Quality Of Democratic Institutions Research Articles

The Democracy – Economic Growth Nexus: A Systematic Literature Review

The purpose of this study was to present a systematic literature review on the relationship between democracy and economic growth. The goal was to provide scholars and policymakers with important new information on how democracy affects economic growth, as well as solid evidence of the gaps in the literature that need to be filled immediately. The research used a methodological analysis of the literature found in two databases, Google Scholar and Semantic Scholar. The study presents that majority of the studies reviewed show that democracy has a long-term, substantial positive impact on a country's economic growth. But democracy alone cannot promote economic expansion, especially in developing countries. Democracies can promote economic growth in a variety of ways, but how well these efforts work depends on the quality of democratic institutions, the legal system and broader socio-economic conditions. According to the study, elected governments should implement laws and procedures that protect and promote democracy while addressing the needs of the population in order to achieve sustainable economic growth.

Proces „Democratic backsliding“ (Demokratického úpadku) v Ruské federaci v období 2012-2021

The phenomenon of "democratic backsliding" is becoming a topical issue in today's international relations, with recent occurrences in various regions, including Europe. This paper examines the weakening of democracy in the Russian Federation from 2012 to 2021. The study aims to determine whether democratic elements were dismantled in Russia during this period. For this purpose, the theoretical framework by Ellen Lust and David Waldner was utilized, alongside Merkel's concept of embedded democracy. Appropriate indicators were selected to reliably reveal the deterioration in the quality of democratic institutions and processes in Russia, specifically the Freedom House index, Democracy Index, and the Bertelsmann Transformation Index (BTI). By employing these three indices, the study assesses whether Russia can be classified as an anchored democracy or a defective democracy. The findings, presented in the final section of the paper, indicate significant erosion of democratic practices and institutions in Russia during the observed period. This deterioration underscores a shift from an already flawed democratic structure to one that increasingly resembles an authoritarian regime. The study concludes that Russia cannot be considered an anchored democracy; rather, it exhibits numerous characteristics of a defective democracy, marked by weakened institutions and diminished political freedoms.

Beating Backsliding? Episodes and Outcomes of Democratic Backsliding in Indo-Pacific Asia in the Period 1950–2022

Abstract The paper presents the first comprehensive analysis of all episodes of backsliding in democratic regimes in Indo-Pacific Asia from 1950–2022. Based on the experience of this sample of cases, this paper aims to generate insights into why some Asian democracies are more resilient to this gradual decline in the quality of democratic institutions. Using Haggard and Kaufman’s framework of the “weak democracy syndrome” and the three different kinds of mechanisms of accountability that, in theory, can beat democratic backsliding, our analysis aims to show not only how but also when different accountability mechanisms succeed or fail in stopping autocratization.

Does democracy protect the environment? The role of the Arctic Council

This paper examines the influence of democratic institutions on environmental policy stringency and the degree to which it is affected by membership in the Arctic Council. We hypothesize that, relative to countries with no Arctic presence, countries present in the Arctic given their territorial, trade, and touristic interests are more pro-environmentally inclined as they experience the effects of global warming first-hand, and the quality of democratic institutions may reinforce this effect. Our empirical analysis based on global macroeconomic data suggests that countries with democratic institutional environments are associated with more response to Arctic status and more stringent environmental policies. Moreover, the presence of democratic governments in the Arctic increases the stringency of both market- and non-market-based environmental regulations. The suggestive estimated monetary value associated with the impact of democratic institutions in the Arctic is about 101,000 international dollars per capita. These findings underscore that the development of democratic institutions may lead to strong welfare improvements and can be used in the design of international environmental agreements for Arctic area protection.

Democracy, institutional quality and fiscal policy cycle: evidence from developing countries

ABSTRACT Economists usually prescribe countercyclical fiscal policies to stabilize economies: government spending should increase during economic downturns and decrease during booms. Yet, empirical research has documented procyclical fiscal policy in several democratic developing countries. Using an updated dataset of 63 developing countries from 1980 to 2013, this article robustly shows procyclical fiscal policy in democratic and non-democratic developing countries. The essence of this paper is controlling endogeneity issues by using the generalized method of moment (GMM) for the dynamic panel data model and investigating the interaction between democracy and the quality of democratic institutions in affecting the fiscal policy cycle. This article finds that an improvement in the quality of institutions plays a vital role in restraining procyclical fiscal policy and these effects are more prominent in democratic countries than non-democratic ones.

Who Counts Where? COVID-19 Surveillance in Federal Countries.

While the World Health Organization (WHO) has established guidance on COVID-19 surveillance, little is known about implementation of these guidelines in federations, which fragment authority across multiple levels of government. This study examines how subnational governments in federal democracies collect and report data on COVID-19 cases and mortality associated with COVID-19. We collected data from subnational government websites in 15 federal democracies to construct indices of COVID-19 data quality. Using bivariate and multivariate regression, we analyzed the relationship between these indices and indicators of state capacity, the decentralization of resources and authority, and the quality of democratic institutions. We supplement these quantitative analyses with qualitative case studies of subnational COVID-19 data in Brazil, Spain, and the United States. Subnational governments in federations vary in their collection of data on COVID-19 mortality, testing, hospitalization, and demographics. There are statistically significant associations (p < 0.05) between subnational data quality and key indicators of public health system capacity, fiscal decentralization, and the quality of democratic institutions. Case studies illustrate the importance of both governmental and civil-society institutions that foster accountability. The quality of subnational COVID-19 surveillance data in federations depends in part on public health system capacity, fiscal decentralization, and the quality of democracy.

Introduction to "Subnational COVID-19 Politics and Policy".

Introduction to "Subnational COVID-19 Politics and Policy".

Efficiency of oil-production: the role of institutional factors

Abstract The article aims to provide a theoretical basis for the assessment of the institutional impact on oil production. The availability of fuel is the key driver of the functioning national economy, which determines the strategic and tactical landmarks of socioeconomic development and vectors of the country's foreign economic course. Such tendencies are represented in the results of the provided correlation analysis of the fluctuation between oil-production volumes and greenhouse gas emissions, the use of alternative energy sources, the number of patents for oil production, and unemployment. The provided bibliometric analysis, which was made using VOSviewer, has shown the content of interconnections between the categories of oil production and institutional determinants. The authors hypothesised that changes in the institutional environment and their interconnectedness formed a chain “oil production and oil rents → the level of corruption → the efficiency of public governance”. The hypothesis was confirmed by constructing a system of dynamic models and using the Generalised Method of Moments. The calculations confirmed that oil rents were associated with corruption and were a direct threat to the stability of public institutions. An increasing level of corruption was associated with an increase in the level of rent payments and occurred only when the quality of democratic institutions was below the threshold level. The current level of efficiency in public administration did not have a significant impact on national oil production. Of all indicators, only the level of political stability had a statistically significant impact on oil production. The identified interconnections provide the basis for creating an efficient state policy aimed at effectively functioning state institutions, which promote the development of the oil industry, and the reduction of the country's energy dependence as well as strengthen the resilience of the national economy.

Permissive Winners? The Quality of Democracy and the Winner–Loser Gap in the Perception of Freedoms

Voters usually differ in their assessment of the regime’s legitimacy, depending on their status as winners or losers. However, how wide or narrow the winner–loser gap is also depends on the quality of democratic institutions. Using survey data from 18 Latin American countries, this research provides evidence that winners and losers respond differently to the quality of democracy. While most research is concerned with the losers’ consent, this study shows that the winners express more favorable assessments of the supply of freedoms, even in regimes where democracy is weak or undermined by the deliberate efforts of the political authorities. Instead, in their perception of freedoms, losers are more willing to acknowledge if the quality of democracy improves or declines. These results suggest that the potential consequences of the winner–loser gap for regime stability are highly dependent on the democratic attributes of the political context.

Analysis of the Relationship between Financial Development, Employment and Institutions on Economic Growth in WAEMU Countries

This study analyzes the relationship between financial development and economic growth on the one hand and the link between employment level and economic growth on the other hand in the context of financial liberalization. Also the question of the role of the institutional factors in the facilitation of the credit granting in the eight (08) countries of the WAEMU is approached. In doing so, strategies based on conventional fixed effects methods, with correction of Driscoll-Kraay (1998), Pooled Mean Group (PMG) of Pesaran et al. (1995, 1999) and spatial autoregressive models (SAC) are used to estimate the different equations over the period 1990-2015. The results suggest that financial development is positively associated with economic growth in WAEMU countries while an improvement in the level of employment stifles economic development. The results show that there is a positive and significant correlation between quality of democratic institutions and economic growth whatever the indicators of financial development considered except the money supply. The study recommends a strengthening of the financial development with a possible greater regularity.

Development and pollution in the Middle East and North Africa: Democracy matters

The Middle East and North Africa (MENA) countries are among the world’s top emitters of CO2 and SO2 in per capita terms. The objective of this paper is to analyze whether investing in the democratic development of these countries is an effective tool to make the economic development in this region more environmentally compatible. Using panel data on the income-emission-democracy nexus in 17 MENA countries from 1980 to 2005, we find evidence that improvements in the democratic development of the MENA countries help to mitigate environmental problems. Our results clearly show that the quality of democratic institutions has a greater influence on local environmental problems than on global environmental issues in the MENA region.

Does bad company corrupt good character? A spatial econometric analysis of oil resource management in Africa

PurposeA widely held belief before the 1990s – referred to as the oil-blessing hypothesis – was that oil discovery and production should promote economic growth and development and lead to poverty reduction. However, the so-called ‘oil-curse’ hypothesis, postulated by Sachs and Warner in 1995, challenged this belief, thus provoking a heated debate on the theme. The oil-curse hypothesis has been traditionally tested by means of cross-sectional and panel-data models. The author goes beyond these traditional methods to test whether the presence of spatial effects can alter the hypothesis in oil-producing African countries. In particular, this paper aims to investigate the effects on economic growth of oil production, oil resources and oil revenues along with the quality of democratic institutions, investment and openness to trade.Design/methodology/approachA Durbin spatial model, a cross-sectional model and panel-data model are used.FindingsFirst, the validity of the spatial Durbin model is vindicated. Second, consistently with the oil-curse hypothesis, oil production, resources, rent and revenues have a negative and generally significant effect on economic growth. This result is robust for across the panel data, spatial Durbin and spatial autoregressive models and for different measures of spatial proximity between countries. Third, the author finds that the extent to which the business environment is perceived as benign for investment has a positive and marginally effect on economic growth. Additionally, economic growth of a country is further stimulated by a spatial proximity of a neighbouring country if the neighbouring country has created strong institutions protecting investments. Fourth, openness to international trade has a positive and marginally significant effect on economic growth.Originality/valueThis paper examines theories and studies that have been done before. However, as the related literature on the growth–resource abundance nexus has rarely examined spatial effects, this study seeks to test jointly the spatial effect and the neighbouring effect on the oil curse hypothesis.

Balanced Budget Rules and Fiscal Outcomes: Evidence from Historical Constitutions

This paper studies the long-run fiscal consequences of balanced budget rules (BBR) that are enshrined in a country's constitution. Using historical data dating back to the 19th century and applying a difference-in-difference approach we find that the introduction of a constitutional-BBR reduces government debt-to-GDP and expenditure-to-GDP ratios, on average, by around 11 and 3 percentage points, respectively. We do not find evidence that BBRs affect tax revenues. Our analysis indicates that such rules reduce the probability of experiencing a debt crisis and that the effective enforcement of BBRs can be conditional on the quality of democratic institutions. In addition, we implement an instrumental variable approach by instrumenting the probability of having budget rules on de jure constraints on changing the constitution. This and other tests suggest that the relations we find are largely causal going from BBRs to fiscal outcomes.

Balanced Budget Rules and Fiscal Outcomes: Evidence from Historical Constitutions

This paper studies the long-run fiscal consequences of balanced budget rules (BBR) that are enshrined in a country's constitution. Using historical data dating back to the 19th century and applying a difference-in-difference approach we find that the introduction of a constitutional-BBR reduces government debt-to-GDP and expenditure-to-GDP ratios, on average, by around 11 and 3 percentage points, respectively. We do not find evidence that BBRs affect tax revenues. Our analysis indicates that such rules reduce the probability of experiencing a debt crisis and that the effective enforcement of BBRs can be conditional on the quality of democratic institutions. In addition, we implement an instrumental variable approach by instrumenting the probability of having budget rules on de jure constraints on changing the constitution. This and other tests suggest that the relations we find are largely causal going from BBRs to fiscal outcomes.

Does Bad Company Corrupts Good Character? A Spatial Econometric Analysis of Oil Resource Management in Africa

A widely held belief before the 1990s – referred to as the oil-blessing hypothesis – was that oil discovery and production should promote economic growth and development, and lead to poverty reduction. However, the so-called ‘oil-curse’ hypothesis, postulated by Sachs and Warner in 1995, challenged this belief, thus provoking a heated debate on the theme. The oil-curse hypothesis has been traditionally tested by means of cross-sectional and panel-data models. We go beyond these traditional methods to test whether the presence of spatial effects can alter the hypothesis in oil-producing African countries. In particular, the effects on economic growth of oil production, oil resources and oil revenues along with the quality of democratic institutions, investment and openness to trade are investigated. Our findings are as follows. First, the validity of the spatial Durbin model is vindicated. Second, consistently with the oil-curse hypothesis, oil production, resources, rent and revenues have a negative and generally significant effect on economic growth. This result is robust for across the panel data, spatial durbin, and spatial autoregressive models, and for different measures of spatial proximity between countries. Third, we find that the extent to which the business environment is perceived as benign for investment has a positive and marginally effect on economic growth. Additionally, economic growth of a country is further stimulated by a spatial proximity of a neighbouring country, if the neighbouring country has created strong institutions protecting investments. Fourth, openness to international trade has a positive and marginally significant effect on economic growth. However, the significance of the parameter estimate is sensitive to the model that is being considered. Overall, the findings suggest that oil-producing African economies are cursed by oil discovery, production and revenues rather than by the spatial proximity with their neighboring countries.

Democratic Consolidation in Southeast Europe – A Step Forward?

Strengthening the rule of law and consolidating democracy is still a challenge facing countries in Southeastern Europe (see). Despite the prospective for eu accession for the Western Balkan states and full eu membership for others, issues regarding the quality of democratic institutions and the efficiency of legal procedures are still at stake. There are multiple factors that contribute to the weakened state of constitutional democracy in see countries while also blocking their political and social development. This article offers a sober view on the democratic consolidation process, emphasizing that a decline from democratic politics may happen at any moment. For one, defective democracies in Southeastern Europe are exposed to nationalism and populism, suffering from weak institutional performance and a burdensome communist legacy. Furthermore, negative stereotypes and practices of exercising political power in see countries hamper the development of the rule of law, efficient democratic systems, and accountable governments. Corruption and clientelism likewise seem embedded in the social structures. Thus, in the absence or inefficiency of the rule of law, the political situation in see countries is often described in terms of a ‘state capture’, not democratic consolidation. However, according to a mid-term perspective, positive change is still possible, but it requires active civil society participation as well as eu institutional commitment to the rule of law and democracy building in the region. In some cases, moreover, coordinated endeavors between active civil society groups and eu institutions could exercise effective pressure on the national political elites to introduce necessary institutional reforms.

Violence during democratization and the quality of democratic institutions

This paper investigates the impact of violent civil conflicts during the process of democratization on the institutional quality of the emerging democracies. We propose a theory of endogenous regime transition in which violent conflict can arise in equilibrium. Peaceful transitions lead to a social contract that provides all groups with political representation and leads to better protection of civil liberties than violent transitions. Empirical evidence from the third wave of democratization based on a difference-in-difference methodology supports the theoretical predictions. The findings suggest that, compared to peaceful transitions, violent conflicts during the democratic transition have persistent negative effects on the institutional quality of the emerging democracies.

Revisiting the Urban Electoral Processes

With increasing urbanization in India, citizens’ expectations and demands regarding the quality of democratic institutions are likely to increase. Consequently, democratic institutions are under pressure to evaluate and improve the quality of services. One of the key institutions that determine the future of urban India is the electoral system and its processes. Given this context, this study attempts to discuss the two key electoral processes: registration and balloting. The objective is to analyze these processes and argue for developing an Electoral System Index (ESI) as a tool to identify areas of concern and make recommendations to reform municipal election processes for the city of Bangalore. This study endeavours to address the above-stated problem through the theoretical perspective of the Dreze-Sen model of democracy and the conceptual framework of applying customer service standards to public institutions (responsiveness). The study, based on both qualitative and quantitative research methods and through sampled wards, demonstrates that citizens’ experiences with certain aspects of the electoral processes were not uniform, thereby validating the need for ESI to make data-driven recommendations for future reforms.