Chapter 7: Developed Democracies
Defining Developed Democracies
What is a “Developed Democracy”?
Developed democracy: a country with institutionalized democracy and a high level of economic development
Formerly referred to as “First World”
Developed democracies are contrasted with “communist and postcommunist countries” and “developing countries.”
These terms are also falling out of favor: In 2016, the World Bank began phasing out “developed” and “developing” as classifications.
Developed Democracies Around the World
Predominantly Europe and the Americas, but an increasingly diverse category.
Grouping countries by institutional similarities is a useful way to compare and study political systems.
Key Characteristics of Developed Democracies
Strong economic and political liberties
Liberal democracy, private property, free markets
Service-based industry
Higher or upper-middle income ratings
Very high or high levels of human development (HDI)
Postindustrial societies
Mexico’s Transition to a Middle-Class Society
Dramatic socioeconomic shift over past twenty years
Has become a developed democracy
One of the world’s most open economies
Dependent on trade of manufactured goods
Reduced its heavy dependence on oil trade
Experienced an unprecedented period of political stability and economic growth
Allowed many Mexicans to ascend to the middle class and move to more urban areas
Not everyone has benefitted equally
Millions of small farmers have been driven out of business due to competition from US imports
Economy unable to produce enough jobs
Thus, many poor Mexicans seek employment north of the border
Freedom and Equality in Developed Democracies
Balancing Freedom and Equality
Developed democracies reconcile freedom and equality differently.
Often relates to their political-economic systems
Liberal systems emphasize freedom.
Social-democratic systems emphasize equality.
Mercantilist systems focus on development rather than freedom or equality.
Freedom and Equality: Political Differences
Differences in liberty (freedom)
Different civil rights and liberties
Differences in constitutional court strength and activism
Differences in participation
Voter laws: eligibility, registration rules, and compulsory versus voluntary voting
Referenda and initiative use
Differences in competition
Electoral systems
Campaign funding rules
Executive power and type (“separation of powers” or not)
In Focus: Political Diversity in Developed Democracies
Participation | Competition | Liberties |
---|---|---|
Referenda and initiatives are used in varying degrees. | Different methods and levels of funding are used for political parties and campaigns. | Distinctions exist in the regulation, allowance, or prohibition of activities such as abortion, prostitution, and hate speech. |
Separation of powers varies greatly and is primarily on the relative strength of different branches of government. | Different degrees of individual privacy are protected from state and corporate intrusion. |
Freedom and Equality: Economic Differences
All promote economic freedom through capitalism
Differences in promoting equality:
Wealth redistribution (taxation; welfare spending)
Provision of public goods
Job protection and/or unemployment insurance
Contemporary Challenges for Developed Democracies
Modern and Postmodern Politics
The value transition: from modern to postmodern
Modern: characterized as secular, rational, materialistic, technological, and bureaucratic, and places a greater emphasis on individual freedom
Postmodern: characterized by a set of values that center on “quality of life” considerations and give less attention to material gain
Big questions
What does this transition mean for politics?
How much change is really occurring?
Modern vs. Postmodern Values
Modern
Prioritizes
Rationality and science
Individualism and autonomy
Progress and material obtainment
Rejects the obedience and collectivism of traditional values
Postmodern
Prioritizes “quality of life” issues
E.g., environment as public good
Equality and social justice
Skepticism regarding
Science and technology
Nationalism and patriotism
Authority and hierarchy
Political Institutions: Sovereignty Transformed?
Two Modern Trends Challenging the State System
International integration
Process by which states pool their sovereignty, surrendering some individual powers in exchange for political, economic, or societal benefits
Increases power and authority of international and regional organizations
Devolution
Process of devolving, or “sending down,” political power to lower levels of government
Increases the power and authority of subnational governments
The Origins of the European Union
Post WWII: Goal to prevent another European war
1950 Schuman Declaration
1951: European Coal and Steel Community (ECSC) created
Six countries: France, Germany, Italy, Belgium, Netherlands, and Luxembourg
Functional cooperation on coal and steel
Timeline of European Integration
1950s-1960s: increasing integration
1970s: Membership expansion; EU parliament directly elected
1980s: Former nondemocracies join
1990s-early 2000s: EC becomes EU; euro introduced; massive expansion in membership
Late 2000s-present: EU in crisis (euro economic crisis, Brexit)
Major EU Institutions: The European Council
Sets the “general political direction and priorities” of the EU
Heads of government/state of EU member states
Meets four times a year at European Summit
Elects the EU president
President serves 2.5-year terms
Major EU Institutions: The European Commission
Led by 27 members plus a president of the commission
27 members: one per member state
President chosen by the European Council and approved by European Parliament
Oversees a very large bureaucracy
Most powerful EU institution
Initiates proposals
Manages EU agencies
Monitors implementation of EU treaties
Major EU Institutions: The European Legislature
EU is a bicameral legislature.
For EU policy to pass, it needs approval from both “houses.”
European Parliament (EP)
Directly elected by EU voters using PR rules
Serves for 5-year terms
Council of the European Union (“The Council”)
Appointed ministers of member states
Major EU Institutions: The European Court of Justice
27 judges; led by a president
Serves for 6-year renewable terms
Highest court
Decides whether states are complying with EU laws.
Adjudicates between member states, EU, and citizens.
EU law supersedes national laws.
The European Union: Integration, Expansion, and Resistance
The EU: the path toward supranational governance
Intergovernmental system: a system in which two or more countries cooperate on issues
Supranational system: an intergovernmental system with its own sovereign powers over member states
Major Challenges to EU Integration
“Democratic deficit”
EU as an elite-driven project
Euro crisis
EU enlargement
Immigration, jobs, and the Brexit pushback
The Euro: the Hopes, and What Worked
The hopes
Common prices would stimulate trade and cross-border investment.
One currency would foster a single European identity.
Increase the EU’s international power
Euro as a “reserve currency” for other countries
What worked
Expanding international economic power by becoming a reserve currency
The Euro: What Didn’t Work
The problems created
Economic dependencies
Trade deficits
Debt crises
An increasing North-South divide
EU Expansion and the Rise of the Far Right
The hopes
Spread democracy, promote economic transitions
Increase EU influence: economics, politics, and population
What worked: economic and political reform
The problem: emerging tensions over immigration and jobs
The response: Brexit and rise of far right
Devolution and Democracy
A second challenge to state (national) sovereignty: devolution
The challenge “from below”
Political trend toward greater power for subnational government
Motivation comes from an in-public mistrust of the state (central government)
Devolution is seen as a way to bring government closer to the people.
In Focus: Means of Devolution
Transfer of policy-making responsibility to lower levels of government.
Creation of new political institutions at lower levels of government.
Transfer of funds and taxation powers to lower levels of government, affording them more control over how resources are distributed.
Arguments For and Against Devolution
In favor:
Improves trust in government
Represents marginal communities
Improves citizen engagement and ability to shape politics
Against:
Undermines state capacity and autonomy
May destabilize ethnic relations and empower separatists
Societal Institutions: New Identities in Formation?
An Evolution of Means
Traditional: obedience and authority
Modern: rationality and science, individualism and autonomy
Postmodern: challenged modernism from multiple angles
Why the Transition to Postmodernism may be Overstated
Religious/cultural heritage shapes societal values irrespective of a state’s level of development.
Progress to postmodernism is not a smooth transition.
Economic development (stagnation or inequality) can lead to value “backsliding.”
Traditional and survival values are prioritized in times of economic hardship.
Diversity, Identity, and the Challenge to Postmodern Values
New realities: Unprecedented wave of immigration to developed democracies
Different developed democracies, different immigration populations
United States: Latin American immigrants
Canada, Australia, and New Zealand: Asian immigrants
Europe: North African and Middle Eastern immigrants
Reactions to this Immigration Wave
Rising xenophobia
Fears that immigrants compete for scarce jobs and depress wages
Debates over national identity and societal inclusion
Should states promote multiculturalism or assimilation?
Fear of identity shifts reinforces xenophobia and racism, undermines postmodern values.
Cultural shifts and growing divergence in developed democracies
May undermine secular, postmodern values
Economic Institutions: A New Market?
Postindustralism in Developed Democracies
Twentieth century: Manufacturing and industry
Focus on tangible goods
Examples: cars or computers
Twenty-first century: Service sector
Focus on intangible goods
Examples: finance, insurance, real estate, education, retail sales, transportation, communication, high technology, utilities, healthcare, and business and legal services
Main Reasons for the Postindustrial Shifts
Lower labor and production costs in developing countries
Trend accelerated by globalization
Technological innovation
Reduces need for low-skill labor (and some high-skill labor)
Requires more education for entry-level positions
Result: Less economic opportunity and labor mobility
The Opportunities and Challenges of the Tech Economy
Some new economic opportunities
Programmers, developers
“Gig labor”
Significant economic damage
Manufacturing job loss
Many new jobs offer less pay and less economic security
Major Consequences of Postindustrial Economies
Rising inequality
Challenges the balance of freedom and equality
Increasing demands for policies that may reduce economic freedoms
Raises demands for trade barriers
Greater demands for income redistribution
Limitations to immigration and globalization
Linked to xenophobia and rejection of postmodernism
The Welfare State: The Benefits
Less extreme poverty
Lower infant mortality
Increased life expectancy
Improved literacy and education
Big picture: better economic opportunities
TWS: Controversies and Challenges
Increasingly expensive
More programs require more money
Trends magnified by a growing demographic crisis
Working age population aging and shrinking
Less taxes paid in, more expenditures paid out
Higher wages = higher labor costs = less business profit = less businesses = fewer jobs
Potential Policy Solutions and Their Problems
Increase labor force size (immigration; increased retirement age)
Significant public backlash
Cut welfare benefits
Less spending on health and education undermines long-term growth.
Rising frustrations may trigger protests or riots.
Increase government debt.
Unsustainable (see Greece; Japan)
Raise taxes
Voters do not like this.
Firms or wealthy individuals may leave the country to avoid taxes.
Technical fixes
Require effective political oversight
In Sum: Developed Democracies in Transition
Developed democracies are countries with institutionalized democracy and postindustrial economies.
These countries prioritize freedom and equality but differ in how they find the balance between each other.
These countries have long been dominated by modern political values, but may or may not be transitioning to postmodern values.
Developed democracies face a number of recent challenges.
Sovereignty has been challenged by international integration and devolution trends.
Societal institutions are challenged by postmodern shifts and increasing diversity brought on by immigration.
The traditional economic status quo has been uprooted by postindustrial development and rising social welfare costs.
Overall, these countries are characterized by the greatest freedom and best quality of life in the world, but they also are facing a number of challenges that can improve or undermine this prosperity.
Key Terms
Developed democracy - a country with institutionalized democracy and a high level of economic development
Intergovernmental system - a system in which two or more countries cooperate on issues
Modern - characterized as secular, rational, materialistic, technological, and bureaucratic, and places a greater emphasis on individual freedom
Postmodern - characterized by a set of values that center on “quality of life” considerations and give less attention to material gain
Supranational system - an intergovernmental system with its own sovereign powers over member states
Chapter 7: Developed Democracies
Defining Developed Democracies
What is a “Developed Democracy”?
Developed democracy: a country with institutionalized democracy and a high level of economic development
Formerly referred to as “First World”
Developed democracies are contrasted with “communist and postcommunist countries” and “developing countries.”
These terms are also falling out of favor: In 2016, the World Bank began phasing out “developed” and “developing” as classifications.
Developed Democracies Around the World
Predominantly Europe and the Americas, but an increasingly diverse category.
Grouping countries by institutional similarities is a useful way to compare and study political systems.
Key Characteristics of Developed Democracies
Strong economic and political liberties
Liberal democracy, private property, free markets
Service-based industry
Higher or upper-middle income ratings
Very high or high levels of human development (HDI)
Postindustrial societies
Mexico’s Transition to a Middle-Class Society
Dramatic socioeconomic shift over past twenty years
Has become a developed democracy
One of the world’s most open economies
Dependent on trade of manufactured goods
Reduced its heavy dependence on oil trade
Experienced an unprecedented period of political stability and economic growth
Allowed many Mexicans to ascend to the middle class and move to more urban areas
Not everyone has benefitted equally
Millions of small farmers have been driven out of business due to competition from US imports
Economy unable to produce enough jobs
Thus, many poor Mexicans seek employment north of the border
Freedom and Equality in Developed Democracies
Balancing Freedom and Equality
Developed democracies reconcile freedom and equality differently.
Often relates to their political-economic systems
Liberal systems emphasize freedom.
Social-democratic systems emphasize equality.
Mercantilist systems focus on development rather than freedom or equality.
Freedom and Equality: Political Differences
Differences in liberty (freedom)
Different civil rights and liberties
Differences in constitutional court strength and activism
Differences in participation
Voter laws: eligibility, registration rules, and compulsory versus voluntary voting
Referenda and initiative use
Differences in competition
Electoral systems
Campaign funding rules
Executive power and type (“separation of powers” or not)
In Focus: Political Diversity in Developed Democracies
Participation | Competition | Liberties |
---|---|---|
Referenda and initiatives are used in varying degrees. | Different methods and levels of funding are used for political parties and campaigns. | Distinctions exist in the regulation, allowance, or prohibition of activities such as abortion, prostitution, and hate speech. |
Separation of powers varies greatly and is primarily on the relative strength of different branches of government. | Different degrees of individual privacy are protected from state and corporate intrusion. |
Freedom and Equality: Economic Differences
All promote economic freedom through capitalism
Differences in promoting equality:
Wealth redistribution (taxation; welfare spending)
Provision of public goods
Job protection and/or unemployment insurance
Contemporary Challenges for Developed Democracies
Modern and Postmodern Politics
The value transition: from modern to postmodern
Modern: characterized as secular, rational, materialistic, technological, and bureaucratic, and places a greater emphasis on individual freedom
Postmodern: characterized by a set of values that center on “quality of life” considerations and give less attention to material gain
Big questions
What does this transition mean for politics?
How much change is really occurring?
Modern vs. Postmodern Values
Modern
Prioritizes
Rationality and science
Individualism and autonomy
Progress and material obtainment
Rejects the obedience and collectivism of traditional values
Postmodern
Prioritizes “quality of life” issues
E.g., environment as public good
Equality and social justice
Skepticism regarding
Science and technology
Nationalism and patriotism
Authority and hierarchy
Political Institutions: Sovereignty Transformed?
Two Modern Trends Challenging the State System
International integration
Process by which states pool their sovereignty, surrendering some individual powers in exchange for political, economic, or societal benefits
Increases power and authority of international and regional organizations
Devolution
Process of devolving, or “sending down,” political power to lower levels of government
Increases the power and authority of subnational governments
The Origins of the European Union
Post WWII: Goal to prevent another European war
1950 Schuman Declaration
1951: European Coal and Steel Community (ECSC) created
Six countries: France, Germany, Italy, Belgium, Netherlands, and Luxembourg
Functional cooperation on coal and steel
Timeline of European Integration
1950s-1960s: increasing integration
1970s: Membership expansion; EU parliament directly elected
1980s: Former nondemocracies join
1990s-early 2000s: EC becomes EU; euro introduced; massive expansion in membership
Late 2000s-present: EU in crisis (euro economic crisis, Brexit)
Major EU Institutions: The European Council
Sets the “general political direction and priorities” of the EU
Heads of government/state of EU member states
Meets four times a year at European Summit
Elects the EU president
President serves 2.5-year terms
Major EU Institutions: The European Commission
Led by 27 members plus a president of the commission
27 members: one per member state
President chosen by the European Council and approved by European Parliament
Oversees a very large bureaucracy
Most powerful EU institution
Initiates proposals
Manages EU agencies
Monitors implementation of EU treaties
Major EU Institutions: The European Legislature
EU is a bicameral legislature.
For EU policy to pass, it needs approval from both “houses.”
European Parliament (EP)
Directly elected by EU voters using PR rules
Serves for 5-year terms
Council of the European Union (“The Council”)
Appointed ministers of member states
Major EU Institutions: The European Court of Justice
27 judges; led by a president
Serves for 6-year renewable terms
Highest court
Decides whether states are complying with EU laws.
Adjudicates between member states, EU, and citizens.
EU law supersedes national laws.
The European Union: Integration, Expansion, and Resistance
The EU: the path toward supranational governance
Intergovernmental system: a system in which two or more countries cooperate on issues
Supranational system: an intergovernmental system with its own sovereign powers over member states
Major Challenges to EU Integration
“Democratic deficit”
EU as an elite-driven project
Euro crisis
EU enlargement
Immigration, jobs, and the Brexit pushback
The Euro: the Hopes, and What Worked
The hopes
Common prices would stimulate trade and cross-border investment.
One currency would foster a single European identity.
Increase the EU’s international power
Euro as a “reserve currency” for other countries
What worked
Expanding international economic power by becoming a reserve currency
The Euro: What Didn’t Work
The problems created
Economic dependencies
Trade deficits
Debt crises
An increasing North-South divide
EU Expansion and the Rise of the Far Right
The hopes
Spread democracy, promote economic transitions
Increase EU influence: economics, politics, and population
What worked: economic and political reform
The problem: emerging tensions over immigration and jobs
The response: Brexit and rise of far right
Devolution and Democracy
A second challenge to state (national) sovereignty: devolution
The challenge “from below”
Political trend toward greater power for subnational government
Motivation comes from an in-public mistrust of the state (central government)
Devolution is seen as a way to bring government closer to the people.
In Focus: Means of Devolution
Transfer of policy-making responsibility to lower levels of government.
Creation of new political institutions at lower levels of government.
Transfer of funds and taxation powers to lower levels of government, affording them more control over how resources are distributed.
Arguments For and Against Devolution
In favor:
Improves trust in government
Represents marginal communities
Improves citizen engagement and ability to shape politics
Against:
Undermines state capacity and autonomy
May destabilize ethnic relations and empower separatists
Societal Institutions: New Identities in Formation?
An Evolution of Means
Traditional: obedience and authority
Modern: rationality and science, individualism and autonomy
Postmodern: challenged modernism from multiple angles
Why the Transition to Postmodernism may be Overstated
Religious/cultural heritage shapes societal values irrespective of a state’s level of development.
Progress to postmodernism is not a smooth transition.
Economic development (stagnation or inequality) can lead to value “backsliding.”
Traditional and survival values are prioritized in times of economic hardship.
Diversity, Identity, and the Challenge to Postmodern Values
New realities: Unprecedented wave of immigration to developed democracies
Different developed democracies, different immigration populations
United States: Latin American immigrants
Canada, Australia, and New Zealand: Asian immigrants
Europe: North African and Middle Eastern immigrants
Reactions to this Immigration Wave
Rising xenophobia
Fears that immigrants compete for scarce jobs and depress wages
Debates over national identity and societal inclusion
Should states promote multiculturalism or assimilation?
Fear of identity shifts reinforces xenophobia and racism, undermines postmodern values.
Cultural shifts and growing divergence in developed democracies
May undermine secular, postmodern values
Economic Institutions: A New Market?
Postindustralism in Developed Democracies
Twentieth century: Manufacturing and industry
Focus on tangible goods
Examples: cars or computers
Twenty-first century: Service sector
Focus on intangible goods
Examples: finance, insurance, real estate, education, retail sales, transportation, communication, high technology, utilities, healthcare, and business and legal services
Main Reasons for the Postindustrial Shifts
Lower labor and production costs in developing countries
Trend accelerated by globalization
Technological innovation
Reduces need for low-skill labor (and some high-skill labor)
Requires more education for entry-level positions
Result: Less economic opportunity and labor mobility
The Opportunities and Challenges of the Tech Economy
Some new economic opportunities
Programmers, developers
“Gig labor”
Significant economic damage
Manufacturing job loss
Many new jobs offer less pay and less economic security
Major Consequences of Postindustrial Economies
Rising inequality
Challenges the balance of freedom and equality
Increasing demands for policies that may reduce economic freedoms
Raises demands for trade barriers
Greater demands for income redistribution
Limitations to immigration and globalization
Linked to xenophobia and rejection of postmodernism
The Welfare State: The Benefits
Less extreme poverty
Lower infant mortality
Increased life expectancy
Improved literacy and education
Big picture: better economic opportunities
TWS: Controversies and Challenges
Increasingly expensive
More programs require more money
Trends magnified by a growing demographic crisis
Working age population aging and shrinking
Less taxes paid in, more expenditures paid out
Higher wages = higher labor costs = less business profit = less businesses = fewer jobs
Potential Policy Solutions and Their Problems
Increase labor force size (immigration; increased retirement age)
Significant public backlash
Cut welfare benefits
Less spending on health and education undermines long-term growth.
Rising frustrations may trigger protests or riots.
Increase government debt.
Unsustainable (see Greece; Japan)
Raise taxes
Voters do not like this.
Firms or wealthy individuals may leave the country to avoid taxes.
Technical fixes
Require effective political oversight
In Sum: Developed Democracies in Transition
Developed democracies are countries with institutionalized democracy and postindustrial economies.
These countries prioritize freedom and equality but differ in how they find the balance between each other.
These countries have long been dominated by modern political values, but may or may not be transitioning to postmodern values.
Developed democracies face a number of recent challenges.
Sovereignty has been challenged by international integration and devolution trends.
Societal institutions are challenged by postmodern shifts and increasing diversity brought on by immigration.
The traditional economic status quo has been uprooted by postindustrial development and rising social welfare costs.
Overall, these countries are characterized by the greatest freedom and best quality of life in the world, but they also are facing a number of challenges that can improve or undermine this prosperity.
Key Terms
Developed democracy - a country with institutionalized democracy and a high level of economic development
Intergovernmental system - a system in which two or more countries cooperate on issues
Modern - characterized as secular, rational, materialistic, technological, and bureaucratic, and places a greater emphasis on individual freedom
Postmodern - characterized by a set of values that center on “quality of life” considerations and give less attention to material gain
Supranational system - an intergovernmental system with its own sovereign powers over member states