CHAPTER 13
POLITICS AND THE
ECONOMY
Political institutions are sets of norms and
statuses that specialize in the exercise of
power and authority.
Power is the “Ability to get
others to act as one wishes in
spite of their resistance”
(Brinkerhoff, 6th edition, p. 344).
“Authority is power supported by
norms and values that legitimate its
use” (Brinkerhoff, p. 301).
Weber’s Three Types of
Authority:
• Traditional
• Charismatic
• Rational-legal
“Traditional authority is a right to
make decisions for others that is
based on the sanctity of time-honored
routines” (Brinkerhoff, p. 302).
“Charismatic authority is a
right to make decisions that is
based on perceived extraordinary
personal characteristics”
(Brinkerhoff, p. 302).
“Rational-legal authority is a
right to make decisions that is
based on rationally established
rules” (Brinkerhoff, p. 302).
The state, or nation-state, “is the social
structure that successfully claims a
monopoly on the legitimate use of
coercion and physical force within a
territory” (Brinkerhoff, p. 303).
Two Characteristics of NationStates
1. Broader jurisdiction
for decision making
2. Control over the use of
coercion
A political party is an association
specifically organized to win
elections and secure power over the
personnel and policies of the state.
Parties that seek legitimate
power and accept the rule of
other legitimate parties form a
loyal opposition.
Revolutionary political parties do not
view the state as legitimate and do not
seek authority through legitimate
procedures.
Democracy, rule by a nation’s
citizens, must meet three
conditions:
1. The political
culture
legitimizes the
democratic
system and its
institutions.
2. One set of
political
leaders holds
office.
3. One or more sets
The stability of Democracies
rests with four structural features
(Lipset):
1.economic
development
2.urbanization
3.literacy
4.a culture that values
equality and
tolerates dissent.
The power elite model of
democracy suggests that leaders
in three areas hold most of
society’s power (Mills):
• government
• economy
• military
ECONOMY
Economic institutions “are social structures
concerned with the production and distribution of
goods and services” (Brinkerhoff, p. 313).
Economic Evolution
E C O N O M IC
P E R IO D
P rein d u strial
In d u strial
P o stin d u strial
E C O N O M IC
SYSTEM
P rim ary P ro d u ctio n
(ex tract raw m aterials)
S eco n d ary P ro d u ctio n
(p ro cess raw
m aterials)
T ertiary P ro d u ctio n
(serv ice o ccu p atio n s)
“Capitalism is an economic system in which most wealth
(land, capital, and labor) is private property, to be used by its
owners to maximize their own gain” (Brinkerhoff, p. 313).
Four Characteristics of
Capitalism:
(1) private ownership of the
means of production
(2) profit as incentive
(3) free competition for
markets to sell goods,
acquire cheap materials,
and utilize cheap labor
(4) restless expansion and
investment to accumulate
capital
When one firm occupies a commanding
position in an industry it has a monopoly.
“Socialism is an economic system in which productive tools
(land, labor, and capital) are owned and managed by the
workers and used for the collective good” (Brinkerhoff, p.
313).
Characteristics of Socialism
• Means of production
owned by group
(state)
• equitable distribution
as incentive
• managed markets
“Political economy refers to the
interaction of political and economic
forms within a nation” (Brinkerhoff, p.
314).
• Communism =
Socialism +
Dictatorship
• Democratic Socialism
• Welfare Capitalism
Political Economy
Left Wing
Liberal
Democrat
Socialist
Government
plays
strong role in
economy.
Moderate
Right Wing
Conservative
Republican
Capitalist
Government
plays
minimal role
in economy.