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4 - Domestic interests and control regimes

Published online by Cambridge University Press:  09 January 2010

Benno J. Ndulu
Affiliation:
The World Bank
Stephen A. O'Connell
Affiliation:
Swarthmore College, Pennsylvania
Robert H. Bates
Affiliation:
Harvard University, Massachusetts
Paul Collier
Affiliation:
University of Oxford
Chukwuma C. Soludo
Affiliation:
Central Bank of Nigeria
Robert H. Bates
Affiliation:
Eaton Professor of the Science of Government Harvard University
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Summary

Introduction

When imposing a control regime, a government seeks to displace the market as the primary agency for governing the economy. Either by manipulating the structure or operation of markets, or by replacing private markets with public bureaucracies, it seeks to shape the way in which land, labor, and capital are allocated; commodities produced and distributed; services furnished; and incomes determined.

This chapter details the policies that characterize regulatory regimes and documents their economic impact. Stressing the economic costs inflicted by the imposition of control regimes, the chapter asks: given their magnitude, why did governments pursue such policies? And having chosen to regulate their economies, why did governments persist in this decision? The answers it offers not only shed light on why governments may impose control regimes, then, but also on the politics of policy reform.

In analyzing the content of control regimes, this chapter draws on two sets of data. One is the classification of policy syndromes developed by the research teams; the other is an account of the policy choices of twenty-eight African governments published by the World Bank (1994). In its 1994 report, the Bank audited the measures taken by its sample set of governments to regulate financial markets, industries, trade, and services. To illustrate the content of control regimes, the chapter compares the measures taken by governments judged to have implemented control regimes with those judged not to have done so, as documented in the World Bank's report (1994).

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Chapter
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Publisher: Cambridge University Press
Print publication year: 2007

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