POLI 474 Lecture 11: POLI474L11
15 Feb 2017
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Document Summary
Important: influence world bank view of development. State = real problem for development > should retreat. Central argument: economic stagnation (africa) > state intervention / failed state policy: agricultural policy (specifically) Food production lower > price distortion in society: distort v. rural producers. Shortage of food (urban areas: goal of state: lower shortage of food in urban areas. Ensure steady flow of cheap food into urban areas: result: push producers to produce far less > food shortage / increase price of food. Why do leaders do this: rational choice, wants to maintain power, personal preferences animate policy, maximize power. Maintain support from key urban constituent groups: workers, manufacturers, low-paid, civil servants, bureaucrats, capitalist elite, st. needs support of these groups > if not satisfied, they could create instability. Basic problem > workers x discontent by distorted pricing of food. Inflation > increase food prices, pressure on industry to increase price of wages: ref. industrial elite.
