The Political Economy of Social Inclusion
AbstractWe build a political economy model of state policy choice highlighting the challenges to breaking barriers to the adoption of inclusive policies in Africa. We highlight necessary and sufficient conditions for a political leader to gain from implementing exclusive policies: (i) Implementing inclusive policies must be risky; (ii) the political leader must have adequate access to an overseas’ financial safe haven as a technology for protecting the spoils from implementing exclusive policies, or investing the looted funds in the domestic economy must sufficiently contribute to mitigate the risk of a revolution. Our results suggest that breaking barriers to inclusive policies in Africa is not an easy task. Bans on international money-laundering schemes may not be sufficient if domestic money laundering is easy and sufficiently discrete.
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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 1202.
Date of creation: 2012
Date of revision:
Inclusive policies; social exclusion; rebellion; financial safe havens; development;
Find related papers by JEL classification:
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-08 (All new papers)
- NEP-CWA-2012-02-08 (Central & Western Asia)
- NEP-PKE-2012-02-08 (Post Keynesian Economics)
- NEP-POL-2012-02-08 (Positive Political Economics)
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