Lecture: Political Economy
In the news this week
• Biden came out in support of French intervention in Mali
• more discussions with Iran's PM on nuclear issue
• Iran's Ahmadinejad going to Cairo
• Regional economic trends and political causes/impacts?
• Oil as a factor in Middle East states' international relations? In inter-Arab
relations? In domestic politics? Role of oil ever exaggerated?
• How has the emergence and strengthening of the Gulf states since the 1970s
influenced the Middle East region? What role might the Gulf states play in
the newly emerging Middle East?
• How can we best understand the Gulf Cooperation Council (GCC)? Is it a
security alliance? An economic cooperative? How has it evolved since its
Regional Economic Trajectories
• 1950s-1970s strong economic growth
• 1980s-2000s economic decline
• why the shift?
◦ oil prices?
◦ economic imbalances?
◦ conditions of war and conflict?
◦ deficient political systems?
1950s-1970s Welfare State Model
• interventionist-redistributive orientation
• heavy state control over economy
• import substitution industrialization (ISI)
• nationalization of private/foreign assets
• state programs for education, housing, health, food
• centralized bureaucracies, unions, associations
• social/political implications?
◦ positive social indicators (health, education, etc.)
◦ "social contract": dependence on state?
◦ but governance gap? (low in civil liberties, participation)
▪ decrease in political opposition
▪ somewhat lower political participation, less incentive to challenge