Economic development and political transformation

Abstract

Social structure and economic development largely influence the nature of social conflicts and political transformation. A combination of low political and economic integration and a high level of consolidation results in reformist conflicts. Low state intervention in the allocation and accumulation of capital reduces the probability that class conflict will be directed against the state. When state intervention is low, depoliticized, abstract market forces determine capital allocation and accumulation. In addition, low political and economic integration may give the state the appearance of serving societal interests rather than the interests of the upper class. This appearance of autonomy is reinforced by the institutions of formal democracy. As a consequence, class conflict is contained within civil society and deflected from the state. When consolidation is high, reformist conflicts against holders of capital may emerge. The United States experienced such movements in the 1930s. During the Great Depression, the state was drawn into some conflicts, but was not attacked by the working class. Today, the United States, like other advanced industrial societies, is less receptive to consolidation because of moderate levels of economic polarization, greater economic resilience, and high social differentiation. When state intervention and consolidation are low, organized groups with resources may gain economic benefits through segmented class conflict, whereas collectivities with weak solidarity and few resources remain inactive. Such is the case in the United States today.