Understanding the Roles of Government and Political Parties in Economic Development: Lesson to Oromia

Understanding the Roles of Government and Political Parties in Economic Development: Lesson to Oromia

December 13, 2018

1. Introduction

The economic development of any societies depends on the roles of government and political parties. The qualities of the government and political parties have played crucial roles in forming effective government and political system. For instances China’s government formation and its political security make the country the second world leading economy just within 40 years. Limited multi-party political system and highly decentralized government structure in USA created the world powerful leading economy. In the same way the Developmental state in East Asian country between 1970s and 1990s has created four Asian Tiger countries (Hong Kong, Singapore, South Korea and Taiwan). The Germany industrialization and Europe massive infrastructural developments were the outcome of effective government roles and the commitments political parties’ in structural transformation. The economic and social development of many countries in the world is mainly the outcome of effective and efficient government and political parties’ participation in the economy.

Most of Sub Saharan African countries who failed to form the required level of government and political party could not realize the economic development. The nature of post-colonial political[2] parties and the types of government formation[3] in SSA countries hindered the economic improvement in the continent. The Structural Adjustment Program (SAP) introduced by multilateral institution in 1980s also strongly downsized the government roles in the economy. However, since 2000 many of SSA countries have started working on creating strong government and political parties. Ethiopia recent economic growth was the outcome of developmental state that focuses on more government intervention in the economy with dominant political party[4].

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Oromia National Regional State is one of the nine regional states established in Ethiopia since 1994/95. During the last two decades more than five times regional and local elections conducted to form legitimate government. The latest political reform introduced in the region increased the number of regional political parties to fourteen. But against of the purpose of the recent reform, few political parties use this opportunities to create instability and social unrest to conquer their cheap political gain. Many regional scholars and political activists also focus on the roles of political parties on democracy than building stable government and economic development. This situation made most political parties not to focus on the economic development. This is due to lack of clear understanding on the roles of governments and political parties in economic development.

The major purpose of this brief article was to explain the roles of government and political parties in economic development. The paper is consisting of seven sections including introduction. The second section explains the concepts of government and political parties. The third section discusses the relationship between political system and economic development. The fourth and fifth sections identify the roles of government and political parties in economic development respectively. Section six identifies the lesson to be learned for Oromia National Regional State on the roles of government and political parties. The last section is summary.

A government is the system or group of people governing an organized community, often a state[5]. In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government makes decision and enforces law to support peace and stability. In the modern society government formed through faire, peaceful and free elections. The structures and types of government influenced or determined by political system or national constitution.

Political parties[6]are groups of people who share similar beliefs about how the government should be run and how the issues facing a given country should be solved. In other wards a political party[7] is defined as an organized group of people with at least roughly similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office. Political parties function as between the public and the government and also play many other vital roles in the political system. Functionally, they can be defined as bodies that organize public opinion and interest; transmit public demands to the government; attempt to recruit and propose political leadership; and often attempt to articulate to followers what is desirable in terms of social, economic, cultural and political development. Political parties[8] must have certain level of acceptable characteristics and function to achieve their objectives and social development.

Political party must pass certain steps or process to run government. Because government represents the entire part of the society than only selected interest group. The emergence of political parties in the modern era or modern democracy implies that a political system has entered a new complex stage in which political power can no longer be forced onto the public without public support and elections. In a modern society it is only through election that political party form and run the government. Any attempts or efforts of political party to form government affect the political stability and security of the nation which has undesirable consequences on economic development.

Political system[9] is the set of formal legal institutions that constitute a “government” or a “state.” In broad sense it is perceived as a set of “processes of interaction” or as a subsystem of the social system interacting with other nonpolitical subsystems, such as the economic system. The political system in any country involves three major dimensions: the degree of political freedom[10], level of political security and level of political stability[11]. The degree of political freedom indicates the level of social participation in political participation and expressing of idea. Political stability shows the peaceful competition or working together between legal political parties. Political security indicates the absence of disagreement over the public politics between government and opposition political parties. The political insecurity[12] emerged when frequent disagreement existed between ruling and other political party that led to conflict and social unrest.

Such situation increase uncertainty in the economy that affect the production and distribution of goods and services. In the same way poor political system impedes the local and foreign investment that harms the broad-based economic growth and development. In addition to these political systems also include all political institution that broadens the political base of the country. The nature and quality of political institution affect the level and stability of political system in economic development. In the country where the political institution ensures proper function of the politics has improved the confidence of investment and property ownership.

The strong political institution in a given country facilitates the asset ownership, technology innovation, fair competition and lower inflation that directly or indirectly affect the stability of economic development. So developing or establishing strong political system important for the transformation of the particular region. Political system not only indicates democracy rather political security. Few countries like China and Saudi Arabia achieved economic development with efficient and effective political system. Strong political system promotes or enforces economic order and interaction that speedup economic development. The political system in the given country or region strongly influences the political party system[13] that influences the economic development. Political system affects the proper role of government and political party. Since achieving independence in 1975, Papua New Guinea was beset with political instability including numerous motions of no-confidence, frequent party-hopping, and changes of government and Prime Ministers. Until 2002, no government had been able to survive a full five year term (Norm Kelly and Sefakor Ashiagbor, 2011).

Government[14] refers to the collection of people. In democratic society or countries state was formed by public vote or democratic election system. State[15] helps the existences of sovereign country that include people, boundary and sovereignty. There are rational arguments on the roles of in the economic development. The first and most important reason for the government involvement or role in the economy is due to the market failure in the economy. Market mainly failed due to lack of information, market power, public goods and imperfect completion. So government plays the major role by correcting the market failure and at the same time by creating the market mechanism to facilitate economic development.

The second role of government in the economy is to promote or achieve fair economic growth. Governments do not have any special interest other than promoting social welfare or improving living standard. The third role of government in the economy is it stabilize macroeconomic variable in the economy. Government works for stable economic growth, lower unemployment, stable prices and international trade surplus. Such govern role in the economy accelerate economic transformation. The fourth role of government is it develops and design regulatory framework that create suitable business environment in the economy. In addition to these governments will works to protect people natural value by providing the basic goods[16] and services.

So the above roles of the government indicate that there is no economic transformation or democracy without the government. So building the stable and reliable government facilitates the broad range and inclusive social development. The experiences of many countries indicate that the development first stimulated by the state then transferred to market economy when market capable to function effectively. The experiences of Europe during expansion era (Between 1945 and 1960) showed that the state played pivotal role in economic and social transformation. Economic development can be realized without political party but not possible without government.

Political party[17] play the major roles in economic development of the given regions or countries. Political party can improve the life quality of their citizen only through economic development than democracy[18]. This objective of political party can be realized when the party involve on identify alternative policy approaches of economic transformation. The opinion or the manifesto of political party affects the prospect of economic development. In many developed countries political parties shifted their stand from narrow party based interest to broad based national economic development even after election outcome. This indicates the political party can play an important role in economic development. A schematic review of literatures suggests that parties may play similar roles in different regime contexts, paving the way for long-term economic growth (Michael Bernhard et. all, 2015)

The first and most important role of political party in economic development is to identify and influences the pragmatic economic development policies. Strong and capable political party design policy strategies and instrument to drive the economy at higher level. According to Steffen Osterloh (2010) study revealed that parties which were more concerned with market interventions and – to a lesser extent – welfare state policies impacted on growth negatively; those which proposed incentives for business as well as technology and infrastructure had a positive impact.

The second role of political party in economic development is to organize group of people to work on economic transformation. This enhances the rational expectation of the people. In other words political party strength the positive thinking in the country that would improves community or public confidence in economic development. Developing good behaviors through positive thinking in the society is the major role of political party that affects economic development. The political party[19] create strong and unites government that significantly influences the speed of economic development.

The third role is political parties improve the democratic governance[20] by representing the interest of different group in the society. The transparent and accountable governance facilitate the economic development. The improvement of democratic governance ensures the responsibility of government action. Political parties are powerful organizations that fight to get the government to act in ways the political party believes is best for the societies. The other roles of political party in economic development are to nominate capable political or social leaders to realize inclusive and sustainable economic development. The last but not the least roles of political party in economic development is they create brad based awareness about economic and social development[21]. During campaign the political party uses different types of media to advocate their political stand that increase public awareness on economic development. The improvement of policy awareness in the given economy would enhance the effectiveness of policy implementation.

In modern democracy the role of political party is beyond election or traditional democracy[22]. Any political parties must engage in better economic management, which have incentives to provide productivity enhancing public goods and services, and help ensure political (and thus policy) stability. This, in turn, leads to higher economic growth. The nature and the quality of given political party mainly influenced by the change in the national or regional economic development[23].

The above section provides clear understanding about the role of government and political party in economic development. Today world is experiencing modern democracy that focus on improving the life quality of people. In order to transform our region lesson must be derived regarding the roles of government and political party in economic development.

Ø Peace and stability is exclusive roles of government: Government has exclusive power and duty to maintain peace and stability. In some party of our region government not able to functions its duty in the name of political freedom and democracy. Some armed group went to replace government role in maintain peace and stability. Our people and political party must understand the exclusive rights of government in maintain social security. In the modern world it is unacceptable for any political party to send its armed group in the name of maintains peace and stability.

Ø Political party should recognize the elected government: With all its election irregularity the ruling party in region elected by public vote. The ruling party already formed the government and run the region for more than three years. All political parties should recognize the legitimacy of the government that came by public vote. They should not expect power sharing or obstructing government regular duties to get their personal or party interest. Such party behaviors or lack of integrity would not bring any benefit for anyone in the region. It damages or harms our society in general and the party in particular.

Ø Consolidate regional democracy: Government and other political party must work on consolidating regional democracy than focusing only on the coming election. There are many elements of democracy. Establishing strong institution that work on economic and social transformation in the region, creating public awareness on democratic election, identify transformation path in the region and enhance democratic governance. Working on the long term will consolidates regional democracy than working on near future election that may not bring permanent solution in the region. So all political party in the region should map out how to establish the strong and reliable political system that consolidates regional democracy.

Ø Work on party value than party doctrine: Our people demand wide range change with the change in the world. The types of question raised by Oromo people during 1960s not the same with 2018. So all political parties in the region should work to improve the wellbeing of our people than promoting their ideal political doctrine. The regional political parties must be dynamic[24] to improve social transformation than their old age political doctrine or traditional democracy.

Ø Promote party rule[25] than person rule[26]: The internal democracy of the party play the leading role on the given political party. The regional political party should work on creating strong institutional or collective leadership to transform the party and the region. It is illogical to teach our people about democracy while the political party lacks internal democracy.

Ø Political parties focus on social demand than party interest: Oromia regional political parties must work for regional interest such as peace, stability and economic development in the region. Political parties mainly established to promote social unity in the community. Many developed countries were successful because their political parties focused on national and social interest. Oromia political parties must learn from world experience in maintaining social interest through modern, logical and mature thinking. Regional traditional political parties[27] must know that they can survive only when they achieve people interest.

Ø Political party must Work on social entitlement than regime change: Social entitlement refers to social empowerments through infrastructural and economic development. Many political parties were effective in their social transformation because they worked hard on social entitlement than regime or government change in their country/region. Regional political parties must exert their efforts on forward looking social entitlement than replacing government. In this regard many of regional political party need to reform themselves with the new contemporary democracy[28]. .

Ø Strengthening regional political parties: The regional government must work on strengthening the regional party by providing capacity building and awareness creation on the role of political parties in economic development. In addition to this the regional government must introduce and implement clear policy and strategic framework on political party management that enhance the political parties contribution in the regional transformation.

Understanding the roles of government and political parity in the given country accelerate sustainable and inclusive economic development. People exercise their democratic right through political parties. Political party implements their policies by forming or running the government. Both government and political parties my reform or change with the need or interest of the people. Today government must works on improving the quality of the people life than providing basic need. In the same way the political parties must transforms their thinking from traditional democracy to the new emerging contemporary democracy. The government efforts of modernizing political system in the Oromia region should be supported by all political parties. Working on regional interest, consolidating regional democracy, building reliable political system and strengthen political parties are important lesson to be leaned for our region. Intellectual or scholars working in the region must contribute their part in bringing together all political parties for the purpose of creating stabile government and political system.

Frans Becker and René Cuperus(2002); The Party Paradox, Political Parties Between Irrelevance and Omnipotence.

IDEA(2017): The Global State of Democracy 2017, Exploring Democracy’s Resilience.

Kuhonta, Erik Martinez. 2011. The Institutional Imperative: The Politics of Equitable Development in Southeast Asia. Stanford: Stanford University Press.

Michal Chege(2007).Political parties in East Africa ,Diversity in Political Party System.

Norm Kelly and Sefakor Ashiagbor(2011): Political Parties and Democracy in Theoretical and Practical Perspectives.

Steffen Osterloh(2010): Words Speak Louder Than Actions: The Impact of Politics on Economic Performance

[1] The writer can be reached through email address: a.teshom@gmail.com

[2] Most of the political parties that formed the post independent Africa were the liberal fighters who were not capable to bring economic development.

[3] The state formed in SSA countries between 1960 and 1980 were excluded many of development actors like private sector and civic organizations. This situation severely harms the government capacity in mobilizing financial resources and technology to modernize the economy.

[4] Party politics was unknown for most Ethiopia’s history since it was an absolute monarchy until the 1074 revolution, when the Dirgue overthrew the government of Emperor Haille Selassie II(Michal Chege,2007).

[5] A state is more than a government; that is clear. Governments change, but states endure. A state is the means of rule over a defined or "sovereign" territory. It is comprised of an executive, a bureaucracy, courts and other institutions (Global Policy Forum) .

[6]Political party, a group of persons organized to acquire and exercise political power.

[7]As early as1770, Edmund Burke defined a political party, ideologically, as a body of men and women united on the basis of their shared political ideas so as to promote the national interest. Some have viewed it as a political organization with a hierarchical network, which attempts to nominate its candidates in order to get them elected as statesmen in the legislature.

[8]Some political parties may be exclusive, elitist, religiously or ideologically oriented, and others may be inclusive of all kinds of interests regardless of class, gender, religion, profession or race.

[9]Political system and political party are complexly different. The former one represents the whole political system in the given country or region but political parry is a group of people with common political agenda.

[10]Political Freedom means not only having the freedom to choose the leader but also having the freedom to express their opinions and setting the priorities for the country.

[11]Political stability is the ability of a people's government to share, access, or competes for power through nonviolent political processes and to enjoy the collective benefits and services of the state. So political stability^{^[11]} is a means and cannot be an end for our society. The final and the direct desire of the people is economic development.

[12] The uncertainty induced by such political instability is detrimental to investment and other sources of economic growth.

[13]The political party system can be classified as a multi-party system, a one party dominant (or hegemonic) system, a one party (or monopoly) system, or a two-party system. There is a strong tendency for a particular type of political party system to prevail over time in many political systems.

[14] A group of people that governs a community or unit. It sets and administers public policy and exercises executive, political and sovereign power through customs, institutions, and laws within a state.

[15]For fast and efficient economic development today the central state power devolved to local and regional state.

[16] Basic good refers to the basic services provide for the survival of the people in the society. These may include house, food, shelter and basic health services

[17] Political parties perform key functions as intermediary organizations. They aggregate and articulate the interests of citizens, recruit and select candidates for public office, mobilize the electorate, and create and implement policy(Jorge Godoy Coy , No year ).

[18] Democracy is a mean not an end desire of our people. So politician should focus on their final goals of economic development to get moire public votes or supports.

[19] Political parties aggregate interests, especially in diverse and pluralizing societies. They create grounds for compromise. They create order out of chaos. And thus they help societies unite and remain united.

[20]In democratic systems, the primary role of a political party is to aggregate and represent citizen Interests.

[21] More recently, scholars have explored the role of political parties in resisting clientelism and providing public goods – functions that presumably enhance economic performance

[22] I believe that traditional democracy already replaced with modern democracy that focuses on economic development than simple government change and election. It is only in my region or country that many people think of election when they talk about democracy. This must be replaced with the new thinking of broad based democracy.

[23] Malaysia has enjoyed a much higher level of party rule than Thailand throughout their 20th century colonial and post-colonial histories. Kuhonta (2011) explicitly argues that the differences between the two party systems help account for the developmental disparity between Thailand and Malaysia. Malaysia, with its institutionalized and pragmatic parties, has been better able to “create organizational power that is necessary to drive through social reforms, provide capacity and continuity that sustain and protect a reform agenda, and maintain the ideological moderation that is crucial for balancing pro-poor measures with growth and stability” (Kuhonta 2011).

[24] Parties characterized in the literature as strong have often exerted transformational influence on societies by providing a level of organization, discipline, and direction that societies would not otherwise possess (Michael Bernhard, et all, 2015).

[25] Party rule is understood as a setting in which executive power is controlled by one or more highly institutionalized parties that possess centralized leadership structures, programmatic orientations, internal cohesion, and a mass base. We use the term strength to summarize these attributes. Failure in one or more of these features means that parties become weaker, and the resulting system of rule becomes less partisan and more personal. At the limit, power is monopolized by individuals and their familial or clientelistic networks with scarcely any party organization whatsoever

[26] Centralized decision making, the lack of well-institutionalized rules and procedures, and the decline of ideology or unifying principles have eroded public support and discouraged participation in political party activities.

[27] Political parties that fail to address the issues that citizens consider to be most important risk becoming irrelevant and disappearing from the political map. New parties have pushed old ones out of mainstream politics at different times and places, and for different reasons (IDEA,2017)..

[28] The ambiguous position of parties in contemporary democracies is in part a product of the tension between the continuing or even increasing centrality of political parties as key institutions of modern democracy and their increasing failure to perform many of the functions seen as essential to a healthy performance of democracy(Ingrid Van Biezen,2003)

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