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INTER- RELATIONSHIP OF DEMOCRACY AND GLOBALIZATION - A DILECTIC DILEMMA: HOW ONE PROPAGATES THE OTHER

Submitted as per the course requirements of Changing Conception of Justice in the Globalised Legal Order

National Law School of India University

Submitted to:

Prof. Dr. T. Ramakrishna
Course Teacher

Submitted by:
PARUL SINHA PIYUSH RAJPUT ID No. 577and 578, 1st year

ACKNOWLEDGEMENT

With Profound Gratitude and sense of indebtedness we place on record our sincerest thanks to Prof Dr. T. Ramakrishna, National Law School of India University, Bangalore, for his invaluable guidance, sound advice and affectionate attitude during the course of our studies. We have no hesitation in saying that he molded a raw clay into whatever we are through his incessant efforts and keen interest shown throughout our academic pursuit. It is due to his patient guidance that we have been able to complete the task. At the same time we take this opportunity to Thank Mr. Satya Deep, Ms. Arti Priya and Miss Nimrat Kaur for there guidance, we also express our regards to the Library staff for cooperating with us and made available the books for this research paper.

Thank you! PARUL SINHA & PIYUSH RAJPUT I.D. No. 577 & 578 LL.M. 2nd TRIMESTER (BUSINESS LAW)

TABLE OF CONTENTS 1. Introduction 2. .

3. social and other aspects of globalization.RESEARCH METHODOLOGY AIM AND OBJECTIVEThe Aim of the topic is to study the concept of globalization. Same is the concept of democracy. The author shall also seek to establish the interrelationship between globalization and the democracy The objective of the research are as follows1. The concept of globalization and the democracy is so wide that it cannot be covered under one head and therefore the project shall be limited as to how the globalization in terms of economy and not to the political. To study whether there exists any relationship between the term globalization and democracy. how one helps in the propagation of another. SCOPE AND LIMITATIONThe field of globalization is vast enough if one goes on to extensive research. and the impact of the globalization on the democracy. The Project shall make a brief study as to whether or if there exists relationship between he two concepts how the one propagates the other or it hinders one another or is it just a dialectic dilemma. To study the concept of the globalization 2. RESEARCH QUESTION1. Does globalization and democracy are so intervened that they cannot be separated or these two are solely independent concept which intersect or co exist at the same time? . The scope of the present research shall deal specifically with the interrelationship between the abovementioned two terms and how the one has the effect on another.

at least in the short run. What impact does any regional organisation and its policies has on the promotion of democracy through globalization specially in the context of the least developed countries? HYPOTHESIS- RESEARCH METHODOLOGYThe researcher in project has relied on “Doctrinal Method” of research. has been adopted by the researcher for the particular paper.2. and it also diminishes the ability of the state to compensate the losers financially? 4. Whether in terms of economy does globalization has any effect so as to further the democracy within a nation and promote the same? 3. Does globalization produces more domestic losers than winners. This method was considered apt as it is a theory based topic MODE OF CITATIONA uniform system of citation as per the NLS guide compiled with uniform legal citation. .

what the reasons were behind it. . even if some might doubt the wisdom of certain of democratic decisions taken.”1 Whereas. A public should shape its own destiny. Proglobalists would argue it is inevitable for countries to open themselves up to globalization. however. Many scholars would agree with the idea that globalization poses a threat to the democratic state instead of aiding its expansion.RELATIONSHIP OF DEMOCRACY AND GLOBALIZATION Globalization has changed the world in many ways and has brought several countries together. but was only popularized in the 1960’s by economists and social scientists. is globalization solely responsible for the spread of democracy around the world? The concept of democracy is derived from the Ancient Greek term dēmokratía which means “rule of the people” and it defines “a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system. The concept was created in the late 1800’s by American entrepreneur Charles Russell. become isolated from the rest of the world. It is believed that it undermines the essential requirements of 1 Scholte. However. it has also driven them apart. as well as bringing countries together in some ways. 2005. There are too many benefits and the ones that do not. A society that is not striving after democracy tends to be a less worthy and also more dangerous place. One of the most controversial changes it has made is to the political culture of many countries around the world.INTER. In order to examine if globalization has led these countries to opt for a democratic form of government and if so. globalization has also become an increasingly popular process that countries are opening themselves too.: Palgrave Macillan. Globalization: A Critical Introduction. Jan Aart.New York. However. has become increasingly popular since the demise of communism in the late 1980’s. Hence it is widely regarded that “Democracy is a cornerstone of human dignity and the good society. Many scholars such as David Held would agree that democracy is commonly being regarded as the best form of government.” This form of government. USA.

it could be argue that political globalization could be a contradiction in terms.2 For this reason.” British Journal of Political Science. 1992. 4 Drucker. “Political Globalization.4 The unfortunate losers in the globalization battle thus. and the state is becoming obsolete. 2004.” Distinktion: Scandinavian Journal of Social Theory. as previously stated. their trade and their borders.state autonomy. resulting in hollow democracy. It follows that the level of democracy declines. January 2003: 29-54. Roland.shtml (accessed March 12th.5 This inequality. globalization has increased the cleavage between the developed countries from the north and the developing countries from the south. making nations less democratic and progressively more ruled by the wealthy multi nationals. 2010 3 Quan & Reuveny. nor be held accountable to. the voters. is not only carried out on a national scale. it has also increased the socio-economic disparity between people. . Now. however. exchange rates and capital.dk/archive/d8. London: Sage Publications. patriotism and national identity. This means that “governments now try and compete for foreign capital and design their policies to please global investors and firms. Li & Rafael. These actions intensify social inequality and undermine the progress democracy has made. trans-national companies are becoming increasingly imperative to the economy. as governments no longer have control over their economy. tend to seek support and unity with their identities. scholars argue that globalization cripples even more those who are less fortunate. 2 Bartelson. This supports the argument that globalization is reducing the power of democracy and the state. Companies who are unable to compete with multi nationals on an international scale lose from more economic openness. Nation states may have in the past been in complete control of their markets. 5 Robertson. available at http://www. One of the anti-globalist theories is that globalization is causing the decline of the nation state. This encourages the prosperous economic winners to maintain their edge over the poorer and reduce their competition. Peter F. “Economic Globalization and Democracy: An Empirical Analysis .distinktion. Even in the international community. The results of this loss cause a weakening in the country’s democracy.” 3 Also. Globalization: Social Theory and Global Culture. November 1994: 53-80. It was believed that while globalization promotes opportunity for growth and increase in wealth. who may not act in the best interest of. “The Age of Social Transformation” Atlantic Monthly. Jens. usually based on religion or ethnicity.

According to Schumpeter’s Capitalism. This illustrates the freedom and development of the people in allowing them to prosper from the benefits of globalization. . there are several claims of notable scholars that defend the idea that globalization has spread democracy around the world. G. authoritarian countries experience an increase in pressure from trans-national companies for political liberalization. As previously stated. which has resulted. Socialism and Democracy globalization has helped promote economic development which has augmented the number of educated and well trained citizens. Globalization has transformed the common citizen into an individual who is more willing to pursue its own economic interest than to be concerned with the content of public policy. international businesses demand an increase in democracy. However. there is an increase in the demand for a democratic form of government. there are many reasons as to how globalization has weakened democracy around the world. These authoritarian states. differently to what has been stated. Subsequently.6 As observed. October 1993: 50-53. it is important to evaluate the two sides of the argument to fully comprehend the implications of the statement.In international organizations such as the United Nations it is commonly witnessed that the elite wealthy countries always have the final say in conflicts or important issues that are discussed. the concept of citizenship and participation must be active and embedded in the population. contrastingly to previous statements. “The Browning of Latin America. as a result of globalization have fewer incentives to cling to power or proceed with their radical policies. peace and stability must be entrenched in all potential investment countries. Another argument which is made is that in order for a stable and functioning democracy to work. which ends up swaying the domestic politics of less developed countries to their favour.” New Perspectives Quarterly. For this reason. Globalization encourages authoritarian states to decentralize power as they hand over their control to make progress for the 6 O’Donnell. globalization has increased the power of multi-nationals. However. in a decrease in economic inequality. like any controversial issue. In order for businesses to grow. as democratic countries scarcely ever fight with each other. As economic links among states expand.

is one of the main causes of rising military conflict and tensions amongst nations in the international community.8 This. and this is only due to the result of the expansion of globalization to such nations. This concept of allowing the economy to fluctuate is known as laissez-faire. In addition. ICAAP. 8 Kura. international organizations such as the IMF and the World Bank have reformed numerous of these authoritarian countries so that they become potential investment opportunities for multi-nationals.. .New York: Russak Publications. Currently. the more the chances that country has of becoming democratic. As the preponderance of states withholds democratic values. a French expression meaning “let it be” which allows industries to be free from state involvement in restrictions such as taxes and state monopolies. it is expected that any other state that is non-democratic is in violation of human rights as they are not allowing their citizens to voice their opinion and have a say in the way their government is run.7 Other advantages of globalization reducing borders is that is strengthens the distribution of democratic values over borders. 1990. interventions have contributed to the democratization of numerous countries such as Iraq and several other countries in Sub-Saharan Africa. Many skeptics and especially countries with alternative values believe that the process of globalization has pressured them into becoming liberal democracies 7 Hanen. “Globalisation and Democracy: A Dialectical Framework for Understanding democratization.market. which is fundamentally democratic. This means democracies can now promote their values and ideals to autocratic countries a lot more freely. democracy is progressively becoming the only alternative to autocratic regimes. Tatu Van. The Process of Democratization: A Comparative Study of 147 State. Sulaiman Yusuf Balarabe. The more democracies border non-democratic countries. however. The reduction in information and travelling costs mean that people have access to a lot more information not only from their government but from all over the world. Hence. Many other advantages of globalization also help promote democracy.”Globalization. with the increase in the demand for human rights and humanitarian interventions in countries which abuse power. as autocracies have diminishing control over information. 2005.

the increase involvement of INGO’s and other businesses furthers the transparency and liability of institutions that reduce state intervention. Now. the few countries that do not withhold western values feel threatened and ever more forced into opening their economies and becoming a democratic system. September 2001. it is inevitable that organizations that reinforce these values are rewarded meaning they can expand into countries with other forms of government and promote these ideals. . all which facilitate democracy. An authoritarian government agrees to a global regime to gain benefits of one sort but is forced to accept the political consequences that follow. Hence. As the global market relies on capitalist democratic values.and believing in western capitalist values.Catharin E. Globalization encourages democratic institutions which promote democracy.”9 9 Dalpino. there has always been a great tension between the western democracies and the rest of the world. “Does Globalization promotes Democracy?: An early assessment” Brookings. Since the beginning of the cold war. “ Western policymakers and nongovernmental groups trying to promote greater political liberalization have placed their faith in the indirect effects of globalization.

Peru. while almost 30% of LDCs witnessed a decline in democratic rights since globalization took root in the 1980s. developing countries have made tremendous progress toward democracy over the last decade. Thailand. despite these developments. human freedom is still under threat in the developing world (Human Development Report 2002). The impact of economic globalization on the democracy can be analyzed in the sense that globalization seems to have a positive impact on the quality of democracy. and Turkey) seem to vacillate. It is worth noting that one of the control variables inflation also exerts an influence on the quality of democracy.g. Several countries that took important steps toward democracy during and before the early 1980s have since become more politically repressive (e. economic crisis in terms of inflation diminishes the quality of democracy. 70% of less developed countries (LDCs) made substantial efforts to expand political freedoms. in the 59-country only one country consistently maintained the highest level of democracy (Costa Rica). Particularly since the late 1980s. However. Argentina. In the remaining 22 countries there was a (non-linear) positive development between 1995 and 2005. Guatemala.. these important political advancements came at the heels of a more sweeping transformation that occurred in LDCs in the early 1980s: economic openness in trade and financial markets. Pakistan. it is foremost the economic openness and not the political internationalization that positively affects the quality of democracy. . Apparently. Venezuela. In the time span between 1995 and 2005 eight out of the 30 established democracies show a (non-linear) decline in their quality over time. More countries (including India. Significantly. sometimes expanding political freedoms and sometimes contracting them. Since. The extent to which political changes occurred after globalization pressures hit LDCs provides immediate credibility to policy makers who have long assumed that globalization leads to improvements in democracy. Ghana. Yet. In fact. and Zimbabwe).IMPACT OF ECONOMIC GLOBALIZATION ON DEMOCRATIZATION.

the better it seems to be capable of taking advantage of economic globalization for the further development of its quality of democracy. Globalization Has No Impact On Democracy Since. This finding questions to some degree the optimistic view: globalization indeed can be seen an opportunity for democracy and enhance its quality. Globalization and Interdependence in the International Political Economy . the world economy is not as integrated as commonly believed. 60-88. the finding that economic crises seem to have a negative impact on the quality of democracy is alarming. For example. However. Additionally. the positive impact of economic globalization decreases over time. Since the LDCs generally do not participate in the global economy. . Jones. However. 1996). the negative impact of inflation on the development of the quality of democracy is absorbed in stable democracies. 1991). 'Globalization and its Limits'. the effect of their economic openness on their democracy should not be large to begin with. eds. 1996). MNCs typically have a home bias.The quality of democracy seems to develop better in countries that in terms of their age can be considered stable democracies. National Diversity and Global Capitalism (New York: Cornell University Press. International Affairs. the stability of a country amplifies the impact of economic openness: the older a democratic regime is. in Susanne Berger and Ronald Core. Scharpf. globalization will not affect their levels of democracy. More and especially more detailed analyses are needed to examine this issue. established and stable democracies seem to profit more by open markets than younger democratic regimes. The age of a democracy seemingly also helps to overcome financial crises. Since the DCs are already stable democracies. Crisis and Choice in European Social Democracy (New York: Cornell University Press. pp. 'The Global Economy: Myth and Realities'. Globalization in Question: The International Economy and the Possibilities of Governance (Cambridge: Polity Press.10 10 F. considering the current state of worldwide economy. Robert Wade. Furthermore. Paul Hirst and Grahame Thompson. 409-25. Paul Hirst. 73 (1997). Most international trade takes place within geographical regions. and most foreign direct investment (FDI) concentrates in a few countries.

though globalization-induced economic crises may force the exit of authoritarian regimes in favour of a democracy. Moreover. in Keohane and Milner. Hence. 'The Impact of the International Economy on National Policies' . 1996). O. the domestic political institutions. the identity of the domestic winners and losers. 'Internationalization and Domestic Politics '. eds. L. E. Kurzer. one can argue that the level of democracy does not necessarily have to decline with economic openness. Vernon. in R. FDI inflows affect democracy positively. The negative effect of trade is constant over time whereas the effect of portfolio investments strengthens. 25-47. Geoffrey Garrett. depicts that globalization is a buzzword. . “Trade openness and portfolio investment inflows exert negative affect on democracy. 3-24. pp. O. Minneapolis. Increased national economic openness originates from the deliberate choices of states. NY: Cornell University Press. but the effect weakens overtime.11 According to a third view. pp. P. 'The Impact of the International Economy on National Policies: An Analytical Overview' . 787-824. 1993). Business and Banking: Political Change and Economic Integration in Western Europe (Ithaca. depending on government policies. Theses patterns hold for 11 R. The Political Economy of Democratic Transitions. eds. 'Mixed Blessing: Foreign Capital Flows and Democracy in Emerging Markets' (presented at Annual Meeting of International Studies Association. 1971). and the current level of democracy. J. Milner. Internationalization and Domestic Politics (Cambridge: Cambridge University Press. 52 (1999). Governments still exert considerable control over their own economies. whether economic sectors are privatized or not. Rogowski. By implication. the effects of globalization vary across countries. Longworth. V. the assumption that globalization doesn’t affect democracy. Internationalization and Domestic Politics.There is also an assertion that globalization does not necessarily render the welfare state powerless. Frieden and Rogowski. Milner and R. if managed effectively. A. 'Global Markets and National Politics: Collision Course or Virtuous Circle?' International Organization. The spread of democratic ideas promotes democracy persistently over time. H. Global Squeeze. Sovereignty at Bay (New York: Basic Books. the effects of globalization on democracy may not be uniform. For example. whose effect has been over exaggerated. these crises. Keohane and H. Keohane. V. a country's location in the global pecking order. may instead increase the public support for authoritarian leaders. 1998). Armijo.12 In sum. the modern welfare state is still effective because it provides important collective goods under-supplied by markets (such as social stability. infrastructure) and compensates the losers from economic openness. 12 Haggard and Kaufman. property rights. Frieden and R.

the economic aspects of integration into the world economy are beginning to cause a decline in national democratic governance. In sum.” .all countries and the LDCs alone.

1996. We will examine the impacts that these policies have on Africa. These outdated approaches result in a failure of the policies that are meant to assist all regions of the world. The developed nations continue to use the traditional paradigms of international relations to get profits from the least developed nations. many obstacles need to be dealt with to achieve these international goals. it has been viewed as an undemocratic process by those who believe that it is there to exploit rather than to assist. However. Despite many positive effects of globalizing democracy. Therefore. the developing regions. are severely affected when such incompatible policies are being incorporated in their development agenda.13 Most of the challenges experienced are a result of the differences in the approach to certain issues such as the economic systems. Cox. A. “Globalization. It uses the European Union’s policies that are normally used to implement democracy and globalization. for instance Africa. More so. which is being spearheaded 13 14 Gilbert. . they mar the African development.Implications Of Globalization Towards The Least Developed Countries Many attempts to make democracy a universally acceptable concept across the globe have been made. The main aim of globalizing democracy was to achieve democracy and its positive values at a global level. The new impetus developed in the post-cold war era requires a new political order for the universal economic liberalism to be attained. The policies developed by the European Union tend to be skewed in favor of the European nations.14 It is worth to note that the responsibility for attainment of the expected results lies in the nation itself. especially in Africa. Multilateralism and Democracy”. Cambridge University Press. On the one hand. (1990) “Democratic Individuality” Cambridge: Cambridge University Press. some states in the world believe that the process will have positive implications for the achievement of universal goals. R. the ideology proved to have many setbacks. Although the powerful and the most developed countries continue to promote the globalised systems of governance. there remains a big gap between what the concept’s proponents hoped to achieve and what they have attained in reality over the years. On the other hand. in general.

In Africa. F. They encourage other countries to adopt democracy as a form of governance. the Africa-Strategy of the European Commission stresses on the importance of a socio-economical environment favoring the democracy. due to this. African countries. It makes policies which influence development and even social life of the member countries and of other non member countries with which it relates. countries have joined together into regional blocks which promote the member countries’ views and interests at the global level. many third world countries remain poor as a result of dependence on agricultural based. There is a high level of trade between African countries and the EU member countries. Such regional blocks adopt policies which they use to influence trade.15 Many first world countries have been championing globalization and democracy in the world. unprocessed products which they export to the first world countries. The Impact of EU`s policies on democratization in Sub-Sahara Africa. The European Union is an example of such a regional block that has been championing for democracy and globalization among the third world countries. and other international organizations. both in trade and other sectors. Africa is one of the main regions to which the European Union has applied its economic. (2007). They also advocate for democratization of globalization. Available at http://essay.by major world bodies such as the European Union. For example.pdf . These policies have had both positive and negative impacts on Africa. In order to control the trade and advance the ideologies of globalizing democracy and democratizing globalization. the EU has advocated and encouraged trade among European nations. social and political policies on democracy and globalization. social values. In order to gain more influence in the global arena. it has emphasized on trading with only those countries that respect democracy and uphold the key values and principles of democracy.utwente. the European Unions have certain policies on trade that ensure their Union’s goals are completely met. They encourage other countries to concentrate mainly on production and marketing of those products that each country has a comparative advantage in. and the world at large. Over the years. and other aspects of the society. In a way. governance.nl/706/1/scriptie_Paulsen. the United Nations. The strategy emphasizes on the creation 15 Paulsen.

in the case of sub-Saharan African countries.of a socio-economic environment in which democracy and its values are respected. Thi s dependence on the European market gives EU and the European Commission a position of power over their trade partner African states. For example. the European Union propagates democracy. It encourages European nations to engage in socio-economic activities and projects that promote economic development and social development. particularly if these trade partners conduct the major part of their trade with the EU. Through the European Trade policy. the EU or the European Commission set certain conditions such as human rights and democracy observance in the African countries. However. 16 Id. Outgoing from this position of power. the European Union and its member countries are supposed to set conditions in any Trade or Social development agreement or contract that will help realize democracy in the partner African countries. This way. The absolute position of power of the EC in trade is often strengthened by the relatively weak position of the trade partners in Africa. for most African countries. especially African countries. the European Union has managed to spread democracy ideology while at the same time democratize globalization. trade might be “the most important policy in the scope of responsibilities of the European Union which is having influence on developing countries". In order to achieve this. the EU has a potentially high influence on the macro-economic situation of its trade partners. in some cases constituting more than 50% of such countries’ external trade. . while at the same time spreading democracy within the African countries. Through this policy. The African countries have to meet such conditions for them to trade with the European Union and its member countries. trade with the EU has a very high importance. The trade policy is meant to encourage international trade between the EU member countries and other countries in the world. 16 The EU trade relations with any African country account for only a small fraction of its entire external trade.

Foreword: The social Left and the market system. knowing that the African countries. Cambridge: Cambridge University Press. J.NEGATIVE EFFECTS OF THE EUROPEAN UNIONS’ POLICIES ON AFRICA In globalizing democracy and democratizing globalization. entail certain conditions. UNDEMOCRATIC TRADE POLICY The European Union. However. the Union is a destructive force to the very ideologies it embraces and tries to spread. due to their dependence on the European market. It does this in a dictatorial manner. The European Trade Policy. Democratic Individuality. as seen in the discourse above. have little power to object to whatever condition the European Union sets. Thus. despite the European Union’s intention of spreading democracy in the world and democratizing globalization. imposes certain conditions. Gilbert. which to a great extent depends on the European market for sale of their unprocessed goods and products. This. Though the conditions are good themselves. as seen above. (2000). In A. which have to be met by any African country for such a country to engage in business with any European country that is a member of the European Union. Therefore. the undemocratic way in which they are set and imposed on African countries make the treaty unfair and undemocratic. sets conditions in its trade policies without even consulting the affected African countries. Such policies. K. for example. outgoing from its position of power. the European Union employs the use of conditional policies. it is evident that the EU has made many positive steps in globalizing democracy and democratizing globalization in Africa through its policies. in the long run. which have to be met by any African country interested in doing business with the European Union.17 The European Union sets such conditions from a position of power over poor African states. have almost no other option but to follow whatever the EU wishes. to a great extent. knowing that such countries. This practice of the European Union and European Council is very undemocratic. . 17 Galbraith. It goes against the very ideology of democracy the Union and the Commission stands for and spread. the negative effects of these policies on African countries have made Africa less off rather than helped it. it is a big blow against globalization of democracy in the long run. due to their poverty state.

it is possible to counteract the negative effects that former policies have had on Africa and strengthen their positive effects. This will help realize globalization of democracy and democratization of globalization in Africa.However. . with a good democratic and participatory approach to the development of the European Union’s policy.

Democracies would prefer import "economic" goods contributing more positively to the national welfare. Other authors renew the liberal tradition to underline the advantages of democratic regimes. conversely. there is no consensus about the nature of the relation between growth and democracy. this link is not completely obvious: on the one hand. handle better adverse shocks than autocracies. democracies produce greater stability in economic performances. During the 70s and 80s. April 7th. 1999). Southern Asia registered the world’s highest trade expansion under similar authoritarian regimes. The "political market" alternative in the democracies is a greater corruption in the authoritarian countries. a concentrated and organized industry has more chance to be rentseeker than consumers. . The Chilean and Asian cases undoubtedly contributed to encourage a pessimist and revisionist point of view in the political economy literature. but.20 Thus. study shows that it is less risky to be democratic to obtain some "normal" long-run growth rate. 2003. and pay higher wages. An electoral regime neutralizes the capacity of big groups to be organized and reinforces the pro-trade consumers. The empirical study highlights a negative (and weak) relation between democracy and corruption and between "natural" openness and corruption The explanation may be explained by the Montesquieu’s intuition: the autocratic regimes do not prevent all kinds of imports but predict a trade oriented to sumptuary goods imports (including weapons). However. 20 Jean-Marc Siroën. they have a larger authority to fight it. Lecture EBAPE. So.DOES DEMOCRACY SUPPORT GLOBALIZATION? Since. oligarchies make more difficult the installation of anti-corruptive and counter-power institutions. The study 18 19 (Barro. China is now following the same path. Free riding is under a better control inside small groups than inside the large ones. Moreover.19 At a glance. 1996a & 1996b).. It was during Pinochet’s government that Chile took the initiative of a trade and financial opening. Democratic institutions became a possible obstacle to the economic opening. the democratic institutions of India did not lead this country to open its economy more quickly than the Chinese dictatorship. Globalization and democracy. Econometric studies achieve opposite and frequently weak evidences 18 However. the great democracies appear more open to trade but counter-examples can easily be found. (see also Rodrik.

almost all countries opening their trade with an authoritarian regime have been also democratizing their political system. The great majority of the closed countries is among the least politically free. There are few democratic countries reluctant to free trade. countries like Taiwan or South Korea.confirms. the political opening follows or precedes the trade opening. In many countries. with rare exceptions. India being the most important exception. If we must be cautious about the causality. that free-traders are also democratic. .

the model presented here depicts the process that affects decisions to strengthen democracy as trade and capital flows increase. The author in the paper argues that there are four aspects or views as to the affect of globalisation on the democracy. NBER Working Paper No. 2006). 704. 2005). (Oct. 49 American Journal of Political Science. (Jan. The authors tends to establish the relationship between the globalisation and democracy upon the abovementioned four criteria.2013). . 33. The results suggest the existence of positive relationships running both ways between globalization and democracy. The present paper applies approach to an extensive historical data set. Economic Globalisation and Democracy. This article shows that these two trends are indeed related. (Aug. but not necessarily in the direct manner that has commonly been postulated. 29 British Journal of political science. The connections between globalization and democracy are a classic question in international political economy and a topic much debated in foreign policy circles. 12450. the third says there is no impact on the democracy and the fourth that globalisation does not necessarily affects globalisation.ANNOTED BIBLOIGRAPHY  SECONDARY SOURCES  Quan Li and Rafael Reuveny.  Barry Eichengreen and David Leblang.  Nita Rudra. The four mentioned are the globalisation enhances globalisation and the second says that there is no effect. Democracy and Globalization. Globalization and the Strengthening of Democracy in the Developing World. Combining theories of embedded liberalism and conflict-based theories of democracy.

It helps to rather obtain the casual impact of openness on democratization.    www.e.(July 2004) The presents paper seeks to analyse whether the international trade fosters democracy? The relationship between the trade and democracy is addressed via a gravity model of trade.  WEBSITES. 1 . are at odds with a fundamental principle of democracy.Ernesto Lopez and Christopher M. The author proceeds with a hypothesis that the forces of capitalism. general will) has little or no impact on how economic globalization forces are shaping the globe.com Lexisnexis. Jstor. Meissner.com. Preliminary version Comments. J. the general will.heinonline. ( December 2012).  Nicholas Pretty.com . Integrated Studies Final Project Essay. with a profit driven motive. Interrelationship between Democracy and Capitalism. Democracy and Globalisation. The abovementioned paper demonstrates that a vast majority of people (i.