Skip to main content Accessibility help
×
Home
Hostname: page-component-59b7f5684b-hd9dq Total loading time: 0.326 Render date: 2022-09-26T01:36:02.831Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "displayNetworkTab": true, "displayNetworkMapGraph": false, "useSa": true } hasContentIssue true

One - Limited Access Orders

An Introduction to the Conceptual Framework

Published online by Cambridge University Press:  05 December 2012

Douglass C. North
Affiliation:
Washington University, St Louis
John Joseph Wallis
Affiliation:
University of Maryland, College Park
Steven B. Webb
Affiliation:
The World Bank, Washington DC
Barry R. Weingast
Affiliation:
Stanford University, California
Get access

Summary

The Problem of Economic and Political Development

Success in economic as well as political development depends primarily on improving institutions. This has become the consensus among economists over the last twenty years, as the world has witnessed many development failures in spite of abundant capital, natural resources, and educated populations, who emigrate or stagnate if institutions do not put them to good use. The question now is: What institutions are right? As elaborated later in this chapter, some argue that developing countries should emulate the institutions of the most successful, high-income economies of the OECD. We and others, however, see evidence that most low- and middle-income countries are not ready to utilize many Western European or North American institutions or that these institutions function very differently if transplanted into these low- and middle-income economies.

The purpose of this volume is to develop and apply an alternative framework for understanding the dynamic interaction of political, economic, and social forces in developing countries, which was first laid out by North, Wallis, and Weingast (2009, hereafter NWW). The standard approach begins with neoclassical assumptions that growth will occur whenever profitable opportunities present themselves unless the intervention of political or social impediments prevent markets from working. In contrast, the alternative perspective presented here begins with the recognition that all societies must deal with the problem of violence. In most developing countries, individuals and organizations actively use or threaten to use violence to gather wealth and resources, and violence has to be restrained for development to occur. In many societies the potential for violence is latent: organizations generally refrain from violence in most years, but occasionally find violence a useful tool for pursuing their ends. These societies live in the shadow of violence, and they account for most of human history and for most of today’s world population. Social arrangements deter the use of violence by creating incentives for powerful individuals to coordinate rather than fight. The dynamics of these social arrangements differ from those described in neoclassical models, and this difference limits the value of the neoclassical tools for understanding the problems of development.

Type
Chapter
Information
In the Shadow of Violence
Politics, Economics, and the Problems of Development
, pp. 1 - 23
Publisher: Cambridge University Press
Print publication year: 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, DaronJohnson, Simon 2008 Unbundling InstitutionsJournal of Political Economy 113 94595Google Scholar
Acemoglu, DaronRobinson, James A. 2006 Economic Backwardness in Political PerspectiveAmerican Political Science Rev 100 11531CrossRefGoogle Scholar
Abernethy, David B. 2000 The Dynamics of Global Dominance: European Overseas Empires, 1415–1980New HavenYale University PressGoogle Scholar
Akerlof, George A.Yellen, Janet L. 1990 The Fair Wage-Effort Thesis and UnemploymentQuarterly Journal of Economics 105 25583CrossRefGoogle Scholar
Alston, LeeMelo, Marcus AndreMueller, BernardoPereira, Carlos 2010 The Road to Prosperity: Beliefs, Leadership and Windows of Opportunity: Brazil 1960-2010ManuscriptGoogle Scholar
Bates, Robert H. 1981 Markets And States In Tropical Africa: The Political Basis Of Agricultural PoliciesBerkeleyUniversity of California PressGoogle Scholar
Bates, Robert H. 2001 Prosperity and Violence: The Political Economy of DevelopmentNew YorkNortonGoogle Scholar
Bhagwati, Jagdish 1982 Directly Unproductive, Profit-Seeking (DUP) ActivitiesJournal of Political Economy 90 988CrossRefGoogle Scholar
Buchanan, James M.Tollison, Robert D.Tullock, Gordon 1980 Toward a Theory of the Rent-Seeking SocietyCollege Station, TXTexas A&M PressGoogle Scholar
de Mesquita, BuenoBruce, Alastair SmithSilverson, Randolph M.Morrow, James D. 2003 The Logic of Political SurvivalCambridge, MAMIT PressGoogle Scholar
Collier, Paul. 2007 The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About ItOxford and New YorkOxford University PressGoogle Scholar
Collier, Paul. 2009 Wars, Guns and Votes: Democracy in Dangerous PlacesHarper-CollinsGoogle Scholar
Cox, Gary WMcCubbins, Mathew D. 2000 Haggard, S.McCubbins, M.Presidents, Parliaments, and PolicyCambridgeCambridge University PressGoogle Scholar
Easterly, William 2001 The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the TropicsCambridge, MAMIT PressGoogle Scholar
Engerman, Stanley E.Sokoloff, Kenneth L. 2005
Fukuyama, Francis. 2011 The Origins of Political Order: From Pre-human Times to the French RevolutionNew YorkFarrar, Strauss and GirouxGoogle Scholar
Grindle, Merilee S. 2007 Good Enough Governance revisitedDevelopment Policy Review 25 55374CrossRefGoogle Scholar
Guinnane, Timothy W.Harris, RonLamoreaux, Naomi R.Rosenthal, Jean-LaurentPutting the Corporation in its PlaceEnterprise and Society 8 2007 687CrossRefGoogle Scholar
Haber, Stephen H.Klein, Herbert S.Maurer, NoelMiddlebrook, Kevin J. 2008 The Second Mexican Revolution: Economic, Political, and Social Change in Mexico since 1980CambridgeCambridge University PressGoogle Scholar
Haber, Stephen H.Razo, ArmandoMaurer, Noel 2003 The Politics of Property Rights: Political Instability, Credible Commitments, and Economic Growth in MexicoCambridgeCambridge University PressCrossRefGoogle Scholar
Herbst, Jeffrey I. 2000 States and Power in Africa: Comparative Lessons in Authority and ControlPrincetonPrinceton University PressGoogle Scholar
Heston, AlanSummers, RobertAten, Bettina 2009
Huntington, Samuel P. 1968 Political Order in Changing SocietiesNew HavenYale UnivGoogle Scholar
Keefer, PhilipVlaicu, Razvan 2008 Democracy, Credibility and ClientelismJournal of Law, Economics and Organization 24 371406CrossRefGoogle Scholar
Khan, Mushtaq H. 2004 Tungodden, BertilStern, NicholasKolstad, IvarToward Pro-Poor Policies: Aid Institutions, and Globalization. Proceedings of the Annual Bank Conference on Development EconomicsOxfordOxford University Press and World BankGoogle Scholar
Khan, Mushtaq H.Jomo, K. S. 2000 Rents, Rent-Seeking, and Economic Development: Theory and Evidence in AsiaCambridge, UKCambridge University PressCrossRef
Krueger, Anne. O. 1974 The Political Economy of the Rent-Seeking SocietyAmerican Economic Review 64 291Google Scholar
Landes, David S. 1998 The Wealth and Poverty of Nations: Why Some are so Rich and Some so PoorNYW.W. NortonGoogle Scholar
La Porta, RafaelLopez-de-Silanes, FlorencioShleifer, AndreiVishny, Robert 1999 The Quality of GovernmentJournal of Law, Economics, and Organization 15 1)CrossRefGoogle Scholar
Levi, Margaret. 1988 Of Rule and RevenueBerkeleyUniversity of California PressGoogle Scholar
Mokyr, Joel. 1990 The Lever of Riches: Technological Creativity and Economic ProgressNYOxford University PressGoogle Scholar
Moore, Mick. 2010 An Upside Down View of GovernanceBrighton, UKThe Centre for the Future StateGoogle Scholar
North, Douglass C. 1981 Structure and ChangeNew YorkW.W. NortonGoogle Scholar
North, Douglass C.Wallis, John JosephWeingast, Barry R. 2009 Violence and Social Orders: A Conceptual Framework for Interpreting Recorded Human HistoryNew YorkCambridge University PressCrossRefGoogle Scholar
North, Douglass C.Wallis, John JosephWebb, Steven B.Weingast, Barry R. 2007
Olson, Mancur. 1993 Democracy, Dictatorship, and DevelopmentAmerican Political Science Review 87 567CrossRefGoogle Scholar
Przeworski, AdamAlvarez, Micael E.Cheibub, Jose AntonioLimongi, Fernando 2000 Democracy and Development: Political Institutions and Well-Being in the World, 1950–1990Cambridge University PressCrossRefGoogle Scholar
Rodrik, Dani 2007 One Economics, Many Recipes: Globalization, Institutions, and Economic GrowthPrincetonPrinceton University PressGoogle Scholar
Shirley, Mary M. 2009 Institutions and DevelopmentCheltenham, UKEdward ElgarGoogle Scholar
Spiller, Pablo T.Tommasi, Mariano 2007 The Institutional Foundations of Public Policy in ArgentinaCambridgeCambridge University PressCrossRefGoogle Scholar
Tilly, Charles. 1990 Coercion, Capital, and European States, AD 990–1990Cambridge, MABasil BlackwellGoogle Scholar
Bank, World 2011 World Development Report 2011: Conflict, Security, and DevelopmentWashington, DCWorld BankCrossRefGoogle Scholar
5
Cited by

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×