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.