Lec.6 The Role of the State PDF

The State: III- The role of the state. (Textbook, pp. 78-80)  I- Concepts: what is a state? What is a nation? (Textbook, p. 64+ more information in the lecture) II- The elements of the state. (lecture only) III- The role of the state. (Textbook, pp....

The State: III- The role of the state. (Textbook, pp. 78-80)  I- Concepts: what is a state? What is a nation? (Textbook, p. 64+ more information in the lecture) II- The elements of the state. (lecture only) III- The role of the state. (Textbook, pp. 78-80) IV- Difference between effective, weak and Outline failed states. (Textbook, pp. 66-67) V- The difference between unitary and federal states. VI- Theories of the origin of the state. Main goals of the state: 1-It preserves domestic peace and stability. 2- It protects the territorial integrity from aggression. 3-It promotes the general welfare. 4-It promotes a good standard of living for all of its citizens. Four approaches to promote the general welfare (to handle the economy): The differentiation between these approaches depend on two questions 1-Laissez-faire. (criteria): 2-Welfare state. How much of the economy should the state 3-Statism. own or supervise? (state ownership) 4-Socialism. How much of the nation’s wealth should be redistributed to help the poorer sectors of society? (welfare benefits) Four approaches to promote the general welfare: 1-Laissez-faire: The economic system of minimal state interference and supervision (capitalism). o The state owns little or no industry. o There is limited attempts to redistribute wealth in society in the form of welfare programs. laissez-faire system logic based on the ideas of Adam Smith that: Economic prosperity and growth increases as government regulation decreases and markets are free to work. Example: United States Four approaches to promote the general welfare: 2-Welfare State: The economic system of state interference for redistribution of wealth (Social democracy). o The state owns little or no industry. o It does redistribute wealth to aid the less well-off through welfare programs such as health insurance, childcare, retirement funds,…etc. Welfare state aims to : ensure greater levels of social equality among citizens. rectify the imbalances and injustices of a market economy. To support these welfare programs, they have high level of taxes. Example: Northwest Europe such as Sweden and Denmark. Four approaches to promote the general welfare: 3- Statism: It is old system that predates laissez faire. In a statist system the government is the number one capitalist and runs most of the industry. The state provides few welfare benefits to its citizens. Modern examples are called state capitalism: capitalist market economies that have high degrees of state-owned businesses, such as railroads, banks, oil companies..etc. Examples: Russia and China. Four approaches to promote the general welfare: 4- Socialism: Economic system of state ownership. The state owns nearly all the means of production. It is centrally planned economy. The state runs the economy in the interest of the society as a whole. Socialist states emphasize social equality; therefore, they promote high levels of social welfare. The logic that public ownership and central planning provide a more equal distribution of goods and services and a more equitable society. Examples: Former Soviet Union, North Korea and Cuba. Statist, socialist, laissez-faire, and welfare-state approaches. Exercise for the section: Imagine you are elected leaders tasked with determining what role “your imaginary state” should play in managing the economy with an eye toward development. Would you prefer laissez-faire, a welfare state, statism, or socialism? Discuss the competing ideas about the role of the state in managing the economy as well as what you see as the relative strengths and weaknesses for each of those ideas. Four approaches to promote the general welfare: Debate about which role is best for modernizing the state?! In practice, states combine elements of the 4 systems. Some examples: o Minimal state: No much interference from the state, competition within a fee-market economy. o State-led modernization or developmental state: ▪ state intervenes in economic life with the specific purpose of promoting industrial growth and economic development. ▪ This does not amount to an attempt to replace the market with a ‘socialist’ system of planning and control. ▪ The classic example of a developmental state is Japan. During the Meiji Period (1868–1912), Tokyo assigned various branches of industry to samurai clans, provided funds, and told them to copy the best of the West. (went from handicrafts to heavy industry ) After WWII, the Ministry of Finance and Ministry of International Trade and Industry (MITI) supervised Japan’s rapid economic leap by aiming bank loans to growth industries, keeping out foreign competition, and penetrating the world market with Japanese products. ▪ France used the state as an agent of modernization. The State: IV- Difference between effective, weak and failed states. (Textbook, pp. 66-67)  I- Concepts: what is a state? What is a nation? (Textbook, p. 64+ more information in the lecture) II- The elements of the state. (lecture only) III- The role of the state. (Textbook, pp. 78-80) IV- Difference between effective, weak and Outline failed states. (Textbook, pp. 66-67) V- The difference between unitary and federal states. VI- Theories of the origin of the state. Catergorize states based on 1- Effective states. the ability to fulfill its 2- Weak states. functions. 3- Failed states. Weak states: Weak in its core functions, unable to govern effectively: Weak in providing security to its citizens. Weak in providing basic services to its citizens: Weakness in fighting poverty. Weakness in providing essential services, such as health, education, water and sanitation, transport infrastructure, electricity and power, and internet and connectivity. Weak legitimacy among its people: the population’s level of confidence in state institutions and processes. Most of Asia, Africa and Latin America are weak states. Failed states: Failed states are distinguished from weak states by degree. Failed states are incapable of even minimal governance, failing with regard to some basic conditions and responsibilities as a sovereign state. o it cannot project authority over its territory and peoples. o it cannot protect its national boundaries. o There is widespread violence and criminality. o There is no rule of law. o It cannot formulate or implement public policies to effectively build infrastructure and deliver services or effective and equitable economic policies. o Its citizens no longer believe that their government is legitimate. o There are large flows of refugees and internally displaced people. Examples of failed states: Somalia, Afghanistan, Yemen, and Central African republic. Fragile state index: Assignment #1 Based on the differentiation between effective, weak, and failed states, place Germany, Syria and Ethiopia into the respective categories, and explain why you made those choices. Support your answer with data. Deadline: Saturday, November 9th. Your essay should be 750 words long.