Why are some nations richer than others? What is the relationship between democracy and development? Why do different models of democratic capitalism exist? What is the role of institutions, interest groups, and ideas in determining economic policy decisions?
This lecture course examines the interaction between capitalism and different forms of government. First, it introduces the discipline of political economy. In this connection, it examines the classical theories of the interaction between politics and markets. Then it focuses in more detail on how the economy affects politics, and how politics—in particular, political interests, institutions, and ideas--shape economic outcomes. It looks at both developed and developing countries, asking how economic growth and development is affected by politics.