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Article

Political Budget Cycles  

Lasse Aaskoven and David Dreyer Lassen

The political budget cycle—how elections affect government fiscal policy—is one of the most studied subjects in political economy and political science. The key theoretical question is whether incumbent governments can time or structure public finances in ways that improve their chances of reelection; the key empirical question is whether this in fact happens. The incentives of incumbents to engage in such electioneering are governed by political institutions, observability of political choices, and their consequences, as well as voter knowledge, and both theoretical and empirical studies on political budget cycles have recently focused on conditions under which such cycles are likely to obtain. Much recent research focuses on subnational settings, allowing comparisons of governments in similar institutional environments, and a consensus on the presences of cycles in public finances—and in the reporting of public finances—is beginning to emerge.

Article

Immigration and International Political Economy  

Margaret E. Peters

Immigration has largely been neglected as part of the study of International Political Economy (IPE) until recently. Currently, IPE scholars have focused on two questions regarding immigration: what explains variation in public opinion on immigration and what explains variation in immigration policy. The scholarship on public opinion on immigration has largely been divided into two camps, those who argue that economic factors drive opinion and those who argue that cultural factors are the driver. Those who study the role economic factors have played in shaping opinion on immigration often start with the Stolper-Samuelson theorem. The Stolper-Samuelson theorem shows that while immigration increases the overall size of the economy, it has different distributional effects. Immigration increases the size of the labor pool and, thus, should increase the returns to capital while decreasing wages. As such, those who derive most of their income from capital should favor immigration while those who derive most of their income from wages should oppose immigration. Additionally, the Stolper-Samuelson model shows that openness to trade should have the same effects as open immigration; thus, people should oppose or favor both trade and immigration. Early scholarship examined these predictions and found that opposition to immigration was much higher than opposition to trade and that those who derive much of their income from capital also oppose immigration at high rates. In response, one set of scholars focused on the additional costs that immigration, but not trade, brings. Immigrants, unlike goods, may place a burden on the social welfare system and thus, opposition to immigration especially by the wealthy may be driven by these costs. Other scholars noted that immigrants work in many industries that are unaffected by trade—most notably the service sector—and this may explain opposition to immigration. Finally, a third group has argued that opposition to immigration is largely driven by cultural concerns and xenophobia. Currently, this debate continues with both sides examining more nuanced survey data. Scholarship on immigration policy has similar divides. Immigration policy has become more restrictive since the late 19th and early 20th centuries, when most countries had very few restrictions on immigration. To explain these restrictions, one school of scholars has argued that labor unions oppose immigration, as it hurts the wages of their members. As unions gain strength, immigration should become more restricted. Others focus on the rise of the welfare state, arguing that immigration has been restricted to keep costs low. A third group has argued that greater political rights in the early and mid-20th century for the generally xenophobic working class has led to the restrictions. Finally, new scholarship argues that increased globalization—in the form of increased trade and increased foreign direct investment—has sapped business support for immigration, which has allowed anti-immigrant groups to have more say. Using a wealth of newly collected data, scholars are testing these different theories.

Article

American Grand Strategy and Political Economy Theory  

Kevin Narizny

Nearly everything a state does has distributional consequences, including grand strategy. Societal groups with different stakes in the international economy and defense spending often have conflicting strategic priorities, and these groups pursue their parochial interests by supporting the nomination and election of like-minded politicians. Thus, grand strategy is a product of political economy. An overview of American foreign policy over the last several decades illustrates this logic. In the 1980s, the Democratic and Republican coalitions had conflicting interests over the international economy, so the two parties diverged on grand strategy. The recovery of the Rust Belt in the 1990s and 2000s, however, brought increasing convergence. Political discourse over foreign policy was fiercely partisan, but, with the notable exception of George W. Bush’s decision to go to war in Iraq in 2003, the two parties shared essentially the same view of America’s role in the world. The disastrous outcome in Iraq led the Bush administration back to the middle ground in its second term, and Obama followed the same course. In contrast, the election of Donald Trump augurs change. Trump’s electoral coalition consists of a different balance of interests in the international economy than that of past Republican presidents, so he is likely to pursue different strategic priorities.

Article

Trust and Social Relations in African Politics  

Dominic Burbidge

Africa is a place of low social trust. This fact is significant for understanding the politics and economics of the region, whether for questions of national unity or economic coordination and growth. One of the central ways in which trust and social relations have come to be examined within the social sciences is through the notion of social capital, defined as the norms and networks that enable collective action. Use of the concept of social capital has mushroomed in popularity within academia since the 1980s and has been used within African studies to interpret the developmental effects of social relations. It is important to review how researchers have been synthesizing the study of African societies with the social capital approach, and offer suggestions on how this can be better achieved. Specifically, there is contradiction between the view that social capital is useful for economic development and the view that social capital means a community can decide its own economic goals. Students of social capital in Africa must accept that the cultural and normative diversity of the continent necessitates appreciation of the diverse aims of social networks. This means a rejection both of modernist theories of development and postmodern reduction of human relations to forms of power exchange. Future research on trust and social capital in Africa must give weight to community articulations of motivations to trust, what activities count as communal, and what new economic cultures are being formed as a result of present communal varieties.

Article

The Political Economy of Aid Conditionality  

Desha Girod

Studies of Western development assistance conclude that aid is effective only when recipients have good governance, measured as pro-investment policies, democratic institutions, and political stability, or when recipients lack strategic importance to donors. Underlying the theoretical frameworks in these studies is a common mechanism: compliance with conditions on aid agreements, which, in turn, depends on recipient incentives to comply. With the exception of donors’ emphasis on the quality of governance in the early 2000s, donors generally overlook recipient incentives to comply with aid agreements and thus fail to capitalize on opportunities for aid effectiveness suggested by the academic studies. A paucity of data has limited direct analysis of compliance with conditions, but studies have relied on their own data collection or have leveraged data from the World Bank to assess determinants of compliance with conditions. Importantly, these studies of compliance support the findings from the aid-effectiveness literature, indicating that the initial incentives to comply with aid agreements are the driving force in agreement compliance and therefore aid effectiveness. Based on these findings, future research on compliance with conditions on aid is encouraged, beginning with study of the direct influence of compliance on economic development. In addition, future research should analyze whether certain types of aid influence compliance with Western aid agreements, including tied aid and aid from non-Western donors. The implication for policy is that donors should enthusiastically support recipients who face incentives to comply because compliance drives aid effectiveness. When recipients lack such incentives, donors should try to change the underlying incentive structure of recipients rather than adding conditions on aid.

Article

Queer Liberation Theory: A Genealogy  

Cameron McKenzie

An emerging critical theoretical framework, queer liberation theory attempts to understand the relationship between queerness and capitalism, and more specifically, anti-capitalist movements. It seeks to update and reinvigorate the structural analysis of the earlier gay/queer liberation movement (1960s and 1970s) with the benefit of the insights of queer theory and empirical queer experiences of neoliberal capitalism. Queer liberation theory recognizes and celebrates diverse sexual orientations and gender identities or expression, including essentialist identities such as gay, lesbian, and trans. Within a realist, structural framework, queer liberation theory is interested in how social movements can move beyond identity formation to produce progressive, structural change. To date, three main tenets of the theory have been noted: anti-assimilationism, solidarity across social movements, and the political economy of queerness. The use of the word “queer” signals a progressive, critical, sex-positive, anti-assimilationist, liberationist perspective as opposed to an assimilationist perspective that strives for respectability, acceptance, prestige, and monetary success on capitalism’s terms. The second tenet, solidarity across movements, is an attempt to transcend to the divisiveness of single-issue politics without sacrificing intersectionality. For example, queer liberation theory seeks to recognize, expose, and dismantle social structures that oppress all communities, albeit in different ways. The political economy of queerness refers to a class analysis of structural inequalities. A genealogy of queer liberation theory’s development shows where it reflects, incorporates, or rejects aspects of various theories including a social constructionist perspective, with its debates about essentialism and identities; social movement theory, with its political tensions between recognition and redistribution; queer theory, with its focus on fluidity and ambiguity; materialism, with the strengths and shortcomings of its class analysis; and intersectionality with its focus on a matrix worldview of interlocking systems of oppression; and feminist political economy, with its focus on social reproduction, but adequate recognition of queer sexuality. Indeed, feminist political economy offers something of a pink road map to discover what aspects of the economy will be important for queer liberation theory to explore. Feminist political economy is helpful in the development of queer liberation theory because it has long claimed sexuality and identity as legitimate, as opposed to frivolous, sites of scholarship and political struggle. Feminist political economy, like queer liberation theory, seeks to understand oppression based on sexuality in everyday life. However, the feminist political economy road map takes us only so far, because the focus of the analysis can be seen as gendered, and often cisgendered, lives. Queer liberation theory attempts to draw from these theories to better understand the relationship between queerness and capitalism and provide a basis for political action.

Article

From Elections to Democracy in Hard Times  

Anna M. Meyerrose, Thomas Edward Flores, and Irfan Nooruddin

The end of the Cold War, heralded as the ideological triumph of (Western) liberal democracy, was accompanied by an electoral boom and historically high levels of economic development. More recently, however, democratic progress has stalled, populism has been on the rise, and a number of democracies around the world are either backsliding or failing entirely. What explains this contemporary crisis of democracy despite conditions theorized to promote democratic success? Research on democratization and democracy promotion tends to focus predominantly on elections. Although necessary for democracy, free and fair elections are more effective at promoting democratic progress when they are held in states with strong institutions, such as those that can guarantee the rule of law and constraints on executive power. However, increased globalization and international economic integration have stunted the development of these institutions by limiting states’ economic policy options, and, as a result, their fiscal policy space. When a state’s fiscal policy space—or, its ability to collect and spend revenue—is limited, governments are less able to provide public goods to citizens, politicians rely on populist rather than ideological appeals to win votes, and elections lose their democratizing potential. Additional research from a political–economic framework that incorporates insights from studies on state building and institutions with recent approaches to democratization and democracy promotion, which focus predominantly on elections, is needed. Such a framework provides avenues for additional research on the institutional aspects of ongoing democratization and democratic backsliding.

Article

Political Parties and Political Economy in Africa’s Democracies, 1990–2018  

M. Anne Pitcher

On a continent where the majority of people are poor, do political parties represent class cleavages? Do parties have strong linkages to ordinary voters? Do economic policies address their needs? In the initial years following democratic transitions across the African continent in the 1990s, the answers to such questions were negative. Clientelism and patronage were the principal means by which parties interacted with their constituencies; elites and elite interests determined the objectives of political parties; voters in many African countries shifted parties frequently; and neoliberal economic policies largely reflected the preferences of foreign donors and international financial institutions. As parties and voters have adjusted to the institutional arrangements and political demands associated with democracy, a more heterogeneous political landscape has materialized since 2010. Party systems demonstrate distinct patterns of variation, from the more stable, institutionalized systems in Ghana and Botswana to fluid, inchoate configurations in Benin and Malawi. These variations in the degree to which party systems have institutionalized affect economic policy choices by parties and those who benefit from them. Furthermore, democratic politics has intensified pressures on ruling parties to provide goods such as electricity and education. Here too, patterns of goods provision show substantial variation over time and across countries, calling attention to the differences in the incentives and capacities of parties to respond to distributive demands by the electorate. To explore the political and economic heterogeneity of contemporary Africa, scholars have combined well-established qualitative and comparative approaches with new analytical tools. The use of cross-national public opinion surveys, field and survey experiments, satellite imagery, and geo-coded data have enabled more systematic, fine-grained study of the economic determinants of party system competition, economic voting, the distribution of goods, and the management of private sector development by ruling parties in recent years. These empirical approaches enrich understanding of the relationship between parties and political economy in Africa and facilitate more fruitful comparisons with other regions of the world.

Article

Oil and the International Politics of the African State  

Cyril Obi

Recent discoveries of oil in some African countries have rekindled a debate about its place in development and international politics. The debate has pitched those viewing oil as a catalyst for development and a more assertive Africa in global politics against others who point to the negative impact of oil on older established African oil-producing states. Oil as a highly priced geopolitical and strategic commodity will for the foreseeable future shape relations between African petro-states and other global actors, particularly international oil companies and energy-dependent established and emerging global powers. The structural position of specific African petro-states in the global political economy and history, and the nature of their leadership, are defining factors in the diverse aspects of local and international politics, including the prospects for development and a more assertive Africa in international politics.

Article

Slum Politics in Africa  

Jacqueline M. Klopp and Jeffrey W. Paller

Africa’s growing slums are complex, diverse neighborhoods with their own histories. Currently, these places, characterized by spatially concentrated poverty and human rights abuses, are where large proportions and, in many cases, the majority of Africa’s growing urban populations live. These slums often have a politics characterized by clientelism and repression, but also cooperation, accountability, and political mobilization. Importantly, they must be understood within a wider political context as products of larger historical processes that generate severe inequalities in standards of living, rights, and service provision. Varied approaches (modernization vs. more critical historical and political economy approaches) attempt to explain the emergence, dynamics, and persistence of slums and the politics that often produces, characterizes, and shapes them in Africa. While raising important questions about the link between urbanization and democracy, modernization theories, which are typically ahistorical, do not fully explain the persistence and actual growth of slums in African cities. More historically grounded political economy approaches better explain the formation and dynamics of slums in African cities, including the complex, uneven, and inadequate service delivery to these areas. Whether the conditions of Africa’s slums and the social injustice that undergirds them will give birth to greater democratization in Africa, which, in turn, will deliver radical improvements to the majority, is a critical unanswered question. Will social movements, populist opposition parties, and stronger citizenship claims for the poor ultimately emerge from slum—and wider city—politics? If so, will they address the political problem of inequality that the slum represents? A focus on cities, slums, and their politics is thus a core part of growing concern for the future of African cities and democratic politics on the continent.

Article

The Political Economy of LGBT Rights  

Scott N. Siegel

Equal treatment for members of the lesbian, gay, bisexual, and transgender (LGBT) community has improved at a rapid pace around the world since the gay rights movement first rose up to become a salient global force for change. With important regional exceptions, laws criminalizing same-sex sexual relations have not only come down in multiple countries, but same-sex couples can now also construct families in many advanced industrialized countries. Public acceptance of homosexuality, even in some non-Western countries, has increased dramatically. Yet, within those general trends hides the remarkable unevenness in the spread and adoption of policies fostering legal, social, and economic equality for LGBTQ communities around the world. Policy change toward more equal treatment for sexual minorities is concentrated in the developed world and within the cisgender gay and lesbian communities in particular. The existing literature in policy change shows the importance of transnational activists, changing international norms, and increasing levels of secularization have made this possible. But the effectiveness of these factors rests on an underlying foundation of socioeconomic factors based on economic and social development that characterizes advanced industrialized states. There is an uneven distribution of resources and interests among pro and anti-LGBT activist groups alike, and the differing levels of economic development in which they operate that explains the decidedly uneven nature of how LGBTQ human rights have advanced in the past 50 years. In addition, new political parties and activist organizations have emerged to lead the backlash against LGBTQ rights, showing progress is neither inevitable nor linear. In addition, serious gaps in what we know about LGBT politics remain because of the overwhelming scholarly focus on advanced industrialized states and policies that benefit the cisgender, gay and lesbian middle class in primarily Western societies. The study of LGBT politics in non-Western and developing countries is woefully neglected, for reasons attributed to the nature of the research community and the subject area. In the developed world, greater attention is needed to inequality within the LGBTQ community and issues beyond same-sex marriage. Finally, issues of intersectionality and how different groups within the LGBT community have enjoyed most of the benefits of the gay rights movement since its takeoff more than 50 years ago.

Article

Parties and Non-State Actors in Latin America  

Santiago Anria and Christopher Chambers-Ju

Since the dual transition to democracy and the market in Latin America, associational linkages or the exchanges between parties and interest associations representing different groups in society gained prominence for their crucial role in structuring political representation and framing policy processes. In the early 21st century, how do the relationships between political parties and interest associations vary across and within countries? The literature on party–voter linkages has begun to examine the distinct relations that emerge when political parties interact with interest associations that represent societal groups in order to incorporate those groups into party organizations or coalitions. Although associational linkages can be constructed when party leaders reach out to interest associations, they can also be constructed when interest associations negotiate the terms of their political support. One approach to analyzing associational linkages involves focusing on the diverse relationships that emerging societal actors established with political parties. Social movements have constructed movement-based parties. These parties are a particularly puzzling phenomenon because they incorporate social movements into their organizations without necessarily demobilizing them. Emerging sectors of organized labor have also established an array of relationships to parties, with unions engaging in contentious or electoral mobilization, with different degrees of support for political parties. There are major opportunities to advance a broad agenda for research on associational linkages that highlights cross-regional contrasts and changes in the political economy.

Article

The Politics of Domestic Taxation  

Lucy Barnes

All governments require revenue, and domestic taxes are the primary means for generating it. Yet both the size and shape of taxation vary significantly across countries and have been transformed over time. What explains variation in domestic taxation? To answer this question, recent scholarship on taxation has focused on the politics of taxation as a tool for redistribution. This has led to a wide body of research on the fiscal impact of taxation and on the introduction, evolution, and variation in direct and progressive tax regimes, particularly the income tax. Yet the focus on taxation as a redistributive tool yields a puzzle, as more progressive tax systems tend to be found where redistribution is in fact the lowest. Explanations of this paradox often center on the impossibility of high and progressive taxes on capital in the context of international economic integration. Not as well studied are taxes other than the taxation of income, and the deliberate politics of nonfiscal, regulatory, and incentive effects of different tax choices. Methodologically, problems of endogeneity are ubiquitous in the study of tax policy choices, but more sophisticated experimental work is well underway in research on individual preferences for taxation.

Article

Responses to Economic Crisis in Africa  

Peter M. Lewis

In the era following the decolonization of Africa, the economic performance of countries on the continent can be traced across three periods. The early postindependence years reflected moderate growth and policy variation, with occasional distress in some countries. From the 1980s through the late 1990s, the region was gripped by a sweeping crisis of growth and solvency shaped by a steep economic downturn and a slow, stuttering recovery. This was also a period of convergence and restrictions on policy space. By the early 2000s, accelerated growth buoyed most economies in Africa, although commodity price shocks and the global economic slump of 2008–2009 created episodic problems. Different approaches to policy and strategy once again marked the landscape. A number of influences help to explain variations in the occurrence of economic crisis across Africa, and the different responses to economic distress. In addition to structural factors, such as geography, resource wealth, and colonial legacies, middle-range political conditions contributed to these downturns. Key institutions, core constituencies, and fiscal pressures were domestic causes and external factors include donor convergence, access to finance, and policy learning. One framework of analysis centers on three factors: ruling coalitions, the fiscal imperative, and policy space. The ruling coalition refers to the nature of the political regime and core support groups. The fiscal imperative refers to the nature of state finance and access to external resources. And the policy space comprises the range of strategic alternatives and the latitude for governments to make choices among broad policy options. Applying the framework to Africa’s economic performance, the first period was marked by distributional imperatives, a flexible fiscal regime, and considerable space for policy experimentation. During the long crisis, regimes came under pressure from external and domestic influences, and shifted toward a focus on macroeconomic stabilization. This occurred under a tight fiscal imperative and a contraction of policy space under the supervision of multilateral financial institutions. In the 2000s, governments reflected a greater balance between distributional and developmental goals, fiscal constraints were somewhat relaxed, and policy variation reappeared across the region. While the early 21st century has displayed signs of intermittent distress, Africa is not mired in a crisis comparable to those of earlier periods. Developmental imperatives and electoral accountability are increasingly influential in shaping economic strategy across the continent.