POL410H1 Chapter : Missing Social Contract

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20 Aug 2012
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Discusses the hypothesis of the political origin of economic problems, political support gap for adjustment of the political origin and political obstacles. They argue that in order to have effective economic reforms there must be an existence of a basic social contract. Gives example of latin america broad political coalitions play a strategic role connecting civil society and the state. There are 2 schools of thought, poltical economists view the endogeneity of governments as (1) a consequence of class and ideological structures. (2) rational choice adepts view it as the outcome of individual preferences and strategies. Individuals have an essential role as economic agents in the market and social classes are still crucial because they express specific interests though social and state regulation. Economic crisis derives from the crisis of the state but also has an economic political origin since the state is also a part of the economic system.

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