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Dictatorship Democracy and Dev

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Dictatorship Democracy and Dev
Dictatorship, Democracy, and Development
Mancur Olson

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The American Political Science Review, Vol. 87, No.3 (Sep., 1993),567-576.
Stable URL: http://links.jstor.org/sici?sici=0003-0554%28199309%2987%3A3%3C567%3ADDAD%3E2.0.CO%3B2-H The American Political Science Review is currently published by American Political Science Association.

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American Political Science Review

Vol. 87, No.3 September 1993

DICTATORSHIP, DEMOCRACY, AND DEVELOPMENT
MANCUR OLSON University of Maryland nder anarchy, uncoordinated competitive theft by "roving bandits" destroys the incentive to invest and produce, leaving little for either the population or the bandits. Both can be better off if a bandit sets himself up as a dictator--{l "stationary bandit" who monopolizes and rationalizes theft in the form of taxes. A secure autocrat has an encompassing interest in his domain that leads him to provide a peaceful order and other public goods that increase productivity. Whenever an autocrat expects a brief tenure, it pays him to confiscate those assets whose tax yield over his tenure is less than their total value. This



References: Olson, Mancur. 1993. "From Communism to a Market Democracy." Center for Institutional Reform and the Informal Sector. Typescript. Sandler, Todd. 1992. Collective Action: Theory and Applications. Ann Arbor: University of Michigan Press September 1993

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