The Role Of Elites In Economic Development

Elites have a disproportionate impact on development outcomes. While a country's endowments constitute the deep determinates of growth, the trajectory they follow is shaped by the actions of elites. But what factors affect whether elites use their influence for individual gain or national welfare? To what extent do they see poverty as a problem? And are their actions today constrained by institutions and norms established in the past? This volume looks at case studies from South Africa to China to seek a better understanding of the dynamics behind how elites decide to engage with economic development. Approaches include economic modelling, social surveys, theoretical analysis, and program evaluation. These different methods explore the relationship between elites and development outcomes from five angles: the participation and reaction of elites to institutional creation and change, how economic changes affect elite formation and circulation, elite perceptions of national welfare, the extent to which state capacity is part of elite self-identity, and how elites interact with non-elites.

Institutions, the humanly devised constraints of economic activity, are outcomes of elite agency. Leveraging ideas from economics, sociology, politics, and strategic management, this book proposes an 'elite theory of economic development'. The overarching goal is to foster sustainable value creation at the elite business model level. This work also aims to contribute to transformational leadership, and links are made to the annual Elite Quality Index (EQx), a measure of the value creation of national elites. Presents a theory of society, the economy, and the way the world actually is. Provides lucid analysis on elites and their contribution to economic and human development. Suggests practical frameworks and measurements for sustainable value creation and appropriation.

This book identifies sources of power that help business and economic elites influence policy decisions.

'Aristocracies', 'Old Regime colonial elites' - from Adam Smith to Karl Marx and beyond, scholars have discussed their role in the rise of the modern world, in economic development and capitalism. Generally speaking and with the exception of the English landlords, the verdict has been always negative. Furthermore, historians have usually viewed the Ancien régime aristocracies and colonial elites as social groups with entirely irrational or completely apathetic attitudes towards the management of their estates. This book constitutes the first attempt to analyse the question in a more critical and historical way. It takes a directly comparative approach, covering countries from Peru to Russia and from Naples to England in the early modern period and up to the end of the 18th century. The rationale of how these elites administered their patrimonies, its political, social and sometime moral dimensions, and the real effects of all this on economic development are considered here as key aspects for a better understanding of economic life. The result is a quite different picture in which economic history is also seen as the outcome of human actions in their own social and political context.

Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine? Is it culture, the weather, geography? Perhaps ignorance of what the right policies are? Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence? Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions—with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories. Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including: - China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West? - Are America’s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority? - What is the most effective way to help move billions of people from the rut of poverty to prosperity? More philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson’s breakthrough ideas on the interplay between inclusive political and economic institutions? Why Nations Fail will change the way you look at—and understand—the world.

This book is a detailed comparative analysis of development politics in four urban regions of Latin America, two in Mexico and two in Colombia. John Walton has based his studies on the assumption that the problems of economic growth are essentially political, that is, are problems of choice, decision-making, and the exercise of power. His fundamental purpose has been to discover how elites of different kinds are more and less successful in the promotion of economic development, which he defines as a process in the organization of a society leading not only to higher levels of efficient output but also to a more equitable distribution of benefits. At the time, the four cities compared were the second- and third-largest metropolitan areas in each country, Guadalajara and Monterrey in Mexico, Medellín and Cali in Colombia. This selection allows the author to pair, across countries, cases of early and large-scale industrialization (Monterrey and Medellín) with cases of more recent industrial growth in agricultural-commercial centers (Guadalajara and Cali). Walton presents historical introductions to each of the regions and integrates these with original fieldwork and interviews with more than three hundred members of the political and economic elites. The findings are extensive, but in general they demonstrate that where political and economic power is more broadly distributed, where elites are more open and accessible, and where organizational life is more active and coordinated, regions tend to develop qualitatively as well as quantitatively, showing increases both in productivity and in such benefits as public services, housing, education, and a more balanced distribution of income. If these characteristics are absent, regions may be industrialized but do not provide a broad sharing of the benefits. Walton places a good deal of emphasis on the role of foreign investments, demonstrating that the more penetrated regions are also the less developed. Finally, the results of these studies are used to evaluate and advance theories of underdevelopment and particularly of economic dependency.

Across the globe, there are more than four thousand policy institutes, or think tanks, that research or advocate for economic and social development. Yet the relationship between these organizations and the policies they influence is not well understood. How Think Tanks Shape Social Development Policies examines case studies drawn from a range of political and economic systems worldwide to provide a detailed understanding of how think tanks can have an impact on issues such as education policy, infrastructure, environment and sustainable development, economic reform, poverty alleviation, agricultural and land development, and social policy. Each chapter provides an overview of the approaches and organizational structures of specific think tanks, as well as the political, economic, and social opportunities and the challenges of the environments in which they operate. The contributors study the stages of innovative think-tank-aided strategies implemented in highly industrialized world powers like the United States and Russia, emerging countries such as China, India, Brazil, and South Korea, and developing nations that include Ethiopia, Kenya, and Tanzania. Accompanied by an extensive introduction to contextualize the history and theory of policy institutes, this comprehensive comparison of policy success stories will be instructive and transferable to other think tanks around the globe. Contributors: Assefa Admassie, Celso Castro, Kristina Costa, Francisco Cravioto, Marek Dabrowski, Matt Dann, He Fan, Rajeev Gowda, Oh-Seok Hyun, Christian Koch, Jitinder Kohli, R. Andreas Kraemer, Elena Lazarou, William Lyakurwa, Ashwin Mahesh, Florencia Mezzadra, Partha Mukhopadhyay, Mcebisi Ndletyana, Sridhar Pabbisetty, Miguel Pulido, Marco Aurelio Ruediger, María Belén Sánchez, Dmitri Trenin, Samuel Wangwe, Vanesa Weyrauch, Maria Monica Wihardja, Rebecca Winthrop, Wang Xiaoyi.

Explains why government policies favor elites over the masses, building on well-established theories from the social sciences.