The Concept of Power in Political Economy

The concept of power in political economy
Power is a central category in political economy. Unlike "pure" economic theory, which often models agents as equal participants in voluntary exchange, political economy recognizes that agents possess varying abilities to influence the rules of the game, the decisions of others, and the allocation of resources.

Definitions of power
The classic definition of power was formulated by Max Weber: "Power is the probability that one actor in a social relationship will be able to carry out his own will despite resistance." Robert Dahl proposed an operational definition: "A has power over B to the extent that A can get B to do something that B would not otherwise do." These definitions focus on direct influence in specific decisions. However, power also has other dimensions.

Three faces of power
Steven Lukes identified three "faces" or dimensions of power:

First face of power — direct influence on decisions.
A defeats B in an open conflict: the law adopted is what A wanted, not B. This is power in debates, voting, negotiations.

Second face of power — control over the agenda.
A determines which issues are discussed at all, and which are not included on the agenda. Power means not only winning debates but also deciding what the debates are about.

Third face of power — shaping preferences.
A influences what B wants. People may desire things that contradict their "objective" interests because their preferences have been shaped by ideology, culture, manipulation. This is power through consciousness formation.

Structural power of business
In a capitalist economy, business possesses a special type of power — structural power. This is power that stems not from lobbying or bribery, but from the very structure of the economy:

Dependence on investment.
Economic growth, employment, and tax revenues depend on private investment. Governments are forced to maintain a “business climate” so that capital does not "leave."

"Foot voting."
Capital is mobile. The threat of capital withdrawal, relocation of production, or reduction of investment is a powerful lever of pressure without the need for direct interference in politics.

"The privileged position of business" (Charles Lindblom).
Business is not just one of many interest groups — it occupies a special position thanks to its control over investment. Politicians cannot ignore the interests of business even if they wish to.

Instrumental power
Alongside structural power, business uses instrumental mechanisms of influence:

Lobbying.
Hiring lobbyists to promote interests in legislative and executive bodies. Lobbyists provide information, draft legislation, organize meetings with lawmakers.

Election financing.
Donations to electoral campaigns create access to politicians and obligations from recipients to donors.

"Revolving doors."
Personnel transfer between business and government. Former regulators go to regulated industries, businesspeople become government officials.

Shaping public opinion.
Financing think tanks, influencing the media, advertising and PR campaigns.

Power and classes
The Marxist tradition analyzes power through the lens of class relations:

Class power.
The capitalist class wields power through its control over the means of production. The working class is forced to sell its labor power, creating structural inequality in bargaining positions.

The state as an instrument of class.
In the Marxist perspective, the state is not a neutral arbiter but “a committee for managing the common affairs of the bourgeoisie.” The state protects private property, suppresses the labor movement, provides the conditions for capital accumulation.

Relative autonomy of the state.
Neo-Marxists (Nicos Poulantzas) recognize the "relative autonomy" of the state. The state does not simply execute the will of capitalists, but has its own logic and may pursue policies contradicting the short-term interests of individual capitalists for the sake of the long-term interests of capitalism as a system.

Power and inequality
Power and economic inequality reinforce one another:

Wealth → power.
The wealthy have more resources for political influence: campaign financing, hiring lobbyists, control over media.

Power → wealth.
Political influence is converted into economic advantages: favorable regulation, government contracts, tax breaks.

This vicious circle can lead to "state capture" — a situation where narrow economic interests subordinate state policy to themselves.

Counterweights to power
If power is concentrated, what forces can balance it?

Democracy: electoral competition gives a voice to the majority
Trade unions: collective action by workers balances the power of employers
Civil society: public organizations, media, expert community
Institutional constraints: separation of powers, independent judiciary, antitrust regulation

Understanding power is key to understanding why economic policy is as it is. Technocratic solutions do not exist in a vacuum — they pass through the prism of power relations.