Learning objectives

Referring to knowledge The subject aims to help students understand how public institutions work and why they are fundamental to economic development. It focuses on analysing how accountability, bureaucracy, corruption, the rule of law, and the role of the media influence governments’ ability to design and implement effective policies. Through the study of academic texts and real-world case studies, students learn to identify institutional problems and consider potential solutions to improve the functioning of the public sector. This knowledge is particularly valuable for those seeking careers in public administration, international organisations, or entities dedicated to enhancing public policy.

 

 

Teaching blocks

 

1. Institutions and governance

*  Government is key to development, as it protects property rights, enforces contracts, and provides public goods. The quality of governance, not merely its size, is critical. Low-quality governance can arise from failures such as clientelism, corruption, bureaucratic inefficiency, and state capture. The quality of governance varies across countries and is closely correlated with development outcomes. Effective governance requires three key institutions the rule of law, a state with the capacity to act and democratic accountability. Some countries face challenges due to historical legacies of extractive elites, which hinder inclusive development. Political institutional change is difficult, and countries have followed diverse paths of political development.

2. Democratic accountability

*  Democratic accountability refers to the mechanisms that ensure that governments are accountable to citizens. These mechanisms include free and fair elections, access to information, and opportunities for direct participation. Democratic institutions vary in the degree to which they facilitate accountability and representation. Electoral commissions, campaign finance rules, and transparency laws play a key role in ensuring fair political competition and effective public oversight. Direct democracy tools, such as referenda and citizen initiatives, promote more active civic engagement. This block also discusses how democracy is currently assessed, how it has spread across countries, and the implications of this for economic performance.

3. Bureaucracy

*  Bureaucrats are responsible for implementing policies. Bureaucratic performance depends on meritocratic selection, professionalism and protection from political influence. The historical origins of the state and bureaucracy often trace back to wartime administrative efforts. Interventions to improve performance include: the creation of a civil service, performance-based pay, and the design of promotion and career systems.

4. Corruption

*  Corruption is the exploitation of public office for private benefit. Corruption is difficult to measure as it is often hidden. Less developed countries tend to experience higher levels of corruption, which negatively impacts economic development. Decisions to engage in corrupt behaviour can be modelled as economic problems. Greater oversight and higher salaries can help reduce corruption. The link between electoral accountability and corruption is complex. Corruption may also reflect cultural factors, and transitions from high- to low-corruption equilibria are challenging. The link between electoral accountability and corruption is complex. Corruption can be a cultural phenomenon. It is challenging to transition from a high- to a low-corruption equilibrium.

5. Rule of law

*  The rule of law ensures that public power is exercised within legal limits and that all actors, including governments, are subject to the law. The courts play a key role in interpreting and enforcing these limits. In the public sector, institutions such as external audit bodies and internal financial controllers safeguard legality and prevent abuse of power. This block examines how legal oversight functions in practice, particularly in the case of budgets and public procurement, and explores the tension between legal control and discretion.

6. Civil society and the media

*  We have already seen that institutions shape society. However, modern societies are increasingly complex, with abundant information and growing polarization. Therefore, it is important to highlight the role that the media and social networks play in shaping our society. We focus on the role of the traditional media (press, TV), as well as social networks, in shaping news consumption, political opinion and mental health. We also discuss the potential threats that artificial intelligence poses to democracy.

 

 

Teaching methods and general organization

 

The course employs a combination of lectures, theoretical–practical sessions, and practical workshops. In the lectures, the instructor presents the core theoretical content of each topic. In the theoretical–practical sessions, additional material included in the required readings is discussed, following a flipped classroom approach. The practical workshops focus on real-world case studies related to the course themes. Students are expected to prepare short presentations, participate in debates, and engage with presentations delivered by external experts (for example, representatives from the Anti-Fraud Office or the Court of Auditors, to be confirmed).

 

 

Official assessment of learning outcomes

 

The continuous assessment grade is calculated as a weighted average of 40% from the final exam and 60% from activities carried out during the theoretical–practical sessions and practical workshops. In the case of the theoretical-practical sessions, the grade comprises 75% from five short true/false quizzes (one per session) based on the required readings, and 25% from class participation. In the case of the practical workshops, the grade comprises 75% for the specific activity completed (e.g., presentation of a case study, brief summary of the conclusions of an expert’s presentation, etc.) and 25% for class participation. Repeat assessment comprises an examination which accounts for 100% of the final grade.   Examination-based assessment The single mode of assessment comprises an examination (worth 100% of the final grade) testing understanding of the required readings for the course.  Repeat assessment comprises an examination which accounts for 100% of the final grade.

Reading and study resources

Check availability in Cercabib

Book

Francis Fukuyama (2015): Political Order and Political Decay, New York: Farrar, Straus and Giroux.

Catàleg UB  
Versió en castellà (2016)  

Daron Acemoglu and James Robinson (2012): Why Nations Fail? Crown Books.

Catàleg UB  
Versió en castellà (2014)  

Dahl, Robert A., (1998): On Democracy. Yale U. Press.

Catàleg UB  
Versió en castellà (1999)  

Ray Fisman and Mirian Golden (2017): Corruption. What everyone needs to know. Oxford U. Press.

Catàleg UB  

Article

Tim Besley, Robin Burguess, Adnan Kahn and Guo Xu (2022): "Bureaucracy and development." Annual Review of Economics 14, 397-424.