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Yale Center for the Study of Globalization<br />

representation differs in the two systems. Under authoritarianism, representation is<br />

secured through lobbying; it is undertaken by interest groups. In competitive political<br />

systems, however, representation is undertaken by political parties, as they seek to<br />

build constituencies of sufficient size to secure a majority of votes in elections. The<br />

implications are immediate and bear upon the nature of policies.<br />

The relationship between political reform and policy change in developing derives<br />

from well-established insights into the behavior of poor populations and the structure<br />

of their economies on the one hand and from the logic of collective action and party<br />

competition on the other.<br />

Poor countries exhibit a characteristic political-economic geography. 11 The majority<br />

of the population works in farming; it lies widely scattered, each member producing<br />

but an infinitesimal percentage of the total agricultural output. A small portion of<br />

the population—often less than 10 percent—works in manufacturing and service<br />

provision and dwells in towns. Because government policies often favor large<br />

investments and because of economies of scale in manufacturing, urban firms are<br />

often few in number and large in size these firms often dominate their markets; and<br />

a significant percentage of the urban dwellers therefore earn their incomes from a<br />

small number of employers (Little and others, 1970; Little, 1982; and for an African<br />

case, Kaplinsky, 1978). While those who farm are thus dispersed economically and<br />

geographically, those who earn their incomes in the urban sector are not. Spatially,<br />

they are concentrated in a few settlements and economically they often labor in<br />

enterprises sufficiently large to dominate their markets.<br />

The political implications are ironic and follow from the logic of collective action<br />

(Olson, 1971, 1985): In countries with large agricultural populations, farmers form<br />

a weak political lobby. Being small, individual farmers in poor countries rationally<br />

refrain from expending effort in attempts to influence agricultural prices; not so urban<br />

interests, which stand large in their markets. Being widely scattered, farmers face<br />

high costs of organizing; concentrated in towns, urban interests find it less expensive<br />

to do so. Urban interests therefore hold a relative advantage as lobbyists in less<br />

developed economies. In so far as government policy is influenced by organized<br />

groups, in countries with large agricultural sectors, it tends to be adverse toward<br />

the interests of farmers (Olson 1971 and 1985).<br />

208

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