1. Political Economy: Max Weber’s Theories By Dr. Kim Sedara Sept 2013 1

2. Max Weber’s Theory of Class Very influential from Karl Marx Marx’s theory of Class is the property relationship based on boss and slave (bourgeois/small & proletariat/big) Class is weak in the beginning and getting intensified over time. 2

3. Max Weber’s Theory of Class (Cont’) Weber: defined class as market situation between employer and employee in the modern market economy, not with status. Weber: class is intensified in the beginning but eased up overtime, especially in capitalism. Class is defined into three characteristics – Status/prestige/stratification – Class/income/wealth – Power 3

4. Max Weber’s Theory of Class (Cont’) Each individual is impossible to have all the three. The distinct of the three is historical Power is dependent variable, is exercised on status and power/rational-legal, and income. Class & Market Class interest & class action Class is different from status 4

5. Max Weber’s Theory of Class (Cont’) In capitalism you don’t need to get approval from president, but to invest if you want to be rich. Class is under the market chances in investment, education—getting more incomes. Class interest & class action: depends on economic interest. You belong to a class because labor situation and your rational action to the market. 5

6. Max Weber’s Theory of Class (Cont’) Status group: is a special social esteem, honor, a nobleman’s status depends on education, doctor, lawyer... Status as honor: life style of individual, way of dress and behave, level of education, social discourse. Status as privileges: material goods, special employment Economic conditions of status: success in market, Caste: if the status is widen can get stratifications 6

7. Weber’s Ideal Types The concepts of ideal types – Bureaucracies – Must be understood – Are not real – Measuring sticks The characteristics of ideal types to work – Division of labor – Rules and representation – Hierarchy of authority (Military) – Technical qualifications (merit-base) – Impersonality (not nepotism and conflict of interest) ** Must understand things in relations to history 7

8. Weber’s Types of Authority There are three types of authority Traditional Charismatic Rational-legal authority Traditional: patriarchy, rule over others without questioned, handed down from the past, given legitimacy by custom, we’ve have always come this way 8

9. Weber’s Types of Authority (Cont’) Charismatic authority: worship, good and bad charisma, given legitimacy by leader’s magical power-revelation, do it because you want appease me. Rational-legal authority: elected leaders, status allows them to rule, electing anchor legitimacy, central to rational society, I do it because you accepted me as your leader. 9

10. Weber’s on Bureaucracy Bureaucracy is a rational-legal authority. Rule of law: a system of authority/law and elected. Bureaucracy depends on: division of powers, representation, and collegiality. How law and norm can be established and who obey it? Law can be established by acceptance from all sides with shared values, intentionally and consistency. 10

11. Weber’s on Bureaucracy (Cont’) Who obey? person in authority, subject to impersonal order, obey only the law but not person. Nature of rational-legal authority: rule bound and changed slowly, sphere of competency, otherwise can’t exercise the law, hierarchy, specialized training in the right responsibility, separation of responsibility, impersonal but bound to rule. 11

12. Weber’s on Bureaucracy (Cont’) Types of bureaucracy: administrative staff, personally free, organized in hierarchy of office, qualifications-contract, meritocracy, salary based on qualification, contribute to career, avoid multiple jobs and conflict of interest. Efficiency of bureaucracy: performance of capacity and credibility with predictability. 12

13. Weber’s on Bureaucracy (Cont’) Bureaucracy and Capitalism: lies on technical knowledge, domination to knowledge and competence, formal bureaucratic rule, competency and merit-based recruitment, technical capacity building, impersonal. Collegiality: stick to profession, consultation, listening to advices, aided by technical experts, mutual respect, free to express, clear separation of power but rule base, representation to mandate—mostly by the chief. Thanks 13