Growth, Debt, and Politics: Economic Adjustment and the Political Performance of Developing Countries

By Lewis W. Snider | Go to book overview

nate to the constraints embedded in the wealth-maximizing theory of state.

The bottom line is that notwithstanding the growth of economic interdependence, states and the power of the state to affect the domestic environment remain the crucial agents in shaping the international political economy. They do this through the control they exercise over the linkages between the domestic and the international economies. The foundation of this control is political, not economic. Countries react differently to external shocks because those shocks are filtered through the vitality of a country's political life and the political capacity it has to absorb them. That capacity, in the abstract, appears to be grounded on the ability of governments to subordinate the extractive and mobilizing virtues of the "predatory" state to the constraints and wealth-maximizing vigor of the "contractual" state. That is easier said than done, but it has been done.


Notes
1.
One reason for linking a large share of subsidies in democracies to investment in human capital is the manifestly smaller portion of GDP devoted to government consumption in these regimes.

-222-

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