Understanding power, culture and institutional change: a revised approach to political settlements analysis

The institutions that govern how we distribute resources, protect rights, and accord status are widely recognised as important for progressive development outcomes. Political settlements analysis is an increasingly influential framework for (post)institutional analysis within development studies, arguing that institutions and their outcomes are shaped by political economy relations of power. This article builds on the strengths of political settlements analysis (PSA) but argues that its strongly materialist foundations overlook the role of social identity, status and moral beliefs in shaping institutional change. Future research employing PSA needs rebalancing, incorporating an understanding of power relations as ideational as well as material and based on cultural as well as political and economic sources. Drawing on insights from cultural political economy, this article presents an alternative approach to power in PSA. This emphasises the contingency inherent in meaning-making processes and conceives of power as embedded in cultural understandings, as well as political organisation and economic control. Adopting this cultural political economy approach to power allows PSA to produce a fuller understanding of the causal mechanisms generating institutional change.