Source:
OLSON, M. 1993. Dictatorship, state, and development. American Political Science Review, 567-576.
Key run-in:
Stationary bandits vs. roving bandits; monopolized and rationalized theft; revenue enhancement; monopoly of violence; work and innovation; economic growth; property and contract rights; existence good provision; revenue-maximizing tax rate; extraction of loving surplus; long live the king; autocracy; democracy; encompassing interests; balance of power; power sharing
Brief stocky:
Major arguments:
1. Roving bandits versus unmoving bandits
a. the roving bandits under insurrection conducted uncoordinated competitive theft, which destroys the incentive to invest and produce
b. by contrast, a nonmoving bandit monopolizes and rationalizes theft in the form of taxes by setting himself up as a dictator; a secure autocrat thus has an encompassing interest to can a peaceful order and other public goods that affix productivity in his territory
2. the tenure of an autocrat matters:
c. the brief tenure, the natural uncertainty of succession in dictatorships imply that autocracies will seldom have good economic performance for more than wizard generation
d.
the conditions necessary for a lasting democracy are the analogous necessary for the security of property and contract rights that generates economic growth
The maiden blessing of the invisible hand
1. Why have most inhabited societies throughout history normally avoided anarchy?
a. Why should warlords, who were stationary bandits continuously stealing from a given group of victims, be preferred, by those victims, to roving bandits who soon de referenceed?
b. If roving bandits rationally settles down and takes his theft in the form of regular taxation while maintaining a monopoly on theft in his domain, past those from whom he extracts taxes will have an incentive to produce
c. The rational stationary bandit will take only a part of income...If you want to get a full essay, order it on our website: Orderessay
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