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Lecture 16

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Political Science
Lilach Gilady

Lecture 16 Mozambiquefs example shows us how economic policy does not work without institutions Most economic reforms and measures will cause some pains but after some time we will see some benefits J Curve If the institutions are not strong enough and they succumb to the political pressure growth will never happen There might not be a problem with Modernization theory but rather african conditions are very unique Why are there weak institutions Colonial legacy no institutional infrastructure no modern self rule tradition When they got independence they didnft know how to be a nation Also borders were imposed by colonization and intl agreements not by local groups Some of these countries made no sense Sudan There has been a tradition to not change colonial borders the split in Sudan has been one of the greatest changes in postcolonial Africa and it might create a slippery slope because many states are not really a nation Traditional authority structures culture geography Instabilityweak institutionsinstability The curse of natural resources Natural resources do not always have positive effects on countries is this access to resources a threat to politics If you donft have resources you need to collect taxes from people If you collect taxes it creates accountability I pay as long as I receive services If the citizens do not pay taxes in resource rich states they still have a secure line of income This source allows regimes to ignore the needs of the population and they can be as corrupt as they want Resources allow states to be corrupt unaccountable and slows growth If we do simple statistical tests on the connection between resources growth corruption and unaccountability there is a tight connection Most states with many resources except Canada and Norway tend not to be democratic
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