Economy and Democracy: How Does the economic Situation Affect the Stability of Democrarcies?

Tasks

In recent years, radical parties and populists have gained popularity in Germany and abroad. The emerging crisis of trust between the state and its citizens threatens social cohesion and puts (liberal) democracy under pressure. In this project, we investigate the role of economic factors in this development.  The effects on support for radical parties and populists as well as the effects on trust in politics and the democratic sys-tem will be discussed. This will provide an evidence-based and comprehensive picture of the impact of economic factors on the stability of democracy.

Methods

To answer the research question, we review the economic literature on the subject.  The economic literature has focused on the political effects of the following developments:

• Economic globalization
• Economic insecurity
• Inequality and poverty
• Economic and financial crises

The study aims to summarize these findings and compare results for Germany with those of other countries.