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Legislations, justice and defence, is the core Deep source of a civilisation "(48, with. 24). As a result Huge economy on scales at the centralised Manufacture of the public blessings and services immeasurably increase The sizes of a division of labour and volume of an exchange, paternal win All members of a society. State problems appear, hence, The inconsistent: "the Second problem assumes completely Effective set of the property rights for the purpose of maximisation Cumulative product of a society; the first conducts to attempts To specify such set of fundamental rules, which Would allow the governor to maximise the income (or, if We wish to weaken the precondition about the individual governor, - To maximise the exclusive rent of group or a class, whose As the agent the governor) "(48 acts, with. 24 - 25). Concrete forms of the government will be defined Those restrictions (first of all - transaction costs), in Which it it is compelled to operate: 1. On a military technology status will depend, on what Territory the effective power can extend
The states. (It it is possible to express differently: the sizes of the state
Will be caused by that economy on scales, which
Provides a present status of technics of manufacture
The public blessing "defence".)
2. Infrastructure creation on protection of the property rights
Demands delegation of powers from the central power - it
To agents on places. But agents, naturally, will behave
Opportunistically. Therefore the central power should enter
The rules limiting deviations in behaviour of agents from
Interests of the centre. These restrictions, of course, cannot be
By which such monitoring system is connected. Hence,
Structure and behaviour of bureaucracy (executors of will
To its control.
Economy will induce to introduction in them unequal
Legal regimes. (For example, the general property will be
To be saved for those resources, for which costs on
Specifications of the property rights will be so great that
Much more will exceed potential benefits from an establishment
Exclusive rights to using these resources.)
4. Aspiration of the higher authority to extraction of the maximum
The exclusive rent it will be limited by the potential
Competitors as from the outside (when citizens can emigrate in
Other country), and from within (when there are possibilities for
Revolution fulfilment). Than more well the citizen "substitutes"
The present power, the it is less at it than freedom in circulation with
Them. Therefore the property rights will be distributed on
To groups depending on "contractual force" each of them.
The higher authority will agree to allocate the strongest
Groups the big property rights to the detriment of reasons
5. Besides, in certain cases the state can
To maximise receipts in treasury, establishing
Inefficient structure of the property rights. For example,
The state will trade in monopolies and
Privileges instead of creating conditions for
Active competition, because thus it
Releases itself from expenses on creation and maintenance of the difficult
And expensive system of the taxation.
So, some criteria of distribution of the rights face
Properties - efficiency, relative contractual
Forces, maximisation of the income of treasury: "actually most
Obvious lessons of history consist that the political
Systems have congenital propensity to establish
The inefficient property rights that leads to stagnation
And to decline. To such outcome there are two main reasons. First,
The income taken by governors can be more at
To inefficient structure of the property rights, which, however,
Supposes more effective control and consequently more
Impressive collection of taxes, than at effective structure
The property rights which has high costs on
To the control and regulation. Secondly, governors seldom can
To dare to establish the effective rights
Properties because they would call it discontent
Among a considerable part of citizens and, thus, have made
The position by less reliable. That is even then, when
Governors would wish to establish rules, proceeding from criteria
Efficiency, survival reasons will dictate them other
Course of actions because effective rules would call
Irritation of powerful political groups with
Special interests "(51, with. 422). As believes D.Nort,
It the conflict between problems of the economic speaks
Growth and the majority existing in an economic history
Property legal regimes: "Actually structure
The property rights which maximises the rent for
The governor (or ruling class), is in the conflict with
Structure which would provide economic growth "(48,
With. 28) 11.
Thus both development, and absence of economic growth
Has destabilising influence on the state and
Dominating system of relations of the property. In the first
Case technical progress and expansion of the markets change
Developed system of the relative prices that strengthens
Pressure of groups which could benefit by these
Changes, on the state for the purpose of revision existing
Legal regime. These groups direct more resources on
Political ends to realise economy
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