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The stage of development among former communist economies: Social capital, the middle class and democracy

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  • Tridico, Pasquale

Abstract

The aim of this paper is to trace, comparatively, the path of both development and democracy among Former Soviet Republics (FSRs) and Central Eastern European Countries (CEECs). Democracy is defined using the concept of Dahl (1971) who refers to “contestation” as the essential feature of democracy. Development is identified with the general progress of human beings (Ray, 1998), which can be better captured by the Human Development Index, and which does not include income improvements only. I assume that democratic institutions come from the middle class and social capital. In CEECs a higher level of social capital and a more consistent middle class than in FSRs generate better democratic institutions and consequently higher levels of human development. This hypothesis will be tested through a sample of 28 Former Communist Economies (FCEs) during the last 20 years of transformation since the fall of Berlin Wall in 1989.

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  • Tridico, Pasquale, 2013. "The stage of development among former communist economies: Social capital, the middle class and democracy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 47-58.
    • Handle: RePEc:eee:soceco:v:44:y:2013:i:c:p:47-58
    DOI: 10.1016/j.socec.2013.02.010
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    References listed on IDEAS

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    1. Pasquale Tridico, 2011. "Institutions, Human Development and Economic Growth in Transition Economies," Studies in Economic Transition, Palgrave Macmillan, number 978-0-230-31388-0, February.
    2. Thomas Apolte, 2011. "Democracy and prosperity in two decades of transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(4), pages 693-722, October.
    3. Bruno S. Frey, "undated". "Direct Democracy for Transition Countries," IEW - Working Papers 165, Institute for Empirical Research in Economics - University of Zurich.
    4. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    5. Easterlin, Richard A., 2009. "Lost in transition: Life satisfaction on the road to capitalism," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 130-145, August.
    6. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, November.
    7. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
    8. Pasquale Tridico, 2007. "Regional Human Development in transition economics: the role of institutions," Departmental Working Papers of Economics - University 'Roma Tre' 0070, Department of Economics - University Roma Tre.
    9. Laurence S. Moss, 2003. "Editor's Introduction," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(2), pages 315-318, April.
    10. Michael Binder & Georgios Georgiadis, 2010. "Determinants of Human Development: Insights from State-Dependent Panel Models," Human Development Research Papers (2009 to present) HDRP-2010-24, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    11. repec:bla:ajecsc:v:62:y:2003:i:4:p:645-648 is not listed on IDEAS
    12. Ekaterina Brancato, 2009. "Markets Versus Hierarchies," Books, Edward Elgar Publishing, number 13079.
    13. Inglehart, Ronald, 1971. "The Silent Revolution in Europe: Intergenerational Change in Post-Industrial Societies," American Political Science Review, Cambridge University Press, vol. 65(4), pages 991-1017, December.
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    1. Drini Imami & Klodjan Rama & Abel Polese, 2020. "Informality and access to finance during socialism and transition – the case of the rotating savings and credit schemes," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1367-1383, November.

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    More about this item

    Keywords

    Development; Democracy; Social capital; Transition economies;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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