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Towards a general theory of social and economic development: Evolution of coordination mechanisms

Author

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  • Victor Polterovich

    (Central Economics and Mathematics Institute, Russian Academy of Sciences, Moscow, Russia
    Moscow School of Economics, Lomonosov Moscow State University, Moscow, Russia)

Abstract

A new approach to understanding social and economic development is proposed, based on consideration of the evolution of coordination mechanisms. The work consists of two parts. In the first part, a critical analysis of four recently proposed theories of social development, focusing on geographical, institutional or cultural factors, is given. These theories have greatly enriched our understanding of the evolution of society, however, as analysis shows, none of them provides a satisfactory description of the driving forces and mechanisms of this evolution; the main reason is rooted in their common deficiency — monocausality. It is proposed to distinguish between two types of development, catching up and leading. The basic ideas of the theory of catching up development are presented. This approach makes it possible to explain the phenomenon of the “economic miracle” as a result of mutually conditioned changes in culture, institutions, technological progress and well-being in the context of interaction of competition, power and collaboration mechanisms. The second part is devoted to the theory of leading socioeconomic development. It is shown how in Western Europe, as a result of the interaction of the above four factors, specific forms and combinations of the three main mechanisms of coordination — competition, power and collaboration — emerged at each stage of evolution. I emphasize the importance of ideology and the phenomenon of technical progress in the formation of institutions of economic and political competition that contributed to the creation of the welfare state. These changes and economic growth created the conditions for further transformation of civil culture: increasing levels of trust, tolerance, altruism and cosmopolitanism, expanding the planning horizon. The decrease in the level of coercion built into the mechanisms of power and competition are demonstrated as well as the expansion of the role of collaboration. A hypothesis is advanced that the speed of this process depends on geographical factors. The idea of the welfare world is discussed.

Suggested Citation

  • Victor Polterovich, 2018. "Towards a general theory of social and economic development: Evolution of coordination mechanisms," Russian Journal of Economics, ARPHA Platform, vol. 4(4), pages 346-385, December.
    • Handle: RePEc:arh:jrujec:v:4:y:2018:i:4:p:346-385
    DOI: 10.3897/j.ruje.4.33621
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    References listed on IDEAS

    as
    1. Sebastian Galiani & Stephen Knack & Lixin Colin Xu & Ben Zou, 2017. "The effect of aid on growth: evidence from a Quasi-experiment," Journal of Economic Growth, Springer, vol. 22(1), pages 1-33, March.
    2. Polterovich, V., 2014. "Why Reforms Fail," Journal of the New Economic Association, New Economic Association, vol. 23(3), pages 169-173.
    3. Polterovich, V., 2017. "Designing the Strategies for Socio-Economic Development: Science vs. Ideology," Journal of the New Economic Association, New Economic Association, vol. 35(3), pages 198-206.
    4. Daron Acemoğlu & James A. Robinson, 2016. "Paths to Inclusive Political Institutions," Studies in Economic History, in: Jari Eloranta & Eric Golson & Andrei Markevich & Nikolaus Wolf (ed.), Economic History of Warfare and State Formation, pages 3-50, Springer.
    5. Jari Eloranta & Eric Golson & Andrei Markevich & Nikolaus Wolf (ed.), 2016. "Economic History of Warfare and State Formation," Studies in Economic History, Springer, number 978-981-10-1605-9, June.
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    More about this item

    Keywords

    inclusive institutions; extractive institutions; limited access order; open access order; cycle of emancipation; violence; rent; power; competition; collaboration; industrial revolution; welfare state; civic culture.;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H1 - Public Economics - - Structure and Scope of Government
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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