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Democracy, Collective Action and Intra-Elite Conflict

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  • Sayantan Ghosal

    ()

  • Eugenio Proto

    ()

Abstract

This paper studies the conditions under which intra-elite conflict leads to a democ- racy. There are two risk averse elites competing for the appropriation of a unit of so- cial surplus, with an ex-ante uncertainty about their future relative bargaining power, and a large non-elite class unable to act collectively. We characterize a democracy as consistng of both franchise extension to, and lowering the cost of collective political activity for, individuals in the non-elite. In the absence of democracy, the stronger elite is always able to appropriate the entire surplus. We show that in a democ- racy, the newly enfranchised non-elite organize and always prefer to form a coalition with weaker elite against the stronger resulting in a more balanced surplus allocation between the two elites. Accordingly, the elites choose to democratize if they are sufficiently risk averse. Our formal analysis can account for stylized facts that emerge from a comparative analysis of Indian and Western European democracies.

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Bibliographic Info

Paper provided by Centre for Economic Development and Institutions(CEDI), Brunel University in its series CEDI Discussion Paper Series with number 08-09.

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Length: 38 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:edb:cedidp:08-09

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Cited by:
  1. Cervellati, Matteo & Fortunato, Piergiuseppe & Sunde, Uwe, 2014. "Violence during democratization and the quality of democratic institutions," European Economic Review, Elsevier, vol. 66(C), pages 226-247.
  2. George Tridimas, 2011. "A political economy perspective of direct democracy in ancient Athens," Constitutional Political Economy, Springer, vol. 22(1), pages 58-82, March.
  3. Ghosal, Sayantan & Proto, Eugenio, 2009. "Democracy, collective action and intra-elite conflict," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1078-1089, October.
  4. Campos, Nauro F & Coricelli, Fabrizio, 2009. "Financial Liberalization and Democracy: The Role of Reform Reversals," IZA Discussion Papers 4338, Institute for the Study of Labor (IZA).

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