4. Economic development

Question 1

How does economic growth/decline affect democratisation

and economic crisis

Answer 1

1. when there is a big economic growth people will be less inclined to protest
2. mainly affects transition –> change is needed when something isnt working
3. smaller effect on stabilisation
4. economic crisis makes transition to democracy more likely, people start pushing to get rid of the dictator
5. but, crisis can destabilise both autocracies and democracies
6. so economic crisis in a regime neutral destabiliser
7. economic growth for democratic stability especially important for poor countries with high debt: countries can’t pay their debt or invest in public services to keep people happy, destabilises regime.

Question 2

how does economic development affect democratisation?

Answer 2

1. distinction between first and other waves. in first waves economic development meant democratic transition, nowadays not anymore.
2. economic development improves stability of a regime, also regime neutral.
3. when you’re richer you can provide security and public services because there’s higher income tax, citizens happier.
4. in rich countries citizens are more able to hold their rulers accountable because they’re more educated and have an income that is separate from the ruling power. they’re more powerful because they’re more independent from the state.
5. doesn’t always work this way, a lot of authoritarian regimes have a powerful hold over their people.
6. poor countries reverse problem. low development, no security or public services. this is why democracy can’t stabilise here.
7. opposite claims because people are more worried about their survival and not politics, but they’re also very unhappy so they can start to protest.

Question 3

how does economic inequality affect democratisation?

three main arguments

Answer 3

1. economic inequality increases stability of authoritarian regimes
2. economic inequality increases instability in democratic and authoritarian regimes
3. economic inequality increases economic elite political influence, enabling democratic erosion

effect on democratisation through class structure, relative deprivation and elite political influence

Question 4

Main argument that economic inequality increases stability of authoritarian regimes

Answer 4

1. societies with small elite and large lower class are easier to dominate, because lower class is more focused on survival than politics/protesting.
2. very rich elites may fear distribution effects of democracy, benefit from authoritarian regime
3. they need a relatively autonomous and sizeable middle class to push for democratisation

Question 5

Main argument that economic inequality increases instability in both democratic and authoritarian regimes

Answer 5

1. Poorer people see relative deprivation, which causes protest and regime change
2. People expect democracy to reduce inequality, if the democracy does not deliver then protest can also break out causes democratic erosion.

Question 6

Main argument that economic inequality increases economic elite political influence, enabling democratic erosion

Answer 6

1. increases influence of elites on policy making/campaign funding
2. elites grab power to survive

Question 7

modernisation theory

effect of economic development on probability of democratic transition

Answer 7

1. as countries become richer, citizens become more organised/educated/independent/new norms and values causing the middle classes to demand democratic change. there is a threshold above which democratic transitions become more likely.
2. idea of sequencing: economic development first, then democratisation will follow
3. worked in first wave of democratisation, but nowadays authoritarian capitalism

based on western-european view of democratisation, may not hold anymore

Question 8

authoritarian capitalism

effect of economic development on probability of democratic transition

Answer 8

1. countries can be rich and be stable autocracies
2. defies idea of sequencing
3. economic development regime neutral

Question 9

two types of economies

business ownership/involvement state economy

Answer 9

1. an economy with a few large businesses (champions) where the state has a lot of involvement
2. a lot of smaller businesses that don’t have any central control. diversification in size an number of businesses.

Question 10

how does business ownership affect democratisation

Answer 10

1. it helps to control people, because people working in these businesses will be dependent on the state –> autocracy stabiliser
2. involvement state in economy is more likely in agrarian or natural resource based economies, because you have an independent source of income from citizens

Question 11

resource curse

Answer 11

1. economies heavily based on natural resources
2. state more strongly involved in business
3. possibility for state to gain income independent from citizens (no need for taxes, rule without them)
4. possibility for state eilites to enrich themselves at the expense of citizens
5. motives to sustain authoritarian regime
6. countries with resource curse are more likely to be stable authoritarian regimes

examples that don’t fit this: norway, australia