2.5: States in Transition Flashcards
Political Changes Since the Late 1980s
Two significant trends since the late 1980s include a wave of democratic revolutions and a shift away from centrally planned and mixed economies towards free-market capitalism.
Spread of Democracy
During the late 1980s and early 1990s, a wave of democratic revolutions occurred globally.
Totalitarian governments collapsed, and democratically elected governments, often more committed to free-market capitalism, took their place.
Eastern Europe, the end of the Cold War, the breakup of the Soviet Union, and similar changes worldwide marked this shift towards greater democracy.
Shift to Free Market Economics
A strong global shift away from centrally planned and mixed economies has been observed since the late 1980s. Many countries have embraced a more free-market economic model.
Spread of Democracy
Over the past 30 years, there has been a notable spread of democracy worldwide, accompanied by a decline in totalitarianism.
In 2019, 44% of countries were classified as “free,” 30% as “partly free,” and 26% as “not free” by Freedom House, based on their level of political freedom and civil liberties.
Number of Democracies
The number of democracies in the world increased from 69 in 1987 to 86 in 2019.
This number experienced a slight decrease from 2006 when it reached 123 democracies.
Some democracies still restrict certain political and civil liberties, such as Russia, China, and many Middle Eastern countries.
Geographic Distribution of New Democracies
Many of the newer democracies have emerged in Eastern Europe and Latin America.
Africa has also seen notable democratic gains, including Angola and Ethiopia.
Specific countries like Mexico, Senegal, Ukraine, and Malaysia have experienced significant improvements in political rights and civil liberties, often marked by free and fair elections and peaceful transfers of power.
Reasons for the Spread of Democracy
Three main reasons explain the spread of democracy worldwide.
First, many totalitarian regimes failed to deliver economic progress to their populations, leading to a desire for alternatives. The success of democracies with strong economies further strengthened the case for democracy.
**Second, advancements in information and communication technologies, especially the Internet and social media, have reduced a state’s ability to control access to uncensored information, facilitating the spread of democratic ideals. **
Third, prosperous middle and working classes have pushed for democratic reforms in many countries, along with entrepreneurs and business leaders seeking property rights protection and fair contract enforcement.
Global Challenges to Democracy
Despite the spread of democracy, it remains rare in large parts of the world. Sub-Saharan Africa, post-communist countries, and the Middle East still have limited democratic representation.
Additionally, authoritarianism is gaining ground in some countries where political and civil liberties are increasingly restricted, such as Russia, Uganda, Tanzania, Nicaragua, Venezuela, and Egypt.
The global trajectory of democracy faces ongoing challenges and setbacks.
The “New World Order” After the Cold War
The end of the Cold War and the collapse of communism led to speculation about the future of global geopolitics.
Francis Fukuyama suggested that Western liberal democracy might become the final form of human government, marking the “end of history.”
However, this idea is contested, with Samuel Huntington arguing that there is no universal civilization based on Western ideals.
Modernization in non-Western societies can lead to a resurgence of traditional values, as seen in the Islamic resurgence in some Muslim societies.
Islamic Fundamentalism and Modernization
Islamic fundamentalism, exemplified by groups like ISIS and the Taliban, is viewed by Samuel Huntington as a response to modernization in traditionally Muslim societies.
Factors such as urbanization, social mobilization, increased literacy and education, and exposure to Western culture can create alienation and an identity crisis.
In this context, Islamist symbols, commitments, and beliefs provide a sense of identity and purpose, driving the resurgence of Islamic ideas and institutions as a response to modernization.
Clash of Civilizations Theory (Huntington)
Samuel Huntington’s theory argues that the world is divided into distinct civilizations, each with its own values and ideology.
He predicts conflict along the “fault lines” that separate these civilizations, such as Bosnia, Kashmir, and Sudan. Huntington anticipates conflicts between the West and Islam, as well as between the West and China, based on differences in value systems.
Implications for International Business
Huntington’s theory has implications for international business.
It suggests that some countries may become more challenging for business operations due to violent conflicts or clashes with the home country’s civilization.
While Huntington’s views are speculative and controversial, they highlight the potential geopolitical forces that can impact businesses operating in foreign countries.
The future of global geopolitics may involve a middle ground between universal globalization and a fragmented world.
Transformation to Market-Based Economies
Since the 1980s, many countries, including former Soviet bloc nations, Asian states like China and Vietnam, and African countries like Angola and Ethiopia, have shifted from centrally planned economies to market-based systems.
This transformation involves privatization and deregulation to encourage competition.
Reasons for Economic Transformation
The driving force behind economic transformation has been the failure of command and mixed economies to sustain economic growth compared to countries with market-based systems.
Countries like the United States, Switzerland, Hong Kong, and Taiwan have achieved better economic performance.
Economic Freedom and Rankings
The Heritage Foundation’s index of economic freedom assesses countries based on indicators like government intervention, trade policy, property rights protection, foreign investment regulations, and taxation rules.
The higher the score, the closer a country aligns with the pure market model.
For example, in 2019, Hong Kong, Singapore, and New Zealand were the top three most economically free countries.
