The Lego State and the Social Fragmentation

In The Lego State and the Social Fragmentation, the author develops general and local models and constructs his vision among the fact that in emerging national and local societies, the agents maximize their welfare through the arbitration of the interests of sub-societies, social webs or families C, NC, I-C forced by the social fragmentation, the capture of the State and violence, exclusion and poverty, corruption and political favoritism.

The co-opted C is oriented and tied to the political favoritism control of the State; the non co-opted or excluded NC remains subject to the rules of the market and the wild capitalism; the illegal – criminal IC acts with illegal codes, unlawful and invisible that are manipulated to coerce the State and to exert violence among the citizens aimed for re-distribute property and the income, the power and the risks.
The concept of distance to power, meaning the demand for centrality to be closer to the President – Leader to obtain more income and privileges, adjusts that precarious governance.
- Chapter I shows the risks to implement the “Institutional Building Blocks” with the platform of the Lego State. Uses the concepts of cycle, clock and genealogy to think the institutional evolution and discovers the incoherence between cloning and the institutional self organization. Studies the development with multiple check and balances – economic and political, social and cultural, and institutional, the human rights – exceeding the narrow values of the financial markets.

- In Chapter II, the Evolutionary and web theory of institutional change is applied to the study of the triple society in Colombia. Five patterns, that reveal externalities in the institutional evolution, are discovered: the co- adaptation, the co-evolution, the parallel evolution, the convergent evolution and the bifurcation. It clearly shows that the “meso-contratos” (informal contracts that replace laws and regulations), and the political options operate as artificial intelligence of the Colombian institutional system, in all its sectors, institutions and territories. With an evolutionist rate appropriate to the Darwin theory (variation, inheritance and selection) that included 25 institutions of C, NC and IC expressed in 12 indicators from the period 1930 – 2000, allowed to measure the rank of adaption that has had to the visibility, legality and legitimacy.

- In chapter III, the author analyses the main connexions between Social Justice and the Justice Administration (1920-2004), its correlation with the growth and welfare. It is taken in account the adaptation of these social society webs to the change of risk resulting of the incentives provided by the State, manipulated by social exclusion, justice and political favoritsm, the capture of the State and the cohabitance with the criminality.

Makes operative the concept of the “moral exchange rate” as the cost of impunity that a society considers acceptable to pay for reaching “general interest objectives”, such as, peace – the Submission Policy and the Justice and Peace Law (in Colombia) – or the economic recovering.

- In the fourth part, the author studies “the management of the risks of development in the global economy” and checks that in Latin America exists a deep incoherence between economic growth and multiple balances. Identifies and assesses twelve conditions that are mandatory for the efficient management of the risks of development. He shows new ways –including the Free Trade Agreement- to achieve the development. Analyses the Colombian development from 1980 to 2000 based on the evolution shown by C, NC, IC and its correlation with the variables of Generation I – income, investment, employment…- of Generation II - decentralization, distribution and justice, violence- and of Generation III – variation, inheritance and selection.