Introductory slides on Institutions and Dynamics for an undergraduate course on Philippine Political Institutions and Dynamics I taught in 2004.

1. Political Institutions
and Dynamics

2. What are political
institutions and
dynamics?

3. Institutions v. Dynamics
Institutions
“The rules of the game”
Pertains to that which shapes or
constrains the behavior of social agents
Dynamics
Refers to the behavior of the agents
themselves (including their relationship
[s] to one another)

4. Conventional Perspectives
Society-centered
Focuses on the norms, agents and
interactions within society
State-centered
Emphasizes the ability of states to shape
societal priorities

5. The Society-Centered View
Society State Policy/Result

6. Systems Analysis
Input State Output
Feedback

7. The State Centered View
State Society

8. The State Centered View
State Society

9. Note...
Both views, while useful, are incomplete
Each views state and society as static
Neither accounts for the fact that both
states and societies are changed by
their repeated interaction
Further, there is a dynamic between
state and society, within the state and
within society.

10. What are states and
markets?

11. Terminology
States refer to concentrations of political
power
Elements: People, Territory, Government
and Sovereignty
Markets pertain to concentrations of
economic power
Although somewhat inaccurate the fo!owing
are loosely interchangeable:
State = Government Market =Economy

12. On Markets
Markets are generally where exchange takes
place
Volition is the primary characteristic of
market transactions
We can speak of markets in two ways...
...in the abstract (“the market”)
...in precise terms (“a market”)

13. Is there a role for the
state in the market?

14. On the one hand...
From a purely economic perspective,
markets allow for the efficient allocation of
resources.
State intervention in markets can result in
gross inefficiencies.
Thus, states should keep their interference
in markets to a minimum.
There are plenty of things government should
not do vis-a-vis the market.

15. On the other hand...
An “efficient” allocation of resources is not
necessarily the “best”.
The concept of a “free market” is itself
predicated on the assumption that
government opts out of the market.
Markets themselves have to be designed.
Governments are necessary in order for
markets to function at a!.

16. Elements of Market Design
Information must be allowed to flow
smoothly.
People can be trusted to live up their
promises.
Competition is fostered.
Property rights are protected (but not
overprotected).
Externalities are controlled.

17. When is a state’s economic
intervention “effective”?

18. Key Concepts
State Autonomy
The ability of states to formulate goals/
policies independently
State Capacity
The ability of states to follow through on
pre-determined goals/policies
Conceivably, the two need not go together.

19. A Continuum of States
- Autonomy/Capacity +
Rent-Seeking Bureaucratic
- Political incumbents - Resource redistribution is
appropriate or distribute insulated from vested
state resources as rents interests
- Incumbents see little or - Pursuance of state goals
no distinction between is seen as distinct but
public and private congruent with private
interests interests

20. A Continuum of States
- Autonomy/Capacity +
Rent-Seeking Bureaucratic
Predatory Developmental
State State

21. State-Society Relationships
Ineffective Effective
Intervention Intervention
Internal Embedded
Structure Patrimonial
Autonomy
Purposive
External Haphazard /
Public-Private
Ties Unstructured
Ties

22. Ergo...
Lessening state intervention in the
economy is not the only solution to further
economic development.
The more autonomous states are, the
greater their capacity to foment positive
economic change.
State autonomy is enhanced the more
professional the bureaucratic structure and
the more “structured” its ties with society.

23. ~fin~
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