Autocratic Consitutions: A Summary

Autocratic Constitutions: Political Economy

Introduction

  • Autocratic constitutions can help dictators:
    • Consolidate power.
    • Increase investment.
    • Boost economic development.
    • Generate rents for themselves and cronies.
  • This challenges views that constitutions in dictatorships are mere window-dressing.
  • Constitutions can foster self-enforcing stability in autocratic regimes alongside repression, cooptation, and clientelism.

Functions of Autocratic Constitutions

  • Consolidate the inner ranks of the autocratic regime by fostering loyalty and trust.
  • Outline limits on executive authority, codify individual rights, and impose constraints on executive authority.
  • Serve as coordinating devices for elites who helped the dictator gain power.

Empirical Evidence (Latin America, 1950-2002)

  • Constitution creation under dictatorship enables autocratic coalitions to co-opt threats and last longer.
  • Associated with stronger property rights protection, higher private investment rates, and economic growth.
  • Qualitative evidence supports that constitutions weaken alternative power sources and provide clearer property rights definitions to the dictator's support organization.

Institutions and Power-Sharing Under Dictatorship

  • Successful dictators rely on institutions that generate trust and create stable distributional arrangements.
  • Protecting property rights of the launching organization (LO) members is key.
  • Dictators tolerate institutions that make them vulnerable to cultivate supporters’ trust and legitimize rule.
  • Elections can enable credible power-sharing, increasing the political leverage of core supporters.
  • Limits on executive authority can lower borrowing costs and spur capital market development.

Theory of Autocratic Rule

  • The most serious threat to dictators comes from within their support coalition.
  • Two stages of autocratic rule:
    • Resolution of uncertainty over the dictator’s loyalty.
    • Institutionalization of a system for distributing spoils of office.
  • Expropriating the preexisting elite (PE) signals loyalty to the launching organization (LO).
  • Constitutions codify rights and interests of political groups and organizations.
  • The LO pushes for a constitution at the beginning of a new regime.

Content and Operation of Autocratic Constitutions

  • Enshrine and enforce LO property rights to maintain loyalty.
  • Establish clear rules about who qualifies as a member of the ruling group.
  • Establish norms regulating access to rents and codify institutions that distribute spoils of office.
  • Create institutions that monitor the ruler’s actions to enforce these norms.
  • Weaken or destroy alternative sources of political and economic power.
  • Grant the military a special role in politics.
  • Typically stipulate how power will be exercised and rotated by defining new institutions.
  • Regulate the allocation of property rights, the distribution of rents, and the granting of status and opportunities.

Enforcement and the Threat of Free-riding

  • Elites should gain the ability to enforce the constitution by monitoring the executive's actions.
  • Support for a coup increases when an executive’s behavior threatens core “rights.”
  • Informal norms and formal contracts such as constitutions are synergistic.
  • Enable the LO to better enforce their rights and privileges than absent a constitution.

How Autocratic Constitutions Differ

  • Timing, function, content, and operation of autocratic constitutions underscore differences from other autocratic institutions.
  • Foster loyalty and trust between the dictator and his launching organization when uncertainty is highest.
  • Other autocratic institutions take time to be effective and address emerging threats from the outside such as Elections, Legislatures, and political parties.
  • Constitutions codify rights and interests of insiders, while other institutions address emerging threats.

Theoretical Predictions

  • Autocratic constitutions ameliorate uncertainty by defining elite rights and privileges.
  • Constitutions should be adopted at the outset of a new autocratic coalition seizing power.
  • Coalitions adopting a constitution are more likely to survive longer.
  • Stronger property rights, economic investment, and growth following constitutional adoption.
  • Dictators can benefit from inheriting previous constitutions because the executive’s credible commitment is standardized among elites.

Research Design

  • Panel dataset of Latin American dictators from 1950 to 2002.
  • Autocratic coalitions that adopt constitutions survive longer, have better property rights protection, and experience higher rates of private investment and economic growth.
  • Unit of analysis: autocratic coalition defined as a set of chronologically contiguous autocrats not interrupted by an irregular transfer of power.
  • Autocratic Coalition Exit: coded "1" when an autocrat coalition exits power due to coups, assassinations, popular revolt, or democratic transition.
  • Property rights protection: measured using contract-intensive money (CIM).
  • Private Investment: measured as a percentage of GDP.
  • Economic Growth: the logarithmic rate of growth of Per Capita Income.
  • Autocratic Constitutions: coded as documents explicitly identified as the constitution or fundamental law.

Empirical Analysis

  • Autocratic constitutions increase autocratic coalition survival.
  • Instrumental variable approach using constituent assembly elections.
  • Autocratic constitutions are linked with increased property rights.
  • Hausman Test for endogeneity indicates no reverse causation.
  • Autocratic constitutions are strongly linked to higher rates of private investment.
  • Autocratic constitutions are linked to higher rates of economic growth through their positive impact on private investment.