Two Theories of Effective Government
This chapter introduces the problem of “reform capacity” (the ability of political decision-makers to adopt and implement policy changes that benefit society as a whole, by adjusting public policies to changing economic, social, and political circumstances). The chapter also reviews the long-standing discussion in political science about the relationship between political institutions and effective government. Furthermore, the chapter explains why the possibility of compensation matters greatly for the politics of reform; provides a precise definition of the concept of reform capacity; describes the book's general approach to this problem; and discusses the ethics of compensating losers from reform; and presents the book's methodological approach.