Political Economy of International Development
Summary
The political economy of international development examines how power relations, institutional arrangements and economic processes interact to shape development outcomes across the globe. It considers the role of states, international organisations, private actors and civil society in directing resources, setting policy agendas and governing the distribution of benefits and risks. Historically, the field has traced shifts from state-led models of post-war reconstruction to the ascendancy of market-oriented reforms under structural adjustment, and more recently to a complex landscape in which financial markets, private contractors and philanthropic foundations wield growing influence. Key themes include the financialisation of aid, the rise of blended finance and public-private partnerships, the regulatory implications of integrating developing countries into global capital markets, and the evolving strategies of ‘de-risking’ investments in low-income contexts. By illuminating interconnections between political incentives, institutional design and economic liberalisation, the political economy approach offers critical insights into the drivers of inequality, the politics of reform and the potential pathways to sustainable and equitable development.
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Political Economy of International Development publication trend
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Technical terms
Financialisation: The process by which financial motives, markets and institutions gain greater influence over economic policy and development practice.
Blended finance: The strategic use of public or philanthropic funds to mobilise additional private investment for development projects.
De-risking: Mechanisms, such as guarantees or insurance, intended to reduce perceived investment risk in developing economies.
Official development assistance (ODA): Public sector flows, primarily grants or concessional loans, aimed at promoting economic development and welfare in low- and middle-income countries.
Political economy: An analytical framework that explores the interaction between political institutions, economic systems and social forces in shaping development outcomes.
References
- Mapping the ‘business of development’: the geography of UK for-profit development contractors. Finance and Space (2024).
- Rendering development investible: The anti-politics machine and the financialisation of development. Progress in Human Geography (2024).
- Goodbye Washington Confusion, hello Wall Street Consensus: contemporary state capitalism and the spatialisation of industrial strategy. New Political Economy (2022).
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