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The four main political economic systems
liberalism, social democracy, communism, mercentalism
liberalism
Emphasizes free markets, private property, and minimal state intervention. Economic growth is driven by competition and individual entrepreneurship. Example: United States, United Kingdom
social democracy
Combines market economy with strong social welfare policies. The state intervenes to ensure economic equality and social justice while maintaining capitalism. Example: Sweden, Germany, Norway
communism
The state owns all means of production and controls the economy. Focus on eliminating class differences and ensuring equality, often at the cost of personal freedoms. Example: Former Soviet Union, modern North Korea (to some extent, China has mixed elements today)
mercantalism
Economic system prioritizing state power and national economic self-sufficiency. Heavy government control, protectionism, and state-led economic planning. Example: Japan in the post-WWII era, modern China (to some extent), early European colonial powers
how do we know a country is a democracy?
minimum conditions of democracy
minimum conditions of democracy (by robert dahl’s polyarchy model)
Free and fair elections
Universal suffrage
Political and civil rights (e.g., freedom of speech, press, and assembly)
Elected officials must have real power
Rule of law (independent judiciary)
A pluralistic society (political opposition and competition exist)
freedom house scores; how are they measured?
Assigns scores based on political rights (electoral process, political pluralism) and civil liberties (freedom of speech, rule of law).
Free (1-2.5) → Strong democracy (e.g., Canada, Germany)
Partly Free (3-5) → Hybrid regimes (e.g., Turkey, Ukraine before 2014)
Not Free (5.5-7) → Authoritarian regimes (e.g., China, Saudi Arabia)
High HDI (Human Development Index)
Strong GDP per capita, education, life expectancy
Well-functioning political institutions
Checks and balances, separation of powers
Strong rule of law
Independent judiciary, legal protections
Pluralistic civil society
Free press, active political participation
Advanced economies
Market-driven, service-oriented, high-income societies
country examples of developed democracies
Norway, Germany, Canada, Japan
culture
Norms of tolerance, political participation, and respect for pluralism help democracy thrive. Some argue certain religious or historical traditions may favor/hinder democracy
institutions
Strong rule of law, independent judiciary, and constitutional framework support democracy. Weak institutions lead to democratic failure (e.g., Venezuela’s erosion of judicial independence).
economic development and modernization
Modernization theory: As economies develop (higher income, education, urbanization), democratic values emerge. Wealthier societies tend to sustain democracy better (South Korea, Taiwan). Counter-example: China has economic growth but no full democracy.
Spillover Effects & Diffusion
Democratization in one country can inspire others (e.g., Arab Spring, Eastern Europe post-1989).
Waves of Democratization 1st Wave (1828–1926):
Expansion of suffrage in Western democracies.
Waves of Democratization 2nd wave (1945–1960s):
Post-WWII democratization (Germany, Japan, decolonized nations).
Waves of Democratization 3rd wave (1974–1990s):
Fall of dictatorships in Latin America, Eastern Europe, parts of Africa.
Reverse Waves (Backsliding)
1920s-1930s: Rise of fascism (Germany, Italy, Spain).
1950s-1960s: Military coups in Latin America, Africa.
2000s-Present? → Democratic backsliding in Hungary, Turkey, Russia, India, U.S. polarization
democratic consolidation
When democracy becomes the “only game in town” and is unlikely to collapse
Legitimacy: Broad public acceptance of democratic rules.
Strong institutions: Judiciary, media, civil society keep democracy intact.
Wealth & Middle Class: Economic stability helps prevent democratic failure.
Examples of Consolidated Democracies
Germany, Canada, Japan
Examples of Struggling Democracies
Hungary, Brazil, Turkey
how democracies die
Erosion of democratic norms (e.g., refusal to accept election results, attacks on free press).
Executive overreach – Leaders weaken checks and balances, erode rule of law.
Elimination of opposition – Rigging elections, jailing opposition (e.g., Russia, Venezuela).
Polarization & Disinformation – Social media manipulation, attacks on facts.