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Roots and Fruits of Democracy: Natural Resources, Income Distribution and Social Violence

Author

Listed:
  • Matteo Cervellati

    (University of Bologna and IZA Bonn)

  • Piergiuseppe Fortunato

    (United Nations Conference on Trade and Development)

  • Uwe Sunde

    (University of Munich, IZA Bonn, CEPR London)

Abstract

This paper proposes the argument that natural resource abundance and large economic inequality, by shaping the interests of different social groups, are key factors for the determination of the transition scenario from authoritarianism to democracy. In turn, the transition scenario, and in particular the level of violence during democratization, determines the success or failure of a democratic reform. We analyze the historical experience of countries that democratized during the "third wave" of democratization in order to shed some light on the determinants and consequences of current and future democratic transitions.

Suggested Citation

  • Matteo Cervellati & Piergiuseppe Fortunato & Uwe Sunde, 2015. "Roots and Fruits of Democracy: Natural Resources, Income Distribution and Social Violence," World Economic Review, World Economics Association, vol. 2015(4), pages 1-27, February.
    • Handle: RePEc:wea:worler:v:2015:y:2015:i:4:p:27
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    References listed on IDEAS

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    1. Matteo Cervellati & Piergiuseppe Fortunato & Uwe Sunde, 2008. "Hobbes to Rousseau: Inequality, Institutions and Development," Economic Journal, Royal Economic Society, vol. 118(531), pages 1354-1384, August.
    2. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    3. Daron Acemoglu & James A. Robinson, 2000. "Why Did the West Extend the Franchise? Democracy, Inequality, and Growth in Historical Perspective," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1167-1199.
    4. Robinson, James A. & Torvik, Ragnar, 2005. "White elephants," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 197-210, February.
    5. Alberto Chong & Mark Gradstein, 2007. "Inequality and Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 454-465, August.
    6. Cervellati, Matteo & Fortunato, Piergiuseppe & Sunde, Uwe, 2011. "Democratization and Civil Liberties: The Role of Violence During the Transition," IZA Discussion Papers 5555, Institute of Labor Economics (IZA).
    7. Bourguignon, Francois & Verdier, Thierry, 2000. "Oligarchy, democracy, inequality and growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 285-313, August.
    8. Ragnar Torvik, 2009. "Why do some resource-abundant countries succeed while others do not?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(2), pages 241-256, Summer.
    9. Sunde, Uwe & Cervellati, Matteo & Fortunato, Piergiuseppe, 2008. "Are all democracies equally good? The role of interactions between political environment and inequality for rule of law," Economics Letters, Elsevier, vol. 99(3), pages 552-556, June.
    10. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, September.
    11. Acemoglu, Daron & Robinson, James A., 2006. "Economic Backwardness in Political Perspective," American Political Science Review, Cambridge University Press, vol. 100(1), pages 115-131, February.
    12. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
    13. Matteo Cervellati & Uwe Sunde, 2014. "Civil Conflict, Democratization, and Growth: Violent Democratization as Critical Juncture," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 482-505, April.
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    Cited by:

    1. Sima, Di & Huang, Fali, 2023. "Is democracy good for growth? — Development at political transition time matters," European Journal of Political Economy, Elsevier, vol. 78(C).
    2. Piergiuseppe Fortunato, 2015. "Democratic Government and Development: A Survey," Asian Development Review, MIT Press, vol. 32(2), pages 153-177, September.

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