Full Library

The conventional paradigm in political economy routinely treats living, complex, adaptive social systems as machine-like objects. This treatment has driven political economists to oversimplify big, complex social processes using mechanical models, or to ignore them altogether. In development, this has led to theoretical dead ends, trivial agendas, or failed public policies. This article proposes an alternative paradigm: adaptive political economy. It recognizes that social systems are complex, not complicated; complexity can be ordered, not messy; and social scientists should be developing the concepts, methods, and theories to illuminate the order of complexity, rather than oversimplifying it. The author illustrates one application of adaptive political economy by mapping the coevolution of economic and institutional change. This approach yields fresh, important conclusions that mechanical, linear models of development have missed, including that market-building institutions look and function differently from market-sustaining ones.