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Governing religion: the long-term effects of sacred financing

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  • ROTHSTEIN, BO
  • BROMS, RASMUS

Abstract

The absence of democracy in the Arab–Muslim world is a ‘striking anomaly’ for democratization scholars. This cannot be seen as caused by religion as such, as there are now several democratic Muslim-majority states. Popular explanations such as values, culture, economic development, natural resources, or colonial legacy have been refuted. Based on Ostrom's approach regarding local groups’ ability to establish institutions for ‘governing the commons’, we present a novel explanation for this puzzle, based on historical variations in institutions for financing religion. In Northwestern Europe, religion and secular services managed by local religious institutions have been financed ‘from below’, creating local systems for semi-democratic representation, transparency, and accountability. In the Arab–Muslim region, religion and local secular services have been financed ‘from above’, by private foundations lacking systems for representation and accountability. It is thus not religion, but how religion has been financed, that explains lacking successful democratization in the Arab–Muslim world.

Suggested Citation

  • Rothstein, Bo & Broms, Rasmus, 2013. "Governing religion: the long-term effects of sacred financing," Journal of Institutional Economics, Cambridge University Press, vol. 9(4), pages 469-490, December.
    • Handle: RePEc:cup:jinsec:v:9:y:2013:i:04:p:469-490_00
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    1. Niklas Potrafke, 2012. "Islam and democracy," Public Choice, Springer, vol. 151(1), pages 185-192, April.
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    Cited by:

    1. Karim Khan & Muhsin Ali, 2020. "Conflict and Religious Preferences: Evidence from a Civil Conflict in Pakistan," PIDE-Working Papers 2020:15, Pakistan Institute of Development Economics.
    2. Espen Geelmuyden Rød & Carl Henrik Knutsen & Håvard Hegre, 2020. "The determinants of democracy: a sensitivity analysis," Public Choice, Springer, vol. 185(1), pages 87-111, October.
    3. Kalischer Wellander, Benjamin & Sanandaji, Tino, 2018. "Tracing the Historic Roots of Generalized Trust," SSE Working Paper Series in Economic History 2018:1, Stockholm School of Economics, revised 10 May 2018.

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