Globalization and the Erosion of Liberal Democracy
Prepared for the Challenges to the Contemporary World Order Workshop, Filzbach, Switzerland, 6-8 October 2017
13 Pages Posted: 11 Dec 2017
Date Written: September 25, 2017
The rise of outsourcing, the deepening and lengthening of global value chains, and rise of superstar exporting firms hits a particular segment of the middle classes in the developed world most severely. The political consequences of this hollowing out of the moderately (but not necessarily the lowest) skilled segment of the labor force leads not only to the rise of right wing populism/authoritarianism, but puts electoral accountability, and democracy at greater risk than ever before. Given that leaders, once in office, will do whatever they can to enhance their survival, they may be willing to adjust and sometimes even subvert the democratic institutions that put them there in the first place. In this new world of a hollowed middle class, and rising authoritarians achieving office, we are likely to see democratically elected leaders engage in further erosions of the institutions of democratic accountability.
Keywords: globalization, populism, democratic backsliding
JEL Classification: F6
Suggested Citation: Suggested Citation