Plan for Today Economic Reform & Democratization 1. Conclusion of civil society discussion. 2. Understand typical dangers and issues of conflict in economic.

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Presentation transcript:

Plan for Today Economic Reform & Democratization 1. Conclusion of civil society discussion. 2. Understand typical dangers and issues of conflict in economic reform process. 3. Learn and assess between sides of debate on “authoritarian advantage” in economic reform/ performance.

I S CIVIL SOCIETY UNIVERSALIZABLE ? 1. Will be very difficult to achieve in some circumstances (e.g. post- Soviet). 2. Will look different in different places.

I MPORTANT DEMOCRACY - PROMOTING ( AND UNIVERSALIZABLE ) CHARACTERISTICS 1. Autonomy from the state. 2. Connection to societal concerns. 3. Citizen participation.

Democratization & Economic Reform

Dangers for democratic regime  Economic deterioration may erode people’s attachment to democracy.  Leaders may seek to abandon democratic decisionmaking to break political logjams.

Common issues of conflict and controversy 1. Role of the state in economic development. 2. Distributional consequences of reform (who gets what?). 3. Government accountability.

“Authoritarian advantage”?

Pro-Authoritarian Argument 1. Democratic governments may lack capacity for quick action. 2. Workers’ demands in democracy reduce profits and investment for growth. 3. Democratic citizen demands for social programs divert monies from investment.

Pro-Democracy Argument 1. Authoritarian advantage depends on enlightened dictator. Why would dictator invest in country instead of squandering resources on self?

Pro-Democracy Argument 2. Democratic leaders face punishment at polls for failure.

Pro-Democracy Argument 3. Lack of rule of law in authoritarian regimes  investors fear to commit. Danger of losing property rights at any time.

Pro-Democracy Argument 4. Political freedom generates better information for decisionmaking.

Pro-Democracy Argument 5. Democratic governments are risk- averse. (Przeworski & Limongi) Tend not to invest in grandiose schemes.

The Historical Record 1. “Authoritarian advantage” based on limited time period and regions. (Maravall) 1960s-70s Latin America 1980s-90s East Asian “tigers”

The Historical Record 2. No difference between dictatorships & democracies in growth rates (Przeworski & Limongi)