Dani Rodrik is an economist whose research covers globalization, economic growth and development, and political economy.

He is the Ford Foundation Professor of International Political Economy at Harvard's John F. Kennedy School of Government. He rejoined the Kennedy School faculty in July 2015 after two years at the Institute for Advanced Study as the Albert O. Hirschman Professor in the School of Social Science.

Professor Rodrik's most recent book is Economics Rules: The Rights and Wrongs of the Dismal Science (Norton, 2015).

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Rodrik D, Mukand S. Ideas versus Interests: A Unified Political Economy Framework. 2016.Abstract

We develop a conceptual framework to highlight the role of ideas as a catalyst for policy and institutional change, making an explicit distinction between ideas and vested interests. We show how ideas and interests make separate contributions to the determination of policy, as well as how they feed into each other. In doing so we integrate the Keynes-Hayek perspective on the importance of ideas with the currently more fashionable Stigler-Becker (interests only) approach to political economy. The model allows us to distinguish between two kinds of ideational politics – the battle among different worldviews on the efficacy of policy (worldview politics) versus the politics of victimhood, pride and identity (identity politics). Our framework suggests a complementarity between worldview politics and identity politics. In particular, an increase in identity polarization may be associated with a shift in views about how the world works. Furthermore, an increase in income inequality is likely to result in a greater incidence of ideational politics.

Is Liberal Democracy Feasible in Developing Countries?. Studies in Comparative International Development. 2016.Abstract

Liberal democracy has been difficult to institute and sustain in developing countries. This has to do both with ideational factors—the absence of a liberal tradition prior to electoral mobilization—and structural conditions—the prevalence of mass mobilization along identity rather than class cleavages. This paper considers the conditions under which liberal democracy emerges and speculates about its future in developing countries.

Rodrik D, Mukand S. The Political Economy of Liberal Democracy. 2016.Abstract

We distinguish between three sets of rights – property rights, political rights, and civil rights – and provide a taxonomy of political regimes. The distinctive nature of liberal democracy is that it protects civil rights (equality before the law for minorities) in addition to the other two. When democratic transitions are the product of a settlement between the elite (who care mostly about property rights) and the majority (who care mostly about political rights), they generically fail to produce liberal democracy. This is because the minority has neither the resources nor the numbers to make a contribution to the settlement. We develop a formal model to sharpen the contrast between electoral and liberal democracies and highlight circumstances under which liberal democracy can emerge. We discuss informally the difference between social mobilizations sparked by industrialization and decolonization. Since the latter revolve around identity cleavages rather than class cleavages, they are less conducive to liberal politics. We also provide a new classification of countries as electoral or liberal democracies.

Revised, January 2016

Premature Deindustrialization. Journal of Economic Growth. 2015;21 :1-33.Abstract

I document a significant deindustrialization trend in recent decades that goes considerably beyond the advanced, post‐industrial economies. The hump‐shaped relationship between industrialization (measured by employment or output shares) and incomes has shifted downwards and moved closer to the origin. This means countries are running out of industrialization opportunities sooner and at much lower levels of income compared to the experience of early industrializers. Asian countries and manufactures exporters have been largely insulated from those trends, while Latin American countries have been especially hard hit. Advanced economies have lost considerable employment (especially of the low‐skill type), but they have done surprisingly well in terms of manufacturing output shares at constant prices. While these trends are not very recent, the evidence suggests both globalization and labor‐saving technological progress in manufacturing have been behind these developments. The paper briefly considers some of the economic and political implications of these trends.

McMillan M, Rodrik D, Verduzco-Gallo Í. Globalization, Structural Change, and Productivity Growth, with an Update on Africa, in World Development. Vol 63. ; 2014 :11-32.Abstract

Large gaps in labor productivity between the traditional and modern parts of the economy are a fundamental reality of developing societies. In this paper, we document these gaps, and emphasize that labor flows from low-productivity activities to high-productivity activities are a key driver of development. Our results show that since 1990 structural change has been growth reducing – with labor moving from low – to high- productivity sectors – in both Africa and Latin America, with the most striking changes taking place in Latin America. Our results also show that things seem to be turning around in Africa: after 2000, structural change contributed positively to Africa’s overall productivity growth. For Africa, these results are encouraging. Moreover, the very low levels of productivity and industrialization across most of the continent indicate an enormous potential for growth through structural change.

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