About Political Economy of Development
The parallel existence and mutual interaction of the state and the market in the modern world create political economy; without both the state and the market there will be no political economy. In the absence of the state, the price mechanism and the market forces determine the outcome of economic activities, which would become the pure world of economists. In the absence of the market, the sate or its equivalent would allocate economic resources; this would be the pure world of political scientists. Although neither world can ever exist in a pure form, the relative influence of the state or the market changes overtime in different circumstances.