Does competition help co‐operation?
- 1 October 1989
- journal article
- research article
- Published by Taylor & Francis in The Journal of Development Studies
- Vol. 26 (1) , 5-27
- https://doi.org/10.1080/00220388908422137
Abstract
Co‐operative sugar factories in western India are economically successful even though rife with factional politics. Since they are not heavily subsidised, what makes them operate efficiently? Political competition between elected leaders of neighbouring factories drives them to compete economically. This in turn drives them to expand, innovate and diversify production. Nothing in the standard rhetoric of co‐operation explains this tendency toward competitive risk‐taking. Likewise, standard economic theories of competition overlook the political forces which drive these industrial leaders.Keywords
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