The Security Factor in The Political Economy of Development

IMF Working Papers, March 1, 1998

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The Security Factor in The Political Economy of Development

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Bibliographic details

• Authors: Martin C. McGuire
• Published: March 1, 1998
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451979381.001

Summary

• A country’s judiciary, police, and security forces are essential to protect the State from external aggression.
• By virtue of the State’s monopoly of coercion, they maintain a stable legal framework and the safety of persons and property.
• These activities enhance a society’s productivity, but they also sustain the particular political regime—and its redistributive ethic—in power.
• Security forces absorb resources, but they also waste them, since security forces tend to be rent-seekers.
• The paper analyzes both the productive and the unproductive side of security provision and shows that the balance depends on the nature of the political regime.

Analysis: productive versus unproductive dimensions of security provision

• Productive roles of security institutions:
  • Protection from external aggression.
  • Maintenance of a stable legal framework.
  • Provision of safety for persons and property, which enhances productivity and supports economic activity.
• Unproductive roles and costs:
  • Sustaining the incumbent political regime and its redistributive ethic.
  • Absorption and potential waste of resources due to rent-seeking by security forces.
• Central analytical conclusion:
  • The net effect (balance between productive benefits and unproductive costs) of security provision depends on the nature of the political regime.

Subject areas and keywords (as listed)

• Subject: Expenditure, Financial institutions, Production, Productivity, Revenue administration, Securities, Tax collection, Tax incentives
• Keywords: aggressor country, captive-of-the-military government, East Asia, Economic Conflict, Governance, government behavior, government policy, Institutions of Development, monopoly use, national product, political economy, Productivity, property right, public goods, regime support, Securities, Security, security expenditures of government, security outlay, Tax collection, tax monopoly, unproductive government outlay, Wealth Distribution, WP

Content in this bundle

• The Security Factor in the Political Economy of Development - WP/98/33
  • The Security Factor in the Political Economy of Development - WP/98/33 (Markdown version)
  • The Security Factor in the Political Economy of Development - WP/98/33 (PDF)