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The Political Economy of Liberal Democracy

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  • Sharun W Mukand
  • Dani Rodrik

Abstract

This paper develops a taxonomy of political regimes that distinguishes between three sets of rights—property rights, political rights and civil rights. The truly distinctive nature of liberal democracy is the protection of civil rights (equal treatment by the state for all groups) in addition to the other two. The paper shows how democratic transitions that are the product of a settlement between the elite (who care mostly about property rights) and the majority (who care about political rights), generically fail to produce liberal democracy. Instead, the emergence of liberal democracy requires low levels of inequality and weak identity cleavages.

Suggested Citation

  • Sharun W Mukand & Dani Rodrik, 2020. "The Political Economy of Liberal Democracy," The Economic Journal, Royal Economic Society, vol. 130(627), pages 765-792.
    • Handle: RePEc:oup:econjl:v:130:y:2020:i:627:p:765-792.
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    File URL: http://hdl.handle.net/10.1093/ej/ueaa004
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    References listed on IDEAS

    as
    1. Arthur Blouin & Sharun W. Mukand, 2019. "Erasing Ethnicity? Propaganda, Nation Building, and Identity in Rwanda," Journal of Political Economy, University of Chicago Press, vol. 127(3), pages 1008-1062.
    2. Baldwin, Kate & Huber, John D., 2010. "Economic versus Cultural Differences: Forms of Ethnic Diversity and Public Goods Provision," American Political Science Review, Cambridge University Press, vol. 104(4), pages 644-662, November.
    3. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422.
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    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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