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When do neoliberal economic reforms cause democratic decline? Evidence from the post-communist Southeast Europe

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  • Dušan Pavlović

Abstract

Do neoliberal reforms (notably, austerity policy) facilitate democratic decline and the gradual deconstruction of democratic institutions? I examine the democratic development of the Western Balkan countries since 2008 by focusing on the two most recent cases of democratic rollback in Macedonia and Serbia. Neoliberal reforms may create a preference to shut down democratic institutions, because such reforms are socially costly and politically risky. However, democratic backsliding is not possible without opportunity. I illustrate this with reference to the examples of Hungary and Croatia. Croatia implemented some neoliberal policies after 2015, but did not see a drop in its democracy score. By contrast, Hungary moved towards centrally planned capitalism, nationalisation and state interventionism (all opposed to the neoliberal concept of reform), and yet saw a significant democratic decline after 2010. The opportunity to dismantle democratic institutions was a consequence of an electoral gap (a difference in vote share between former and new incumbents), which enabled the rise of authoritarian leaders in Macedonia, Hungary and Serbia.

Suggested Citation

  • Dušan Pavlović, 2019. "When do neoliberal economic reforms cause democratic decline? Evidence from the post-communist Southeast Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 31(5), pages 671-697, September.
    • Handle: RePEc:taf:pocoec:v:31:y:2019:i:5:p:671-697
    DOI: 10.1080/14631377.2019.1607436
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