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Plan for Today Economic Reform & Democratization

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

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Plan for Today Economic Reform & Democratization

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

  2. Is civil society universalizable? • Will be very difficult to achieve in some circumstances (e.g. post-Soviet). • Will look different in different places.

  3. Important democracy-promoting (and universalizable) characteristics • Autonomy from the state. • Connection to societal concerns. • Citizen participation.

  4. Democratization & Economic Reform

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

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

  7. “Authoritarian advantage”? Debate over regime type and reform

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

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

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

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

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

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

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

  15. The Historical Record • No difference between dictatorships & democracies in growth rates 1950-1990. (Przeworski & Limongi)

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