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Download Women's Suffrage by Dorothy Alexander Sugarman PDF

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By Dorothy Alexander Sugarman

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The consequences of this analysis became apparent in forcing developing countries to adopt free market policies as a reaction against the government interventionist approach. 34 Privatization and Development The literature of the 1990s shows that a minimalist state cannot provide the conditions required by the neoclassical political economists. The emphasis has been placed on understanding the reason behind the development success of the East Asian countries. Free market policies appear to have been not the only reason for such success; other interventionist policies have also been required.

This argument implies in itself a minimal role for the state. There are four major schools of thought which constitute the backbone of the Neoclassical Political Economy (NPE) or what may be called the New Institutional Economics (NIE). 1 Interest Groups and the Collective Action Theory The first school of thought in the NIE concerns collective action and the elimination of 'the free-rider problem'. Even when groups of individuals have some common interest and as a result expect to organize a lobby for that interest, rational individuals will not act in their group interest.

5). In infrastructural activities (such as the generation and distribution of energy, transportation and communication) and the heavy industries (such as oil and petrochemicals) control of the public sector is seen as essential for the provision of external economies and strategic complementarities which can encourage investment in other sectors (Powell, 1987, p. 6). g. g. 38). Controlling the commanding heights is an application of the theory of 'market failure' in the provision of public goods and externalities as well as the ownership of natural monopolies.

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