state but a weak rule of law and no democracy. Singapore has a rule of law in addition to a state but very limited democracy. Russia has democratic elections, a state that is good at suppressing dissidence but not so good at delivering services, and a weak rule of law. In many failed states, like Somalia, Haiti, and the Democratic Republic of the Congo in the early twenty-first century, the state and rule of law are weak or nonexistent, though the latter two have held democratic elections. By contrast, a politically developed liberal democracy includes all three sets of institutionsâthe state, rule of law, and procedural accountabilityâin some kind of balance. A state that is powerful without serious checks is a dictatorship; one that is weak and checked by a multitude of subordinate political forces is ineffective and often unstable.
GETTING TO DENMARK
In the first volume, I suggested that contemporary developing countries and the international community seeking to help them face the problem of âgetting to Denmark.â By this I mean less the actual country Denmark than an imagined society that is prosperous, democratic, secure, and well governed, and experiences low levels of corruption. âDenmarkâ would have all three sets of political institutions in perfect balance: a competent state, strong rule of law, and democratic accountability. The international community would like to turn Afghanistan, Somalia, Libya, and Haiti into idealized places like âDenmark,â but it doesnât have the slightest idea of how to bring this about. As I argued earlier, part of the problem is that we donât understand how Denmark itself came to be Denmark and therefore donât comprehend the complexity and difficulty of political development.
Of Denmarkâs various positive qualities, the least studied and most poorly understood concerns how its political system made the transition from a patrimonial to a modern state. In the former, rulers are supported by networks of friends and family who receive material benefits in return for political loyalty; in the latter, government officials are supposed to be servants or custodians of a broader public interest and are legally prohibited from using their offices for private gain. How did Denmark come to be governed by bureaucracies that were characterized by strict subordination to public purposes, technical expertise, a functional division of labor, and recruitment on the basis of merit?
Today, not even the most corrupt dictators would argue, like some early kings or sultans, that they literally âownedâ their countries and could do with them what they liked. Everyone pays lip service to the distinction between public and private interest. Hence patrimonialism has evolved into what is called âneopatrimonialism,â in which political leaders adopt the outward forms of modern statesâwith bureaucracies, legal systems, elections, and the likeâand yet in reality rule for private gain. Public good may be invoked during election campaigns, but the state is not impersonal: favors are doled out to networks of political supporters in exchange for votes or attendance at rallies. This pattern of behavior is visible in countries from Nigeria to Mexico to Indonesia. 2 Douglass North, John Wallis, and Barry Weingast have an alternative label for neopatrimonialism, what they call a âlimited access order,â in which a coalition of rent-seeking elites use their political power to prevent free competition in both the economy and the political system. 3 Daron Acemoglu and James Robinson use the term âextractiveâ to describe the same phenomenon. 4 At one stage in human history, all governments could be described as patrimonial, limited access, or extractive.
The question is, How did such political orders ever evolve into modern states? The authors cited above are better at describing the transition than providing a dynamic