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Canada (511,043)
POLC38H3 (43)
Lecture 2

Lecture 2 why care

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Political Science
Jennifer Levine

Lecture 2Why Care Why careProsperityBates focuses on violences effect on prosperityCould corruption have a similar effect on capitalOr what is corruptions affect on the formation of capital and longterm investmentAdes and Di Tella Corruption adversely influences investmentwhich is very very important for developing countriesWhy we care about corruptionCorruption can be a big deal that interferes with accumulation of capital and longterm prosperityWhich begs the questionWhy be corrupt if it has such negative consequences for your country Why be corruptOpportunities existPrincipal agent problem Incentive for agent to act in selfinterest even if selfinterest is contrary to principal ones bossNot always in ones self interest to work in a manner consistent with whats best for others or society as a wholePrisoners DilemmaTragedy of the CommonsSelfInterestGovernancePrincipal AgentSelfinterestDinner gamePrisoners DilemmaTragedy of the CommonsPrincipals and agentsRather than completing a variety of tasks we hire someone an agent to complete the task on our behalfThe person doing the hiring is the principal The agents job is to work on principals behalf keeping in mind best interest of principalPrincipals need agentsDelegation is indispensable whenPrincipal has other tasks she needs to completeCompleting a task oneself is unrewardingSpecial expertise is requiredWhen enforcement is necessarythThe invention of lawyers at the 12 century Champagne fairsPrincipals and Agents in GovtWe elect representatives to look out for our interestsat city hall in the provincial capital the federal capital at the UN etcWe are principalsElected officials are our agents
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