Here we go!

*A preface to the following blogs: I am beginning research on my senior thesis. The next few blogs will be my thoughts on the three points I have chosen for my thesis: the nature of political economy, the role of constitutions in political economy, and based on the conclusion of that inquiry, why ProReforma is the best first step for Guatemala.*

“I just don’t know what to expect,” I told a friend on the phone. “With crime rates this high and government this corrupt, I’m not sure what I’m getting myself into.” He paused for a moment and replied, “Do not go down there with any expectations.” This was probably the best advice I could have been given for my trip to Guatemala. I stepped off the plane and into the muck and mire of political and economic chaos. My only choice was learn as much as I could about the organization that I had come to help: ProReforma. What was its purpose, plan, or potential? Barely a week passed and I became overwhelmingly aware of a relationship I had only studied in books: a stable constitution produces a stable economy. With this thesis as my backdrop, I began to analyze the heart of a true Guatemalan revolution.

To accurately work through the problems facing Guatemala and the solutions found in ProReforma, I must first define the relationship between politics and economics. With constitutional reform being the essence of ProReforma, I will then examine the role of a Constitution in this relationship. Based on the conclusion of these analyses, I will demonstrate that ProReforma is the best first step for political and economic reform in Guatemala.

What do we mean by political economics? Each of these words contains a definition that builds a critical foundation for this study. What do I mean by “politics”? Webster defines “politics” as the “factional scheming for power and status within a group.” One must recognize the distinction here between politics and government. Webster defines government as “a small group of persons holding simultaneously the principal political executive offices of a nation or other political unit and being responsible for the direction and supervision of public affairs.” Politics is not, therefore merely the organization of society; rather it is the process by which individuals strive to organize society according to their personal motives. This does not assume that the motives are selfish. This definition simply recognizes that individuals promote ideas that will result in some positive return on the individual. For example, one might promote limited government because he has a certain conviction of individual liberty; therefore the return on his work is the personal satisfaction of promoting a cause. On the other hand, a politician may promote certain government programs to satisfy the desires of his constituents. This will result in his re-election, which may be his goal. Either way, both politicians are practicing politics because they are organizing society according to personal motives. This definition includes a realpolitik paradigm or evangelical republicanism; thus in a utilitarian sense, it is a good definition for this study because it is extremely useful for the majority of political understanding.

But, what of economics? To what am I referring when discussing this complex department of social science? The very nature of economics is the study of allocation of limited resources among unlimited wants. Every individual has an unlimited number of wants or needs. Yet there are billions of individuals on the planet. Earth’s resources are not unlimited, and therefore a responsible method of allocation is needed to ensure the mere survival of such a population. According to French economists, Frederick Bastiat, economics must be understood before politics can be properly formed. In his work The Law, Bastiat states:
A science of economics must be developed before a science of politics can be logically formulated. Essentially, economics is the science of determining whether the interests of human beings are harmonious or antagonistic. This must be known before a science of politics can be formulated to determine the proper functions of government.
Economics quickly becomes a philosophical study because it inquires the nature of man in order to understand the reason for interaction between individuals. Do men naturally get along or not? Is the process of exchange mutually advantageous or does a zero sum game exist? What are the mechanisms one uses to determine the answer to these questions? This is the heart of economics.

And thus the relationship between politics and economics becomes abundantly clear. In order for limited resources to be best allocated among unlimited wants, government must engage in policies that will assist in that allocation. These policies are what I will refer to throughout this paper as “political economy.”