Sustaining Capitalism and Democracy: Lessons from Global Competition Policy

Abstract

AbstractCompetition policy has been a central forum for contesting the uneasy relationship between capitalism and democracy since the late nineteenth century. From the earliest policy debates, concerns that robust competition policies aimed at limiting economic concentration would disadvantage domestic producers featured prominently. This dynamic creates an international cooperation problem over competition policy that has intensified with the dramatic increases in globalization over the last several decades. Understanding the causes and consequences of this cooperation problem is central to understanding global governance of the world economy, including the ability of democratic states to manage global capitalism in a manner that sustains democracy. This essay frames the challenge that global competition policy has posed over the last hundred years and argues that democratic major powers have played a critical role in shaping the limited cooperation that has been achieved. A research agenda that develops integrated theories of domestic and international competition policymaking as well as a multi-method empirical agenda for describing and explaining policy outcomes and their consequences for economic inequality, growth, and democracy is an essential task for international relations scholars.