Intersectionality of Politics and Economics
The term intersectionality was coined by Kimberlé Crenshaw in 1989. She describes how interlocking
systems of power affect those who are most marginalized in society. Activists and academics use the
framework to promote social and political egalitarianism.
the Oxford Dictionary defines intersectionality as “the interconnected nature of social categorisations such
as race, class, and gender, regarded as creating overlapping and interdependent systems of discrimination
or disadvantage”. ‘Overlapping of Politics and economy is called intersectionality of politics and
economy’.
Political economy is an interdisciplinary branch of the social sciences. It focuses on the interrelationships
of individuals, governments, and public policy.
Political economists study how economic theories such as capitalism, socialism, and communism work in
the real world. Any economic theory is a means of directing the distribution of a finite amount of resources
in a way that benefits the greatest number of individuals.
These ideas can be studied both theoretically and as they are actually used. Public policy that is created and
implemented derive from these economic theories. Political economists study both the underlying roots of
these policies and their results.
Therefore :--
• The field of political economy involves the study of how economic theories such as capitalism or
communism play out in the real world.
• As political parties come to and leave power, economic policy often changes due to the ideology
and goals of the party in power.
• Those who study political economy seek to understand how history, culture, and customs impact an
economic system, and vice versa.
• Global political economy studies how political forces shape global economic interactions.
• The rise of globalism and global trade means that political economy of one country can impact both
the economy and the politics of others.
Understanding Political Economy
Political economy is a branch of social science that studies the relationship that forms between a nation's
population and its government when public policy is enacted. It is, therefore, the result of the interaction
between politics and the economy and is the basis of the social science discipline.
Those who research the political economy are called political economists. Their study generally involves
the examination through a sociological, political, and economic lens of how public policy, the political
situation, and political institutions impact a country's economic standing and future.
Types of Political Economy
There are several notable types of political economies. Three are --
• Socialism: This type of political economy promotes the idea that the production and distribution of
goods and wealth are maintained and regulated by state, rather than a particular group of people.
The rationale behind this is that whatever is produced by society is done so because of those who
participate, regardless of status, wealth, or position. Socialism aims to bridge the gap between rich
and poor, eliminating the ability of individuals or groups to control the majority of power and
wealth.
Aiming to achieve the ends of communism, socialism uses some of the tools and methodologies of capitalism.
Policymakers might take initiative to redistribute wealth and resources in a more equitable manner under a
socialist or social democratic paradigm than they would in a purely capitalist one. Most countries throughout
Europe, for instance, have political economies somewhere between capitalism and socialism, allowing the
mostly free market to operate with occasional government interventions to ensure fairer outcomes for all
citizens.
• Capitalism: This theory advocates profit as a motive for advancement and the ability of free
markets to regulate and drive the economy on their own. The idea behind capitalism is that private
individuals and entities are driven by their own interests - they control production and distribution,
set prices, and create supply and demand.
Mode of productions in the hands of capitalists.
In other words, the government, at least theoretically, tries to stay out of the way of the market in
most capitalist economies. Policymakers might use incentives and subsidies to encourage
investment or innovation in specific fields, but they largely leave the placement of resources, wealth,
and goods in the hands of the market. As a result, capitalism can occasionally lead to wide gaps of
wealth inequality, putting a strain on capitalist political systems.
• Communism: Individuals often confuse communism with socialism, but there is a distinct
difference between these two theories. Communism was a theory developed by Karl Marx who felt
that capitalism was limited and created a big divide between rich and poor. He believed in shared
resources, including property. Unlike socialism, however, under communism production and
distribution are overseen by the government.
Therefore, in communism, the government directly controls and oversees the distribution of
resources, wealth, and services. As such, this economic system can lend itself to paving the way for
more authoritarian political arrangements.
Example China - the second-largest economy in the world - supplements its communist principles
with capitalist elements.
History and Development of Political Economy
The roots of political economy as we know it today go back to the 18th century. Scholars during the period
studied how wealth was distributed and administered between people. Some of the earlier works that
examined this phenomenon include those by Adam Smith and John Stuart Mill.
Antoine de Montchrestien -- But the term is probably best ascribed to the French writer and
economist, Antoine de Montchrestien. He wrote a book called "Traité de l'économie
politique" in 1615, in which he examined the need for production and wealth to be
distributed on an entirely l arger scale—not in the household as Aristotle suggested. The
book also analyzed how economics and politics are interrelated.
Adam Smith -- Smith was a Scottish philosopher, economist, and writer who is commonly
referred to as the father of economics and of the political economy. He wrote about the
function of a self-regulating free market in his first book, which was called "The Theory of
Moral Sentiments." His most famous work, "An Inquiry into the Nature and Causes of the
Wealth of Nations" (or "The Wealth of Nations," for short) helped shape classical economic
theory. It was considered the foundation for the field of study by future economists.
John Stuart Mill -- The Englishman Mill combined economics with philosophy. He believed
in utilitarianism - that actions that lead to people's goodwill are right and that those that
lead to suffering are wrong.9 In essence, he believed that economic theory and philosophy
were needed, along with social awareness in politics, to make better decisions for the good
of the people. Some of his work, including "Principles of Political Economy,
Utilitarianism," and "A System of Logic" made him one of the most important figures in
politics and economics.
Prominent Political Economists
Certain political economists have left an indelible mark on history. Here are just three who have played a
role in shaping the zeitgeist of the modern world:
• Adam Smith: This Scottish economist from the eighteenth century believed it was best to leave
decision-making about economics entirely in the hands of private citizens and companies. Smith’s
central idea was that the “invisible hand” of the market would do a better job allocating resources
to those who needed them than would be possible through centralized government planning.
• John Stuart Mill: Subscribers to Mill’s utilitarianism insist societies structure their economic
systems around achieving the most good for the most possible people. This would, in turn, shape
political behavior and attitudes on a wide scale. Critics of utilitarianism assert it can unfairly favor
the majority group at the expense of minority groups in any given society.
• Karl Marx: The economic analysis of Karl Marx laid the groundwork for communism to sweep
through Eastern Europe, Asia, and Latin America in the twentieth century. This political theory
inspires heated divisions to this day. Proponents believe its end goals remain noble, insisting past
attempts to achieve communist objectives fell short or went astray from Marx’s initial ideas, while
critics point to large amounts of repression and bloodshed in communist nations as proof the theory
itself is dangerous.
Importance of Political Economy
Political economy studies both how the economy affects politics and how politics affect the
economy. As political parties come to and leave power, economic policy often changes in a
country in accordance with the ideology and goals of the party in power.
Political changes can impact many areas of the economy, which can in turn impact elections
and government policies. These areas include:
• Monetary and fiscal policy
• Food security
• Global trade
• Labor supply, demand, and crises
• Gross domestic product (GDP)
• Financial inequality
• Disaster management
• Environmental stability1
As the economies of more countries become interconnected through globalism and
international trade, the politics of one country can have a strong impact on the economy of
another. Understanding the relationship between political power and economic decision s in
one country can help other countries predict how their own economies will be impacted.
Understanding political economy can also help a country's economy become more resilient.
If the government leaders in power at any given moment are forward -thinking, they can try
to put laws and policies in place that create the greatest possibility for ec onomic stability
and growth, regardless of changing political power.
Political Economy in Academia
Political economy has become an academic discipline of its own. Many major institutions offer the study
as part of their political science, economics, and sociology departments.
Political economists conduct research to determine how public policy influences behavior, productivity,
and trade. This work helps them establish how money and power are distributed between people and
different groups. They may study specific fields such as law, bureaucratic politics, legislative behavior, the
intersection of government and business, and regulation.
The study may be approached in any of three ways:
• Interdisciplinary studies: The interdisciplinary approach draws on sociology, economics, and
political science to define how government institutions, an economic system, and a political
environment affect and influence each other.15
• New political economy: This approach studies actions and beliefs, and seeks to make explicit
assumptions that lead to political debates about societal preferences. The new political economy
combines the ideals of classical political economists and newer analytical advances in economics
and politics.
• International political economy: Also called global political economy, which is slightly different,
this approach analyzes the link between economics and international relations. It draws from many
academic areas including political science, economics, sociology, cultural studies, and history. The
international political economy concerns how political forces like states, individuals, and
institutions affect global economic interactions.
5 Characteristics of a Political Economy
1. 1. Distribution of resources: Experts in political science and economics study what causes a
specific allocation of resources throughout a society. Some countries have a fairly equal standard of
living for all citizens, whereas others have more extreme divides between the wealthy and poor.
2. 2. Government intervention: Certain governments exert a great degree of control over their
economies, whereas others take a more laissez-faire approach to economic policy. Political
economists aim to study whether either approach is more successful in helping nations avoid
financial crises and maintain financial stability.
3. 3. International dynamics: In the era of globalization, the entire world has become an international
political economy. Macroeconomic factors between multiple countries can have a wide ripple effect.
What one country decides to do about its economy can prove to be determinant for another country’s
as well.
4. 4. Makeup of the private sector: On a microeconomic level, the private sector contributes many
economic factors of its own to the political economy on a wider scale. This might, for instance,
manifest in how private interest groups lobby the government for partnership opportunities.
5. 5. Stage of economic development: Some countries are at an earlier stage of economic growth than
others. In these cases, political economists might recommend a different approach than they would
to more developed nations. For instance, some economists think free trade policies help raise
developing nations out of poverty, while others believe they allow rich countries to exploit poor
ones.
