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Modernization Theory in Comparative Politics

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Modernization Theory in Comparative Politics

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  1. POL831 MOD2 Johari,J.C.(1982)ComparativePolitics.NewDelhi:Sterling Publishers. Palekar,S.A.(2009)ComparativePoliticsandGovernment.New Delhi:PHILearning. Ray,S.N.(2000)ModernComparativePolitics.NewDelhi:PHI Learning. 81

  2. POL 831 MODULE2 2.6PossibleAnswersto Self-AssessmentExercises (SAEs) AnswerstoSAEs1 1. 2. True DavidEaston,regardsthepoliticalsystemengagedindecision- makingandimplementingtheauthoritativeallocationofvalues forsociety AnswerstoSAEs2 1. 2. True Government AnswerstoSAEs3 1. Thesystemtheoryhasmadesomerealcontributionsto comparativepolitics.First,thetheoryprovidesaverygeneral perspectiveonpoliticallife,whichcouldbeappliedalmost anywhere.Second,thesystemstheorypointedoutthat government,likeallsystems,wasdependentuponits environment,sothattheimportanceofthesocialandeconomic underpinningsofgovernmentwasreinforced. 2. First,itisaverycomplicatedtheory.Second,thetheoryisquit abstract. 82

  3. POL831 MOD2 • UNIT3 TheModernizationTheoryinComparativePolitics • Unit Structure • Introduction • LearningOutcomes • TheEvolutionofModernizationTheoryinComparativePolitics • TheCorePropositionoftheModernizationTheory • TheStrengthandUsefulnessofModernizationTheory • LimitationoftheModernizationTheory • Summary • References/FurtherReadings/WebResources • PossibleAnswerstoSelf-AssessmentExercises(SAEs) • 3.1Introduction • Inthechangingworldsituationafterthepost1945era,thedevelopment ofmodernizationtheoryinordertomodernisetherestoftheworldin linewithAmericandevelopmentisinterestinglysignificantinthe historyofdevelopmentstudies.However,thewaymodernizationtheory suggestsfordevelopmentandmodernityprovedtobecontroversialsoon afteritsdevelopmentasatheory.Toexploretheseissues,thisunitwill firstattempttohighlightthemeaningofthetermmodernizationfrom differentperspectives,whichisthenfollowedbyadiscussionofthe contextinwhichthetheorydeveloped.Thenitwillfocusonsomebasic objectionsembeddedinthetheorythatoffercritiquesfrommany developmentstudiesscholars. • 3.2 LearningOutcomes • Bytheendofthisunityouwillbeable to: • Tracethehistoricalevolutionofthemodernizationtheory • Examinethecorepropositionofthemodernizationtheory • Discussstrengthandusefulnessofthemodernizationtheory • Highlighttheweaknessesofthe modernizationtheory 83

  4. POL 831 MODULE2 3.3 TheEvolutionofModernizationTheoryin ComparativePolitics ForAlvinSo,therearethreemainhistoricalelementswhichwere favorabletotheevolutionofthemodernizationtheoryofdevelopment aftertheSecondWorldWar.First,therewastheriseoftheUnited Statesasasuperpower.WhileotherWesternnations,suchasGreat Britain,France,andGermany,wereweakenedbyWorldWarII,the UnitedStatesemergedfromthewarstrengthened,andbecameaworld leaderwiththeimplementationoftheMarshallPlantoreconstructwar- tornWesternEurope. Second,therewasthespreadofaunitedworldcommunistmovement. TheFormerSovietUnionextendeditsinfluencenotonlytoEastern Europe,butalsotoChinaandKorea.Third,therewasthedisintegration ofEuropeancolonialempiresinAsia,AfricaandLatinAmerica,giving birthtomanynewnation-statesintheThirdWorld.Thesenascent nation-stateswereinsearchofamodelofdevelopmenttopromotetheir economyandtoenhancetheirpoliticalindependence. Therefore,modernizationtheoryisadescriptionandexplanationofthe processesoftransformationfromtraditionalor underdevelopedsocieties tomodernsocieties.Inthewordsofoneofthemajorproponents, “Historically,modernizationistheprocessofchangetowardsthose typesofsocial,economic,andpoliticalsystemsthathavedeveloped inWesternEuropeandNorthAmericafromtheseventeenthcenturyto thenineteenthandhavethenspreadtootherEuropeancountriesandin thenineteenthandtwentiethcenturiesto theSouthAmerican,Asian, andAfricancontinents”(Eisenstadt1966:1).Modernizationtheoryhas beenoneofthemajorperspectivesinthesociologyofcomparative nationaldevelopmentandunderdevelopmentsincethe1950s.Primary attentionhasfocusedonwaysinwhichpastandpresentpre-modern societiesbecomemodern(thatisWesternized)throughprocessesof economicgrowthandchangeinsocial,political,andculturalstructures. Ingeneral, modernizationtheoristsareconcernedwith economicgrowth withinsocietiesasindicated,forexample,bymeasuresofgrossnationalproduct.Mechanizationorindustrializationareingredientsinthe processofeconomicgrowth.Modernizationtheoristsstudythesocial, political,andculturalconsequencesofeconomicgrowthandthe conditionsthatareimportantforindustrializationandeconomicgrowth tooccur.Indeed,adegreeofcircularityoftencharacterizesdiscussions ofsocialandeconomicchangeinvolvedinmodernizationprocesses becauseofthenotion,embeddedinmostmodernizationtheories,ofthe functionalcompatibilityofcomponentparts. 84

  5. POL831 MOD2 Itshouldbenotedattheatthispointthattheconceptofmodernization incomparativepoliticsdoes notrefersimplytobecomingcurrent or“up todate”butratherspecifiesparticularcontentsandprocessesofsocietal changesinthecourseofnationaldevelopment.Also,modernization theories ofdevelopmentdonot necessarilybear anyrelationshiptomore recentphilosophicalconceptsof“modernity”and“postmodernity.” Modernityinphilosophical and epistemological discussionsrefers tothe perspectivethatthereisonetruedescriptiveandexplanatorymodelthat reflectstheactualworld.Postmodernityisthestancethatnosingletrue descriptionandexplanationofrealityexistsbutratherthatknowledge, ideology,and science itselfare based onsubjective understandingsofan entirelyrelationalnature.Whiletheirphilosophicalunderpinningsplace mostmodernizationtheoriesofdevelopmentintothe“modern”rather thanthe“postmodern”context,theseseparateusesofthe termmodernityshouldnotbeconfused. Also,modernization,industrialization,anddevelopmentareoftenused interchangeablybutinfactrefertodistinguishablephenomena. Industrializationisanarrowertermthanmodernization,while developmentismoregeneral.Industrializationinvolvestheuseof inanimatesourcesofpowertomechanizeproduction,anditinvolves increasesin manufacturing, wagelabor,income levels,and occupational diversification.Itmayormaynotbepresentwherethereispolitical, social,orculturalmodernization,and,conversely,itmayexistinthe absenceofotheraspectsofmodernization.Development(like industrialization)implieseconomicgrowth,butnotnecessarilythrough transformationfromthepredominanceofprimaryproductionto manufacturing,andnotnecessarilyascharacterizedbymodernization theory.Forexample,whilemodernizationtheoristsmaydefine developmentmainlyintermsofeconomicoutputpercapita,other theoristsmaybemoreconcernedaboutdevelopmentofautonomous productivecapacity,equitabledistributionofwealth,ormeetingbasic humanneeds.Also,whilemodernizationtheoriesgenerallyenvision democraticandcapitalistinstitutionsorsecularizationofbeliefsystems ascomponentsofmodernsociety,otherdevelopmentperspectivesmay not.Indeed,dependencytheoristseventalkaboutthe“developmentof underdevelopment”(Frank1966). 3.3.1Definitionofthetermmodernizationandmodernization theory Thetermmodernization,hasbeendefinedfromvariousperspectives alongwithitsoriginalmeaning.Oneorientationtotheterm „modernization‟conceivesitasaprocessofsocialchange(Huntington 85

  6. POL 831 MODULE2 1968;Inkeles1969;Schwartz1972)whileanotherorientationconsiders modernizationnotonlyasachangebutalsoasaresponsetochange (Eisenstadt1966).AccordingtoHuntington(1968),modernizationisa multidimensionalprocessthatincludestransformationofhumanviews andactivities.However,Halpern(1966)whonotesmodernizationasa responsetochange,focussesonthecapacityofinstitutionstomanage thosechangeseffectively.Combiningthesetwoviewsintoone, Eisenstadt(1966)arguesmodernizationasaprocessofchangeandat thesametimehestressesonthecapacityofinstitutionstocontrolor adjusttochanges. Similarly,theAmericaneconomichistorianRostow(1960)presenteda model,consideredastheblueprintformodernizationapproach, signpostingdevelopmentasseriesofstagessuchasunderdevelopment, transitionandmodernity.Thisblueprintofmodernizationapproach impliesthat,inordertobemodernlikemodernAmerica,traditional countriesmustgothroughthesestagesofdevelopment.Modernization isimplicitlymeantinthemodelastheassociationsofproductionand standardoflivingcharacteristicofthewesterncountriessuchas America. Conversely,consideringtheChinesemodernizationthatincludesfamily bondage,tradition,rurallifeandculture,Li(2009)Arguesthatscholars havereachedconsensusthatmodernizationisafunctionalchangeof traditionalsocietalarrangement.Therefore,modernizationisaprocess ofchangingsocietiesfrompre-modern(traditional,pastoraland agricultural)tomodern(industrialized,secularandurban). Having understoodthemeaningofthe term„modernization‟, thecontext ofmodernizationtheorynowneedstobetakenintoaccount.Thetheory emergedwhendevelopmentbecameanurgentissueaftertheSecond WorldWarinacontextofinternationalchangingeconomicandpolitical realitiesasmentionedearlier.Thewholeworldwassharplydividedinto twoblocks-capitalistandsocialist,makingacoldwarsituation.New countrieswereemergingfromthedecolonizationofwesterncolonies. Developmentfortheseneweconomiesbecameanurgentissueof priority. Hence,Tipps(1973)hasarguedthatmodernizationtheorydevelopedas aresponseoftheAmericanpoliticalleadersandscholarstothepost secondworldwarperiodcontext.TheRostowmodelofeconomic development,ascitedabove,isasuitableexampleofwhatTipps(1973) calltheresponseoftheAmericanscholars.Thismodelmakesitclear thattheimplicitpurposeofmodernizationtheoryistoshapethe developmentoftheemergingcountriesfromthewesterncolonies, slidingthemtowardsthecapitalistblock.Thecontextinwhichthe 86

  7. POL831 MOD2 theorywasdevelopedisparticularlysuitabletothatculture,not necessarilysuitableforothers.Thiscontextualemergenceofthetheory gavebirthtodoubtsoftheobjectivityofmodernizationtheory.For example,thetheoryhasbeenaccusedofbeingethnocentric.This questionofethnocentrismbecomesapparentwhenaleadingproponent ofmodernizationtheory,Eisenstadt(1966),explicitlyexplains modernisationasaprocessofsocietalchangetowardswesternmodelof development.TheRostowmodelandParsonstheoryofvariablesalong withothermodernizationtheoristsperhapsinaccuratelysuggest westernizationformodernizationofthenon-westerncountries(Parsons 1964,Rostow1960). Self-AssessmentExercises1 Attempttheseexercisestomeasurewhatyouhavelearntsofar.This shouldnottakeyoumorethan5minutes: Howwillyoudescribethemodernizationtheory? WWRostowisoneofthemostcelebratedmodernization theorists…Trueor 3.3.2TheCoreAssumptionsoftheModernizationTheory Accordingtothemodernizationtheory,modernsocietiesaremore productive,childrenarebettereducated,andtheneedyreceivemore welfare.AccordingtoSmelser‟sanalysis,modernsocietieshavethe particularfeatureofsocialstructuraldifferentiation,thatistosayaclear definitionoffunctionsandpoliticalrolesfromnationalinstitutions. Smelserarguesthatalthoughstructuraldifferentiationhasincreasedthe functionalcapacityofmodernorganizations,ithasalsocreatedthe problemofintegration,andofcoordinatingtheactivitiesofthevarious newinstitutions(PrzeworskiandLimongi,1997) Tomakepoliticalsense,Colemanstressesthreemainfeaturesofmodern societies: a. b. Differentiationofpoliticalstructure; Secularizationofpoliticalculture–withtheethosofequality– which Enhancesthecapacityofasociety‟s politicalsystem. c. 87

  8. POL 831 MODULE2 Themajorassumptionsofthemodernizationtheoryofdevelopment basicallyare: Modernizationisaphasedprocess;forexampleRostowhas5 phasesaccordingtohistheoryofeconomicdevelopmentfora particularsociety,weshallcomebacktothislater. Modernizationisahomogenizingprocess,inthissense,wecan saythatmodernizationproducestendenciestowardconvergence amongsocieties,forexample,Levy(1967:207)maintainsthat: “astimegoeson,theyandwewillincreasinglyresembleone anotherbecausethepatternsofmodernizationaresuchthatthe morehighlymodernizedsocietiesbecome,themorethey resembleoneanother”. Modernizationisaeuropeanizationoramericanizationprocess; i. ii. iii. inthemodernizationliterature,thereisanattitudeof complacencytowardWesternEuropeandtheUnitedStates. Thesenationsareviewedashavingunmatchedeconomic prosperityanddemocraticstability(Tipps:1976:14). Inaddition,modernizationisanirreversibleprocess,oncestarted modernizationcannotbestopped.Inotherwords,oncethird worldcountriescomeintocontactwiththeWest,theywillnotbe iv. abletoresisttheimpetustowardmodernization.Modernizationis aprogressiveprocesswhichinthelongrunisnotonlyinevitable butdesirable.AccordingtoColeman,modernizedpolitical systemshaveahighercapacitytodealwiththefunctionof nationalidentity,legitimacypenetration,participation,and distributionthantraditionalpoliticalsystems. Finally,modernizationisalengthyprocess.Itisanevolutionarychange, notarevolutionaryone.Itwilltakegenerationsorevencenturies to complete,anditsprofoundimpactwillbefeltonlythroughtime.All theseassumptionsarederivedfromEuropeanandAmericanevolutionarytheory. Thereisalsoanothersetofclassicalassumptionsbasedmorestrictlyon thefunctionalism-structuralismtheorywhichemphasizesthe interdependenceofsocialinstitutions,theimportanceofstructural variablesattheculturallevel,andthebuiltinprocessofchangethrough homeostasisequilibrium.Theseareideasderivedespeciallyfrom Parsons‟sociologicaltheories.Theseassumptionsareasfollows: i. Modernization isasystematicprocess.Theattributeof modernity formsaconsistentwhole,thusappearinginaclusterratherthan inisolation. 88

  9. POL831 MOD2 ii. Modernizationisatransformativeprocess;inorderforasociety tomoveintomodernityitstraditionalstructuresandvaluesmust betotallyreplacedbyasetofmodern values. Modernizationisanimminentprocessduetoitssystematicand transformativenature,whichbuildschangeintothesocial system. iii. Oneoftheprincipalapplicationsofthemodernizationtheoryhasbeen theeconomicfieldrelatedtopublicpolicydecisions.Fromthis perspective,itisverywellknownthattheeconomictheoryof modernizationisbasedonthefivestagesofdevelopmentfromRostow‟s model.Insummary,thesefivestagesare: traditionalsociety, preconditionfortakeoff, thetakeoffprocess, thedrivetomaturity,and highmassconsumptionsociety. Accordingtothisexposition,Rostowhasfoundapossiblesolutionfor thepromotionofThirdWorldmodernization.Iftheproblemfacing ThirdWorldcountriesresidesintheirlackofproductiveinvestments, thenthesolutionliesintheprovisionofaidtothesecountriesinthe formofcapital,technology,andexpertise.TheMarshallPlanandthe AllianceforProgressinLatinAmerica,areexamplesofprogramswhich wereinfluencedbyRostow‟spoliticaltheories. Thesimilaritiesbetweenclassicalmodernizationstudiesandnew modernizationstudiescanbeobservedintheconstancyoftheresearch focusonThirdWorlddevelopment;theanalysisatanationallevel;the useofthreemainvariables:internalfactors,culturalvaluesandsocial institutions;thekeyconceptsoftraditionandmodernity;andthepolicy implicationsofmodernizationinthesensethatitisconsideredtobe generallybeneficialtosocietyasawhole. However,therearealsoimportantdistinctionsbetweentheclassical studiesandthenewstudiesofthemodernizationschool.Forexample, in theclassicalapproach,traditionisanobstacletodevelopment;inthe newapproach,traditionisanadditivefactorofdevelopment.With regardtomethodology,theclassicalapproachappliesatheoretical constructionwithahigh-levelofabstraction;thenewapproachapplies concretecasestudiesgiveninanhistoricalcontext.Regardingthe directionofdevelopment,theclassicalperspectiveusesanunidirectional pathwhichtendstowardthe UnitedStatesandEuropean model,thenew perspectiveprefersamultidirectionalpathofdevelopment.Andfinally, concerningexternalfactorsandconflict,theclassicaldemonstratea 89

  10. POL 831 MODULE2 relativeneglectofexternalfactorsandconflict,incontrasttothegreater attentiontoexternalfactorsandconflictspracticedbythenewapproach. Self-AssessmentExercises2 Attempttheseexercisestomeasurewhatyouhavelearntsofar. Thisshouldnottakeyoumorethan5minutes: Accordingtothemodernizationtheorymodernizesocieties havestructuralsimilarity…TrueorFalse? ListthestagesofdevelopmentasidentifiedbyWW Rostow. 3.3TheStrengthandUsefulnessofModernizationTheory Thestrengthsofmodernizationtheorycanbedefinedinseveralaspects: Wecanidentifythebasisoftheresearchfocus.Despitethefact thatthemainstudiesofmodernizationwerecarriedoutbya psychologist, a social psychologist, a sociologist ofreligion and a politicalsociologist,otherauthorshaveextendedmodernization theoryintootherspheres.Forexample,Bellahexaminestherole oftheTokugawasreligiononpajaneseconomicdevelopmentin South-EastAsiawitheffectsonvillagesofCambodia,Laosand Burma;Lipsetaddressesthepossibleroleofeconomic developmentinthedemocratizationofThirdWorldcountries, andInkelesdiscussestheconsequencesofthemodernization processforindividualattitudesandbehavior. ii.Asecondusefulnessofthemodernizationperspectiveisthe analyticalframework.AuthorsassumethatThirdWorldcountries aretraditionalandthatWesterncountriesaremodern.Inorderto develop,thosepoornationsneedtoadoptWesternvalues. Thethirdusefulnessisthatitsmethodologyisbasedongeneral studies;forexampletheexpositionsregardingthevaluefactorsin theThirdWorld,andthedifferentiationbetweenunstable democracies,dictatorshipsandstabledictatorships. i. iii. 3.3.4LimitationoftheModernizationTheory Modernizationtheory,ontheotherhand,waspopularinthe1950s,but wasunderheavyattackattheendofthe60s.Criticismsofthetheory includethefollowing: 90

  11. POL831 MOD2 i. Developmentisnotnecessarilyunidirectional.Thisisan example oftheethnocentricityofRostow‟sperspective. ii. Themodernization perspective onlyshows one possiblemodel of development.Thefavoredexampleisthedevelopmentpatternin theUnitedStates.Nevertheless,incontrastwiththis circumstance,wecanseethattherehavebeendevelopment advancesinothernations,suchasTaiwanandSouthKorea;and wemustadmitthattheircurrentdevelopmentlevelshavebeen achievedbystrongauthoritarianregimes. Othercritiquesofthemodernizationtheoryregardstheneedto eliminatetraditionalvalues.ThirdWorldcountriesdonothave anhomogeneoussetoftraditionalvalues;theirvaluesystemsare highlyheterogeneous.Forexample,Redfield1965,distinguishes betweenthegreattraditionalvalues(valuesoftheelites),andthe littletradition(valuesofthemasses). iv.Anotheraspectforcriticismhereisthefactthattraditionaland modernvaluesarenotnecessarilyalwaysmutuallyexclusive: China,forexample,despiteadvancesineconomicdevelopment continuestooperateontraditionalvaluesandthisappearstobe thesamesituationinJapan.Moreover,itisnotpossibletosay thattraditionalvaluesarealwaysdichotomousfrommodern status,forexample,loyaltytotheEmperorcanbetransformedto loyaltytothefirm. iii. Self-AssessmentExercises3 Attempttheseexercisestomeasurewhatyouhavelearntsofar. Thisshouldnottakeyoumorethan5minutes: Oneofthemeritsofmodernizationtheoryisthatthe traditionalsocietiesshouldemulatethevaluesofthe developed societies…Trueor False? Developmentisnotnecessarilyunidirectional…..Trueor 3.4Summary Insummary,therecouldbeseveralversionsofmodernizationtheory, butitsmajorimplicitorexplicittenetsarethat:(1)societiesdevelop throughaseriesofevolutionarystages;(2)thesestagesarebasedon differentdegreesandpatternsofsocialdifferentiationandreintegration ofstructuralandculturalcomponentsthatarefunctionallycompatible forthemaintenanceofsociety;(3)contemporarydevelopingsocieties areatapremodernstageofevolutionandtheyeventuallywillachieve economicgrowthandwilltakeonthesocial,political,andeconomic 91

  12. POL 831 MODULE2 featuresofwesternEuropeanandNorthAmericansocietieswhichhave progressedtothehigheststageofsocialevolutionarydevelopment;(4) thismodernizationwillresultascomplexWesterntechnologyis importedandtraditionalstructuralandculturalfeaturesincompatible withsuchdevelopmentareovercome.Atitscore,modernizationtheory suggeststhatadvancedindustrialtechnologyproducesnotonly economicgrowthindevelopingsocietiesbutalsootherstructuraland culturalchanges.Thecommoncharacteristicsthatsocietiestendto developastheybecomemodernmaydifferfromoneversionof modernizationtheorytoanother,but,ingeneral,allassumethat institutionalstructuresandindividualactivitiesbecomemorehighly specialized,differentiated,andintegratedintosocial,political,and economicformscharacteristicofadvancedWesternsocieties.Wehave alsostatedthatthetheoryhasbeencriticizedonseveralgrounds.The theoryhasfailedtotakeintoconsiderationthecontextofthewestern societyinwhichitdevelopedandthatofthepre-moderncountries.This notionoflinearityofmodernizationtheoryiscompletelyunableto explainthenon-linearhumandevelopmentphenomenonoftheworld. Againthetheorycompletelyoverlookssomecrucialissuesof humanitarianaspectsmakingthetheoryproblematic.Forexample, whileissuessuchasequalincomedistribution,publichealthand environmentalconcernsareimportantconsiderationsfordevelopment (DrezeandSen1999,Sen1999),theyarecompletelymissinginthe theory.Inaddition,thedichotomizationofmodernityandtradition offersseriouscritiquesforthemodernizationtheory.Modernization theoristscharacteristicallyviewwesterncountriesasperfectlymodern whileunderminingnon-westernsocietiesastraditionalandunchanged bycontrast(Gilman2003). However,toalargeextent,themodernizationtheoryisstill validforthe economic,socialandpoliticaldevelopmentofthecountries,the approachhasappearedquestionabletomanyscholarsofthefield.This isnotonlybecausethetheoryisincapableoffunctioningasa frameworkofdevelopmentbutalsobecausesomeobjectionable assumptionsareembeddedinthetheory.Whiletheseobjectionsor limitationssuchasethnocentrism,dichotomizationofmodernityand tradition,failuretorecognisetheexternalaspectsofchangeand ambiguityareevident,thesuitabilityandapplicabilityofthetheoryare simplydisproved. 92

  13. POL831 MOD2 3.8References/FurtherReadings/WebResources Aboderin,I.(2004)Modernisationandageingtheoryrevisited:Current explanationsofrecentdevelopingworldandhistoricalWestern shiftsinmaterialfamilysupportforolderpeople.Agingand Society,24,pp.29-50. Arts, W., Hermkens,P.andVanWijck, P.(1999)Modernisation theory, incomeevaluation,andthetransitioninEasternEurope. InternationalJournalofComparativeSociology,40(1),pp.61- 78. Gilman,N.(2003)MandarinsoftheFuture:ModernizationTheoryin ColdWarmerica,Baltimore:TheJohnHopkinsUniversityPress. Inglehart,R.andWelzel,C.(2005)Modernization,CulturalChange, andDemocracy:TheHumanDevelopmentSequence,NewYork: CambridgeUniversityPress. Li,Y.(2009)Revivaloftraditionormodernization?Theperspectiveof subjectivityinthestudyofmodernizationtheoryandacritiqueof thefunctionalistapproach.ChineseStudiesinHistory,43(1),pp. 61-71. Malik,N.(2009)Themodernfaceoftraditionalagarianrule:Local governmentinPakistan.DevelopmentinPractice:Stimulating ThoughtforAction,19(8),pp.997-1008. Menou,M.J.(2008)ImperialICTismtheHighestStageofCapitalism? Keynoteaddress,INFO2008,La Habana. Sen,A.(1999)DevelopmentasFreedom,Oxford:OxfordUniversity Press. Yuan,P.(2009)ModernizationTheory:Fromhistorical misunderstandingtorealisticdevelopment-Areviewofanew thesisonmodernization.ChineseStudiesinHistory,43(1),pp. 37-45. 93

  14. POL 831 MODULE2 3.9PossibleAnswersto Self-AssessmentExercises (SAEs) AnswerstoSAEs1 Modernizationtheoryisadescriptionandexplanationofthe processesoftransformationfromtraditionalorunderdeveloped societiestomoderndevelopedsocieties. True. 1. 2. AnswerstoSAEs2 False Answer:traditionalsociety,preconditionfortakeoff,thetakeoff process,thedrivetomaturity,andhighmassconsumptionsociety 1. 2. AnswerstoSAEs3 1. 2. True True 94

  15. POL831 MOD2 Unit4 PoliticalEconomyApproachinComparative Politics • UnitStructure • Introduction • LearningOutcomes • TheevolutionofPoliticalEconomyApproachinComparative Politics • 4.3.2 TheCorePropositionofthePoliticalEconomyApproach • Theclassical approach • Marxianpoliticaleconomy • Neoclassicalpoliticaleconomy • KeynesianPoliticalEconomy • ComparativePoliticalEconomy • TheStrengthandUsefulnessofthePoliticalEconomy Approach • LimitationofthePoliticalEconomyApproach • Summary • References/FurtherReadings/WebSources • PossibleAnswerstoSelf-AssessmentExercises(SAEs) • 4.1Introduction • Politicaleconomyisaninterdisciplinarybranchofthesocialsciences thatfocusesontheinterrelationshipsamongindividuals,governments, andpublicpolicy.Forinstance,politicaleconomistsstudyhow economictheoriessuchascapitalism,socialism,andcommunismwork intherealworld.Atitsroot,anyeconomictheoryisamethodologythat isadoptedasameansofdirectingthedistributionofafiniteamountof resourcesinawaythatisbeneficialforthegreatestnumberof individuals.Inawidersense,politicaleconomywasoncethecommon termusedforthefieldwenowcalleconomics.AdamSmith,John Stuart Mill,andJean-JacquesRousseauallusedthetermtodescribetheir theories. Thebriefertermeconomywassubstitutedintheearly20th centurywiththedevelopmentofmorerigorousstatisticalmethodsfor analyzingeconomicfactors.Therefore,thetermpoliticaleconomyis stillwidelyusedtodescribeanygovernmentpolicythathasan economicimpact.Assuch,thefieldofpoliticaleconomyspecifically dealswiththestudyofhoweconomictheoriessuchascapitalismor communismplayoutintherealworld.Thosewhostudypolitical economyseektounderstandhowhistory,culture,andcustomsimpact aneconomicsystem,andglobalpoliticaleconomystudieshowpolitical forcesshapeglobaleconomicinteractions.Therefore,inthisunit,we • 95

  16. POL 831 MODULE2 • shallexaminethecoretheoriesofpoliticaleconomyandtheir application. • 4.2 LearningOutcomes • Bytheendofthisunityouwillbeableto: • Tracedthehistoricalevolutionofpoliticaleconomytheory • Discusssometypespoliticaleconomytheories • Appreciateitsstrength,applicationandweaknesses. • 4.3 TheEvolutionofPoliticalEconomyApproach in ComparativePolitics • Theconceptofpoliticaleconomyisusedsinceancienttimesof intellectual inquirybutcomparativelyyounginacademicdiscipline.The analysisofpoliticaleconomy,bothinpracticaltermsandasmoral philosophy,hasbeentracedtoGreekphilosopherssuchasPlatoand AristotleaswellastotheScholasticsandthosewhopromulgateda philosophybasedonnaturallaw.Acriticaldevelopmentinthe intellectualinquiryofpoliticaleconomywastheprominencein the16th tothe18thcenturyofthemercantilistschool,whichcalledforastrong roleforthestateineconomicregulation.ThewritingsoftheScottish economist,SirJamesSteuart,4thBaronetDenham,whoseinquiryinto thePrinciplesofPoliticalEconomy(1767)isconsideredthefirst systematicworkinEnglishoneconomics,andthepoliciesofJean- BaptisteColbert(1619-83),controllergeneraltoLouisXIVofFrance, typifymercantilismintheoryandinpractice,respectively. • Specifically,politicaleconomyappearedasaseparatefieldofstudyin themid-18thcentury,mostlyasareactiontomercantilism,whenthe ScottishphilosophersAdamSmithandDavidHumeandtheFrench economistFrancoisQuesnaybegantoapproachthisstudyinsystematic ratherthanfragmentaryterms.Theytookasecularapproach,rejecting toexplainthedistributionofwealthandpowerintermsofGod‟swill andinsteadappealingtopolitical,economic,technological,natural,and socialfactorsandthecomplexinteractionsbetweenthem.Indeed, Smith‟slandmarkwork,anInquiryintotheNatureandCausesofthe WealthofNations(1776),whichprovidedthefirstcomprehensive systemofpoliticaleconomyexpressesinitstitlethebroadscopeof earlypoliticaleconomicanalysis.Althoughthefielditselfwasnew, someoftheideasandapproachesitdrewuponwerecenturiesold.It wasinfluencedbytheindividualistorientationoftheEnglishpolitical • 96

  17. POL831 MOD2 philosophersThomasHobbesandJohnLocke,theRealpolitikofthe ItalianpoliticaltheoristNiccoloMachiavelliandtheinductivemethod ofscientificreasoninginventedbytheEnglishphilosopherFrancis Bacon. Theoreticalstudiesofpoliticaleconomistsinthe18thcentury highlightedtheroleofindividualsoverthatofthestateandgenerally attackedmercantilism.ThisisperhapsbestexemplifiedbySmith‟s famousconceptofthe“invisiblehand,”inwhichhearguedthatstate policiesoftenwerelesseffectiveinadvancingsocialwelfarethanwere theself-interestedactsofindividuals.Individualsintendtoadvance only theirownwelfare,Smithproclaimed,butinsodoing,they alsoadvance theinterestsofsocietyasiftheywereguidedbyaninvisiblehand. Argumentssuchasthesegavecredencetoindividual-centredanalysis andpoliciestocounterthestate-centredtheories.Duringthisperiod,the utilitarianismofJeremyBenthamJamesMillandMill‟ssonJohnStuart Millunitedtogethereconomicanalysisfortheexpansionofdemocracy. Smith‟sconceptofindividual-centredanalysisofpoliticaleconomydid notgounchallenged.TheGermanAmericaneconomistFriedrichList developedamore-systematicanalysisofmercantilismthatcontrasted hisnationalsystemofpoliticaleconomywithSmith‟s“cosmo-political” system,whichtreatedissuesasifnationalbordersandinterestsdidnot exist.Inthemid-19thcentury,communisthistorianandeconomistKarl Marxproposedaclass-basedanalysisofpoliticaleconomythat concludedinhishugetreatiseDasKapital,thefirstvolumeofwhich waspublishedin1867. Theuniversalstudyofpoliticaleconomythattypifiestheworksof Smith,List,Marx,andothersoftheirtimewasslowlydarkenedinthe late19thcenturybyagroupofmorenarrowlyfocusedand methodologicallyconventionaldisciplines,eachofwhichsoughtto throwlightonparticularelementsofsociety,inevitablyattheexpense ofabroaderviewofsocialinteractions.By1890,whenEnglish neoclassicaleconomistAlfredMarshallpublishedhistextbookonthe PrinciplesofEconomics,politicaleconomyasadistinctacademicfield hadbeenessentiallysubstitutedinuniversitiesbytheseparate disciplinesofeconomics,sociology,politicalscience,andinternational relations.Marshallclearlyseparatedhissubject,economicsoreconomic sciencefrompoliticaleconomy,implicitlyprivilegingtheformerover thelatter,anactthatrevealedthegeneralacademictrendtoward specialization alongmethodological lines. Inthesecondhalfofthe20thcentury,asthesocialsciencesbecame increasinglyabstract,formal,andspecializedinbothfocusand methodology,politicaleconomywasrevitalizedtoprovidea comprehensiveframeworktounderstandcomplexnationaland 97

  18. POL 831 MODULE2 • internationalproblemsandevents.Presently,thefieldofpolitical economyembracesseveralareasofstudy,includingthepoliticsof economicrelations,domesticpoliticalandeconomicissues,the comparativestudyofpoliticalandeconomicsystems,andinternational politicaleconomy.Theadventofinternationalpoliticaleconomy,first withininternationalrelationsandlaterasadistinctfieldofinquiry, markedthereturnofpoliticaleconomytoitsancestriesasaholistic studyofindividuals,states,markets,andcivilisation. • Self-AssessmentExercises1 • Attempttheseexercisestomeasurewhatyouhavelearntsofar.This • shouldnottakeyoumorethan5minutes: • AdamSmithistheauthorofthebookTheWealthofNations… • TrueorFalse? • AdamCokerisapoliticalEconomistofthe20thcentury…True orFalse? • TypesofPoliticalEconomyTheory • Politicaleconomyisabranchofsocialsciencethatstudiesthe relationshipthatformsbetweenanation‟spopulationandits governmentwhenpublicpolicyisenacted.Itis,therefore,theresultof theinteractionbetweenpoliticsandtheeconomywhichisconsidered thebasisofthesocialsciencediscipline. • Thereareseveralnotabletypesofpoliticaleconomytheories: • Theclassicalapproach • PoliticalEconomyintheClassicalTradition • Inthisunitweexploretheclassicalapproachtopoliticaleconomy.The classicaleconomistsoftheeighteenthandnineteenthcenturieswerethe firsttousetheterm“politicaleconomy.”Theperiodcoveredby classicalpoliticaleconomycannotbestatedexactly.Arestricted definitionwouldextendfromAdamSmith‟sWealthofNationsin1776 toJohn‟s.Mill‟sPrinciplesofPoliticalEconomyin1848.Amore encompassingperiodizationwouldstretchfromtheworkofthe Physiocratsinthemiddleoftheeighteenthcenturytothedeathin1883 ofKarlMarx,whommanysawasthelastimportantclassicalpolitical economist.Marxhimselfiscreditedwithcoiningtheterm“classical politicaleconomy”(Dasgupta,1985:12),datingitfromthetimeof WilliamPetty. • 98

  19. POL831 MOD2 Wewilldivideourconsiderationofclassicalpoliticaleconomy intotwo parts:theargumentformarketself-regulationandthetheoryofvalue anddistribution.Thefirstpartconcernsthenatureofthemarketsystem anditsrelationtothestate.Thesecondconcernsproductionanduseof theeconomicsurplus.Thesecondpartdrawsonmorerecent contributionswithintheclassicaltradition.Althoughusingelementsof theclassicalanalyticalframework,theserecenttheoriessuggestan approachtopoliticaleconomyinsomewaysatvariancewiththatofthe classicaleconomiststhemselves. Theclassicalapproach framesthecentralthemesofpoliticaleconomyin adistinctiveway.Mostfundamentally,theclassicaleconomistsplayeda majorroleinintroducingandelaboratingtwocoreideas:theseparability oftheeconomyandtheprimacyoftheeconomicsphere. Politicaleconomygaveconsiderableimpetustotheshiftoffocusaway frompoliticsinunderstandingtheforcesthataccountforthelarge historicalmovementsthatmoldthesocialworld.AdamSmithsawthe riseofcivilizedsocietyastheresultofprofit-seekingbehaviorrather thanofanyplanknowntoandinstitutedbyapoliticalprocessorpublic authority.Thetransitionfromthe“savagestateofman”tocivilized societywas,forSmith,thehistoricalworkofcapitalism.Yet,itwasthe unintendedconsequenceofamultitudeofactionstakenforpurely privatepurposes. Marxtookthisideamuchfurther.Hedescribedtheprocessbywhich epochalchangeswerebroughtaboutinmethodsofproduction,social relations,andwaysoflife,allastheunintendedconsequencesofthe pursuitofprivategain.Marx‟smaterialistconceptionofhistory expresseswithspecialforcethesubordinationofpoliticsandofthe decisionsofapublicauthoritytotheimmanentandinexorable forcesset looseandoperatingwithinsociety.Theemergenceofpoliticaleconomy helpedtomarkthedemotionofpoliticsandtheelevationofthe nonpoliticalpartofcivillife.Indeed,itcontributestotheredefinitionof civillifeawayfrompoliticsandinthemoderndirectionofprivate affairspursuedoutsideofthehousehold,intheworldofbusiness.The riseofpoliticaleconomymeanstheriseofcivilsocietyin contradistinctiontopolitics. Thedemotionofpoliticscouldhardlybebetterexpressedthanbythe invisiblehandmetaphorofAdamSmith.AlthoughSmith‟sviewisin somewaysextreme,itveryclearlyarticulatesanewrelationship betweenpoliticalandcivilsociety(orpolitics andeconomics).Thisnew relationshiparises,inpart,outofarethinkingofthepossibleand reasonablepurposeofthestate. 99

  20. POL 831 MODULE2 Intheclassicalapproachthetermpoliticaleconomyreferstoasystem ofprivatewantsatisfactionmadeupofindependentprivateagents. Duringtheperiodofclassicalpoliticaleconomy,severaldistinctbut relatedtermsareusedtorefertothissystemofwantsatisfaction:civil society,marketeconomy,bourgeoissociety,capitalism,andothers. Eachtermdescribesthewayinwhichsocietybecomespredominantly aneconomicratherthanpoliticalsystem.Asitgrowsinstrength,this systemtendstodisplacepoliticseventhoughitinitiallyappearsundera politicaldesignation.Itsetsupanorderingprincipleforsocietywhich, sinceitisnonpolitical,challengestheideaofsocietyasapolitical system. AdamSmith‟snowclassicformulationofthelinkbetweenprivate interestandpublicgoodinamarketeconomydependsheavilyonthe argumentthatmarkets,ifallowedto,willregulatethemselves.Smith developshisargumentaspartofacritiqueofthepolicyofplacing “RestraintsupontheImportationfrom ForeignCountriesofsuchGoods ascanbeProducedatHome.”Smithbeginsbynotingthatthe “monopolyofthehomemarket”resultingfromrestraintsonimports encouragescertaindomesticindustriesandincreasestheshareoflabor andcapitaldevotedtothoseindustries.Buthequestionswhetherthis servesthepublicgood.Servingthepublicgoodmeansincreasingthe “generalindustryofsociety”orchannelingthatindustryin“themost advantageousdirection.” Thetheoryofmarketself-regulationisarguablythecentralachievement oftheclassicalapproachtopoliticaleconomyandthekeyto understandinghowaclassicallyinfluencedeconomistmightunderstand theinterrelationoftheeconomicandthepolitical.Moderntheorists workingintheclassicaltraditionhavenot,however,alltakenthis viewpoint.Recentcontributionshavebuiltonadifferentelementofthe classicalanalysisofmarketeconomy,oneconcernedmorewiththe pricesystemasitrelatestothedeterminationofwagesandprofits,less withitsimplicationsformarketself-regulation.Wenowturntothis otherdimensionoftheclassicaltheory.Thisdimensionbeginswith considerationoftherelationbetweenthesocialdivisionoflaborand commodityexchange. Thedivisionoflaborhasaverycloseassociationwithexchange.Inthe absenceofamarketfortheproduct,itmakesverylittlesenseforan otherwiseisolatedindividualtospecializeinthewaydemandedbythe divisionoflabor.Atthesametime,participationinthedivisionoflabor requirestheindividualproducertoexchangeinordertoacquirethose elementsofsubsistenceheorshedoesnotproduce.AdamSmithplaces thistwo-sidedrelationshipbetweenthemarketandthedivisionoflabor 100

  21. POL831 MOD2 atthecenterofhisanalysis.Withthedivisionoflaboreveryman “becomesinsomemeasureamerchant”(1937:22).Ourparticipationin adivisionoflaborforcesustoexchange.Thetypeofmutual dependenceassociatedwithdivisionoflaborgivesrisetothesystemof exchange.Atthesametime“thedivisionoflaborislimitedbythe extentofthemarket”(1937:17).Themarketalsoplaysapartin stimulatingthedevelopmentofthedivisionoflabor.Thedivisionof laboroccupiesapositionintheclassicaltreatmentofexchange analogoustothatplayedbyutilitymaximizationinneoclassicaltheory. Itaccountsfortheparticipationoftheindividualinalargersocial reality.Finally,thistheoryadvocatesprofitasamotivefor advancement.Putsimply,theideabehindcapitalismisthatprivate individualsandotheractorsaredrivenbytheirowninterests–they controlproductionanddistribution,setprices,andcreatesupplyanddemand Self-AssessmentExercises2 Attempttheseexercisestomeasurewhatyouhavelearntsofar. Thisshouldnottakeyoumorethan5minutes: AdamSmith‟sWealthofNationswaswrittenin…….? John‟s.Mill‟sPrinciplesofPoliticalEconomywas publishedin ……? 4.3.3Marxianpoliticaleconomy WithMarxism,therearemanypossiblevantagepointsfromwhichone candiscusspoliticaleconomy.Marxistshaveseenthepoliticalinthe veryseparationof civilsocietyfromthepublicarena(limitingrightsand equalitytothelatter),theclassprocessbywhichsurplusvalueis “appropriated”undercapitalism,theroleofthestateinmanagingthe interestsandaffairsofcapital,political(thatis,state-backed) guarantees ofproperty rights,revolutionary activity toalterthepoliticalinstitutions ofcapitalism,andthebargainingbetweenlaborandcapitalforcontrol oftheeconomicsurplus.Althoughthesevantagepointsmaysupply politicalcontenttoMarxianeconomics,thesensesinwhichtheydoso arenotobvious.Eventheconceptofclass,certainlyamainstayof Marxiantheory,isnotobviouslypolitical. Classescanexisteveninasocietywhereindividualsaredisconnected, unawareofcommoninterests,andpoliticallyunorganized.Nevertheless, ownersofcapitalmayexistandhirethosewhoselltheirlaborpower. Further,productionofvalueandsurplusvaluecanoccur.Inthiskindof economy,politicswouldnotbeevidentinthedailyoperationofclass 101

  22. POL 831 MODULE2 processes(thoughthestatewouldhavetounderwriteprivateproperty rights).Therewouldbenostruggleforthesurplus,nopowerbargaining betweenlaborandcapital,andnostateinterventiontocontrol labor.The useoftheterm“politicaleconomy”inMarxiantheorydoesnotdirectly referustostudiesoftherelationbetweeneconomicsandpolitics. Instead,itconnotesawayofthinkingabouttheeconomyrootedinthe methodandtheoriesoftheclassicaleconomists,especially AdamSmith andDavidRicardo. Thismethodemphasizestheideathatamarketeconomyoperates accordingtolawsrootedintheongoingreproductionandexpansionofa systemofmaterialinterdependencebetweenpersons-asocialdivision oflaborasdiscussedabove.Thisprocessfollowslawsthattheclassical economiststhoughtwereindependentofthewillsanddesiresof persons.Tobesure,individualswithinamarketeconomyact independentlyandaccordingtotheirdesires.Thematrixofindividual wantsdirectlydetermineswhathappensinthemarket.Yetbehindthese privatewantsstandsanobjectivestructureofreproductionwhose requirementsdominatetheindividualintheformationofhisprivate interests.Thisdominationjustifiesthetheoryinfocusingonthe (presumably)objectiveprocessofreproductionratherthanonthe subjectiveprocessofrankingopportunitiesormakingchoices. TheconceptofclassiscentraltoMarxiantheory.However,politically organizedclassesdonotemergespontaneouslyundercapitalism.At first,individualswithintheeconomyseethemselvesnarrowlyas isolatedagentspursuinginterestsuniquelytheirown.Suchinterestsmay havenothingtodowiththeinterestsofothersandmayevenset individualsinoppositiononetoanother.Suchinterestsarenot, however,isolatedandindependent.Capitalisteconomyworksinsucha wayastosetupacommonalityofinterestwithincertainclassesof persons.Themoreindividualsbecomeaware of theircommon condition andpurpose,themoretheyseetheirnarrowmaterialinterestina broaderlight.Thisprocessmarksatransitionfromindividualtoclass interestandultimately,frommaterial-economictopoliticalinterest. Suchatransitionisimplicitintheseparateprivateinterestsofpersons, andprovidesuswiththefundamentallinkbetweeneconomicsand politics. TheMarxianinterpretationoftherelationshipbetweeneconomicsand politicscentersontheideaofeconomicinterestsandtheparttheyplay indefiningpoliticalagendas.However,thedistancecoveredbetween pureeconomicinterestandpoliticalactionisconsiderable.Before economicinterestscanplayaroleinpoliticsdirectly,individualsmust beawareoftheirsharedinterests,organizeonthebasisofthem,and 102

  23. POL831 MOD2 overcomecollectiveactionproblems.Wewill,therefore,beginwiththe wayMarxiststhinkaboutinterests. Marxistsadvancethefollowingclaimsaboutinterests: 1. Interestsarisewithinthestructureofproduction.Thewantsofthe individualdependuponhisplaceintheprocessofsocial reproduction.Theindividualhas“economic”or“material” interestsinsatisfyinghisprivatewants. Within(civil)society,the positionoftheindividualinthesocialdivisionoflabor determineshiswants,whichdeterminehisinterests. Private(orself)interestcanbestbeunderstoodifwefirst understandtheclasstowhichtheindividualbelongs.Thatis,the 2. divisionswithincivilsocietyprimarilyresponsiblefor determiningwantsdivideindividualsintoclasses.Thus,the interestsarisingwithincivilsocietyareimplicitlyclassinterests. 3. Theseinterestsofclassesstandopposed.Thedegreetowhich one classachievesitsmaterialinterestmeasuresthedegreetowhich theotherfails. Classinterestsarisingwithinproductionbecomepolitical interestsinvolvedinthestruggleoverstatepower. 4. Whilethesefourpointsidentify importantaspectsofthetransitionfrom materialinteresttopoliticalaction,wecautionagainstamechanical interpretation. First,howdoclassinterestsandclassesthemselvesarisewithinthe economy? Marx‟seconomictheories providea detailedanswerto this question.As CharlesBettelheimpointsout,withinhiseconomicstudiesMarxseems to“inscribethedivisionofsocietyintoclassesentirelywithinthe relationsofproduction”(1985:19). AccordingtoMarx,acapitalisteconomyappears,onfirstglance,to consistofavastaccumulationofcommodities,asetofindividualswho ownthosecommodities,andasetof(exchange)relationsconnecting thoseindividuals.Theseindividualsdonotseethemselvesasmembers ofa class, nordotheyseetheirinterestsasclassinterests.Inordertoget fromaworldofindividualandindependentpropertyownerstoclasses weneedtoknowhowthestructureanddynamicsofthecapitalist economyleadtothegroupingofpersonsandofwants,notonlyonthe basisoftheirpersonalaffinitiesoruniquecircumstances,butonthe basisoftheirpositionwithinanobjectivestructureofproduction. 103

  24. POL 831 MODULE2 ThekeyelementofMarx‟sargumentfortheemergenceofclassesstarts byquestioning the classicaltheory‟s understanding ofthe purpose ofthe market.HereMarxiantheoryarguesthatthemarketeconomyisnotso muchamechanismformaximizingtheprivatewelfareofindividuals generallyasitisameansoffacilitatingthecapitalist‟sappropriationof surplus-valueandaccumulationofcapital.Themarketmakessenseasa socialinstitutionbecauseitmakespossibleself-aggrandizementand privateaccumulationsofwealthintheformofcapital.Wecanuseone ofMarx‟sbetterknownformulationstoclarifythisidea. TheissuesraisedbytheMarxianapproachtoclassconsciousnessand politicalinterestreferustobasicfeaturesofMarx‟smethod.This methoddirectsourattentiontothecircumstancesofpersonsin(civil) societyandfindsinthosecircumstancesboththelogicalandthe historicaloriginfortheirpoliticalagendas.Inonerespectthismethod differslittlefromtheutilitariansincebothrootpoliticsincivilsociety. Unliketheutilitarians,however,Marxistsretaintheideaofuniversal interestandmakeclaimsregardingtheuniversalityorlackthereofofthe interestsemergingwithintheprivatesphere.Becauseofthis,Marxism confrontsissuesnotwelldefinedwithintheutilitariantheories.Marxism concernsitselfwiththewaysinwhichthecircumstancesofpersons withintheprivatesphereformanddeterminetheirconsciousness,and howthedevelopmentofsocietydeterminestheprivatecircumstances andtheirassociatedwaysoflifeandways of thinking. Astheory,Marxismconcernsitselfwiththeclashbetweendiffering conceptionsofthewell-orderedsociety.Itseesthestrugglebetween capitalandlaborasastrugglebetweenfundamentallyopposed judgmentsconcerningwhatis,indeed,universaltotheaspirationsof persons.Doescapitalismexpressthefundamentalhumanaspirationto individualself-aggrandizementandpursuitofwealth?Inthissensedoes capitalismaccordwiththegeneralinterestsofsocietyaswellasthe narrowinterestsofcapitalists?Or,doesthematerialsituationofworkers imbuethem withacommunalandegalitarianethicmoreinlinewiththe universalinterestsofpersons? Bearinmind,aswepursuetheMarxianapproach,theunderlying methodologicaljudgmentconcerningwherewelookforthesourceof universalinterests–incivilsocietyandnotinpoliticsorinthestate.As oneMarxistexpressesit,civilsocietyisthe“realhome,thetheatreof history”(Bobbio,1979:31).Finally,theMarxianpoliticaleconomy promotestheideathattheproductionanddistributionofgoodsand wealtharemaintainedandregulatedbysociety,ratherthanaparticular groupofpeople.Therationalebehindthisisthatwhateverisproduced bysocietyisdonesobecauseofthosewhoparticipate,regardlessof status,wealth,orposition.Socialismaimstobridgethegapbetween 104

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