impact of politics on development

8/13/2019 impact of politics on development

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POLITICS & ECONOMICS IMPACTS ONDEVELOPMENT

ADVICE OF ECONOMIST TOPOLITICIANS


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DEFINATION OF TERMS Political Economy :The study and use of how economic theory

and methods influences political ideology. Political economy isthe interplay between economics, law and politics, and howinstitutions develop in different social and economic systems,

such as capitalism, socialism and communism. Politicaleconomy analyzes how public policy is created and implementedPolitics Politics its a Greek word polis meaning state or

community.

Politics implies measures which could or should be in theview of the devisor be implemented in hope to create abetter society than which is already present.

It is a platform from which policies , laws, and regulatoryframeworks that are designed within which social andeconomic activities are driven.


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DEFINATION OF TERMS Development is a process which enables human beings

to realize their potential, build self-confidence, andlead lives of dignity and fulfillment. It is a processwhich frees people from fear of want and exploitation.It is a movement away from political, economic, orsocial oppression. Through development, politicalindependence acquires true significance. And it is aprocess of growth, a movement essentially springingfrom within the society that is developing.


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Positives Politics shapes the well being of a country thats in terms of policies

Policies can be set to attract investment Cooperation: Working together, achieving goals through collective

action. On the one hand, the existence of rival opinions, differentwants, competing needs and opposing interest guaranteesdisagreement about the rules under which people live. On the otherhand people recognize that, in order to influence these rules or ensurethat they are upheld, they must work with others.

Politics can bring development and economic prosperity in that; bringssocial justice


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a)Ruling political elites support the development of productive sectors

when they perceive that this helps them to remain in power;

(b) Ruling political elites choose policies and implementationarrangements as part of their strategies for maintaining rulingcoalitions and/or winning elections. Such choices affect certainfeatures of the policies, the sectors selected for support, andimplementation capacity; and

(c) Good economic outcomes depend on i) close relations between theruling political elite and the relevant productive entrepreneurs basedon their mutual interests; and i) the ability of the ruling elite to createpockets of bureaucratic capabilities to implement specific policies.


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Politics facilitate transparency

Good governance


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Negatives Politics can lead to de development & also can

negatively impact on economic prosperity

A related obstacle to development caused by Africanleaders politicization of development is thechanneling of resources into unproductive uses. Herewe see that important projects may be initiated for the

wrong reasons, they may be located in places wherethey are least beneficial economically on account ofpolitical considerations.


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A further instance of how politics under develops

Africa is seen in the economic implications ofauthoritarianism and militarization of politics.Authoritarianism and militarization of politics and, byextension, the societies are the outcome of overvaluingof political power in Africa and the intense struggle toobtain and keep it. This has transformed politics inAfrica into warfare.


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Instability prevents political institutions from

ensuring property rights, which in turn increases theprobability that returns on investment areexpropriated. As a result of higher risk, less investmentis undertaken. political

instability might cause brain drain. In extreme cases ofinstability like revolutions or coups dtat,


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Another channel through which political instability

affects economic performance relates to politicaleconomy and consists in the reduction of time horizon

that politicians might suffer when instability is high.In a context of high instability, politicians tend toavoid structural reforms and lead wait-and-see policiesinstead in order to limit disagreement with thepopulation and the other political parties. Agovernment can also choose to pursue the sameeconomic policy in spite of all the evidence, in order todefeat its opponents.


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Terrones (1990) underline that a government

threatened by instability may be tempted to usecorruption to insure the loyalty of the bodies thatmight help it to remain in power like the police, thearmy, the administration...


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DAC relates those risk indicators to the following aspects:

- loss of political space for opposition, civil society andmedia

- social, economic and political exclusion

- unemployment, especially among youth

- impoverishment

- increasing inequalities - human rights violations

- increasing insecurities

- migratory flows


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However politics provides room for good governance, or the emulation of the

institutional best practices of OECD countries, is nota precondition forsuccessful economic prosperity. Successive generations of development successin East and Southeast Asia have been attained without adherence to Westernbest practices, most recently and massively in China and Vietnam. The

research by Tracking Development on Southeast Asian and comparable Africancountries makes clear that the reasons most of the former achieved sustained,pro-poor growth and none of the latter did over the 50 years since 1960 aremostly about policy differences. During the early decades of the period,Indonesia, Malaysia and Vietnam invested heavily in rural development, drivenby urgency, outreach and expediency. They did so under a variety of politicalregime types, none of which were free of major corruption. They made someprogress towards democratization only after achieving substantial economictransformation. What is important, our programmes agree, is not whethercountries comply with governance ideals. It is how the political elites, sectoractors and state officials of a country respond to the specific incentives thatthey face when they make choices about policies and their implementation.


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End of Presentation

12/7/2013 DG 213 Environmental Hazards 15

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impact of politics on development

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