Interactions Between Natural Resources and False Democracy?

Abstract

A substantial political economy literature argues that do not support a positive relationship between natural resources and autocracy. This study introduces a theoretical model and empirically estimates the relationship between natural resource endowment, democratic electoral systems, and electoral fraud.

Electoral fraud and the introduction of a democratic electoral system have opposite positive and negative implications for democratisation. This study examines the possibility that the opposite conditions are going on at the same time.

In previous studies, indicators of Polity, a variable of institutional quality, have been used to identify not only the relationship between natural resources and institutions, but also the relationship between natural resources and democratisation.

Our work uses data from around the world since 1800 to examine whether the executive is autocratic but would introduce proportional representation, a more democratic electoral system than the constituency system, in order to gain international support.

It also examines whether a false democracy is compatible with the separation of powers gained by the executive branch respecting the judiciary and the legislature.

The results of the analysis show that natural resources can be used to finance the consolidation of dictatorships and promote false democracy. The higher the natural resource endowment, the more money that can be obtained from natural resources can be used by politicians for political funding.

Politicians introduce democratic political institutions and also acquire political power through electoral fraud. At first glance, this is not a dictatorship, but essentially suggests that political authorities are not replaced, giving rise to a more robust dictatorship.

This theoretical and empirical analyses show that the degree of respect of the executive branch for the judiciary and legislature, the existence of a system of unconstitutional review and political regimes such as military regimes and authoritarianism affect electoral fraud and false democracy by analysing by region, degree of inequality and by income.

Keywords: Resource Curse, Judicial Review, Return to Authoritarianism