The new political economy : positive economics and negative politics

Abstract

This paper discusses the theory that less politics makes better economics. It argues that this perspective on politics misrepresents the dynamics of policymaking in developing countries and is seriously limited in its ability to explain how policy changes come about or how policies are chosen that lead to socially beneficial outcomes. The author indicates that most models of political economy are not relevant for developing countries and are therefore unable to explain policy changes or wise policy choices. In light of this, the paper recommends an alternative approach to political economy that does not treat politics as a negative factor in policy choice. It emphasizes understanding the preferences and perceptions of policy elites, the circumstances that surround the emergence of policy issues, the concerns of decision makers, and the factors that affect the implementation and sustainability of policy change. In such an alternative, politics consists of efforts at problem solving through bargaining and the use of political resources in the context of great uncertainty.Economic Theory&Research,ICT Policy and Strategies,Environmental Economics&Policies,National Governance,Politics and Government