Abstract

Buchanan identifies Politics as Exchange as one of the key pillars of research program. Viewing politics through the lens of exchange focuses attention on what sorts of political bargains individuals and organized groups find both to their advantage and feasible. Politics as Exchange locates differences between policies in the different rules that condition and result from these bargains. This essay contrasts the Politics as Exchange approach with the recent literature on state capacity, which typically embodies a view that we dub Politics as Administration. While these two points of view are not mutually exclusive, we argue that Politics as Exchange may be more effective in explaining important changes in political economic systems. We illustrate the relationship between the two by examining the evolution of the Byzantine Empire during and after the reign of Basil II.