Welcome to the fifth series of the Political Economic Digest.
In the last series we discussed about economic freedom and its role in economic growth. We also discussed the state of economic freedom in Nepal and the measures Nepal could take to enhance its status.
In this series we’ll be discussing about Public Choice. Public Choice Theory is directed toward the study of politics based on economic principles. We generally, tend to think that politicians and government officials are benevolent “public servants” who faithfully carry out the “will of the people.” In tending to the public’s business, voters, politicians, and policymakers are supposed somehow to rise above their own self-interests. However it is not true at all.
The first reading is an introduction to public choice theory. In this the author describes about public choice theory and the various parties and events involved such as bureaucracy, politicians, legislature, elections etc. The reading is a bit complex so you can actually SKIP the first reading if you want.
The second reading is a chapter from the book called “Free your Mind: a beginners guide to political economy” by Sauvik Chakraverti. In this chapter, the author discusses about the interests of politicians, bureaucrats and lobbyists and how that affects our well-being. He also mentions about Milton Friedman’s theory of spending which is a very interesting concept to understand how governments spend money.
The third reading is an essay by famous economist Russell D. Roberts. In the essay, he explains how pressure groups and lobbyists coupled with politician’s self-interest tend to bring out the worst in politicians and why things are better left to the individuals.
Read more in the uploaded file.