1. Politics, Institutions, and Development
Francis Fukuyama
Leadership Academy for Development
#Lead4dev

2. The Scope of State Functions
Minimal Functions
Intermediate Functions
Activist Functions
Providing pure public goods Defense, Law and order Property rights Macroeconomic management Public health Improving equity Protecting the poor
X-axis
Addressing externalities Education, environment Regulating Monopoly Overcoming imperfect education Insurance, financial regulation Social Insurance
Industrial policy Wealth redistribution

3. Two Dimensions of Stateness
Strength of State Institutions
Scope of State Functions

4. The Quality of Government

5. The State and Economic Growth
Quadrant I
Quadrant II
Strength of State Institutions
Quadrant III
Quadrant IV
Scope of State Functions

6. Government Strength v. Scope

7. Reform Path 1
Strength of State Institutions
Scope of State Functions

8. Reform Path 2
Strength of State Institutions
Scope of State Functions

9. Reform Path 3
Strength of State Institutions
Scope of State Functions

10. Bringing About Policy Change
The technocratic approach
Bad policies are the result of ignorance
Need to import the right model
“Getting to Denmark”

11. Bringing About Policy Change
The technocratic approach
Bad policies are the result of ignorance
Need to import the right model
“Getting to Denmark”
The political approach
Bad policies exist because they serve vested interests
Change requires us to think politically

12. Dealing with Political Constraints
Stakeholder Analysis
Who are the critical stakeholders?
What are their interests?
What incentives will change their behavior?

13. Dealing with Political Constraints
Stakeholder Analysis
Who are the critical stakeholders?
What are their interests?
What incentives will change their behavior?
Identify vested interests and coalitions for change
Within the bureaucracy
Within the broader political system

14. Coalitions for Change Reform generates support
What groups are potential supporters?
How well are they organized?
Can new groups be mobilized in support?
What does a change coalition look like?
How do I communicate my goals?

15. Entrenched Stakeholders
All change threatens vested interests
Who are the opponents?
What are their interests?
Can you change their preferences?
If you can’t change them, can they be neutralized?

16. Some Concluding Thoughts
No single template for successful reform
Need to understand the environment
Technical, political, cultural
Strategies need to derive from concrete problems
Solutions are iterative
Leadership!