Democracies in Peril
Taxation and Redistribution in Globalizing Economies

Explains the political factors behind the failure of many developing country democracies to benefit from globalization.

Ida Bastiaens (Author), Nita Rudra (Author)

9781108470483, Cambridge University Press

Hardback, published 5 July 2018

320 pages, 113 b/w illus. 25 tables
23.5 x 15.7 x 2.1 cm, 0.62 kg

'… exceptional, theoretically rich, and empirically dense work … a must read for scholars and students working on questions at the core of both political economy research and democratic theory.' Sarah Berens, Perspectives on Politics

Globalization is triggering a 'revenue shock' in developing economies. International trade taxes - once the primary source of government revenue - have been cut drastically in response to trade liberalization. Bastiaens and Rudra make the novel argument that regime type is a major determinant of revenue-raising capacity once free trade policies have been adopted. Specifically, policymakers in democracies confront greater challenges than their authoritarian counterparts when implementing tax reforms to offset liberalization's revenue shocks. The repercussions are significant: while the poor bear the brunt of this revenue shortfall in democracies, authoritarian regimes are better-off overall. Paradoxically, then, citizens of democracies suffer precisely because their freer political culture constrains governmental ability to tax and redistribute under globalization. This important contribution on the battle between open societies and the ability of governments to help their people prosper under globalization is essential reading for students and scholars of political economy, development studies and comparative politics.

Introduction
1. The problem and puzzle
2. Democracies in peril
3. Empirical assessment: democracies in peril
4. Why democratic citizens resist
5. Why firms resist
6. The repercussions: who suffers?
7. Democratic country example: India
8. Conservative authoritarian country example: China
9. Liberal authoritarian country examples: Jordan and Tunisia
Conclusion
Appendix.

Subject Areas: Political economy [KCP], Development economics & emerging economies [KCM], Comparative politics [JPB]