PSCI Economics + Democratization Journey

Market Economy

An economic system where production and distribution are primarily driven by supply and demand forces with minimal government intervention

Pros of a Free Market Economy

1) competition and polyarchy are more common

Inequality in Free Market Economy

The potential for significant income and wealth inequality, which can undermine democratic principles and lead to social unrest.

Welfare State

A system that provides social safety nets and services like healthcare and education to support vulnerable populations.

Keynesianism

An economic theory advocating for active state intervention to regulate the market and address issues like unemployment and inflation. (believing the market ccould’t control employment or inflation like a state can)

Neoliberalism

An economic approach that champions privatization, deregulation, and a reduced role for government in the economy.

Classical Liberalism

An economic philosophy that supports minimal government intervention, market forces will lead to efficient outcomes.

Marxism

capitalism generates inequality and necessitates a restructuring of the economic system to address exploitation.

market v state economy

market —market is highly autonomous and should remain
autonomous, state—the state plays a stronger role in market, should continue intervening to regulate the market and economic policies

state-economy ex: China highlighting the balance between market liberalization and strong state control since 1979, Soviet Union’s planned economy and control over wealth

market economy: USA — market is free from politics and full of competition, fostering consumer choice in politics (politics don’t control wealth)

Democracy's Driving Forces

Factors such as historical influences, economic development, cultural diversity, and political pluralism that shape democratic governance.

Waves of Democratization

Phases in history where significant progress toward democracy occurred, driven by various socio-political changes.

China's Economic Model

An example in the market-state debate highlighting the balance between market liberalization and strong state control since 1979.

Political Awareness and Media

The role of media and education in raising citizens' political awareness and fostering democratic values.

Social Movements in Global South

Grassroots movements that focus on political rights, social justice, and democratic freedoms in developing countries.