Politico-Economic Influences

Stepwise Analysis

The Centres in the Tree diagram are primary categories of focused activities derived from the modes of government engagement with economic activities. Each Centre, epitomized here in a phrase, operates via principles emerging from the corresponding interacting-for-benefit mode (approach).

Choices at any one Centre influence and are influenced by choices in other Centres. The pattern is explained here starting from the top (L7B). The complete picture is provided here with formulations and examples.

THEE Note:Closed Influences are always bi-directional. In this exposition, once a Channel has been identified, it is not repeated. Examples are not provided but they would help illuminate the issues.

From L7: ClosedRecognition of Economic Realities

L7B: Recognition of economic realities

L6P: Economic analyses
This Channel exists because realities suggest analyses to clarify the nature and details of forces and events, and analyses can enable or (rarely) force awareness of realities.

L6R: Release of information
This Channel exists because perceived realities stimulate and focus inquiries about economic events, activities and policies, and publication of figures; in the reverse, information or analyses bring certain realities to the fore.

L4B: Strategic interventions
This Channel exists because interventions must respond to realities, and in turn they create realities.

There is no useful direct influence from L7 B to the following CentresClosed

From L6: ClosedDispassionate Evaluation

L6R: Economic analyses

L6P: Release of information
This Channel exists because people want to know the results of studies, and information generates new analyses.

L5R: Concern domestic industries
This Channel exists because that is how the significance of the sector is determined and any need for protection is analysed and argued.

L4B: Strategic Interventions
This Channel exists because interventions should be guided by evidence, and interventions should be analysed for effects.

L6P: Release of Information

L5P: Attention to public sentiment
This Channel exists because released information often soothes or sparks fears or misunderstandings; and in turn, sentiment may stimulate or require release of relevant information.

L4B: Strategic interventions
This Channel exists because interventions are often a response to information, and interventions lead to a demand for information about their rationale, goals and side-effects.

There is no useful direct interaction from L6P to the following CentresClosed:

From L5: ClosedDomestic Concerns

L5R: Concern for domestic industries.

L5P: Attention to public sentiment
This Channel exists because protection of industries is designed to affect public sentiment and public sentiment will affect choices about protection.

L4B: Strategic interventions
This Channel exists because government exists uniquely to protect the interest of society as determined by the populace, and strategic interventions of any sort may affect local industries.

L3R : Defence of popular beliefs
This Channel exists because protection should fit the nation’s needs and nature, and popular beliefs and value may demand protection for certain industries.

There is no useful direct interaction from L5R to the following CentresClosed:

L5P: Attention to public sentiment

L4B: Strategic intervention
This Channel exists because responding to public sentiment may force some sort of intervention, and any intervention is likely to affect sentiment and require political attention.

L3P: Promotion of capitalist principles
This Channel exists because attention to sentiment affects the acceptability of capitalist principles, and those principles may generate intense popular emotions that need handling.

There is no useful direct interaction fromL5Pto the following CentresClosed:

From L4: ClosedStrategic Intervention

L4B: Strategic Intervention

L3R: Defence of popular beliefs
This Channel exists because interventions can demonstrate a recognition and value of popular beliefs, and any supported beliefs may imply certain interventions.

L3P: Promotion of capitalist principles
This Channel exists because interventions may need to be defended, and promoted principles need to be relevant to interventions.

L2B: Enforcing laws and regulations
This Channel exists because interventions often affect markets or their regulation, and the importance of proper fair regulation should drive interventions.

There is no useful direct influence betweenL4B and L1: Valuing commerce and enterprise.

From L3: ClosedPromotion of Capitalism

L3R: Promoting capitalist principles

L3P: Defence of popular beliefs
This Channel exists because the capitalist doctrines must enter and alter conventional beliefs to be effective. In the other direction, beliefs will naturally affect how capitalism can be promoted.

L2B: Enforcing laws and regulations
This Channel exists because the ideology emphasizes the need for properly functioning markets, property rights, law of contracts &c.

L1B: Valuing commerce and enterprise
This Channel exists because the principles are about commerce, and valuing enterprise shows the value of capitalist principles.

L3P: Defence of popular beliefs

L2B: Enforcing laws and regulations
This Channel exists because the beliefs affect what sort of market regulation and enforcement is tolerable, while enforcement should impact on beliefs either preventing their operation if they are inappropriate and otherwise enable them to be applied automatically.

L1B: Valuing commerce and enterprise
This Channel exists because defending beliefs must be about the need to work and be productive, while valuing commerce should impact which popular beliefs are defended and how.

From L2: ClosedEnforcement of Regulations

L2B: Enforcing laws and regulations

L1B: Valuing commerce and enterprise
This Channel exists because valuing enterprise should encourage enforcement of laws and regulations designed to be fair, while the knowledge that laws and regulations will be enforced is a powerful statement of the value given to free enterprise and commerce generally.

Using the Tree

  • It is now possible to have a complete overview, which is essential for any strategic intervention by a government.

Originally posted: Q3-2009