The formation of growth coalitions: the role of the rural sector

Richard Grabowski

Journal of Institutional Economics, 2013, vol. 9, issue 3, 329-350

Abstract: The political elite require resources in order to survive politically. Given the conditions existing in most developing nations, this implies following an inward-oriented development strategy promoting a large-scale, capital-intensive industrial sector. This strategy impoverishes agriculture and implies that the leaders of the industrial sector will make up a critical component of the coalition providing political support to the political elite. Reform allowing for outward-oriented growth will be extremely difficult. Dramatically increasing agricultural productivity provides a means to provide political legitimacy for the ruling elite as well as the political leverage to bring about reform.

Date: 2013
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