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Superpower Interventions and their Consequences for Democracy: An Empirical Inquiry

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  • William Easterly
  • Shanker Satyanath
  • Daniel Berger

Abstract

Do superpower interventions to install and prop up political leaders in other countries subsequently result in more or less democracy, and does this effect vary depending on whether the intervening superpower is democratic or authoritarian? While democracy may be expected to decline contemporaneously with superpower interference, the effect on democracy after a few years is far from obvious. The absence of reliable information on covert interventions has hitherto served as an obstacle to seriously addressing these questions. The recent declassification of Cold War CIA and KGB documents now makes it possible to systematically address these questions in the Cold War context. We thus develop a new panel dataset of superpower interventions during the Cold War. We find that superpower interventions are followed by significant declines in democracy, and that the substantive effects are large. Perhaps surprisingly, once endogeneity is addressed, US and Soviet interventions have equally detrimental effects on the subsequent level of democracy; both decrease democracy by about 33%. Our findings thus suggest that one should not expect significant differences in the adverse institutional consequences of superpower interventions based on whether the intervening superpower is a democracy or a dictatorship.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13992.

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Date of creation: May 2008
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Handle: RePEc:nbr:nberwo:13992

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  1. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
  2. Jeremy Weinstein, 2005. "Autonomous Recovery and International Intervention in Comparative Perspective," Working Papers 57, Center for Global Development.
  3. de Mesquita, Bruce Bueno & Downs, George W., 2006. "Intervention and Democracy," International Organization, Cambridge University Press, vol. 60(03), pages 627-649, July.
  4. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  5. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
  6. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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Cited by:
  1. Aidt, Toke & Albornoz, Facundo & Gassebner, Martin, 2010. "The Golden Halo and Political Transitions," Proceedings of the German Development Economics Conference, Hannover 2010 48, Verein für Socialpolitik, Research Committee Development Economics.
  2. Roberto Bonfatti, 2011. "An Economic Theory of Foreign Interventions and Regime Change," Economics Series Working Papers 549, University of Oxford, Department of Economics.
  3. Mathieu Couttenier & Raphael Soubeyran, 2010. "Civil War in a Globalized World: Diplomacy and Trade," Working Papers 10-02, LAMETA, Universtiy of Montpellier, revised Feb 2010.
  4. Aidt, Toke S. & Albornoz, Facundo, 2011. "Political regimes and foreign intervention," Journal of Development Economics, Elsevier, vol. 94(2), pages 192-201, March.

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