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Democratization and Globalization

Democratization and Globalization. Three Waves of Democratization. 1) Late-19 th : urbanization/education, esp. W. Europe Later 1920s: 20/65; Collapse GD 2) Post-WWII decolonization Collapse 1960s+70s Cold War (mostly US) 3) Collapse communism: S+E Europe, Latin America, Asia

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Democratization and Globalization

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  1. Democratization and Globalization

  2. Three Waves of Democratization • 1) Late-19th: urbanization/education, esp. W. Europe • Later 1920s: 20/65; Collapse GD • 2) Post-WWII decolonization • Collapse 1960s+70s • Cold War (mostly US) • 3) Collapse communism: S+E Europe, Latin America, Asia • 2000: 2/3 of 190 somewhat competitive elections • 44% “free”

  3. Preconditions • 1) Economic Development (J-curve): • Agriculture: rural, little need education, women undervalued (female infanticide), primary resource exploitation, inefficiency, little civil society, political/ethnic conflict over limited revenues • Industrial: urban, educated, women valuable, infrastructure investment, manufacturing/service sector (value added), growing civil society (labor unions, newspapers) sufficient resources to lift poor w/o excess confiscation rich (even in hard times)

  4. 2) International Environment for Democracy • Prestige of democracy • Major powers’ role • Cold War: both sides opposed democracy • USSR Czechoslovakia (‘68) + Hungary (’56), Afghanistan (1980s) • US: Guatemala, Chile, Iran, Cuba, Vietnam… • Imposition • Germany, Japan, Iraq, Afghanistan • EU

  5. General Processes Democratization • 1) Independence: if national hero “Washingtonian” opp’y demo’y • Or, Nigeria 19601966 • 2) Breakdown authoritarian regime: collapse ancien regime • Military dictatorship: economic failure/military defeat pro-democracy faction (“return to the barracks”) unwilling kill comrades give up power (often write new constitution first) but often continuing role in civilian regime (Pakistan, Nigeria) • Charismatic authoritarian: esp. death Great Leader (Stalin, Kim, Khomeini)/other failure of leadership negotiation reaction/reform forces • Single-party authoritarian (USSR, China, PRI Mexico): esp. hard to oust (acculturation, limited information, no alternate institutions of power) “hard-liners” vs. “soft-liners” (reformers) • E.g. Gang of Four vs. Deng; Gorbachev vs. coup • Democratization from above: negotiations transfer power elite w/oppositions—Mexico, USSR (Gorbachev), China, Nigeria (military) • Democratization from below: mass demonstrations/pressure reform—Eastern Europe (1980s+90s), US CRM, Britain Chartist Movement, Iran Revolution

  6. Consolidation? • Main determinant: economic development/modernization/acculturation (institutionalization of democracy) resource battles minimized, politically manageable, stable even in hard times • But: India (100s millions extreme poverty) • Nigeria, Russia, et. al.: first crisis ancien regime elements best organized/positioned reclaim power maintain veneer of democracy (illiberal/procedural/partial dem’y; electoral authoritarianism)

  7. Corruption • Patron-client relationships • USSR: nomenklatura (list and class apparatchik); Putin: siloviki (security services personnel) • China: guanxi (“relationship”) • Nigeria: prebendalism • “prebendalism deals with the advancement of an individual who looks to his/her respective people for favors or support to get into office. However, unlike nomenklatura and guanxi, once in office, this individual then repays his supporters with sums of money, not land or jobs.” • the sense of entitlement that many people in Nigeria feel they have to the revenues of the Nigerian state. Elected officials, government workers, and members of the ethnic and religious groups to which they belong feel they have a right to a share of government revenues. • “Loyalty pyramids” undermines state formation (look to “big man” for services rather than state)

  8. Economic Globalization:David Ricardo and Circular Flow • Households, firms, government; rest of the world • Factor market (land, labor, capital, entrepreneurial ability; rent, wages, interest, profit) • Product market (goods and services, revenue) • Trade as technology: Iowa car crop and creative destruction

  9. Modernization vs. Dependencia • Dependency theory: avoid dependence 1st world capital, tech, expertise neo-mercantalism: import-substitution industrialization (Mexico) and export-led industrialization (China) • Confirmation: Asian Contagion • “Sustainable development”: 1st world development questioned (cultural + social impacts; environmental impact; “free trade butters” hypocrisy) • “Decoupling” (not so much)

  10. Corporatism vs. Pluralism • Small # groups systematically recognized in policymaking (tripartite decision making—labor, biz, gov’t) • Authoritative peak associations for diff. sectors economy • Interest group unified w/in selves + cooperative w/others • Centralized, monopolistic interest groups • Liberal corporatism: consensual policy-making • Hierarchy (follow leader’s decisions) w/in group • Compulsory/near-universal membership • Decisions made by few leaders of group + gov’t officials (little input) • Stable relationships w/gov’t • Limits power civil society + limits legitimate action/advocacy to state controlled institutions • China, Mexico, Russia • “Neo-corporatism” in Europe

  11. Costs of Globalization • Erosion state sovereignty • Outside pressure conform global norms • Internal pressure for autonomy (decentralization), secession, disintegration • Vulnerability actions others (NGOs, MNCs, WTO, IMF, World Bank, UN, etc.) • Cross-border/international problems (crime, disease, environmental, etc.) • “Race to the bottom”: Economic growth w/out development; internal inequality • Problems of rapid industrialization + urbanization • Women hurt more by transition (competition + liberalization reduction social welfare; undercuts subsistence ag., social constraints on new jobs, exploitation in cities/factories) • “Americanization” + cultural/political backlash (Nigeriazation of oil industry)

  12. Benefits of Globalization • Interdependence cooperation w/in global/regional institutions (integration) • Rapid economic growth • Global products + services + information • Spread democracy + human rights • Increased ability organize w/in + across borders • Empowerment non-state actors • New avenues political access, redress grievances, voice • Global citizenship

  13. Globalization Graphs • Supply and Demand, consumer and producer surplus • Comparative Advantage (lowest cost of production) • Exchange rates (derived demand) and balanced trade • Interest rates

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