Relationship between Democratization and Development, is there a need for causation?

Even if the waves of democratization in Latin America raise important questions regarding the endurability of democracy versus the other regime types, Fukuyama, Valenzuela and Valenzuela, and Smith, also consider questions about the relationship (whether causal or not) between democracy and economic development. Amidst several attempts of democratization and the legacy of colonialism, the readings put to the test the universally-held notion that democracy requires socioeconomic development. This blog intends to revise this week’s authors’ positions on the matter, and if possible establishing my personal point of view. For this reason, I believe that all else being equal, economic development ensures democratization.

 

Despite parting from a very controversial claim, I do think that it is reasonable to mention that there is a strong argument towards the importance of attaining democracy and preventing authoritarianism. As of 2000, there are 10 countries that are democratic, and the rest have had experience with democracy. Despite attempting to democratize, economic underdevelopment is a struggle that is persistent in the region, and has created barriers to democracy. The importance of economic underdevelopment and authoritarianism is vital, since there are ways to democratization that could be more efficient in this context that are easier than the modernist approach. The endogenous theory implies that a democracy will be established in poor countries that have authoritarian regimes if and only if there is economic strengthening. And once a democracy is established, the exogenous theory assures that a democracy will prevail because of economic development.

 

The idea that democracy ought to be instilled under primal economic development comes from the modernization theory, in which industrialized nations tend to have more stable democracies. The problem with such proposition is that the theory had only been proven to be accurate in the “Global North”, and therefore became axiomatic. Valenzuela and Valenzuela argue that the modernization perspective assumed that by being “underdeveloped”, Latin American countries needed to undergo a sort of Marshal plan to achieve the necessary economic threshold to democratize. However, the conditions that ensured development in the West were completely different to the challenges posed by the Latin American Region, and for this reason, many scholars have decided to rule out the claim that the western notion of development causes democracy.

 

Following the previous idea, Smith contrasts Economic Development and Democratic challenge between the 1900-1939 and the 1940-1977 periods. In the first period, the three most prominent economic nations were democratic, whilst the lesser developed nations were not fully democratic. In the second period, there were two fully democratic nations, both considered somehow or mostly developed, and 10 other nations had attempted to democratize (8 of the 10 were moderately or lesser developed). Thereafter, there is a relationship between development and democracy, and it is even noted that even in the II cycle (one that experienced drastic challenges) some lesser developed countries attempted democratization but failed.

 

This leads to the question of in what measure is economic development a mean of democracy? An interesting fact that can be drawn from the authoritarian regimes in Latin America is that whenever there were economic hardships there was a regime change. Ultimately, the regime that allowed for the betterment of economic conditions of the populace was democracy.

 

The question about what conditions of economic development were to be considered for democratization is also interesting. GDP has often been assumed to be the best index to measure development, however, the capabilities theory has proven that the lack of human development is the greatest method as it analyses general activities and skills from the individuals. Valenzuela and Valenzuela part from a point made by Lipset, in which he explains that economic underdevelopment is a result of the lack of entrepreneurial activity.