Comparitive Politics - 2 | PSIR Optional for UPSC (Notes) PDF Download

Political Economy

• Political economy revolves around the distribution of power, emphasizing the influence of capital in shaping policy-making and politics.
• In urban contexts, it primarily investigates the relationship between local governments and capital, where capital encompasses both financial and real estate interests.
• This relationship is not fixed within a specific local area; rather, it is influenced by the dynamics of cities,states,nations, and the flows of national and international capital.

Historical Evolution of Political Economy

• Political economy has evolved from the ideas of thinkers like Adam Smith in the 17th century to Karl Marx in the 19th century.
• The unit provides a historical account to show how the understanding of political economy has changed over time.

Conceptual Framework

• A conceptual framework is presented to identify the foundational principles of political economy.
• This framework helps in analyzing economic systems and understanding the key components of political economy.

Four Key Elements of Political Economy

• The unit discusses four important elements of political economy:
• Production
• Distribution
• Exchange
• Consumption

Political Economy in Urban Spaces

• The focus then shifts to political economy in urban spaces, exploring how these concepts apply in a city context.
• Two major approaches are used to understand this:
• Neo-Marxian Approach
• Neo-Weberian Approach

Understanding the Terms Politics and Economy

• Politics has two contrasting definitions: the narrow conception restricts politics to actions by politicians and the government, while the broad conception includes political activities beyond government, suggesting that politics is a tool for achieving societal goals.
• The economy is a system of institutions involved in the production and distribution of goods and services. It determines how resources are allocated, the value of goods and services, and the basis for trade. The organization of an economy is fundamentally a political issue.
• There are two main types of economic systems:
  • Market System: Individuals own and control the means of production. Prices are determined by supply and demand.
  • Command System: The state controls the means of production and makes all economic decisions.

With this understanding of politics and economy, we can now delve into the history of political economy.

Historical Account of Political Economy

• Political economy has been viewed differently by various social scientists throughout history. For instance, Adam Smith described it as "the science of managing national resources to generate wealth," while Marx saw it as the control of historical processes by the owners of production.
• In the 20th century, political economy was seen as the study of the relationship between economics and politics and was approached through economic and sociological lenses. The economic approach focused on individual rationality, while the sociological approach emphasized institutions.
• Political economy examines how politics influences the economy and emerged as a distinct discipline during the shift from feudalism to capitalism in the 17th century. Pioneers like Adam Smith and David Ricardo viewed it as the distribution of goods within a nation.
• Over time, the focus shifted to production as the primary economic source. Marxists critiqued the classical view, emphasizing the relationship of production and its developmental laws. Marx and Engels, influenced by the stark poverty of workers and class conflict under capitalism, introduced dialectical and historical materialism to explain societal inequalities.
• Marx argued that capitalism is not permanent and that class struggle would eventually lead to a new society free from exploitation and domination. Political economy gradually evolved into a distinct field within political science and economics, revisiting the impact of politics on economic outcomes.
• Economics began to see political forces not just as influential but as determining factors in economic results.

Political economy is a way of understanding how politics and economics are connected and influence each other.

• It looks at the relationship between these two areas and believes that this relationship can be understood in different ways.
• While political economy focuses on the link between politics and economics, it does not have a single, fixed meaning.
• It offers a broader framework for analyzing the economy compared to traditional economics, which centers around the market.
• Political economy considers four main problems:production,exchange,distribution, and growth.
• However, it approaches these issues differently by emphasizing the role of social classes,historical forces, and the state.
• Political economy examines how different social classes, such as capitalists,workers, and landowners, interact within the economic system and how the distribution of power among these classes influences state policies.
• Markets are also important, but political economists believe that historical,political, and social forces play a crucial role in shaping how markets operate.
• The state is seen as a key player in the economy, acting as a mediator to balance the interests of different social classes and resolving conflicts that arise among them.

Overall, political economy focuses on the interaction between the state and the market, with the state representing the political institutions of the modern nation-state and the market representing economic institutions driven by individual self-interest and the balance of supply and demand.

Elements of Political Economy

The four key elements of political economy are production,distribution,exchange, and consumption.

• Production involves the combination of labour and capital. Labour is essential for the production process and includes the concepts of consumption and operation. Capital, derived from labour, represents the goods produced by labour and is crucial for further production.
• Distribution entails the allocation of resources among different classes, such as rent for land, wages for labour, and profit for capitalists.
• Exchange involves the trade of commodities based on supply and demand, facilitated by carriers and merchants.
• Consumption is the final element, divided into productive and unproductive consumption. Productive consumption involves resources used in production, while unproductive consumption refers to resources that do not generate income.

Understanding these elements helps comprehend how political economy functions and how resources are allocated and utilized in society.

• Political economy comprises four key components: production, distribution, exchange, and consumption.
• Production involves labor and capital:
• Labor is essential for production and includes aspects such as consumption and operation. Improvements in labor productivity come from the division of labor, as explained by Adam Smith.
• Capital is derived from labor and represents goods produced by labor. Capital is crucial for further production and is a result of savings.
• Distribution involves the allocation of resources among different classes:
• Rent is determined by the fertility of land. Fertile land yields rent, while infertile land may yield little or no rent until made fertile.
• Wages are determined by the bargaining between laborers and capitalists. The distribution of produce between these groups is influenced by competition and demand and supply factors.
• Profit is the remaining proportion of produce after rent and wages are distributed. Profits depend on wages, with increases in wages leading to decreases in profits and vice versa.
• Exchange depends on the needs and demands of people. It involves the trade of surplus commodities between groups. Carriers and merchants facilitate the exchange process, with transportation by land or water.
• Consumption is the end goal of the production process and is divided into productive and unproductive consumption:
• Productive consumption involves resources used in the production process, such as wages, machinery, and raw materials.
• Unproductive consumption refers to consumption that does not generate revenue or income, resulting in a loss of resources.
• The resources used in productive consumption become capital, while those used in unproductive consumption are lost.

Understanding Urban Political Economy

Urban political economy examines the relationship between local politics, such as urban governments, and capital, including finance and real estate, at both local and global levels. This relationship is influenced by the actions of cities, states, nations, and national and international capital.

The concept addresses two key questions in urban sociology: the factors driving urbanization and the governance of cities. An economic explanation for these questions highlights the dynamic interplay between economic and political structures in wealth appropriation.

Urban political economy analyzes urban ecology, explaining the growth and structure of cities while emphasizing competition for resources among individuals and groups. It views political hierarchies, economic actors, and rules as expressions of fundamental driving forces. Institutions like urban governments and business elites are seen as part of this dynamic, not as the core structures.

To understand urban political-economic relations, two approaches are significant:

• Neo-Marxian Approach: This approach builds on Marxian theory, emphasizing historical relations of production in urban development. It argues that industrial capitalists influenced urban expansion and suburbanization to align with their class interests.
• Neo-Weberian Approach: This approach focuses on social power and the governance of urban spaces. It highlights the role of private elites in urban decision-making and the production of urban space, suggesting that urban governance involves both public and private interests.

Political Sociology

Political Sociology: An Overview

• Political sociology is a subfield within sociology and political science, examining the relationship between society and politics.
• It focuses on political organizations, institutions, power, authority, and the behavior of rulers and subjects.

Distinction Between Sociology and Political Science

• Sociology emphasizes social structural conditions as explanatory variables.
• Political science focuses on political-structural conditions as explanatory variables.

Political Sociology vs. Sociology of Politics

• Political sociology explores the links between politics and society, social structures and political structures, and social behavior and political behavior.
• Sociology of politics, a subfield of sociology, treats political phenomena as dependent variables and focuses on non-political reasons for political behavior.

Interdisciplinary Nature of Political Sociology

• Political sociology, as described by Giovanni Sartori, combines social and political explanatory variables, bridging sociology and political science.
• It emphasizes a two-way relationship between social and political variables.

Example: Political Party System

• Political sociology examines the political party system not only as a reflection of the socio-economic scene but also investigates how society is influenced by the party system.

 Emergence of Political Sociology

• Political sociology, as a distinct subfield within sociology, emerged after World War II, drawing from the writings of influential thinkers like Alexis de Tocqueville, Karl Marx, Emile Durkheim, and Max Weber.
• Early works in the 1950s and 1960s focused on micro-level issues such as the impact of class, religion, race/ethnicity, and education on political behaviour.
• Over time, political sociology shifted towards macro-level topics, including revolutions, political institutions, and comparative-historical studies of state development.
• Despite its perceived divergence and fragmentation, political sociology remains relevant by consistently exploring themes crucial to sociological perspectives.
• The history of political sociology can be characterized by four trends:
• Classical Period: During Greek and Roman times, political philosophers like Plato, Aristotle, Cicero, St. Augustine, and St. Thomas Aquinas viewed humans primarily as political beings.
• Enlightenment Period: A debate emerged between political philosophers who distinguished between society and the state (e.g., Locke, Montesquieu, Rousseau) and those who did not (e.g., Machiavelli, Hobbes, Burke).
• Role of Elites: Elite theory, popularized by sociologists like Pareto and Mosca, emphasized the role of small groups of rulers in shaping history through their control of critical resources.
• Contemporary Period: Characterized by empirical and analytical approaches, contemporary political sociology focuses on developing verifiable generalizations linking society and politics, with prominent figures like Lipset, Greer, and Mills contributing to the field.

Meaning of Political Sociology

• Sociologists disagree on the exact meaning of political sociology. Here are different views:
• Science of the State: Some see political sociology as the science of the state, classifying it within social sciences based on the societies studied. Thinkers like Greer, Orleans, Jellinck, and Prelot support this view.
• Society-Politics Interaction: Bendix and Lipset argue that political sociology examines how society influences the state, contrasting with political science, which starts with the state.
• Science of Power: Maurice Duverger views political sociology as the study of power, government, and authority in all societies, including national ones. Many contemporary writers, like Max Weber and Reymond Aron, agree with this definition.
• Integration of Disciplines: Some see political sociology as a blend of sociology and political science, focusing on their interactions and linkages. This interdisciplinary approach aims to build connections between the two fields.

Scope of Political Sociology

Political sociology sits at the crossroads of sociology and political science, exploring the interplay between political institutions and broader social contexts. While political science often focuses on political institutions in isolation, political sociology examines how these institutions interact with various social factors. The discipline has a historical perspective and delves into political processes within societies, emphasizing the relationship between the state and society, power dynamics, and the social foundations of political behavior.

• Greer and Orleans: Focus on the structure of the state, legitimacy, the monopoly of force, and the relationship between people and their states.
• Lipset and Bendix: Examine voting behavior, economic power concentration, political ideologies, and interest groups.
• Political Sociology: Studies power, authority, legitimacy, bureaucracies, interest groups, political participation, conflict, and social change.
• Maurice Duverger: Analyses political structures, political antagonisms, and the integration process in society.
• Charles Tilly: Links the construction of the national state to collective action and emphasizes the historical dynamics of state formation.
• Ulrich Beck: Discusses the impact of global processes on individualization and collective identities, shifting the focus of politics beyond traditional institutions.
• Delanty and Kumar, Smith, Young et al.: Highlight the persistence of nation and nationalism as significant social phenomena.
• Research Agenda: Explores social movements, resource mobilization, political process theory, and new social movements' theory, emphasizing the cultural interpretation of social movements.
• Contemporary Challenges: Addresses the shift from national to transnational/global activism, the professionalization of social movements, and the re-emergence of civil society and public sphere debates.