Unit 5: Political and Economic Changes and Development

Political development

Changes in a political system’s institutions and practices over time, especially affecting state capacity, legitimacy, participation, and the rule of law.

Economic development

Changes in an economy that shape material well-being broadly (e.g., industrialization, employment, poverty reduction, quality of life), not just GDP growth.

State capacity

A government’s ability to implement policy, collect taxes, deliver services, and enforce laws; can be high in democracies or authoritarian regimes.

Legitimacy

Public acceptance of the government’s right to rule; can be based on elections, performance, ideology, religion, tradition, or charisma.

Performance legitimacy

Legitimacy grounded in the belief that the government “delivers” prosperity/security (often contrasted with election-based legitimacy).

Procedural legitimacy

Legitimacy rooted in political procedures and rules such as elections, constitutional constraints, and the rule of law.

Participation and accountability

Mechanisms that allow citizens to influence government and replace leaders (e.g., elections, parties, media, civil society, courts).

Vertical accountability

Accountability from citizens to leaders, primarily through elections and public debate that can reward or punish incumbents.

Horizontal accountability

Accountability through institutions that check leaders (e.g., legislatures, courts, audit agencies, independent media).

Rule of law

Principle that laws are applied predictably and equally, including to elites; supports contract enforcement and limits arbitrary rule.

Economic transformation

Shift from low-productivity agriculture/informal work toward higher-productivity industry and services, often with improvements in education, health, and infrastructure.

Economic growth

Increase in output (often measured by rising GDP); does not automatically mean improved living standards or reduced inequality.

Democratization

Movement toward competitive elections, civil liberties, and stronger constraints on executive power.

Authoritarianization

Movement away from democratic features, such as tightening control over media, elections, courts, and civil society.

Political liberalization

Expansion of civil liberties (e.g., reduced censorship, more association/protest space) that may occur without real democratic competition.

Economic liberalization

Reducing direct state control to expand market forces—often via deregulation, privatization, and openness to trade/investment.

Reform

Deliberate change to institutions or policies that keeps the basic regime intact; may or may not broaden political rights.

Revolution

Rapid, fundamental transformation of a political system, usually involving mass mobilization and new legitimacy claims.

Coup d’état

Sudden removal of leaders by force (often by military/security elites) that changes who rules but not necessarily core institutions.

Negotiated (elite-led) transition

Regime change pathway in which insiders bargain (sometimes with opposition) to alter rules or transfer power, often to avoid collapse.

Electoral authoritarianism

A regime that holds elections but restricts competition and civil liberties so elections are not fully free or fair.

Democratic backsliding

Gradual weakening of democratic institutions (often by elected leaders) through legalistic changes to courts, elections, media, and civil society.

Institutionalized competition

Stable, rule-based political competition in which opposition can realistically win office and power is constrained by institutions.

Corruption

Abuse of public office for private gain (e.g., bribery, embezzlement, kickbacks, nepotism); weakens development and legitimacy.

Clientelism

Exchange of targeted material benefits (jobs/cash/contracts) for political support; selective and conditional rather than universal.

Patronage

Distribution of jobs, contracts, and resources to supporters to build loyalty and maintain political control.

Civil society

Voluntary associations outside the state (NGOs, unions, religious groups, professional groups) that can check power or also polarize politics.

Social cleavage

A durable social division (class, religion, ethnicity, region, urban–rural) that shapes political identity, conflict, and party competition.

Social movement

Organized, sustained collective action aimed at changing policy, leadership, or social norms; success depends on networks and state/elite dynamics.

Repression

State strategy to control dissent through policing, censorship, arrests, or force against opponents and movements.

Co-optation

State strategy of absorbing potential opponents by offering posts, funding, or inclusion to movement leaders or groups.

Policy concessions

Government responses to pressure that grant benefits or reforms (e.g., subsidies, wage increases, promises) to reduce unrest.

State-led development

Economic strategy where the government directs investment and industry through planning, ownership, and directed credit to industrialize or control key sectors.

Industrial policy

Government efforts to shape the economy’s sectoral development (e.g., targeting industries, setting priorities, steering investment).

State-owned enterprises (SOEs)

Firms owned or controlled by the state, often used to manage strategic sectors and support state-led development goals.

Deregulation

Removing or reducing rules that restrict business activity, typically to increase competition and market flexibility.

Privatization

Transfer of ownership/control of state-owned enterprises to private actors; can raise efficiency but also create inequality or perceptions of unfairness.

Trade liberalization

Reducing tariffs, quotas, and other barriers to imports/exports to increase openness and integration into global markets.

Fiscal discipline

Efforts to control government deficits and spending to stabilize the economy (often linked to inflation control and creditor confidence).

Financial liberalization

Reducing restrictions on capital flows and loosening controls on financial markets; can increase investment but also volatility and crisis risk.

Mixed economy

An economic system combining market activity with state regulation and social programs; most countries adjust the balance over time.

Fiscal policy

Government use of spending and taxation to influence economic demand and stability (e.g., stimulus during recessions).

Monetary policy

Central bank control of interest rates and money supply to influence inflation, borrowing, and investment.

GDP (Gross Domestic Product)

Total value of goods and services produced in a country; useful for measuring output but does not capture distribution or quality-of-life fully.

GDP per capita

GDP divided by population; a rough proxy for average economic output per person that can hide inequality and informal activity.

Human Development Index (HDI)

Composite development measure incorporating health and education alongside income to capture broader well-being.

Gini coefficient

Common indicator of income inequality; higher values generally mean greater inequality, with important political implications for legitimacy and polarization.

Informal sector

Economic activity and work not fully regulated or taxed by the state; often linked to precarious livelihoods and limited social insurance.

Foreign direct investment (FDI)

Cross-border investment in productive assets (e.g., building firms/factories) that can bring capital and technology but raises political trade-offs over regulation and sovereignty.

Resource curse

Argument that heavy dependence on natural resource revenue can weaken accountability and diversification, fuel corruption/patronage, and increase vulnerability to price shocks.