IV. Political Economy, Institutions & Economic Systems

Beyond Mainstream Economics

Institutions, power and the way economies really work

Economic life is not governed by markets alone. Political decisions, institutions, ownership structures, social relations and power all influence how economies function and how economic development unfolds.

This briefing introduces a political-economy perspective that looks beyond economic indicators to examine the institutional and political forces shaping economic outcomes.

The presentation explores

• What is political economy?
• Why do institutions matter for economic development?
• How do ownership and power influence economic outcomes?
• What is the relationship between markets, governments and organizations?
• Why can similar economic policies produce different results in different societies?
• How do historical and institutional conditions influence development?

Comparative Economic Systems

Different ways of organizing economies, ownership and decision-making

There is no single way of organizing an economy. Different societies have developed different combinations of markets, government institutions, public ownership, private enterprise, cooperatives and other forms of economic organization.

Drawing on comparative economic systems and the work of J. Barkley Rosser and Marina V. Rosser, this briefing examines how different institutional arrangements shape economic behavior and development.

The presentation explores

• What is an economic system?
• How do different systems organize ownership and decision-making?
• What are the respective roles of markets, governments and economic organizations?
• How do market economies, central command, indicative planning, cooperative, public, and mixed forms differ?
• Why do economic systems change over time?
• What can Arctic societies learn from international comparative experience?

Institutions and Economic Development

Why the rules of the game matter

Economic development does not take place in an institutional vacuum. The formal and informal rules governing economic activity influence investment, ownership, employment, innovation, public decision-making and the distribution of economic benefits.

This briefing examines how institutions shape economic development, with particular attention to small and northern economies.

The presentation explores

• What are economic institutions?
• How do formal rules and informal practices influence economic behavior?
• Why do institutions matter for development?
• How do property rights and ownership structures affect investment?
• How do political institutions interact with economic institutions?
• What happens when external institutional models are introduced into small societies?

Political Economy of Small and Northern Societies

Power, dependency and the challenges of economic scale

Small societies face particular economic and political challenges. Limited domestic markets, small populations, geographical distance and dependence on larger economies can influence both economic policy and political decision-making.

This briefing examines the relationship between dependency, self-reliance and political autonomy, with particular attention to Greenland and other Arctic regions.

The presentation explores

• Why do small economies face particular structural challenges?
• How does economic size influence political and economic power?
• What forms can economic dependency take?
• How do external capital and investment affect local development?
• Can political self-government exist alongside economic dependency?
• What does economic self-reliance require?

Comparative Economic Systems in the Arctic and Subarctic

Different institutions, different development paths

The Arctic and Subarctic are not a single economic or institutional region. Northern societies have developed under very different political systems, historical circumstances, ownership structures and relationships with larger national economies.

Gorm Winther's comparative research has been particularly extensive in the Western Arctic and Subarctic—Alaska, Yukon, the Northwest Territories, Nunavut, Nunavik, Nunatsiavut, Kalaallit Nunaat (Greenland), Iceland and northern Scandinavia, including Arctic Norway, Sweden and Finland. He has also had direct experience of the Russian Arctic, including several visits to the Kola Peninsula and professional collaboration with colleagues at the Kola Science Centre in Apatity.

The Russian Arctic is an essential part of the wider comparative picture, including Chukotka and the Indigenous peoples of the Russian North and Siberia. The briefing compares northern experiences while recognizing that the depth and currency of available knowledge varies between regions.

The presentation explores

Why do northern economies develop differently despite similar geographical challenges?

How do political and institutional systems influence economic organization?

How do ownership structures differ across Arctic societies?

Why have cooperative institutions developed differently?

How do different jurisdictions approach natural resources and resource revenues?

How does political self-government influence development?

How does the Russian Arctic fit into the wider comparative picture?

Which institutional arrangements can be transferred between regions?

Colonialism, Post-Colonialism and Economic Development

History, power and the institutional legacy of colonial relationships

The economic and political development of many Arctic societies cannot be understood without considering their historical relationships with larger states.

Colonialism has influenced ownership, resource control, political institutions, economic structures, cultural relationships and patterns of dependency. At the same time, the meaning and consequences of colonialism differ between regions and historical circumstances.

This briefing examines the relationship between colonial history, economic development and contemporary institutional structures, drawing on research into Greenland and the wider Arctic.

The presentation explores

• How has colonialism shaped northern economies?
• What economic institutions emerged from colonial relationships?
• How have patterns of ownership and resource control developed?
• What forms can post-colonial dependency take?
• How does colonial history influence contemporary economic policy?
• What is the relationship between political self-government and economic independence?

Power, Democracy and Economic Decision-Making

Who has influence over the economic future?

Economic decisions are also decisions about power. Governments, corporations, financial institutions, organized interests, communities and citizens can have very different degrees of influence over investment, resource development, employment and public policy.

This briefing examines the relationship between economic power and political power, and how different institutional arrangements distribute influence.

The presentation explores

• Who makes important economic decisions?
• How is economic power distributed?
• What is the relationship between political and economic power?
• How do corporations, governments and organized interests influence policy?
• What role do trade unions, employers' organizations and other associations play?
• How do grassroots movements influence economic policy?