Reviving Democracy in a Fragmented World Not Attractive Anymore or Still a Success Story? Background Paper Background Paper Trilogue Salzburg 2018 | Page 1 Table of Contents Overview ........................................................................................................................................... 4 Taking Stock of Democracy – Still a Success Story or not Competitive Anymore? ............... 6 Introduction ............................................................................................................................. 6 What Makes a Democracy ..................................................................................................... 8 1. Definition of Democracy .................................................................................................. 8 2. A Very Short History of Democracy ................................................................................ 8 3. Types of Democracy ..................................................................................................... 10 Erosive Forces that Threaten Democracy ............................................................................ 11 1. The World in Flux .......................................................................................................... 12 2. Corollary Challenges ..................................................................................................... 13 Recommendations ................................................................................................................ 14 References ........................................................................................................................... 16 Decoding the Writings on the Wall: Analyzing Democracy from a Historical Point of View .................................................................................................... 17 1989 - The Beginning of an Illusion ...................................................................................... 17 Revolutionary Situations of the Past .................................................................................... 17 Democracy: Varieties and Metamorphoses ......................................................................... 19 Pathologies of Democracy.................................................................................................... 21 1. The Pitfalls of Revolutionary Moments ......................................................................... 21 2. The Shortcomings of Democratic Leadership ............................................................... 21 3. Democratic Nations and Globalization .......................................................................... 22 4. The Challenges of Equality ........................................................................................... 23 Competent Democracies of the Past.................................................................................... 24 Conclusions .......................................................................................................................... 25 Policy Recommendations (Some of Them with Respect to the EU) ................................... 26 References ........................................................................................................................... 28 The Square People – Politics of Protests ................................................................................... 29 Introduction ........................................................................................................................... 29 The Effect of Protest Politics ................................................................................................ 32 Reasons for Hope ................................................................................................................. 36 References ........................................................................................................................... 37 Page 2 | Trilogue Salzburg 2018 Background Paper Democracy – Its Substance and Meaning: Can One Size fit All? ............................................ 38 Introduction ........................................................................................................................... 38 Governance and Government .............................................................................................. 39 The Rise of the New Paradigm ............................................................................................ 42 Liberal Democracy ................................................................................................................ 45 The Weakening of the Appeal of Liberal Democracy ........................................................... 47 Structural Effects .................................................................................................................. 53 Addressing the Challenge – What can we do? .................................................................... 55 References ........................................................................................................................... 59 The Erosion of Democracy in Developing and Transition Countries ...................................... 60 Introduction ........................................................................................................................... 60 The Investigative Framework of the Bertelsmann Transformation Index ............................ 60 Analysis ................................................................................................................................ 63 1. Political Transformation Trends .................................................................................... 63 2. Antidemocratic Positions ............................................................................................... 69 Conclusions .......................................................................................................................... 76 References ........................................................................................................................... 79 Democracy, an Economic Review – Open Market Economies Under Pressure .................... 81 Introduction ........................................................................................................................... 81 1. Core Elements of an Open Market Economy ............................................................... 81 2. Interim Conclusion ........................................................................................................ 84 Economic Superiority of Open Market Economies .............................................................. 84 1. The Historical Example of Korea .................................................................................. 84 2. Key Socio-Economic Indicators .................................................................................... 85 3. Global Migration: Voting with their Feet ........................................................................ 88 Criticism of Economic Development in Western Industrialized Nations .............................. 88 1. Globalization and Worldwide Wage Convergence ....................................................... 89 2. Labor-Saving Technological Progress and Global Wage Convergence ...................... 89 3. Empirical Evidence of the Impact Globalization and Technological Progress on the Labor Market ...................................................................................................... 90 4. Populist Response by Autocrats ................................................................................... 92 5. Economic Policy Implications ........................................................................................ 94 6. The EU’s Options for Taking Action .............................................................................. 94 References ........................................................................................................................... 96 Background Paper Trilogue Salzburg 2018 | Page 3 Arts and Culture: Keeping Democracy Alive or Entertainment for the Establishment? ....... 98 Preliminary Remarks ............................................................................................................ 98 The Influence of Art and Culture on Democratic Political Systems ..................................... 99 1. The Artists ..................................................................................................................... 99 2. Cultural Politics and Cultural Education ...................................................................... 104 3. The Recipients ............................................................................................................ 106 4. Culturalization of the Social Realm: Transformation of the Global Sound in the Late Modern Eera .............................................................................................. 108 Current Aspects of the Crisis of Democracy ...................................................................... 109 1. Crisis of Legitimacy, Trust, Representation ................................................................ 109 2. Identity Politics and Social Democracy ....................................................................... 110 3. Cultural and Political Education Generate Transnational Democratic Momentum .... 112 4. Cultural