Chapter 6 - The Economic Determinants of Democracy and Dictatorship Notes

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Classic Modernization Theory

Most economic theories for democracy can be traced back to a set of concepts known as "modernization theory." According to modernization theory, all civilizations go through the same stages of economic growth.
Large agricultural sectors and modest industrial and service sectors defined these primitive or immature societies. These countries would eventually "grow up" and develop into mature civilizations with modest agricultural sectors, substantial industrial and service sectors, greater urbanization, higher educational attainment, and increasing societal "complexity."
Economic progress, in effect, “seals” democracy out of a dictatorship. Although Przeworski et al. (2000) emphasize modernization theory's notion that countries would become democratic as their economies improve,
The vocabulary employed by modernization theory, as well as its implications, are disturbing and distressing to many individuals. After all, according to the notion, all countries will ultimately resemble the United States and Western Europe as they develop.
One of the major implications of modernization theory is that there should be a significant correlation between a country's economic development and its democratic status.

Only 12% of nations with a GDP per capita of less than $1,500 are democracies, implying that 88 percent are dictatorships.

We must quantify economic progress in order to analyze it. The quantity of income per person in an economy, or “GDP per capita,” is a widely used indicator of economic growth. Gross domestic product (GDP) is a metric that represents the value of all products and services generated in a nation over a given time period, generally a year.
PPP estimates the price of a certain bundle of commodities in each nation using the local currency of that country. The ratio of the two prices is used to compute the exchange rate between two nations. The Big Mac index, popularized by the Economist magazine, is a simple example of a PPP metric.
This new wave of study began when Adam Przeworski, a well-known comparative political scientist, claimed that increasing money helps democracies survive but not become democratic in the first place. Why does Przeworski believe that money aids democracy's survival?
Assume you are a rich individual living in a democratic society. Consider how you would feel if you lived under a dictatorship. There's a chance you'll end up in the dictator's circle, and you could get wealthy as a result. Even so, there's a good chance you wouldn't be in the dictator's circle, and you'd lose everything and become far poorer.

We looked at the argument made by traditional modernization theorists that countries are more likely to become and stay democratic as they get wealthy in the previous section.

This kind of modernization theory contends that it is changed in a country's socio-economic structure that follows economic progress that fosters democracy, not income per se.
This version of modernization theory not only explains why democracies are more likely to develop and thrive in wealthy nations, but also explains why countries with enormous natural resources, such as oil, diamonds, or minerals, are more likely to be dictatorships than democracies.

According to traditional modernization theory, as countries grow economically, they are more likely to become and remain democratic. We provide empirical proof to back up our statements. We show that democracy has a better chance of emerging and surviving in high-income nations.
This version of modernization theory explains why democracies are more likely to develop in high-income nations and endure. It also explains why dictatorships are more common in nations with vast natural resources such as oil, diamonds, or minerals.
We are particularly interested in how economic development and economic structure impact the chances of a nation becoming and being democratic. We show how the predatory perspective of the state outlined in Chapter 4 might help explain why some nations are democratic and others are dictatorial in this way. We'll look at so-called cultural reasons for democracy in the following chapter.

Most economic theories for democracy can be traced back to a set of concepts known as "modernization theory." According to modernization theory, all civilizations go through the same stages of economic growth.
Large agricultural sectors and modest industrial and service sectors defined these primitive or immature societies. These countries would eventually "grow up" and develop into mature civilizations with modest agricultural sectors, substantial industrial and service sectors, greater urbanization, higher educational attainment, and increasing societal "complexity."
Economic progress, in effect, “seals” democracy out of a dictatorship. Although Przeworski et al. (2000) emphasize modernization theory's notion that countries would become democratic as their economies improve,
The vocabulary employed by modernization theory, as well as its implications, are disturbing and distressing to many individuals. After all, according to the notion, all countries will ultimately resemble the United States and Western Europe as they develop.
One of the major implications of modernization theory is that there should be a significant correlation between a country's economic development and its democratic status.

Only 12% of nations with a GDP per capita of less than $1,500 are democracies, implying that 88 percent are dictatorships.

We must quantify economic progress in order to analyze it. The quantity of income per person in an economy, or “GDP per capita,” is a widely used indicator of economic growth. Gross domestic product (GDP) is a metric that represents the value of all products and services generated in a nation over a given time period, generally a year.
PPP estimates the price of a certain bundle of commodities in each nation using the local currency of that country. The ratio of the two prices is used to compute the exchange rate between two nations. The Big Mac index, popularized by the Economist magazine, is a simple example of a PPP metric.
This new wave of study began when Adam Przeworski, a well-known comparative political scientist, claimed that increasing money helps democracies survive but not become democratic in the first place. Why does Przeworski believe that money aids democracy's survival?
Assume you are a rich individual living in a democratic society. Consider how you would feel if you lived under a dictatorship. There's a chance you'll end up in the dictator's circle, and you could get wealthy as a result. Even so, there's a good chance you wouldn't be in the dictator's circle, and you'd lose everything and become far poorer.

We looked at the argument made by traditional modernization theorists that countries are more likely to become and stay democratic as they get wealthy in the previous section.

This kind of modernization theory contends that it is changed in a country's socio-economic structure that follows economic progress that fosters democracy, not income per se.
This version of modernization theory not only explains why democracies are more likely to develop and thrive in wealthy nations, but also explains why countries with enormous natural resources, such as oil, diamonds, or minerals, are more likely to be dictatorships than democracies.