poli 441 · session overview political economy as a discipline is an integrated field that...

College of Education

School of Continuing and Distance Education2014/2015 – 2016/2017

POLI 441POLITICAL ECONOMY OF AFRICA’S

DEVELOPMENT SINCE INDEPENDENCE

SESSION 1 : NATURE OF POLITICAL ECONOMY I

Lecturer: Dr. Seidu Alidu Contact Information: [email protected] /[email protected]

Session Overview

Political economy as a discipline is an integrated field that encompasses the specialized disciplines of politics,

economics and international relations (Stephen Gill and David Law). Politics deals with the pursuit of power (i.e.,

meaning of power, how it is acquired and eventually how it is used). There are several ways that political power may be

acquired and that definitely affects the way it is distributed and used.

Economics is concerned with the pursuit of wealth. The wealth of a country can come from several sources but two are

quite dominant: natural resources and human resources. Natural resources are God-given wealth that needs to be

explored by the state and processed for exchange and the revenue generated from the exchange used for beneficial

purposes.

The interactive process of these two greater disciplines may occur at the level of just a state or between states, thus

bringing in a third discipline known as international relations. This session will basically explore these three disciplines,

their interface points and the impact of the convergence to the growth of the African economy and the well being of

the people.

2/28/2018Lecturer: Dr. Seidu Alidu Slide 2

Session Outline

The key topics to be covered in this session are:

– Topic 1: POLITICS AS THE PURSUIT OF POWER

– Topic 2: ECONOMICS AS THE PURSUIT OF WEALTH

– Topic 3: THE INTERACTIVE PROCESSES OF POLITICS AND ECONOMICS

– Topic 4: IMPLICATION TO THE DEVELOPMENT OF AFRICA


Reading materials

• Ravenhill, J. (ed.) (2005) Global Political Economy, Oxford: Oxford University Press, (Part One, pp. 3 – 47)

• Jackson, R. and Sorensen, G. (2003) Introduction to International Relations Theories and Approaches, Oxford: Oxford University Press (Chp. 8, International Political Economy: Contemporary Debates).

• Oatley, T. (2008) International Political Economy: Interests and Institutions in the Global Economy, Third Edition, New York: Pearson Education, Inc. (Chp. 1: International Political Economy, pp. 2 – 21)

• O’Brien, R. and Williams, M. (2004) Global Political Economy: Evolution and Dynamics, New York: Palgrave Macmillan, (Chp. 1, Understanding the Global Political Economy, pp. 11 – 36)

Lecturer: Dr. Seidu Alidu Slide 42/28/2018

Learning objectives

At the end of the session, students should be able to:

– Understand the nature of political economy

– Differentiate between political economy and global political economy

– Become familiar with the interactive process between politics, economics and international relations

– Articulate clearly the implication of the politics and economics to decision making in Africa African

– Become familiar with the nature of the African economy

– Become familiar with the relationship between Africa’s economy and the global economy


POLITICS AS THE PURSUIT OF POWER

Topic one


POLITICS AS THE PURSUIT OF POWER

Politics deals with the pursuit of power (i.e., meaning of power,how it is acquired and eventually how it is used). There areseveral ways that political power may be acquired and thatdefinitely affects the way it is distributed and used.

Technically, there are three of many ways in which power isacquired;

– through inheritance or hereditary transfer;

–through the gun or military coup de tat; and

– through elections or democracy.


...PURSUIT OF POWER

Power that is acquired hereditarily is less likely to be openly contested, participatory andinclusive. The level of accountability may also be limited since power holders will be moreinclined to account to the source of their power rather to those that are being governed withthe power.

Similarly, power acquired through military coup de tat is more likely to follow in the fashionoutlined above in hereditary power; being accountable to the gun and the few elements thathelped made the coup a success.

In a typical fashion, power acquired through elections is more likely going to be transparent,accountable and participatory. This assumption is informed by the manner in which power isacquired in a democracy; basically through popular ballot where every citizen who isqualified by age, of sound mind and perhaps by nationality is given same equal opportunitiesjust like other citizens to determine who should superintend over national affairs. Electionsand perhaps the existence of both horizontal and vertical institutions of accountability havemade transparency, accountability and participation more likely in a democracy than in the

other methods of power acquisition.

2/28/2018Lecturers: Dr. S Atindanbila /Mr. Muhammad Amin Jibril

Slide 8

...PURSUIT OF POWER

It is however another matter for discussion whether poweracquired through democracy (with all the assumptions madeabove) is more likely to lead to a better management of theeconomy and collective transformation of the lives of citizensin a progressive manner.

Democracy is assumed to be a better system of developmentthat could lead to an economic transformation and eventualdevelopment since decisions in a democracy are moreinclusive and progressively made. This assertion is moreprominent in the African context where it is assumed thatconflicts have been the bane of the continent’s development.


Slide 9

...PURSUIT OF POWER

Conclusively, though the manner in which power is acquired is central to the understanding of politics, it goes without saying that the way that power is used is also very critical.

It is prudent noting that most countries have been able to develop successfully in conditions described as less democratic. Wade (2007) describes the developmental strategies employed by the Asian Tigers in their infant stages of development as purely illiberal.


Slide 10

...PURSUIT OF POWER

The relative economic successes of Rwanda and Ethiopia as well assimilar feats achieved under military regimes in Africa (i.e.,Acheampong’s remarkable developmental achievements in Ghanain the 1970s) collectively reinforce the now popular theory of“developmental autocracies.”

Developmental autocracy refers to a situation where an economysuperintended by a non-democratic government or regime is ableto do so well as it if the government was democratic, if not morethan a democratic government itself.

Developmental autocracies are rife in Africa and therefore the priorassumption that political economy is about how power is acquiredand used is quite fundamental and should therefore not be limitedto democracy and democratic governance.

2/28/2018Lecturers: Dr. Seidu Alidu Slide 11

ECONOMICS AS THE PURSUIT OF WEALTH

Topic Two


ECONOMICS AS THE PURSUIT OF WEALTH

Economic is concerned with the pursuit of wealth. The wealth of a country can come from several sources but two are quite dominant: natural resources and human resources.

Natural resources are God-given wealth that need to be explored by the state and processed for exchange and the revenue generated from the exchange used for beneficial purposes.


INTERACTION BETWEEN POLITICS AND ECONOMICS

Topic Three


POLITICS AND ECONOMICS

The concept political economy has two preambles including; politics (thestate) and the economy (the market).

Aristotle, in the 4th Century BC, identified in his book "Politics" that human isessentially 'Political Animals.' Also Adams Smith, in his book "Truck,Barter, Exchange" argues that human being is an 'Economic Animal'.

Whereas Aristotle was concerned with the state (politics), Adam Smithconcerned with the market (economy). Therefore the existentialinteraction of these two ideologies is what is referred to as politicaleconomy.


POLITICS + ECONOMICS

Political economy as the existential mutual interactionbetween the state which represents the politics and themarket which represents the economy.

Any attempt therefore to define political economy must notbrass over the existence and interaction between thestate and the market.

Whereas this fact is simple to appreciate, the politicaleconomy is fraught with controversies as to the extent toeither the state or the market should be prime mover ofsocio-economic activity


Slide 16


– The presentation of political economy as an integrateddiscipline of politics and economics has been challengedrecently by liberal theorists (Joan Spiro).

– Liberals perceived economic activities (made up ofproduction, distribution and consumption of goods) to beexclusively reserved for private enterprises and not forgovernments.

– They also believe the performances of these activities aregoverned by the laws of nature, with a bit of harmony tothe economic system.


Slide 17


On the other hand literalists believe the main thrust of politics ispower, influence and public decision making. Power, influenceand decision making are not regulated by natural law andtherefore require government support, at least, in the areasof defence, law and order.

Alfred Marshall and his discipline, Lionel Robbins, argue thateconomics is a scientific study of human behavior as a“relationship between ends and scarce means which havealternatives.” This definition of economics ignores the link

between the subject and politics


Slide 18

IMPLICATIONS FOR DEVELOPMENT Topic Four

2/28/2018Lecturer Dr. Seidu Alidu Slide 19

IMPLICATIONS

The current common understanding of political economy refers to an interdisciplinary studies that draw upon socialand political theory, in addition to economic principles, inorder to understand how political actors, institutions, and economic processes influence each other.

These has implications on development, ideologically:

– State-led approached to development

– Market-led approaches to development

– A hybrid system of these two models


References

• Ravenhill, J. (ed.) (2005) Global Political Economy, Oxford: Oxford University Press, (Part One, pp. 3 – 47)

• Jackson, R. and Sorensen, G. (2003) Introduction to International Relations Theories and Approaches, Oxford: Oxford University Press (Chp. 8, International Political Economy: Contemporary Debates).

• Oatley, T. (2008) International Political Economy: Interests and Institutions in the Global Economy, Third Edition, New York: Pearson Education, Inc. (Chp. 1: International Political Economy, pp. 2 – 21)

• O’Brien, R. and Williams, M. (2004) Global Political Economy: Evolution and Dynamics, New York: Palgrave Macmillan, (Chp. 1, Understanding the Global Political Economy, pp. 11 – 36)

Lecturers Dr. Seidu Alidu Slide 212/28/2018

poli 441 · session overview political economy as a discipline is an integrated field that...

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