JOURNAL ARTICLE
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Populism: A Threat to Democracy? Or a verification of it?
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 137 (2017), Iss. 4 : pp. 401–420
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Steven Webb, Former Lead Economist at the World Bank.
Abstract
The recent surge in the number of populist governments coming into power raises the question of their effect on the prospects for democracy. This article uses the limited vs. open access framework – developed by North, Wallis, Webb and Weingast – to evaluate how populist leaders and their parties govern after coming to power. It looks at episodes of populists in power in Latin America, Europe, and the United States. Although most populist governments have kept civilian control of the military, notwithstanding some Latin American exceptions, they have typically moved their societies away from open access and sustainable democracy in several important ways: undermining rule of law in the name of the “will of the people” whom they claim to represent; reducing citizenship rights for unpopular minorities; making rules and their enforcement more personal and dependent on group identity; and hindering a free press and opposition parties that could hold the government accountable and perhaps bring about peaceful democratic transitions in the future. This sheds new light on how open access orders might revert to limited access.