Book Review of The State and Dominant Groups in the Economy: The Approach of Institutional Political Eceonomy by Anna Ząbkowicz

Abstract

Book review of  The State and Dominant Groups in the Economy: The Approach of Institutional Political Eceonomy [published in Polish as Państwo wobec grup dominujących w gospodarce – perspektywa instytucjonalnej ekonomii politycznej] by Anna Ząbkowicz. By combining the achievements of political economics and institutional economics, Anna Ząbkowicz proposed the term ‘institutional political economics’ in the title. The book reflects on the state–economy relation, including the perspective synthetically combining these two approaches. Ząbkowicz aimed to study the dominant entities in the economy, and the state’s role in relation to them. Ząbkowicz claimed that the entities have enough power to impose their agenda on their environment, more often including the state. The state is subject to pressure from various interest groups, including big business, by building key institutions for the functioning of the economy and implementing public policies. In consequence, the modern economy results largely from a game between the state and said groups. In the perspective adopted by Ząbkowicz, what matters is the relationship between power and dependence, and the institutionalisation of the economic and political process. This approach differs significantly from the neoclassical mainstream in economics, making the reviewed book a very interesting read. The review will comprise two parts. The first one will discuss Ząbkowicz’s main ideas. The second one will evaluate the monograph by listing its merits and polemicizing with some of its theses.