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BUSINESS and the STATE in MALAWI the POLITICS of INSTITUTIONAL FORMATION, MAINTENANCE and CHANGE Henry G. Chingaipe Ng'oma

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BUSINESS and the STATE in MALAWI the POLITICS of INSTITUTIONAL FORMATION, MAINTENANCE and CHANGE Henry G. Chingaipe Ng'oma BUSINESS AND THE STATE IN MALAWI THE POLITICS OF INSTITUTIONAL FORMATION, MAINTENANCE AND CHANGE Henry G. Chingaipe Ng’oma PhD UNIVERSITY OF YORK DEPARTMENT OF POLITICS OCTOBER, 2010 Abstract This dissertation analyses the institutional and organisational evolution of state-business relations in Malawi, from the colonial period (1891-1963) to the first decade of multiparty democracy (1994-2004), through the period of one-party authoritarianism (1964-1993). It contributes to three areas of political science. Firstly, it adds to empirical knowledge on the politics of state formation and state-building by illuminating how institutions governing state-business relations have been central to the evolution, form and character of the Malawian state. It provides some insights for building the capacity of states, especially in southern Africa, to deliver coherent and credible economic policies. Secondly, it demonstrates how the distribution and exercise of power between state and business elites, and the relative financial and political importance of the private business sector to the state, shape the institutional and organisational forms of state-business relations. It shows that these relations are profoundly political rather than technocratic products and reformers need to be more aware of this. Thirdly, it contributes to historical institutionalism by suggesting that the concept of critical junctures should be defined based on people‟s expectations for, rather than effects of, institutional change; that history should be emphasised not just for explaining institutional continuities as is done by most historical institutionalists but also institutional discontinuities; and that in explaining existing patterns of institutions researchers need to be concerned more with the most recent predecessor institutions rather than going too far in the past. The analysis is organised in seven chapters, grouped into three parts. The first part presents the research problem, reviews the literature and outlines the methodological approach. The second part provides empirical narratives of state-business relations in each of the three periods. The third part spells out the implications of the work for the understanding of the politics of Malawian state-business relations, for state-business relations generally and historical institutionalism. ii Table of contents Abstract ....................................................................................................................................................................... ii Table of contents ............................................................................................................................................................ iii Acknowledgements ...................................................................................................................................................... viii Dedication ...................................................................................................................................................................... x Declaration...................................................................................................................................................................... xi List of tables .................................................................................................................................................................. xii List of Abbreviations and acronyms ............................................................................................................................ xiii CHAPTER ONE ............................................................................................................................................................. 1 Business and the State in Malawi: The Problem, Context and Argument .......................................................... 1 Introduction ..................................................................................................................................................................... 1 1.1. Conceptualising state-business relations ............................................................................................................ 2 1.2. Background: the motivation to analyse state-business relations ....................................................................... 3 1.3. Case selection: Why Malawi?............................................................................................................................... 7 1.4. Overview of the analytical and methodological framework ............................................................................... 12 1.5. Overview of key claims ....................................................................................................................................... 15 1.6. Structure of thesis ............................................................................................................................................... 21 CHAPTER TWO........................................................................................................................................................... 23 The Provenance of State-Business Relations – A Literature Review................................................................ 23 Introduction ................................................................................................................................................................... 23 2.1. Context and discourses on state-business relations ......................................................................................... 24 2.1.1. Academic and policy context ............................................................................................. 24 2.1.2. Locating state-business relations in the social sciences ........................................................ 26 2.1.3. Antecedents to the analysis of state-business relations ......................................................... 27 2.1.4. Recent approaches to the study of state-business relations ................................................... 31 2.2. Factors shaping state-business relations .......................................................................................................... 36 2.2.1. Factors related to the state ............................................................................................... 36 2.2.2. Factors related to business structures and the nature of the economy ..................................... 42 2.3. Modes of influence between state and business .............................................................................................. 50 2.3.1. Control of business finance by government versus political financing by business ..................... 50 2.3.2. Government policy, regulations and discipline enforcement versus lobbying by business ........... 52 2.3.3. State predation on business versus state capture by business ............................................... 53 2.4. Comparative patterns of state-business relations ............................................................................................. 55 iii Conclusion .................................................................................................................................................................... 62 CHAPTER THREE ....................................................................................................................................................... 64 Analytical and Methodological Framework ........................................................................................................... 64 Introduction ................................................................................................................................................................... 64 3.1. Historical institutionalism..................................................................................................................................... 65 3.1.1. Origins of historical institutionalism.................................................................................... 65 3.1.2. Key methodological premises of historical institutionalism..................................................... 65 3.1.3. Key ideas of historical institutionalism ................................................................................ 67 3.2. Concepts in historical institutionalism for the analysis of state-business relations ......................................... 70 3.2.1. Institutions and organisations ........................................................................................... 70 3.2.2. Critical junctures ............................................................................................................ 72 3.2.3. Power asymmetries ........................................................................................................ 75 3.2.4. Politics .......................................................................................................................... 76 3.3. Operationalising the analytical framework and data collection methods ......................................................... 79 3.3.1. Data collection methods: document analysis and key informant interviews .............................. 79 3.3.2. Data analysis – Integrated empirical approach .................................................................... 81 3.4. Methodological limitations of the study .............................................................................................................
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