Study On Mancur Olson's Collective Action Theory

Title: Study on Mancur Olson's Collective Action TheoryMajor: Political TheoryTutor: Professor Sun XiaochunSince 1960s, the rapid development of public choice theory has reflected the wide application of economic approach into political research, and its content and concerns reveals the interdisciplinary intendancy of political and economic studies. This is related to the new issues popping up in the development of western countries after the Second World War. In the context of this circumstance, Olson's Collective Action Theory has come into being and become an important component of Public Choice Theory. Past studies about his theory focuses on its application, regardless of the theoretical analysis of Olson who is a famous theorist in Collective Action Theory and a figure in public choice school. The previous studies'topics of this theory include logical analysis, interest groups, government power, and economic growth and so on. However, more research needs to be conducted in the aspect of relationship between collectiv action and development. This paper, setting out from analyzing the basis of his theory, tries to make an assessment of Olson's Collective Action Theory and its impact on the economy from the perspective of the relation between collective action and development.Olson takes public goods theory, rational human hypothesis and individualism methodology as the theoretical basis and criticizes the traditional group theory, which stresses the automatic action for the group interests. This group interests, as a public goods , often stimulates individual to take a free-rider by the exclusive feature of consumption and application. Contradiction between the individual rationality and the collective rationality serves as theoretical basis in the process of analyzing the Collective Action Theory, Interest-distributing Group Theory and Market-augmenting Theory. How to ease the tension between the individual rationality and collective rationality and walk out of the collective action dilemma? Olson has observed disadvantages of group goods, and proposed selective incentive as a methed. He insists the selective incentive should be the true drive for rational individual to go canvassing. The canvassing and the birth of the interests group are the by-products during the rational individual's pursuit of selective incentive. Olson analyses the rise and decline of nations with the Collective Action Theory. and he deduces the contradiction between the individual rationality and the collective rationality to the relation between group interest and social interest, thinking interest groups in the society just like the individual in a group has the nature of the free-rider. Interests group in the temptation of the narrow interest turns into interest-distributing group, withdrawing from the productive investment and taking rent-seeking , and becomes the distributor of social income. interest-distributing groups have destroyed the normal market function and government function , producing a low-efficient and unfair society. Basing on the encompassing interest, government has turned into the power guarantee for breaking down interests'group network. The government as a rational human, Under the influence of new institutionalism, Olson puts forward the"market-augmenting government"to enhance the economic development. The market-augmenting government is a powerful and limited government. It can deal with the aggressive behavior of interest groups and avoid the aggressive behavior of the government. Therefore, the government can safeguard two conditions for boosting economy:"reliable and clear-cut individual right"and"no extortion in any form". The existence of market-augmenting government demonstrates Olson's insistence that market is the source of prosperity.Thus, Olson has completed his plan of analyzing the rise and decline of nations with the theory of collective action theory and of constructing a market-augmenting government to solve some problems in economy. Olson's theory has exerted profound impact and has caused great storm in academic field both for the applause and doubting. This paper would attempt to give a reasonable judgment for his theory from the perspective of the relationship between collective action and economic development. A detailed analysis of Olson's theory's contribution and shortages will help us better understand Olson. The author holds it that his contributions are listed as follows: first, the planting of public goods theory into group studies has subverted the traditional theory and has put forward a new theory---Collective Action Theory. He takes that group common interests is not the sufficient conditions for group's unanimous action, selective incentive is the true source for individual participating in collective action and the by-product theory of groups'formation. All these are owing to Olson's analysis of rational human. Besides, he pushes forward the research of the relation between the government and the market from the perspective of relationship between interests group and the market and the government. The general academy takes the perspective of interaction between market and government while Olson reconsiders their relation by analyzing the distorting of market and government process from the angle of interest groups'function. He proposes that the government system is aimed to overcome the interest-distributing behavior of interest groups and restore and strength the market functions. His theory helps people better understand the complexity of market and government relation. However, his theory also exists shortages. First, the contradiction arising from his hypothesis has weakened the theoretical explanatory power. Olson's approach is not simply the individualism but the co-existence of individualism and holism. Second, his idea about interest groups'function needs to be improved, which is unavoidable in political life. With the dominant concept of pluralism, interests group has found its value but Olson just emphasizes its negative impact upon democracy, calling for wiping out the interest groups. Third, his opinion toward government power is branded with utopianism and he is prone to the elite in political field. Although he puts forward the idea of market-augmenting government, he does not explain how to imply this idea. He has stressed the positive impact of government with his wishful thinking that government can guarantee property but neglecting its damage. So his theory reveals idealism.