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State-Sponsored Capitalism and the Erosion of Liberal Democracy

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posted on 2025-01-21, 12:50 authored by Aris TrantidisAris Trantidis

This chapter explores how state-sponsored capitalism contributes to democratic backsliding in consolidated democracies. It argues that the discretionary distribution of economic privileges by governments fosters clientelism, eroding the autonomy of civil society and weakening democratic resilience. 


The chapter examines the role of state sponsorship in shaping political competition, showing how governments leverage clientelist networks to reward loyalty, suppress dissent, and consolidate political dominance.


When governments expand state control over economic activities, they can also diminish the independence of socioeconomic actors, creating a political environment where opposition faces insurmountable barriers to mobilization and electoral competition. This paper highlights the intersection of clientelism and autocratisation, showing how state-sponsored economies facilitate the transition from liberal democracy to hybrid authoritarian regimes.


The chapter concludes with recommendations to curb clientelism, emphasising the importance of institutional reforms that limit state discretion in economic regulation and resource distribution, thus safeguarding the autonomy of civil society and preventing democratic erosion.

History

School affiliated with

  • School of Social and Political Sciences (Research Outputs)

Publication Title

Government and Economic Growth in the 21st Century: A Classical Liberal Response (edited By Juan E. Castañeda)

Publisher

Routledge

ISBN

9781032824192

Date Submitted

2024-10-22

Date Accepted

2024-11-17

Date of Final Publication

2024-12-26

Open Access Status

  • Not Open Access

Publisher statement

This is an Accepted Manuscript of a book chapter published by Routledge in Government and Economic Growth in the 21st Century: A Classical Liberal Response on 26 December 2024, available online: http://www.routledge.com/9781032824192

Will your conference paper be published in proceedings?

  • N/A