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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.

Suggested Citation

  • William Easterly & Shanker Satyanath & Daniel Berger, 2008. "Superpower Interventions and their Consequences for Democracy: An Empirical Inquiry," NBER Working Papers 13992, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:13992
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    Cited by:

    1. Gunitsky, Seva, 2014. "From Shocks to Waves: Hegemonic Transitions and Democratization in the Twentieth Century," International Organization, Cambridge University Press, vol. 68(3), pages 561-597, July.
    2. Oeindrila Dube & Suresh Naidu, 2010. "Bases, Bullets, and Ballots: The Effect of U.S. Military Aid on Political Conflict in Colombia," Working Papers 197, Center for Global Development.
    3. Roberto Bonfatti, 2017. "An economic theory of foreign interventions and regime change," Canadian Journal of Economics, Canadian Economics Association, vol. 50(1), pages 306-339, February.
    4. Aidt, Toke S. & Albornoz, Facundo & Gassebner, Martin, 2018. "The golden hello and political transitions," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 157-173.
    5. Aidt, Toke S. & Albornoz, Facundo, 2011. "Political regimes and foreign intervention," Journal of Development Economics, Elsevier, vol. 94(2), pages 192-201, March.
    6. Magesan, Arvind & Swee, Eik Leong, 2018. "Out of the ashes, into the fire: The consequences of U.S. weapons sales for political violence," European Economic Review, Elsevier, vol. 107(C), pages 133-156.
    7. Albornoz, Facundo & Hauk, Esther, 2014. "Civil war and U.S. foreign influence," Journal of Development Economics, Elsevier, vol. 110(C), pages 64-78.
    8. Arvind Magesan & Eik Leong Swee, "undated". "Is Happiness Really a Warm Gun? The Consequences of U.S. Weapons Sales for Political Violence," Working Papers 2015-09, Department of Economics, University of Calgary, revised 25 Jun 2015.
    9. 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.

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    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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