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3. State Structures

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Chapter Summary

This chapter focuses on how the institutionalization of state structures has influenced a wide array of economic and social outcomes, and is divided into five sections. The first section focuses on some of the fundamental concepts of state institutions such as property rights and the relation between state authorities and their subjects. The next section describes the rise and fall of socialist institutions while the third contrasts extractive and inclusionary states. The fourth section describes the effects of the broadening of state responsibilities in advanced capitalist nations to include welfare provision. The fifth section provides some thoughts on globalization and convergence among state structures. Market transitions in the Eastern and Central Europe were for the most part successful in reestablishing market economies. Redistribution in market societies historically has provided a ready tool for politicians in their efforts to secure political support through patronage by redistributing income to households and individuals.

Keywords: economic development; market transition; socialist institutions; state structures



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