Globalization, international asymmetries and democracy: a structuralist perspective

Abstract

ABSTRACT International cooperation, especially on a multilateral basis, has lost ground in recent years. This process has been accompanied by the erosion of core democratic values in many developing and developed countries. Taking Rodrik’s trilemma in international political economy as a point of departure, we analyze the relationship between international regime, international cooperation and democracy using a center-periphery structuralist model, which acknowledges the existence of asymmetries in technological and productive capabilities across countries. We discuss the outcomes of the structuralist model in terms of growth and income distribution under different international regimes, namely the Bretton Woods regime and the hyperglobalization regime. We argue that hyperglobalization gives rise to a recessive bias that compromises income distribution and the stability of the international system. In addition, hyperglobalization has a negative effect on democracy stemming from the reproduction of inequality and specialization in sectors intensive in natural resources or unskilled labor. We present some empirical evidence supporting these results based on the Asian and Latin American experiences in growth and structural change, and on the positive association between democracy and more complex economic structures.