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Political Parties in Business: Rent Seekers, Developmentalists, or Both?

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  • Berhanu Abegaz

Abstract

Ruling party-owned conglomerates (Parbus) are emerging in some post-conflict African economies following state capture by ethnic parties. We offer an analytical framework, buttressed by four country case studies of 'developmental ethnocracies' in Africa and Asia to identify when Parbus dominance can be redistributive wealth-seeking and when wealth-creating. Four regime characteristics underpin the prospects for wealth creation over rent-seeking: legitimation angst, organisational capacity, ideology, and degree of state centralisation. Three evolutionary paths (perhaps stages) suggest themselves: paragonist that is inclusive and growth friendly, parasitic engendering a poverty-tyranny trap and mutualist exemplified by a destabilising contest among party, state and private interests.

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  • Berhanu Abegaz, 2013. "Political Parties in Business: Rent Seekers, Developmentalists, or Both?," Journal of Development Studies, Taylor & Francis Journals, vol. 49(11), pages 1467-1483, November.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:11:p:1467-1483
    DOI: 10.1080/00220388.2013.822070
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    Cited by:

    1. Berhanu Abegaz, 2013. "Aid, Accountability, and Institution-Building in Ethiopia: a Comparative Analysis of Donor Practice," WIDER Working Paper Series wp-2013-083, World Institute for Development Economic Research (UNU-WIDER).
    2. Selam Robi, 2024. "Addis deals: reckoning with the informal governance of urban structural transformation," WIDER Working Paper Series wp-2024-40, World Institute for Development Economic Research (UNU-WIDER).
    3. Christine Ngoc Ngo & Charles R. McCann, 2019. "Rethinking rent seeking for technological change and development," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 721-740, April.
    4. Abegaz, Berhanu, 2013. "Aid, Accountability, and Institution-Building in Ethiopia: a Comparative Analysis of Donor Practice," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    5. Pritish Behuria, 2019. "African development and the marginalisation of domestic capitalists," Global Development Institute Working Paper Series esid-115-19, GDI, The University of Manchester.
    6. Kosec, Katrina & Song, Jie & Zhao, Hongdi, 2021. "Bringing Power to the People or the Well-Connected? Evidence from Ethiopia on the Gendered Effects of Decentralizing Service Delivery," 2021 Conference, August 17-31, 2021, Virtual 315258, International Association of Agricultural Economists.

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