IDEAS home Printed from https://ideas.repec.org/a/ces/ifosdt/v70y2017i12p03-21.html
   My bibliography  Save this article

The Phenomenon of “Populism”: Roots and Remedies

Author

Listed:
  • Norbert Berthold
  • Adalbert Winkler
  • Sascha Becker
  • Thiemo Fetzer
  • Dennis Novy
  • Marianne Kneuer
  • Nikolaus Kowall
  • Sascha O. Becker

Abstract

Brexit, Donald Trump’s election, the gains made by the Front National in France, the AfD in Germany and Geert Wilders in the Netherlands are all signs of the heady rise of populism. What are the causes and the implications of this success wave? According to Norbert Berthold, University of Würzburg, there is significant evidence that globalisation promotes populist developments. More important drivers, however, seem to be technical progress since it eliminates low-skilled jobs, and migration flows into rich countries. Cultural factors, information gaps, prejudices and stereotypes play a key role. Adalbert Winkler, Frankfurt School of Finance & Management, believes that one of the reasons behind the surge in populistic currents is the significant increase in the number of people who feel left behind by the financial, euro and refugee crises. In his view, the traditional political parties have proven unable to cope with these crises. After analysing data from 380 districts of Britain, Sascha O. Becker, Thiemo Fetzer and Dennis Novy, University of Warwick, conclude that factors like demographics, education and the structure of the UK economy had a far greater influence over the Brexit vote than factors directly related to the EU. For Marianne Kneuer, University of Hildesheim, the crises were certainly a trigger, but not the cause of the current rise in populism. This has deeper structural roots: namely economic uncertainty, as well as rising inequality, the perception of losing out from globalisation and fear of a loss of social status. Moreover, representative democracy is suffering from a serious crisis of confidence and populists are benefiting from the functional deficits that have permeated traditional parties and the political landscape over the years. Nikolaus Kowall, Forschungsinstitut für gesellschaftliche Weiterentwicklung, Dusseldorf, believes that the reallocation of resources in the context of globalisation constrains the scope for state intervention. The loss of sovereignty at a nation state level, together with right-wing populism, has created anti-modern political currents, which explicitly seek to restore the primacy of politics at a national level. Europe could respond by moving towards deeper integration and, at the same time, halting any measures to further integrate the EU into the global market.

Suggested Citation

  • Norbert Berthold & Adalbert Winkler & Sascha Becker & Thiemo Fetzer & Dennis Novy & Marianne Kneuer & Nikolaus Kowall & Sascha O. Becker, 2017. "The Phenomenon of “Populism”: Roots and Remedies," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(12), pages 03-21, June.
  • Handle: RePEc:ces:ifosdt:v:70:y:2017:i:12:p:03-21
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/sd-2017-12-berthold-etal-populismus-2017-06-29.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. Inglehart, Ronald F. & Norris, Pippa, 2016. "Trump, Brexit, and the Rise of Populism: Economic Have-Nots and Cultural Backlash," Working Paper Series 16-026, Harvard University, John F. Kennedy School of Government.
    3. Jakob Kapeller & Bernhard Schütz & Dennis Tamesberger, 2016. "From free to civilized trade: a European perspective," Review of Social Economy, Taylor & Francis Journals, vol. 74(3), pages 320-328, September.
    4. Hans-Werner Sinn, 2014. "Austerity, Growth and Inflation: Remarks on the Eurozone's Unresolved Competitiveness Problem," The World Economy, Wiley Blackwell, vol. 37(1), pages 1-13, January.
    5. Lavoie, M. & Stockhammer, Engelbert,, 2012. "Wage-led growth : concepts, theories and policies," ILO Working Papers 994709363402676, International Labour Organization.
    6. repec:ilo:ilowps:470936 is not listed on IDEAS
    7. Sascha O Becker & Thiemo Fetzer & Dennis Novy, 2017. "Who voted for Brexit? A comprehensive district-level analysis," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(92), pages 601-650.
    8. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    9. Sascha Becker & Thiemo Fetzer & Dennis Novy & Sascha O. Becker, 2017. "Who Voted for Brexit?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(04), pages 03-05, December.
    10. Eggertsson, Gauti & Ferrero, Andrea & Raffo, Andrea, 2014. "Can structural reforms help Europe?," Journal of Monetary Economics, Elsevier, vol. 61(C), pages 2-22.
    11. David Innes & Gemma Tetlow, 2015. "Delivering Fiscal Squeeze by Cutting Local Government Spending," Fiscal Studies, Institute for Fiscal Studies, vol. 36, pages 303-325, September.
    12. Adalbert Winkler, 2017. "Makroökonomie und Populismus [Macroeconomics and Populism]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 97(2), pages 115-123, February.
    13. Becker, Sascha O. & Fetzer, Thiemo, 2016. "Does Migration Cause Extreme Voting?," CAGE Online Working Paper Series 306, Competitive Advantage in the Global Economy (CAGE).
    14. Hooghe, Liesbet & Marks, Gary, 2009. "A Postfunctionalist Theory of European Integration: From Permissive Consensus to Constraining Dissensus," British Journal of Political Science, Cambridge University Press, vol. 39(1), pages 1-23, January.
    15. Gaulier, G. & Vicard, V., 2012. "Évolution des déséquilibres courants dans la zone euro : choc de compétitivité ou choc de demande ?," Bulletin de la Banque de France, Banque de France, issue 189, pages 47-64.
    16. Servaas Storm & C.W.M. Naastepad, 2015. "Europe’s Hunger Games: Income Distribution, Cost Competitiveness and Crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(3), pages 959-986.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sarah Martina Tesar, 2019. "Populismus und Wirtschaftspolitik: Die wirtschaftspolitische Programmatik populistischer Parteien in Südeuropa," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 188, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yann Algan & Sergei Guriev & Elias Papaioannou & Evgenia Passari, 2017. "The European Trust Crisis and the Rise of Populism," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(2 (Fall)), pages 309-400.
    2. repec:hal:spmain:info:hdl:2441/2i9jel1usb85nr2j7tejsaldfu is not listed on IDEAS
    3. repec:hal:spmain:info:hdl:2441/1divsbu8t888r9vqektjbmlqoa is not listed on IDEAS
    4. Thiemo Fetzer, 2019. "Did Austerity Cause Brexit?," American Economic Review, American Economic Association, vol. 109(11), pages 3849-3886, November.
    5. Georgios Xezonakis & Felix Hartmann, 2020. "Economic downturns and the Greek referendum of 2015: Evidence using night-time light data," European Union Politics, , vol. 21(3), pages 361-382, September.
    6. Frédéric Docquier & Lucas Guichard & Stefano Iandolo & Hillel Rapoport & Riccardo Turati & Gonzague Vannoorenberghe, 2022. "Populism and the Skill-Content of Globalization: Evidence from the Last 60 Years," CESifo Working Paper Series 10068, CESifo.
    7. Yann Algan & Sergei Guriev & Elias Papaioannou & Evgenia Passari, 2017. "The European Trust Crisis and the Rise of Populism," Post-Print hal-02381560, HAL.
    8. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    9. Andrés Rodríguez-Pose & Neil Lee & Cornelius Lipp, 2021. "Golfing with Trump. Social capital, decline, inequality, and the rise of populism in the US," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(3), pages 457-481.
    10. Sergei Guriev & Elias Papaioannou, 2022. "The Political Economy of Populism," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 753-832, September.
    11. Annie Tubadji & Thomas Colwill & Don Webber, 2021. "Voting with your feet or voting for Brexit: The tale of those stuck behind," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(2), pages 247-277, April.
    12. Thomas Sampson, 2017. "Brexit: The Economics of International Disintegration," Journal of Economic Perspectives, American Economic Association, vol. 31(4), pages 163-184, Fall.
    13. Yann Algan & Sergei Guriev & Elias Papaioannou & Evgenia Passari, 2017. "The European Trust Crisis and the Rise of Populism," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(2 (Fall)), pages 309-400.
    14. O’Rourke, Kevin Hjortshøj, 2019. "Economic History and Contemporary Challenges to Globalization," The Journal of Economic History, Cambridge University Press, vol. 79(2), pages 356-382, June.
    15. Giordani, Paolo E. & Mariani, Fabio, 2022. "Unintended consequences: Can the rise of the educated class explain the revival of protectionism?," Journal of Economic Theory, Elsevier, vol. 200(C).
    16. Kevin Hjortshøj O'Rourke, 2018. "Economic history and contemporary challenges to globalization," Oxford Economic and Social History Working Papers _167, University of Oxford, Department of Economics.
    17. Caiani, Alessandro & Catullo, Ermanno & Gallegati, Mauro, 2019. "The effects of alternative wage regimes in a monetary union: A multi-country agent based-stock flow consistent model," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 389-416.
    18. Chen, Chinchih & Frey, Carl Benedikt & Presidente, Giorgio, 2022. "Automation or globalization? The impacts of robots and Chinese imports on jobs in the United Kingdom," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 528-542.
    19. repec:ces:ifodic:v:15:y:2018:i:4:p:50000000000852 is not listed on IDEAS
    20. Chen, Shuai, 2020. "Unemployment, Immigration, and Populism: Evidence from Two Quasi-Natural Experiments in the United States," GLO Discussion Paper Series 652, Global Labor Organization (GLO).
    21. Maurice Obstfeld, 2021. "Globalization and nationalism: Retrospect and prospect," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 675-690, October.
    22. Braml, Martin & Felbermayr, Gabriel, 2018. "Understanding Free Trade Attitudes: Evidence from Europe," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181591, Verein für Socialpolitik / German Economic Association.
    23. Andres Rodriguez-Pose & Javier Terrero-Davila & Neil Lee, 2023. "Left-behind vs. unequal places: interpersonal inequality, economic decline, and the rise of populism in the US and Europe," Papers in Evolutionary Economic Geography (PEEG) 2306, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2023.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ifosdt:v:70:y:2017:i:12:p:03-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.