality
107
_________ and _________ should lead democratically elected politicians to pursue more egalitarian policies than autocrats
representation; accountability
108
individuals are more likely to be _________ in supporting redistribution to _______ ___ __________
generous; others like themselves
109
individuals are _____ likely to be generous to _______ __________, especially if out-groups are disproportionately_____,______ enough in size, and tend to vote ________ with one party
less; ethnic/racial others; poor; small; consistently
110
describe how war involvement can affect inequality
major war involvement can impact citizens' sense of what is fair in terms of taxation. if the poor and middle classes are conscripted to fight, it is only fair that the wealthy pay their fair share to fund war; even more so if they own businesses that may benefit
111
list some redistributive tools
taxes on income, property, inheritance, spending on public goods/social safety net programs, land redistribution (distributing state lands or purchasing/expropriating land from some private individuals and granting it to others) , tariffs, targeted gov programs
112
______ of taxation concentrated; _____ of taxation ________
costs; benefits; diffuse
113
list the ways in which taxation is a major economic instrument
revenues used to pay for public goods, redistribute income, encourage savings, stimulate investiment
114
describe progressive taxation
redistributes wealth from the rich to middle class and poor
115
give an example of how tax policy impacts economic decision making
under accelerated depreciation allowances capitalists will choose to invest in machinery, buildings, and plants to offset their tax liabilities. they pay 1 mill for a tractor and the next year can claim 500k in "losses" due to the tractor's "depreciation"
116
describe progressive income taxation
rates increase as income increases. exemptions and deductions for poorer people mean that that the wealthier you are, the more you pay
117
what are some of the requirements/consequences of income taxation
costly to administer because it usually involves self assessment. taxpayers must be literate and numerate, tax assessors must be accountants and good detectives. relies on voluntary compliance
118
describe progressive social spending
basic education, public goods, welfare, healthcare
119
describe regressive social spending
tertiary education, social security and health care for formal-sector workers where the informal sector is large
120
describe targeted/concentrated social spending
specific groups disproportionately benefit, whether by class, sector, ethnicity, geographic area, etc.
121
describe diffused social spending
spending on a broad range of programs that benefit many people
122
list ways the land redistribution can happen
expropriation of large landowners with little or no compensation and subsequent distribution, state-led purchase of large private landholdings for subsequent distribution, distribution of state-owned land to settlers
123
list some of the major barriers to reducing inequality
formal institutions, elite influence, globalization, psychological factors, cross-cutting issues
124
describe how formal institutions can block redistribution
checks and balances can protect wealthy minorities, federalsim can protect the rich from national-level pressures for redistribution, electoral rules can be used to over-represent the wealthy, vote aggregation rules cna blunt the power of the poor: malapportionment and gerrymandering
125
describe how elite influence can block redistribution
elites, by virtue of their disproportionate wealth and small numbers, can solve their collective action problem and lobby for tax exemptions or favorable policies. they can use campaign finance, bribery, or corruption to support favorable politicians. given their resources, elites are more likely to be directly elected to political office.
126
describe how globalization can complicate taxation
when countries are more financially open, capital can flee if tax rates are too high. knowing this, governments compete with one another to offer low taxes and business incentives to attract business. this leaves governments with less revenue for progressive spending
127
describe how psychological factors can block redistribution
Individuals may find some types of redistribution unfair or think that people should work to qualify for social benefits, individuals may think they are upwardly mobile, and don't want to raise taxes on their future selves. individuals may frame welfare relative to their immediate peers or to themselves in the past as opposed to the richest in society. individuals may not be directly exposed to the rich and don't envy them
128
describe how cross cutting issues can block redistribution
individuals may care more about religion or social issues than economic issues; these might work against one another in some electoral systems.ethnic or racial fractionalization can be used by politicians to reduce support for redistribution when ethnic out-groups are disproportionately poor
129
Why should we care if some countries are rich and others are poor
Consistent, economic growth, lifts people out of poverty and ameliorates, hunger and disease. Economic development leads to other good things such as increased leisure, cultivation of culture, arts, and pleasurable pursuits. Economic development, confers countries with power and influence, which can yield security, prestige, and ability to shape international rules.
130
How can we think of economic development?
The potential gains from trade incentivize people to specialize along the lines of comparative advantage, instead of trying to be self-sufficient. Knowing that they will be better off trading, individuals are motivated to save some of their income, and invest it to boost their productivity, and therefore increase their profit.
131
Describe how self interest is insufficient for economic development
Without repeated interaction, and with high transaction costs of agreeing, or monitoring, even mutually beneficial agreements fail. Third-party enforcement (government) reduces transaction cost of trade at distances between strangers
132
What institutions foster prosperity
Secure property rights that are properly distributed among the population. Consistent contract enforcement enforced by an impartial judiciary. Public goods that decrease the transaction costs of exchange between strangers at long distances. Informal institutions that promote trust and allow individuals to coordinate on joint activities that allow gains from trade to be made
133
What are property rights?
Right to restrict access to an asset. Right to use, divide, mortgage, transform, or alienate an asset. Right to earn income from an asset in contract with others to license control the asset. Ability to have these rights predictably protected.
134
Describe public property rights
Common pool. Many individuals extract benefits from common source; it is costly, but not impossible, to exclude people. fisheries
135
describe private property rights
exclusive. individual or joint ownership, with others excluded from access. home ownership
136
describe collective property rights
semi-exclusive. defined group ownership, with other excluded. collective farm
137
describe enforcement of property rights as a public good
protect rights of asset holders equally, without discriminating based on political power or class
138
describe selective enforcement of property rights
enforce rights of only a privileged group of asset holders; everybody else's assets are up for grabs
139
what are the 3 p's of property rights
precision, predictability, prevention of predation
140
describe precision of property rights
clear definition of who own what; consistent over time and across space
141
describe predictability of property rights
impartial and consistent contract enforcement; the rule of law where political favoritism is restricted
142
describe prevention of predation of property rights
the prevention of theft of assets and income by fellow citizens or the government
143
describe how property rights affect property value
the more clearly defined the delimitations of an asset, and the right to enjoy and transform it, the greater its value: others can also envision using it and can reasonably do so with predictability
144
describe how property rights affect incentives
greater property rights increase the incentive to acquire assets in the first place and to make investments and innovations that improve those assets and add to their value
145
describe how property rights can reduce transaction costs
standards of precision create uniformity in measures. standardization of contracts and accounting practices is easier with predictable Property rights. information about price and quality of goods and services is clearer with precise property rights and contract enforcement.
146
describe generalized accepted accounting principles and how it is an example of a consequence of secure property rights
allow diverse firms with different investments in different kinds of equipment and tech to produce comparable financial statements. assessing business's health isn't as easy as tracking how much money a company makes and how much money a company spends.
147
give an example that demonstrates the effects of insecure property rights
IP rights- if they are weak, firms will choose to invest in tangible assets instead of in ideas, software, and trademarks because they are not able to prevent other firms and employees from stealing ideas, software, and brands. no incentive to make these investments since firm will not be able to recuperate the value of investment
148
give an overview of the timeline for the US' biological property rights
1790- patent act
1930- plant patent act
1970- plant variety protection act
1980- Supreme Court decision established use of Utility Patents for biological inventions
1985- Patent and Trademark Office broadened use of Utility Patents for plants
1987- PTO broadened use of Utility Patents for animals
149
describe the biotech boom
explosion in gene transfer tech that enable researchers to tailor crops for specific uses. explosion in crops with increased nutrition/improved processing traits
150
describe how the government motivates exchange between individuals and incentivizes individuals to make investments
by assigning, tracking, and enforcing property rights, enforcing contracts and rules that govern exchange, providing other public goods that affect costs of transacting
151
describe the paradox of government
the gov that is strong enough to enforce property rights and contracts is also strong enough to violate them. can expropriate income and wealth generated by private exchanges. can abuse power fo the purse and the monopoly over the use of force
152
when do rulers have incentives to provide property rights and public goods
when ruler can claim share of economic byproducts of these policies: internalizes benefits of property rights, contract enforcement, and public goods that reduce transaction costs. when time horizons are long enough for rulers to enjoy returns to investments by creating a bigger economic pie
153
describe why long time horizions aren't always sufficient for rulers to provide property rights and public goods
if ruler adopts good institutions that promote exchange and growth, this can empower challengers. challengers grow stronger if they become wealthier: may displace ruler and deprive him of power and privileges. challengers cannot credibly promise predatory ruler he will continue to reap rents after he adopts efficient institutions.
154
define social conflict theory
political elites will choose inefficient economic institutions deliberately even though they know that these lead to economic backwardness because they fear losing access to the rents associated with holding power if they adopt more efficient institutions
155
do mistkaen beliefs determine economic institutions
no. social conflict can lead to choices of economic institutions that cause underdevelopment even if all agents know they cause underdevelopment
156
are institutions an accident of history
no. social conflict theory implies that institutional choices that cause underdevelopment are conscious choices rather than result of historical accident
157
why don't institutions evolve to reflect underlying needs of societies
because society is composed of individuals with different interests. some individuals are more powerful than others. they use that power to shape economic institutions in ways that advance their interests
158
when politicians are _______ for adopting bad _____________ policies and ___________ for adopting good __________ policies , they are more likely to be ________ _______________ stewards
punished; economic; rewarded; economic; good economic
159
describe the role of democracy and incentives to be responsive to property rights concerns
property rights written into the constitution and legal system. violating property rights induces sanctions imposed by other branches of gov or the electorate. political parties represent creditors and asset holders. political parties represent wage earners and middle class and make sure that their tax revenues are reciprocated with education, which raises their skills and wages, and public goods that reduce transaction costs
160
describe the Glorious revolution of 1688 in the British historical example
it was only when the king needed taxes from his subjects to wage war against foreign threats that he committed to share power with a Parliament in order to raise funds to cover the cost of warfighting
161
describe North and Weingast's take on the earliest property rights emerged slowly with state formation in the UK
the interests of the elite in secure property rights and freedom from arbitrary property confiscation drive the formation of new institutions such as the bank of england and the creation of parliament as a check against the authority of the king
162
what do the new institutions that North and Weingast say form do
reduce information uncertainties/asymmetries. allow rulers to make credible commitments. provide political order and stability. reduce transaction costs
163
describe property without rights
reform programs granted beneficiaries land with restrictions: usufruct rights with state ownership, restrictions on alienability, partitioning, and mortgaging, provisional land titles, no form land titles
164
describe the missed opportunity of land redistribution
in most countries land redistribution has failed to advance them toward rapid development
165
describe rural economies that remain relatively stagnant
underinvestment in land, infrastructure and input. spotty and limited access to credit. rural land markets are slow and inefficient. schooling lags in rural areas.
166
what are the 3 diverse origins of the property rights gap
myopia/competing goals, ideology, state capacity
167
describe myopia/competing goals as the orgin of the property rights gap
governments were unaware of the negative consequences of underproviding Property rights, bungled them or had competing goals that took priority
168
describe ideology as the origin of the property rights gap
marxists, dependency theorists, and others viewed land inequality as a function of world markets, dispossession in the drive to accumulate, and market volatility that disproportionately harms the weak; collectives/cooperatives and inalienability offers protection
169
describe state capacity as an orgin of the property rights gap
many states do not have the capacity to build orderly and updated land registries and land cadasters.
170
describe the complications of incomplete property rights
difficult to acquire loans/credit leads to underinvestment
hard to sell, lease, partition, or mortgage land leads to the land markets being inefficient
difficult to protect against property encroachment leads to keeping beneficiaries in the countryside
171
describe how the state steps in with solutions that require beneficiaries to repeatedly interact with the state in iterated fashion
act as monopoly provider of credits and agricultural inputs. facilitate orderly land transfers among loyal beneficiaries. deploy police to protect the new status quo distribution of property
172
what are the 3 powerful drivers of rural social control
complications of incomplete property rights, state steps in with solutions that require beneficiaries to repeatedly interact with the state in iterated fashion. leverage solutions at critical times to bolster regime support
173
describe the theories on opening a property rights gap
1. political regime type- land redistribution institutionally easier under authoritarian rule where powerful losers can be overrun and harder under democracy where losers capture veto points; authoritarians have incentives to withold PR for rural social control
2. political coalitions- land redistribution without property rights when landed elites excluded from ruling coalition
174
describe the theory on closing a property rights gap
1. political regime type- democracies provide avenues for expression of demand side of property rights: legislators and executives compete for votes; untitled can support politicians that promise property rights; judiciary may uphold property rights.
2. political coalitions- closing property rights gap especially likely when peasants are incorporated in the ruling coalition and can push for property rights protection. still-powerful landed elites can block property rights; often in legislature.
3. international pressure- both democracies and dictatorships accede to international pressure to close property rights gap when facing sever crisis that requires assistance.
