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Cambridge Core - Economics: General Interest - Violence and Social Orders - by Douglass A Conceptual Framework for Interpreting Recorded Human History.
Table of contents
Rent-creation cannot be the primary product of party competition in open access orders… Successful parties in these systems are therefore large, encompassing organizations that combine a wide range of disparate groups and interests… Because parties need to gain the support of many interests, they must temper the rent-creating demands of each. If a group attempts to extract too much, then other groups who normally are not active on an issue are likely to begin paying attention and become active, with the potential to alter dramatically the political forces on this issue… a few open access order markets might be cartelized or protected, such as agriculture, and certain markets regulated to produce rents, such as airlines in mid-century United States.
However, these markets are the exception, not the general rule.
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Weingast on the Violence Trap. In short, the authors argue that political competition in an open-access order is more likely to lead the state to produce public goods whereas in a limited-access order the focus is on preserving private rents.
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My guess is that libertarians will object to this relatively optimistic view of the powerful state in an open-access order. A libertarian might argue that as the state expands, an open-access order becomes something like a limited-access order in disguise.
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Elite groups and entrenched interests tighten their control over economic and political power. In the United States, large banks, public-sector unions, and regulated professions, particularly in law, higher education, and health care, have arguably become the ruling coalition, while others find themselves squeezed out of political and economic life.
While I would not go so far as to say that the United States has fallen back into the natural state, it seems to me that the extent of rent-creation activities is larger and the competitive political forces feebler than North, Wallis, and Weingast suggest. Douglass C. Cambridge: Cambridge University Press For more articles by Arnold Kling, see the Archive.
The Two Forms of Social Order 0. He contributed to EconLog from January through August Categories: Kling's Corner. Table of Contents Preface; 1. The conceptual framework; 2. The natural state; 3.
American Economic Association
The natural state applied: English land law; 4. Open access orders; 5. Explaining the transition from limited to open access orders: the doorstep conditions; 6. The transition proper; 7. A new research agenda for the social sciences; Afterword. Average Review.
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