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The structure of state borrowing: towards a political theory of control mechanisms

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  • Anush Kapadia

Abstract

Alice Amsden’s seminal work on the developmental state was premised on a general theory of control mechanisms. Her focus on development banking prioritises financial control. However, the development literature concentrates on one element of financial control: investments rather than borrowing. Further, a state bank makes borrowing bargains that are fundamentally political. Building on recent work on “political settlements” and development, we propose a political theory of control mechanisms that builds politics into Amsden’s theory of control. We then apply it to development bank fundraising, arguing that when development banking works, it does so by reconciling political settlements with control over fundraising.

Suggested Citation

  • Anush Kapadia, 2017. "The structure of state borrowing: towards a political theory of control mechanisms," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 189-204.
    • Handle: RePEc:oup:cjrecs:v:10:y:2017:i:1:p:189-204.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsw036
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    References listed on IDEAS

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    1. Judith Clifton & Amy Glasmeier & Alpen Sheth, 2017. "Revisiting development theory: Alice H. Amsden’s impact on the field," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 3-14.

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    More about this item

    Keywords

    political economy of development; finance and politics; finance and development; control mechanisms; political settlements; economic history;
    All these keywords.

    JEL classification:

    • N2 - Economic History - - Financial Markets and Institutions
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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