In a mutually reinforcing context, the rise of multipolarity and the decline of the rules-based liberal multilateral world order have transformed populism from a national phenomenon into one with global dimensions, characterized by transborder transgressiveness. Rooted in nationalist rhetoric that emphasizes independence and sovereignty, this dynamic challenges the norms and values of multilateralism, fuels a vicious cycle of sharp power politics (SPP), and opens new fronts in the competition for national interests. China’s recent political and economic trajectory under President Xi Jinping provides a compelling case for examining the interplay between these factors. Drawing on the evolving theoretical framework of populism and an analysis of the Belt and Road Initiative (BRI), this article argues that Xi Jinping’s strategic framing of SPPs within an appealing populist narrative does not qualify him as a transnational populist leader. Notably, Chinese rhetoric lacks a cohesive ideology, a clearly defined transnational citizenry with shared interests, and a corresponding mechanism for the participatory representation of global citizens.
Keywords: Populism, sharp-power politics, multipolarity, multilateralism, China, governance, development, (in)dependence, global public goods, cooperation.
The transformation of global power dynamics, particularly in the post-Cold War era, has exposed vulnerabilities in the Western-dominated liberal multilateral order, leading to a multipolar world (dis)order. This shift has also curtailed the dominance of any single superpower, intensifying competition for influence and resources. This complex landscape has witnessed two notable political phenomena: the global rise of right- and left-wing populism and the adoption of Sharp Power Politics (SPP) by rising powers like Russia and China to enhance their global influence.
The emergence of this geopolitical landscape significantly limits the global cooperation necessary for collective action to effectively secure global public goods. Increasingly characterized by a “negative-sum game,” this environment poses deeply troubling implications for the future. It fosters the development of a causal chain in which populism, typically addressed at the national level, transcends borders and amplifies the influence of sharp-power politics.
While populists often portray themselves as champions of the people, challenging the established order on behalf of the masses, SPP co-opts populist rhetoric to serve the interests of authoritarian regimes, ultimately consolidating their power. A plausible transmission mechanism involves the gradual co-option of a functioning, though flawed, rule-based democracy by exclusionary, interest-driven coalitions of established elites. These elites prioritize their class interests at the expense of long-term efficiency, leading to stagnation. Over time, populist leaders exploit systemic vulnerabilities, using their rhetoric to gain power. If they maintain power long enough, they eventually transform the system into a form of authoritarianism, reinforcing this new status quo through sharp-power tactics both domestically and internationally to expand their influence and national interests.
Within this framework, the central aim of this article is to explore the extent to which the concept of “transnational populism” (TNP) can be considered an intermediate stage linking the progression from national-level populism to authoritarianism and, subsequently, to SPP beyond national borders. Following these theoretical discussions, the article also seeks to examine whether the notion of TNP can be inferred from the extensive use of populist rhetoric within China’s SPP framework, specifically in the context of the Belt and Road Initiative (BRI).
The article is organized as follows: The second section explores key theoretical issues, evaluating the existence of a robust concept of transnational populism while examining the intersections, overlaps, and tensions between national populism, transnational populism, and sharp power politics (SPP). The third section builds on these theoretical insights to assess whether China’s foreign policies can be interpreted through the framework of transnational populism within its authoritarian regime. The fourth section connects China’s so-called transnational populism (TNP) to SPP, highlighting their incompatibilities, particularly in the context of the BRI. The final section concludes by summarizing the key findings.
Olivares-Jirsell, Jellen. (2024). “Recalibration, Not Austerity: Welfare States and the Struggle for Liberalism.” Populism & Politics (P&P). European Center for Populism Studies (ECPS). December 6, 2024. Doi: https://doi.org/10.55271/pp0044
Abstract
Welfare states have acted as societal equalisers. They have reduced poverty, improved living standards, promoted equality, and supported democracy. However, their alignment with market imperatives and exclusionary definitions of deservedness threatens the welfare state’s role as a social equalising force. This paper aims to diagnose a challenge facing welfare states through two arguments. The first is that four recalibrations have taken place within welfare states: settling for universality, redefining universality, outsourcing, and reducing public spending. These recalibrations aim for market compliance, savings, and competitiveness. The second is that welfare states may prevent unequal distributions and promote equity by focusing beyond universality and prioritising socially liberal policies. By examining OECD countries and beyond, the paper highlights the pitfalls: a myopic focus on universality exacerbates inequalities; neoliberal criteria that align welfare states with populism and lend credence to welfare chauvinism; and outsourcing and privatisation that increase costs without improving service quality, weakening democratic capacity due to reliance on private providers.
(Received June 7, 2024, Published December 6, 2024.)
By Jellen Olivares-Jirsell*
Introduction
The establishment of welfare states has significantly impacted societies. The incredible achievements in social equality that welfare states have created cannot be overlooked. The package of wealth redistribution, services, and programmes has successfully reduced poverty in the places where it has been implemented (Kenworthy, 1999), thereby improving the living standards of millions of people.[1]
Welfare states record of success includes transforming democracies’ form and character (King, 1987) by producing high levels of income and gender equality (Swank, 2000) as well as supporting the consolidation of democratic rule (Pestoff, 2006). The role of the welfare state as a societal equaliser and creator of a critically engaged populous, confident in challenging and scrutinising policy, is widely acknowledged and understood (Patrick, 2017); the inclusion of Target 1.3 – ‘Social Protection Systems for All’ in the Sustainable Development Goals (SDG) is evidence of this ideological consensus of welfare states as essential for society.
However, welfare states currently survive precariously and face the consistent and erroneous idea that deficits are always bad, and that the welfare state is an expensive luxury that can only exist in exchange for sacrificing economic competition(Wren-Lewis, 2018). They have nonetheless endured and—mostly—remained in place (King, 1987), lifting their populations out of poverty and protecting them from external shocks, especially during crises (Bhambra & Holmwood, 2018), but they sacrifice much in the process.
When we think about the most celebrated welfare systems, we may consider their universal provision. Our minds may also drift to generous parental leave, free healthcare, education, and support. Unfortunately, this rosy picture of welfare states describes a non-existent utopia, as even the most celebrated welfare states now face issues with their provision.
This paper makes two main points: First, welfare states are not retrenching due to austerity but are recalibrating to align more with market imperatives. This recalibration, often mistaken for austerity, has shifted the focus from real accountability to delivering provision. It has narrowed perceptions such that funding issues are considered the only reason welfare states struggle to support their citizens. Second, this paper argues against the conventional view of the universality of provision as a north star for welfare states. Instead, the analysis guides the argument by focusing beyond universality and towards the prioritisation of socially liberal policies. Specifically, welfare states may prevent unequal distributions and promote equity within universal welfare programs. In doing so, welfare states may also prevent populists and neoliberals from redefining their inclusion criteria. The specific dynamics of these redefinitions will also be elaborated upon.
The goal of this paper is not prescriptive; welfare states are as varied as countries. Hence, a generic solution would not address local needs. Alternatively, it highlights the maladies our communal abandonment of liberalism and prioritisation of market imperatives have caused.
The two main arguments challenge the idea that citizens should accept subpar support, as welfare states are adequately funded. Social spending takes up more than a quarter of the GDP of OECD countries (Ortiz-Ospina & Roser, 2023). Instead, they argue that welfare states may effectively safeguard their citizens if liberal priorities precede market competition.
The paper challenges the notion that welfare states are expendable luxuries, advocating instead for a reimagined role beyond essential provision, which can address deeper societal needs beyond mere bodily survival. After providing an overview of the debate around social public expenditure, this point is demonstrated by examining changes in public spending, the move towards outsourcing, and the redefined criteria of deservedness. Using examples within the OECD and beyond, emphasising Northern European countries, the paper illustrates how welfare states are recalibrating rather than simply cutting back. It underscores the essential role of welfare states in protecting the most vulnerable and maintaining social stability. The paper also critiques overemphasis on universality, arguing that this metric alone can mask underlying inefficiencies and exclusions in welfare provision. Instead, it calls for a broader evaluation of welfare states based on their impact and outcomes, not just their coverage.
A Few Words on Welfare States and Austerity
Welfare states are complex and multifaceted, sometimes seen as burdens or saviours, expendable or essential depending on the observer. In a first understanding of the welfare state, as King (1987) described, the welfare state embodies non-market criteria. It exists only to provide essential public goods and services to gain or maintain at least minimal well-being standards in a population. In a compromise between capitalist and socialist ideologies, welfare states look after their citizens so that they can be part of a healthy, educated and capable society, with the added benefit that healthy, educated and capable individuals make great contributors to the financial markets and democracies (Begg et al., 2015; Crosland, 1964). This represents a mutually beneficial relationship between citizens, markets and states. Another view on the welfare state is that it is costly, inefficient, creates dependence on government, and burdens markets, hence needs transforming to serve the market, generate growth and benefit society through generalised economic prosperity (Alesina et al., 2019).
Neither the idealised nor vilified version of the welfare state exists. Welfare states compile liberal goals of social protection and betterment with older themes, including the ubiquitous condemnation of the ‘unworthy poor’. At one point, these notions were used to justify the ‘progressive opinion’ that saw eugenics as a legitimate tool for raising the general quality of the population (Pierson & Leimgruber, 2010).
Moreover, welfare states determine who is part of society and deserves safety and security. This creates a sense of inclusion and trust for those considered members. At the same time, those outside are excluded, fitting well with the political manifestos of populists (Bergman, 2022; Busemeyer et al., 2021). As Zakaria (2007) warns, liberalism, the progressive force behind inclusive and fair societies and democracies, which endorses social justice and the expansion of civil and political rights, has been slowly extracted from liberal institutions such as welfare states. These ideas over the deservedness of some over others led over thirty years ago, to coining the term ‘welfare chauvinism’ to describe some Norwegians and Danes’ belief that welfare services should be restricted to the country’s own (Andersen & Bjørklund, 1990). In short, welfare states are complex and multifaceted, capable of much good but also capable of reproducing and sustaining unfair structures.
In a purely economic sense, the welfare state costs countries large chunks of their GDP (Ortiz-Ospina & Roser, 2023), and at times, when welfare states do not uphold liberal values, they can solidify or even widen societal cleavages (Kenworthy, 1999; Parolin et al., 2023). This means that despite the good they do, they are imperfect institutions that are both essential and need improvement.
Overall, welfare states are state institutions that deliver interventions that help a population achieve or maintain at least minimal well-being standards. Their aims, however, may vary. Variously, it focuses on protecting the population, the market, the societal order, or something else. These differences are defined by the social and political priorities governing the state at that moment in time, as the upcoming examples will shortly show. In truth, welfare states are intrinsically political entities, defining acceptable and deserving versions of their citizens and responding to political priorities as they occur. This means that welfare states are subject to the ebb and flow of politics and the changing norms around deservedness, the role of the state in individual life and the multiple political priorities of contemporary politics.
Among said political priorities, governments may be concerned with creating surpluses in their cyclical primary balance adjustments (austerity), requiring – among other measures – reduced social spending. As hinted in the introduction, the constant push and pull between economic and social needs have caused significant changes to welfare states; these economic forces permeate politics and democratic institutions. Austerity measures have been one of the most favoured economic interventions since the normalisation of neoliberal economics in the 1980s.
There are different forms of austerity measures governments can introduce. Although raising or decreasing taxes is part of the austerity arsenal (Union of International Associations, 2024), we have come to understand austerity to mean cuts in spending rather than tax adjustments. The general idea of austerity measures is to cut down on luxuries and unnecessary spending, work on paying back debt, and even create a surplus in the budget. However, especially in countries like the UK, the everyday use of austerity is almost always equated with spending cuts (The Guardian, 2024). It rarely includes consideration of tax increases or reductions in the public lexicon. This leads to a frequent conflation of austerity with cuts to the welfare state.
Despite this frequent confusion, austerity measures refer to policies that aim to reduce government budget deficits by decreasing spending but may also involve tax increases, decreases, or a combination of these. The creation of surplus or reduction of deficit that austerity measures aim to create can be pretty confusing, as at times, it may even include increasing funding of certain areas of the economy – for example, by providing subsidies to industries that are expected to create growth (GOV.UK, 2023) – and cuts in other areas not deemed to help with economic growth – typically social spending. However, it is essential to understand that austerity measures aim to reduce budget deficits.
The effectiveness of austerity policies is subject to much debate. According to Keynesian economists, since one person’s spending is another person’s income, reductions in government spending during economic downturns worsen economic crises (Fazzari et al., 2013). Further, these reductions pass down debt to the working classes (Blyth, 2013) and severely affect physical and mental health (Barr et al., 2015; Loopstra et al., 2016; Patrick, 2017). Others believe reducing government budget deficits through spending cuts is more effective than increasing taxes. They argue that such policies demonstrate a government’s financial discipline to creditors and credit rating agencies, making borrowing easier and less expensive (Alesina et al., 2019).
Austerity is engaged with here because welfare states are often written and discussed in relation to austerity. This is central to the argument about recalibration. Austerity means more than cuts to the social spending budget; it has become a shorthand for welfare states’ funding challenges. In this paper, it is put forth that the issue lies beyond cuts to public social spending and that austerity (colloquially understood as cuts to the welfare state) is not the cause of the perceived retrenchment of welfare states; instead, recalibration is.
This paper aims to diagnose a challenge facing welfare states. The idea that welfare states have been reduced to nothing due to a lack of funding is as pervasive as the idea that deficits are bad. Both these ideas have severe implications for welfare states and their operations. However, as this paper argues, the strategies adopted to keep welfare states alive are geared around four central recalibrations: settling for universality, redefining universality, outsourcing and monetising public provision and reducing public spending on social protection. All these recalibrations are, in one way or another, based on the idea that welfare states ought to comply with market imperatives, making savings and operating competitively. To analyse welfare state recalibration empirically, some examples of countries facing these challenges are reviewed to assess how these recalibrations have taken shape.
The Recalibration Strategies
Settling for and Redefining Universality
Welfare states are permanently forced to justify their existence based on market imperatives due to the pervasive idea that governments should always grow, maintain a surplus and avoid debt at all costs (Wren-Lewis, 2018). There is a consistent thread of welfare provision as a value-for-money exercise: citizens are trained and kept sheltered and healthy to become productive members of society, but these protections must always cost less than citizens produce.
Considering this, welfare states are constituted as providers of social protection floors, overlooking their potential role in promoting liberalism through equality (Swank, 2000) and democracy (Patrick, 2017; Pestoff, 2006). Following the UN’s SDG, welfare states have been correctly lauded as basic protection floors with universal distribution as a deterrent to poverty and inequality.
The absence of a safety net can predispose the most vulnerable populations to extreme poverty; thus, implementing a basic yet universal provision may effectively mitigate this risk. However, in welfare states that have (or aim to have) universal coverage of those deemed deserving, citizens miss out on the broader societal benefits that welfare states provide when they instead focus on basic universal provision. Moreover, inequality and poverty may go unnoticed in places where universality of coverage exists as long as universality alone is the metric used to assess our welfare state outcomes (Patrick, 2017).
A case in point is that of the Netherlands, a country with a very high social expenditure budget and one of the most celebrated welfare states in the world. This country, however, has the highest level of outsourcing of social provision globally (Ortiz-Ospina & Roser, 2023). It is also a place with very high levels of wealth inequality (Van den Bossche, 2019), a growing opportunity gap in education based on ethnicity and socio-economic class and issues of accessibility for service users due to significant restrictions to cover, resulting in the duality of provision, known as welfare chauvinism (de Koster et al., 2013).
In the Netherlands, for-profit nursing home care is banned, but changes in the policy have enabled for-profit nursing homes to circumvent the for-profit ban. This leads to exclusionary practices. For example, selecting clients based on the severity of their disease and not hiring expensive staff for specialist care, then moving people out if they become too ill and need specialist care (Bos et al., 2020). Similarly, childcare was privatised in 2005 to make provision efficient. However, there is inequality in childcare use by family type, and the quality of provision has decreased since privatisation and outsourcing started (Akgunduz & Plantenga, 2014).
In the case of the Netherlands, the services are technically more widely available than before, at least in terms of spaces in nursing homes or childcare; thus, the universality of provision has yet to be challenged. However, even as the provision of nursing homes and childcare has increased since the private sector incursion (Akgunduz & Plantenga, 2014; Bos et al., 2020), the examples evidence, universality is caveated to exclude those very sick from nursing homes or certain family groups from childcare. In this case, it is clear that the goal of universality has been kept, but focusing only on universality alone obscures important aspects of accessibility for specific groups.
Sweden provides another example of this duality of high social expenditure with disparities in outcomes. This country has privatised and outsourced much of its schooling provision and now observes a significant drop in the performance of these schools (OECD, 2023; West, 2014). The metric of universality is met since Sweden provides universal coverage to its population (Janlöv et al., 2023). However, considering the performance variations between schools in low and high-income areas, especially since 2003 (OECD, 2015), the universal provision of education clearly evidences a Matthew Effect, whereby provision is most beneficial to those who need it the least (Bonoli & Fabienne, 2018). Besides the inequitable distribution of public goods, an additional challenge in the Swedish educational landscape is the establishment of lobbying. Private actors have evolved from holding purely economic roles to being strong political actors engaged in policymaking, adversely affecting transparency and democracy (Jobér, 2023). Moreover, this type of lobbyism can enhance existing socio-economic divisions, as schools with the capacity to lobby for more resources are also those in the wealthier areas.
The point here is not to minimise the achievements of welfare states; both the Netherlands and Sweden boast some of the best social well-being metrics in the world. Indeed, these two countries have some of the most acclaimed welfare systems in the world (Hutt, 2019; OECD, 2024a; OECD, 2024b). Sweden, particularly, was seen as the model for most welfare states in the post-war era for the rest of Europe. However, as the above examples show, the universality of public provision does not equate to better outcomes, and, at times, it may even perpetuate or exacerbate unequal societal constructions.
Moreover, the Netherlands and Sweden are not isolated cases. In the EU, native workers obtain the highest economic prosperity and employment returns from education, followed by EU workers, leaving non-EU workers last. Similar trends can also be observed in the US between natives and non-natives (Gamito, 2022). The universality of provision, therefore, does not signify equality in outcomes when inequity is built into the infrastructure of provision. Thus, universal provision may enhance societal cleavages and create or enhance a Matthew Effect.
This Matthew Effect exists in various forms in all welfare states (Heckman & Landersø, 2021; Pavolini & Van Lancker, 2018). If anything, the Netherlands and Sweden have been somewhat protected from adverse outcomes because of the societal duress and resilience created before these services were privatised and outsourced (OECD, 2018) and their goals were rearranged.
I have so far argued that welfare states have adopted universality as their central goal, even though focusing on universality conceals issues with exclusionary practices that may perpetuate and even enhance social crevices. I will build upon this argument on universality as a central goal and posit that, besides focusing on universality as a central goal, welfare states have also redefined universality, at least to some degree, due to producerism.
Producerism emphasises the importance of productive labour and the contributions of producers to society (Bergman, 2022). It often advocates for policies and attitudes that prioritise the interests of producers, such as workers, farmers, and entrepreneurs, over consumers or other groups. Producerism can manifest in various forms, including support for protectionist trade policies, subsidies for domestic industries, and efforts to promote self-sufficiency and national economic independence. It also lends credence to exclusionary forms of provision.
This emphasis on work participation within welfare programs dovetails producerism, underscoring the significance of productive labour and workers’ contributions to society through increasing adherence to workfare initiatives. Workfare refers to government programs or policies requiring individuals receiving welfare benefits to participate in some form of work or job training as a condition of assistance (Crisp & Fletcher, 2008). Unlike traditional welfare programs, which may provide financial support without a work requirement, workfare aims to promote self-sufficiency and reduce dependency on government assistance by encouraging recipients, via specific participation requirements, to gain job skills and enter the workforce. These requirements are often a combination of activities intended to improve the recipient’s job prospects and force the unemployed to contribute to society through unpaid or low-paid work comparable to community work (Ibid.). Forms of workfare programs include job placement services, subsidised employment, and mandatory community service or work assignments. Through workfare programmes, governments seek to enhance recipients’ employability and instil a sense of societal obligation to be productive members of society.
While employment can have a positive effect on well-being, the issue is not that the workfare approach may find jobs for those who want them; rather, it lies in that liberal protections are taken out of the equation as the main point of the welfare state, creating perverse incentives for the welfare state to become the surveyor and punisher of uncompliant citizens. This approach discourages fairness and social justice (Bonoli, 2010) because if all that matters is productivity, pensions serve little purpose, as does education beyond vocational training and services that cover sectors of the population that cannot access employment, such as those caring for family members and those with disabilities that prevent them from gaining employment. The issue is not that people will be encouraged to work but that this becomes a primary consideration of the welfare state, putting all others aside. In other words, welfare states have been recalibrated towards market imperatives and stripped of liberal notions.
Producerism can be said to be the ideological force behind workfare policies and is linked to welfare chauvinism (Van der Waal et al., 2013). Geva (2021), Cinpoeş and Norocel (2020) identify a producerist shift that coexists with welfare chauvinism in some post-communist countries. These authors argue that with the fall of the Soviet Union, post-communist countries like Poland, Hungary, and Romania aimed to shed anything resembling communism, hurriedly embracing neoliberal values to better fit into the rest of Europe. This symbolic return to Europe was so complete that the reconstructions of national membership and identity were combined with notions of entrepreneurship and self.
The vilification of people with low incomes is evidenced in Romania with the use of ‘asistat’ as a slur, a term referring to social assistance recipients; in Hungary, a Roma-specific welfare policy targeted Roma minorities who were construed as unwilling to work and carry their weight in society; and in Poland, this was articulated as lazy guests freeloading onto their hard-working hosts (Ibid.).
Other times, producerism can work to articulate the caveats of universality by allowing proxy exclusions. That is to say, producerism has redefined what universality is. Moral gymnastics have always surrounded universality considerations; at another time in history, being impious may have rendered someone unworthy of assistance and access to an almshouse (Lambeth Archives, 2024). What is novel about the redefinition of universality is that it is underpinned by neoliberal ideas, which claim to be unbiased and rational approaches to defining deservedness (Davies, 2014). By claiming rationality, producerism can help implement exclusionary policies that might otherwise create a political backlash by liberals and progressives.
Of course, it was a matter of economic competition. In that case, a purely homo-economicus approach to the ageing population challenges in many countries would involve welcoming migrants in any country they wished to work in, as they would contribute to the competitiveness of the nation and pay into the tax systems that fund the welfare state (Marois et al., 2020). However, producerism has been used to legitimise exclusionary welfare provisions that may ultimately operate against market efficiency. These neoliberal justifications for exclusion are most efficient as they sanitise and depoliticise prejudiced views under economic imperatives. The depoliticisation of prejudice enables governments to exclude significant portions of their residents from support. For instance, they may deny some individuals access to legal work and then claim those individuals are ineligible for assistance because they lack contributions or the required legal status.
Denmark, for example, currently has a two-tiered welfare system, one for Danish citizens and another for the rest (Van der Waal et al., 2013). Denmark prides itself on its universalist welfare regime; however, the universality of its provisions is truly exclusionary when considering that only some residents are included within this universal provision.
In the UK, the government, on the one hand, takes part in women empowerment campaigns (UN Women, 2023) and actively implements gender equality in the workplace regulations (UK Legislation, 2023) while at the same time actively restricting women from seeking help when experiencing domestic violence when they are not UK nationals and are stamped ‘no recourse to public funds’ in their passports. These actions can be justified under producerism because these groups are excluded only due to their lack of contributions (Pennings, 2020).
Producerism suggests that workers are virtuous and hard-working but are being squeezed by non-productive others both above them, such as bureaucrats, politicians, elites, bankers, and international capital, and below them, such as immigrants and undeserving poor who rely on benefits paid for by the labour of others. Moreover, it articulates and justifies divisions in a language many understand as unbiased and rational.
According to Larsen (2008), how welfare regimes are structured can impact how the public views those who are poor or unemployed. Van der Waal et al. (2013) have observed that various welfare regimes handle the provision/restriction duality differently but that, for the most part, producerist ideas of deservedness come to the fore. Guentner et al. (2016) find that groups framed as economically unproductive start to be considered a kind of human surplus and are, therefore, undeserving. In a UK example, a group of low-income individuals were pushed out of London’s social housing, resulting in their displacement because they were considered not to contribute sufficiently to the city to maintain their place in it (ibid.). Jingwei He (2022) finds the same concerning Chinese people’s attitudes toward welfare entitlements for rural-to-urban migrants.
Ward and Denney (2021) document a consistent rhetoric of abuse towards migrants framed around myths of them as less productive than nationals. Thus, we see here that producerist logic has been amalgamated with populism to create a type of welfare chauvinism that is both economic and cultural. This is crucial because, as argued, welfare states undergo producerist reconstructions whereby market-based logics are applied to social provision. This reconstructs the welfare state and the definition of universal provision upon caveated universal criteria – where universal does not mean everybody but those considered deserving. Hence, it is essential to re-examine welfare policies to ensure they promote fairness and social justice universally.
This section has discussed the evolution and challenges of welfare states, with a particular focus on the idea of universality in social protection. The argument is that welfare states have increasingly prioritised market-driven goals such as productivity and cost-efficiency over liberal objectives like equality and democracy. This shift has led to welfare systems that, while offering universal social protection, may fail to address underlying issues of inequality and poverty. Additionally, producerism was introduced as a factor contributing to the narrow and exclusive redefinition of universality. It rationalises social provisions that are only accessible to those considered deserving based on their productivity.
Outsourcing, Monetising and Reducing Public Spending on Social Protection
Thus far, this paper has mentioned privatisation and outsourcing only in relation to the universality of provision. Welfare states have undergone recalibrations that have made them settle for the simple goal of extended coverage. However, this may conceal issues with the quality of provision. I have argued that welfare states have always had an exclusionary criterion of deservedness disguised as logical and unbiased; the current iteration has been based on economic competition, best encapsulated under producerism. This has lent credence to policies of exclusion that affect the range, coverage and quality of welfare provisions.
In this section, I argue that welfare states have become privatised and outsourced to continue to exist. In the process, they have prioritised market imperatives instead of the liberal protections liberal democracies declare to prioritise. Nevertheless, this shift has not necessarily resulted in cost savings, improved service quality, or decreased public spending.
Public-private partnerships are becoming increasingly popular among governments to finance, design, build, and operate infrastructure projects and outsource goods and services, sometimes fully delivered by third parties but financed by governments (Jobér, 2023). The idea that the private sector is more efficient than the public sector and hence services ought to be outsourced, or else be done poorly and at more cost by the state, has prompted commissioning and subcontracting structures that are not necessarily more supportive of people’s needs, as I will shortly elaborate. Moreover, these outsourced services are not ipso facto cheaper than direct provision. This has resulted in for-profit companies becoming the primary or exclusive providers of public employment services in several countries (McGann, 2023) and failing to deliver the expected reduction in public spending on social protection.
Between 2005 and 2010, the total value of partnership projects in low and middle-income countries more than doubled (Ortiz-Ospina & Roser, 2023). In OECD countries, around 36 per cent of total general spending is dedicated to public social protection, of which around 9 per cent is outsourced to private providers (Ortiz-Ospina & Roser, 2023). In other words, a significant portion of OECD countries’ GDP is outsourced to the private sector. Swank (2000) argues that the structural transformations of welfare states include privatisation, decentralisation of authority, segmentation of benefit equality, and an increased emphasis on outsourcing provisions to non-state actors such as charities or private organisations through publicly commissioned services and are taking place worldwide. These changes align social policy with market-oriented values, emphasising work and market efficiency.
Whether these changes can be considered efficient depends on their goal. A 2018 OECD report showed that the rationale for privatising public provisions has mainly been geared towards economic stabilisation, improving the efficiency of the markets, or raising fiscal resources. The criteria for privatisation are based on two critical assumptions. First, it assumes that private markets are the most efficient way to provide public services. Second, it assumes that privatisation is the default option; those against it are tasked to prove why public services should remain state-owned (OECD, 2018).
With that in mind, the goal has been largely achieved if the rationale for privatising public provision is to improve market structures or economic efficiency. The state has effectively subsidised the private sector by providing extensive and profitable government contracts. Public sector privatisation and outsourcing have created millionaires and significant money transfers from the public to the private sector, especially during the COVID-19 pandemic (Lilly et al., 2020).
The OECD report is interesting because it presents how disjointed the rationales for privatisation are from public protection. The report shows evident market prioritisation over the protection of liberal values that countries in the OECD area may otherwise claim to prioritise.
The second argument in this section is that the goal of reducing public spending on social protection through privatisation and outsourcing of social protection has not materialised. As shown in the examples above, public spending is at its highest despite recent fluctuations. While raising fiscal resources by making savings in social public spending may be one of the rationales provided for privatisation, the outcomes do not necessarily give the taxpayer the opportunity for a discount (OECD, 2018). Countries continue to dedicate large sections of their GDP to social spending, but the savings expected due to the privatisation and monetisation of welfare provision have not been fulfilled. Moreover, welfare provision has not improved either; headlines abound about funding losses and service deterioration (Bambra, 2019; Boylan & Ho, 2017; Konzelmann, 2019; Pentaraki, 2017).
This increase in privatisation and outsourcing of public provision means that the state has less direct control over the provision of public services but oversees the delivery of these services through monitoring and surveillance. Many local authorities in the UK have shifted to commissioning-only or at least commissioning-heavy provisions (Dickinson, 2014), with staff overseeing the contracts and ensuring goals are met. Commissioning aims to decrease the government’s involvement in providing services. This encourages public authorities to act as enablers with a strategic oversight function that assesses the needs of defined populations and the outcomes delivered by third parties. The commissioning economy comprises an extensive network of public bodies, private firms, and third sector organisations that are variously involved in providing services (Macmillan & Paine, 2021). The state has thus reconfigured its mission as a regulator rather than a direct provider of welfare and other crucial services (Yeung, 2010).
This shift from rowing to steering (Osborne & Gaebler, 1992) has had two notable outcomes; the first is that, as we have seen, no saving has occurred. Since 1995, government social spending has increased in many countries (The World Bank, 2024). While several countries appear to be decreasing their social spending recently, they have maintained a very high level of social expenditure (Ortiz-Ospina & Roser, 2023). Governments still have to employ people to manage the commissioned services, and these private contracts are not cheaper for the public purse or better for the service user, as seen in the Swedish and Dutch examples.
The Netherlands is a valuable reminder of this reality as the country has a very high social expenditure budget and the highest level of outsourcing of social provision globally (ibid.). It has been very active in privatisation for around 30 years; between 1980 and 2015, the expenditure on health was around 5 per cent. Around the late 1990s, when privatisation and outsourcing began in earnest, the country spent around 1% less on health than it had a decade before. However, at the beginning of the 2000s, the number increased to around 6 per cent, peaking at 6.5 per cent in 2015, and currently at around 5.7 per cent (OECDc, 2024).
At the same time, the service provision became conditional and monetised, resulting in all persons residing in the Netherlands and all non-residents working in the Netherlands being required to buy private healthcare insurance (Pennings, 2020). In short, the Netherlands pays more now for a health provision that requires insurance premiums and deductibles (co-pays) to access (Government of the Netherlands, 2024). This diminished (in terms of accessibility) health provision is paid twice, once through taxes and again directly when patients require provision.
The second notable outcome is the loss of democratic capacity. The capacity-building exercise of democratic institutions occurs daily when providing goods and services to its citizens. When managing these social goods and services is outsourced, so is the daily exercise of liberal provision. As a result, welfare states lose their ability to maintain the liberal institutions that underpin democracies. Capacity building is essential for successfully navigating, adapting, and flourishing in a rapidly changing world (United Nations, 2024). When this is outsourced, governments become dependent on private provision and lose the ability to deal with complex challenges.
In the UK, outsourcing accelerated during the COVID-19 pandemic, when the government contracted various private providers to manage the logistics of and store personal protective equipment, the national drive-in testing centres and super-labs, run the contact tracing programme, build the COVID-19 datastore and onboard returning health workers (British Medical Association (BMA), 2020). The BMA report (Ibid.) shows that continued outsourcing of the national health service in the UK significantly limited the government’s ability to mount a coordinated response during the public health emergency. Paradoxically, outsourcing was used to fill gaps created by sustained outsourcing and privatisation.
Of course, the changes in privatisation and outsourcing of public provision are not unique to the Netherlands, the UK, or health. Indeed, this process is taking place widely (Jobér, 2023) and over various areas of social protection spending (Ortiz-Ospina & Roser, 2023). Meanwhile, private sector involvement in public provision trend is on the rise with no apparent slowdown on the horizon (British Medical Association, 2020; OECD, 2018); all the while, public spending on social protection has stayed at very high levels, and state capacity has become dependent on the private sector.
This section has examined the trend of privatisation and outsourcing in welfare states, arguing that these practices have shifted the focus from liberal protections to market imperatives. Welfare states, driven by the belief in the private sector’s efficiency, have increasingly turned to public-private partnerships and outsourcing to deliver public services. This shift has not necessarily resulted in cost savings or improved service quality. Instead, as commissioning and outsourcing increase, so does public spending, with significant portions of GDP now directed to private providers, furthering a disconnect between the goals of economic efficiency and the quality of social protection. Welfare states have increasingly become commodification engines, prioritising market-driven goals such as productivity and cost-efficiency over liberal objectives such as equality and democracy.
Moreover, the reliance on private sector provision has undermined democratic capacities by reducing the state’s direct control over public services and eroding the daily exercise of liberal provision. This dependence on private providers has also compromised the state’s ability to handle complex challenges. Privatisation and outsourcing have thus not achieved the intended economic efficiencies or service quality improvements. Instead, public spending remains high, and state capacity has become increasingly reliant on the private sector, raising concerns about the future of social protection and democratic governance.
Conclusion
Welfare states are complex and multifaceted. They have inherent issues, and their goals of social betterment coexist with older themes, including the condemnation of the ‘unworthy poor.’ Moreover, welfare states are costly, consuming significant portions of GDP, and can sometimes reinforce societal divides instead of bridging them. Welfare states are intrinsically political, defining acceptable and deserving versions of citizens.
However, they are also essential for equality and democracy and for lifting many out of poverty. This paper acknowledged that welfare states’ strengths are more potent than their weaknesses and aimed to identify the nature of the challenges facing them today.
Welfare states have fared rough neoliberal waters in some ways through recalibration strategies. By submitting to market imperatives and focusing on and redefining universality, outsourcing, and monetising public provision, they have managed to keep their place in society. However, these recalibrations have not met the promised savings to the taxpayer nor the desired liberal outcomes in protecting society’s most vulnerable. Welfare states have kept their places in society, but much has been lost in adapting to market imperatives.
These recalibrations have aligned welfare states with market imperatives, emphasising cost savings and competitive operation and forfeiting liberal priorities in the following ways. For example, focusing solely on universality has obscured and exacerbated existing inequalities. Second, by redefining universality through neoliberal criteria, welfare states have lent credence and inadvertently aligned themselves with the populist ‘us versus them’ criterion of difference. Third, outsourcing has led to higher costs without improved service quality. Lastly, such outsourcing has eroded democratic capacity as governments become dependent on private providers, losing the ability to manage social challenges independently.
In this paper, two main points were presented. The first is that the welfare state is undergoing recalibration, not austerity. This was illustrated through explanations around social public expenditure, the move towards outsourcing, and the redefined criteria of deservedness. Despite some small recent dips, the expenditure has increased overall. Social public spending is among the highest it has ever been, but what has changed is how it is spent. With that in mind, the issue is not austerity. Thus, the problem is that social spending is financing the private sector through outsourcing contracts instead of focusing on improving its provision.
As articulated here, welfare states are not luxuries; they can reduce poverty, protect citizens against shocks, and embolden citizens to be capable, educated, and healthy protectors of democracy, especially during crises and economic downturns. However, the essential liberal values that welfare states aim to protect are compromised when market imperatives become the priority. The public sector has effectively subsidised the private sector through commissioning contracts that do not necessarily provide cheaper or better support for service users compared to what governments can offer. This is because the primary incentive for the private sector is profit-making and contract renewal rather than focusing on reducing poverty and inequalities, protecting citizens from shocks, or empowering citizens to be capable, educated, and healthy protectors of democracy.
We now know that outsourcing and privatising public provision have not resulted in savings for the taxpayer; decades of data show that welfare states are not spending less (Ortiz-Ospina & Roser, 2023). However, when citizens inquire about what has happened to their community services, schools, or health services, a word frequently used is austerity. Used colloquially, austerity refers to budget cuts for public social spending. Still, if these budgets have expanded, then this means that the challenges faced by welfare states are not only due to austerity.
In the second point, I have demonstrated that governments’ focus on the universality of welfare states is at the expense of achieving liberal goals. The universality of provision, as shown, may create the illusion that it is worth having a welfare state just for its own sake, even if it barely functions as a social equaliser and poverty-reducing tool.
I reiterate that my argument is not for eliminating universality in welfare states but rather for implementing policies that prevent the unequal distribution of benefits within universal welfare programs. Specifically, I posited that governments might reconsider financing the private sector via outsourcing contracts and instead exercise their liberal muscle by working on improving their provision, not just coverage.
So much institutional knowledge has been lost through outsourcing, knowledge that may help adapt services to assist better those slipping through the cracks. By creating or rebuilding their institutional capacity, governments are better placed to deal with emerging crises instead of relying on the private sector, as was the case during the COVID-19 pandemic. By engaging with and prioritising market imperatives, liberal values have been put to one side, and producerism has entered welfare provision, shaping welfare programmes and objectives. However, this focus on universality is a recalibration emerging from an erroneous understanding that welfare states must trim their goals due to limited funding.
The two arguments presented challenge the idea that citizens must settle for scraps, as welfare states are suitably funded to provide the required provisions. Since the issue is not austerity, I suggest that citizens consider whether their welfare states suitably protect them under the current provision or if market imperatives have been prioritised.
The recalibration of welfare states often comes at the expense of service quality, equity, and democratic capacity, raising concerns about welfare states’ future direction. In truth, citizens are paying dearly for a poor product and are losing their capacity as capable, educated, and healthy protectors of democracy to reject a poor deal.
Confusion over the real cause of welfare state retrenchment obscures potential solutions. This diagnosis and the suggestion that welfare states may look beyond universality and stop working towards market imperatives are more straightforward said than done, as welfare states are intrinsically political and politicised entities. Still, I propose that by suitably diagnosing the issue, societies might have a fighting chance to save welfare states and, in turn, strengthen liberal democracies
(*) Jellen Olivares-Jirsell is a Doctoral candidate in Politics at Kingston University London. Her scholarly contributions include publications in the Global Affairs and Populism journals. Research activities include roles with the Trust Lab project at Swansea University and EUscepticOBS and Populism in the Age of COVID-19 at Malmo University. Research interests encompass politics, norms and ideologies, populism, neoliberalism, welfare states, trust, and polarization.
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[1]Acknowledgement: I am grateful for the feedback this paper received during and after the workshop and the anonymous reviewers. I am also incredibly thankful for Hannah Geddes’s full engagement as a discussant.
Nguijoi, Gabriel Cyrille. (2024). “A World of Insecurity: Democratic Disenchantment in Rich and Poor Countries.” ECPS Book Reviews. European Center for Populism Studies. September 19, 2024. https://doi.org/10.55271/br0018
In this book, Professor Pranab Bardhan examines the complex interplay between economic and cultural insecurities through a mixture of empirical data and comparative case studies covering different socio-political backgrounds. It emphasizes populist politics by capitalizing on widespread feelings of vulnerability and disenchantment with traditional democratic institutions. Bardhan argues that populists tend to adopt a simplified, emotive rhetoric that appeals to fears of economic displacement, cultural loss, and existential threats, thereby circumventing nuanced, evidence-based discussions on the actual causes of insecurity. Unlike many studies that narrowly focus on economic inequality as the sole driver of populism, Bardhan’s work explores the broader spectrum of insecurities-economic, cultural, and existential-that foster democratic disenchantment. This book makes a significant contribution to the literature by providing a comprehensive, interdisciplinary analysis that enhances our understanding of the multifaceted challenges facing democracies today.
How do global societies navigate the increasing complexities and contradictions inherent in democratic governance amidst rising insecurity? What roles do economic anxieties, and cultural tensions play in shaping populist movements across the world? Why is understanding the multifaceted forms of insecurity essential to diagnosing the current democratic crisis? What drives citizens, particularly in diverse socio-political contexts, to place their trust in authoritarian figures who promise stability and protection?
These are the pressing questions that Pranab Bardhan, Distinguished Professor Emeritus of Economics at the University of California, Berkeley, addresses in his critical work, A World of Insecurity: Democratic Disenchantment in Rich and Poor Countries. Published by Harvard University Press in 2022, Bardhan’s book offers a comprehensive exploration of the factors driving democratic backsliding and the erosion of civic norms across both developed and developing countries. Drawing on a wealth of empirical data and comparative case studies, Bardhan challenges the prevailing assumption that rising inequality is the sole driver of democratic disenchantment, proposing instead that a broader and deeper sense of insecurity-economic, cultural, and existential is at the core of this global phenomenon. Through a rigorous interdisciplinary approach, Bardhan offers a nuanced analysis that bridges the divide between the experiences of rich and poor countries, demonstrating that the threats to democracy are both universal in their essence and unique in their manifestation.
Bardhan’s exploration begins with an incisive critique of the commonly held belief that economic inequality is the predominant cause of democratic erosion. While acknowledging the importance of inequality, Bardhan shifts the focus toward a more complex web of insecurities that underlie the current discontent with democratic governance. He argues that economic insecurity, which includes job loss, wage stagnation, and the erosion of social safety nets, has fundamentally altered the political landscape in both wealthy and poorer nations. Drawing from recent data from the V-Dem Institute, Freedom House, and other democratic indexes, he notes that the world is witnessing a dramatic rise in “autocratization” with liberal democracies declining in number and influence. Autocracies now govern the majority of the world’s population, and only a small fraction of people live in countries that are becoming more democratic. The author’s argument is that this is not simply the result of increased economic inequality but is deeply tied to broader insecurities that extend beyond the economic domain, encompassing cultural, social, and even existential dimensions.
The book meticulously dissects the interplay between economic insecurity and cultural anxieties. Bardhan emphasizes that the economic anxieties triggered by globalization, automation, and technological disruptions have been compounded by cultural insecurities related to immigration, national identity, and perceived threats to social cohesion. He examines the populist backlash against globalization, noting that while there has been some decline in international trade due to geopolitical tensions and supply chain disruptions, the more significant issue is the perceived cultural threat posed by immigrants and minorities. Bardhan draws on case studies from various countries, including the United States, India, Brazil, and European nations, to illustrate how populist leaders exploit these insecurities to foster support for authoritarian measures. He highlights how figures like Donald Trump, Narendra Modi, Jair Bolsonaro, Viktor Orbán, and Recep Tayyip Erdogan have utilized nationalist rhetoric, historical grievances, and cultural myths to galvanize support and undermine democratic norms. By framing their leadership as a defense against external and internal enemies, these leaders create a narrative of existential threat that justifies the erosion of democratic institutions and civil liberties.
Bardhan’s analysis is particularly compelling in its examination of the dynamics of “majoritarianism” and the way populist leaders manipulate democratic processes to entrench their power. He provides a thorough critique of how elected leaders in countries such as India, Hungary, Turkey, and the United States have systematically undermined judicial independence, curtailed press freedom, and eroded checks and balances to consolidate authority. He argues that these leaders exploit cultural insecurities, presenting themselves as defenders of the “real” people against corrupt elites and dangerous minorities. This tactic resonates strongly with populations experiencing rapid social and economic change, who feel their traditional ways of life are under threat. The author presents evidence that these populist strategies are often successful in garnering mass support, especially in environments where economic insecurities are compounded by cultural fears of displacement and loss.
In addition to his analysis of populism and majoritarianism, Bardhan also tackles the growing attraction to authoritarian capitalism, particularly the “China model.” He explores how China’s perceived economic success has led to a fascination with authoritarian governance in many parts of the world, both among political elites and ordinary citizens who are disillusioned with democratic performance. He critiques the simplistic binary of democracy versus authoritarianism, arguing that the success of the Chinese model is not purely a result of its authoritarian nature but is also due to specific historical, institutional, and policy factors that are not easily replicable elsewhere. He points out that many democratic countries have adopted elements of state-led capitalism, such as strategic state investments in key industries, without abandoning democratic governance. Bardhan thus challenges the notion that authoritarianism is necessary for economic development, arguing instead for a democratic governance model that incorporates strong state capacity and effective public policies to promote social and economic stability.
Throughout the book, he skillfully combines theoretical insights with empirical data to support his arguments. He uses a wealth of examples from different regions to illustrate the universality and specificity of democratic disenchantment. For instance, he draws parallels between the cultural nationalism of Modi’s (India), which seeks to marginalize religious and ethnic minorities, and Trump’s (America), where the rhetoric of “America First” has been used to justify exclusionary policies and undermine democratic norms. The author’s global perspective is one of the major strengths of the book, as it allows him to highlight both the commonalities and differences in the experiences of democratic backsliding across various contexts.
The interdisciplinary approach is another notable feature of Bardhan’s book. He draws on insights from economics, political science, sociology, and cultural studies to provide a comprehensive understanding of the forces driving democratic erosion. His discussion of the economic dimensions of insecurity, such as the impact of globalization and automation on job security and wages, is particularly illuminating. Bardhan also explores how cultural insecurities are intertwined with economic anxieties, as people who feel left behind by economic changes often perceive themselves to be culturally marginalized as well. This dual focus on economic and cultural insecurity provides a more nuanced understanding of the populist challenge to democracy, as it shows how these two forms of insecurity reinforce each other to create a fertile ground for authoritarianism.
His discussion of potential solutions to the democratic crisis is just as thorough and well-founded. He advocates for a rejuvenation of social democracy as a viable alternative to both unfettered capitalism and authoritarian populism. Bardhan argues that social democracy, with its emphasis on social justice, economic security, and democratic participation, offers a path forward that can address the insecurities driving democratic discontent. He suggests that social democrats must reorient their policies to better address the needs of those who feel left behind by globalization and technological change. This includes advocating for policies such as universal basic income, progressive taxation, and public investment in education, healthcare, and infrastructure. He also emphasizes the importance of strengthening democratic institutions and promoting civic engagement to counter the influence of populist narratives and rebuild trust in democratic governance.
However, Bardhan does not shy away from acknowledging the challenges and limitations of his proposed solutions. He recognizes that the revival of social democracy will require significant reforms in welfare states, labor markets, and public finance, which may be politically difficult to achieve, especially in contexts where democratic institutions are already weakened. He also discusses the challenges of implementing social democratic policies in countries with weaker state capacity and more polarized political environments. He provides a critical examination of the obstacles to policy implementation, including resistance from powerful vested interests, bureaucratic inefficiencies, and the complexity of coordinating policy efforts across different levels of government. The author’s recognition of these challenges adds depth to his analysis and prevents it from becoming overly idealistic.
The book concludes with a reflection on the future of democracy in an age of insecurity. Bardhan reiterates his argument that the current crisis is not merely a result of economic inequality but is rooted in deeper insecurities that cut across economic, cultural, and social dimensions. He calls for a renewed commitment to democratic values and institutions, emphasizing that the solution to democratic disenchantment lies not in abandoning democracy but in reimagining it to meet the challenges of the twenty-first century. Bardhan’s call for a rejuvenation of social democracy is both a critique of current democratic practices and a hopeful vision for the future. He argues that by addressing the insecurities that fuel populism, democracies can be revitalized and made more resilient to the challenges they face.
Overall, Bardhan’s book A World of Insecurity: Democratic Disenchantment in Rich and Poor Countries is a thought-provoking and timely contribution to the literature on democratic erosion and populism. It offers a fresh perspective on the current democratic crisis by shifting the focus from inequality to insecurity and provides a nuanced analysis of the complex forces driving democratic disenchantment around the world. The book’s comparative approach, interdisciplinary method, and focus on both developed and developing countries make it a valuable resource for scholars, policymakers, and anyone interested in understanding the future of democracy. While Bardhan’s call for a revival of social democracy is compelling, his analysis also serves as a sobering reminder of the challenges involved in achieving such a transformation. The book is a must-read for those seeking to understand the underlying causes of democratic backsliding and the potential pathways to democratic renewal in an age of uncertainty and insecurity.
Bardhan, P. (2022). A World of Insecurity: Democratic Disenchantment in Rich and Poor Countries. Harvard University Press. 240 pp. Hardcover €25.95, ISBN 9780674259843
Ronco, Massimo & Pretorius, Christo. (2024). “Revising the Trumpian Legacy in the US Foreign Policy towards Latin America.” Policy Papers. European Center for Populism Studies (ECPS). September 16, 2024. https://doi.org/10.55271/pop0003
Abstract
This paper revisits the legacy of former US President Donald Trump’s foreign policy towards Latin America and the Caribbean (LAC), with a particular focus on economic policies and their long-term impact. It argues that Trump’s policies eroded US soft power in the region and failed to adequately address China’s expanding influence. Although the Joe Biden administration sought to reset US relations with LAC, it retained the bulk of Trump’s protectionist policies, perpetuating ongoing trade volatility and regional instability. This paper emphasizes the need for a revised US economic strategy in Latin America that both counters China’s influence and fosters deeper economic integration across the region. The authors propose three policy scenarios for the future: a more aggressive protectionist stance under a second Trump administration, a continuation of Biden-era policies under potential future Democratic leadership, or a more integrative approach that enhances regional cooperation and infrastructure development.
Authored by Massimo Ronco & Christo Pretorius
Edited by Angelica Lisa Rossi-Hawkins
Introduction
Although the US influence in Latin America and the Caribbean (LAC) has been undermined by a lack of targeted engagement following the Cold War (McKinley, 2023), at the beginning of Donald Trump’s presidency, US policy choices in LAC rapidly eroded American soft power and compromised the US’s regional interests by inadequately addressing China’s growing regional influence. The paper intends to outline the features of a revised American foreign policy towards LAC by focusing on the economic policies enacted by Trump. The aim of this brief is to provide recommendations on how to develop a strategy to rebuild trust with Latin American countries and prevent China from further increasing its influence on the continent. While the focus is on Trump’s policies, this paper remains highly relevant, as much of the former president’s foreign policy has been maintained by President Joe Biden. Many protectionist policies remain in place – and some tariff barriers and subsidies to national companies have even increased. The paper argues that any responsible economic policy launched in the region should be integrated into a comprehensive strategy which acknowledges that the main obstacle to unlocking the region’s potential as a partner remains the trade volatility between North and Global South economies, in this case, between the US and the LAC.
The paper’s focus on economic policies is warranted by three considerations. The first is that trade constitutes the foundation for future, deeper cooperation and the conditions for developing political and strategic partnerships (Kehonane & Nye, 2011; Haas, 1964). Second, economic agreements are more palatable to foreign allies. Against the backdrop of Trump’s rhetorical resort to the Monroe Doctrine (PBS NewsHour, 2018), economic policy is perceived as less damaging to state sovereignty than agreements of a political, military or strategic nature. The third reason has to do with the nature of the regimes of some countries in Latin America, which display some socialist tendencies and may offer reduced margins for cooperation in the political or military fields. This paper also emphasizes the connection between the economic policies enacted in the region under Trump and the populist character of the broader strategy from which they emerged, which approaches foreign policy issues as opportunities to appeal to the domestic base (Cadier, 2024; Hall, 2021).
Revising Trump’s Economic Policy
Although outspoken about how the US would ‘reject the interference of foreign nations in this hemisphere’ during his 2018 address to the United Nations General Assembly (UNGA), the Trump administration’s general approach to Central and Latin America was marked by a blend of strategic disinterest in the region and isolationist closure, as exemplified by the barriers established at the border with Mexico in 2018 or by Trump’s stated intention of withdrawing from the NAFTA (PBS NewsHour, 2018). The US’s relative indifference to the LAC region is to be contextualized within a progressive loss of appeal following the collapse of the Soviet Union (Campos & Prevost, 2019: 22; Gurtov, 2021), which originally comprised three components: free trade and economic liberalization, democracy and governance, and security. Trump’s rise to power meant the restructuring of such a triad and a weakening of the first two pillars. The economic policy choices made by Trump’s administration were mainly motivated by the desire to correct the terms of trade relations that were considered detrimental to US interests and American workers and to curb the expansion of China’s influence on the continent.
This paper proposes to revise and mitigate some populist elements of Trump’s foreign policy in the region, which are considered counterproductive and weakening the US influence.
The first amendable element is the transactional and short-term approach to dealing with trade agreements and, more broadly, the economic issues of the continent. The promise to withdraw from NAFTA and the imposition of tariffs on items like steel and aluminum resulted in negative consequences, as the volatility of Latin American countries’ markets increased due to the uncertainty of access to the US market or aid assistance, Latin American countries became more vulnerable to the Chinese debt trap and, finally, during Trump’s tenure China became Latin America’s largest trading partner, with the exception of Mexico. (Stuenkel, 2020; Roy, 2023).
The second element worthy of scrutiny is the Trump presidency’s anti-globalist rhetoric and adoption of old-style protectionist policies. Trump’s economic policies were guided by the objective of reducing US dependency on other productive economies, such as China and South Korea, without fully taking into account that reducing dependency does not necessarily translate into autonomy because value chains still have an important global dimension. The result of this approach was a substantial blow to US credibility in the eyes of Latin American countries, even those considered more aligned, such as Brazil. In fact, despite former Brazilian President Jair Bolsonaro’s anti-Chinese stance and ideological affinities with Trump, the US president still imposed barriers on products and metals from Brazil, such as steel and aluminum (Gilardi, 2019).
Assessing Three Policy Options
At the moment of the writing, three policy scenarios can be envisaged:
The first policy option, likely to be implemented if Trump is elected in the 2024 US presidential elections on November 5, will consist of putting pressure on Mexico to review the United States-Mexico-Canada Agreement (USMCA) in view of its renegotiation scheduled for 2026. In this case, further restrictions on rules of origin would be included with the intention both to bar China from accessing the Mexican market and to continue to shrink trade deflection, which would otherwise allow some imported goods from non-USCMA countries to enter the US market via Mexico without paying tariffs.
Furthermore, Trump may engage in a trade war with some other countries in the region. He may suspend the Free Trade Agreement (FTA) with Nicaragua if its policies towards illegal migration do not change, while relations with Colombia, the US’s closest partner in the region, which in 2022 saw the first leftist government of the country’s modern history, may cool due to ideological divergences. Likely, the result of the will to impose tariff barriers, introduce reinforced rules of origin and subside the American national industry would damage US interests by precipitating higher domestic inflation, reallocation of market shares towards less efficient domestic producers, lower capital investment, the decline of the demand for domestic goods, and a loss of jobs in the USMCA area.
The second option would be to multiply the number of economic agreements and partnerships in the region while maintaining or doubling down on protectionist policies. This scenario would be most likely in the case of Democratic nominee Kamala Harris’ victory in the presidential elections. As Biden’s vice president with limited previous experience in foreign policy (Ashford & Kroenig, 2024) and with not a dominating character (Jenkins, 2024), Harris may seek to preserve some of Biden’s economic policies in the region, founded on subsidies to national industry, tariffs and “Buy American” rules (White House, 2021). For instance, the new partnerships negotiated by the Democratic presidency, such as the “Americas Partnership for Economic Prosperity” (APEP), did not foresee provisions of preferential access to the US market, thus denying the eleven Latin American countries who signed the pact to benefit from a reduction of tariffs or a significant increase in trade flow (Hufbauer & Hoogan, 2021). If, on the one hand, Biden rejected the populist character of his predecessor’s strategy, on the other hand, he did not substantially change the US’s economic approach, including towards Latin America. Closer economic cooperation between the US and Latin America ties into supranationalist and intergovernmentalist theories of integration, reinforcing regional ties whilst maintaining peace and stability (Leuffen et al., 2022).
The third option, recommended by the writers of this paper, is to implement a set of measures which would aim to offset the disparity of trade relations between Northern and Global South economies. Indeed, in 2023, the relations between the US and Latin American countries were characterized by low levels of trade in comparison with those between the US and other advanced economies, such as European countries or Japan. In other words, Northern American countries record a higher level of economic integration (EI) than Latin American countries. This third scenario would entail a mitigation process of the dragging effect of the protectionist policies enacted by the last two presidencies with the aim of gaining the trust of Latin American countries. One step in this direction would be the enlargement of the USCM, an FTA to which the US, Mexico, and Canada are already signatories, to other Latin American countries (de la Calle, 2023). The USMCA could be extended to Chile, which has a solid market-oriented economy and stable democratic institutions; Panama, which constitutes a major distribution center for goods moving between North and South America; and Costa Rica, given its economic stability, strong regulatory alignment, and existing close ties with the US and Canada. The enlargement of the market would allow Mexico to offset the economic loss derived from the imports coming from extra-USCMA countries, especially the EU and China, by exporting to the FTA products with a higher level of foreign backward participation originating from Costa Rica and Panama.
Secondly, the US should support a modification of the economic agreement, which will discipline the expansion of the free trade area in order to reduce the instability of preferential market access. The targets of the amendments should concern three provisions of the current agreement. The first is the sunset clause, which foresees the agreement’s expiration after sixteen years since its entry into force and a review period after six years, weakening the investors’ trust for long-term investments. Regarding this point, the US should introduce automatic renewal mechanisms and extend review periods to create stability in the markets and members of the USMCA. The second provision concerns the limitation of Investor-State Dispute Settlement (ISDS) to only certain sectors with high upfront costs, including oil and gas. In future negotiations, the US should consider extending the protection to a higher number of economic sectors to provide more guarantees to investors.
Finally, the third provision established three new rules concerning automotive rules of origin: the extension of the Regional Value Contents (RVCs) to core parts of vehicles, the requirement that 70% of a vehicle’s steel be sourced from North America and, finally, the requirement that the production of 40/45% of a vehicle or a truck occur in factory plants where the Mexican workers’ wage is five to eight times higher than average (Ludovic, 2023: 365). These measures contributed to a decline in investments and a 0.971% reduction in Mexico’s annual real GDP in 2020, other than an estimated loss of US GDP of 0.12% compared to NAFTA (Manak, 2020). There is evidence to suggest the objective of strengthening the North American value chains was not achieved, as, between 2019 and 2022, imports from the USMCA area (29%) rose less than imports from the rest of the world (32%) (Sarukhán et al., 2023). To counter the negative impact of the tightening of the rules of origin, the US should negotiate an enlargement of the USMCA with Chile, Costa Rica, and Panama, as already mentioned above, and provide incentives to small and medium-sized companies of the members of the expanded USMCA.
Thirdly, the US should launch a long-term program of targeted investments in the construction and improvement of infrastructure in Latin American countries. The construction of ports, airports, canals and highways is an essential condition for reaching the objective of offsetting the structural volatility of trade relations between the US and Latin American countries, but also within Latin America. Investments in the infrastructure field would equip Latin American countries with the appropriate platforms, hubs and roads to increase the trade flows within the continent.
Conclusion
The paper tackled not only the economic policy choices towards Latin America undertaken during Trump’s presidency but, by embracing a broader timeline, analyzed the more problematic subject of the legacy of Trump’s foreign policy in Latin America. Despite Biden’s entry into office and the current president’s stated intention to reset relations with Latin American countries and increase cooperation, relatively scarce attention has been given to the Latin American strategic quadrant in the past four years.
The fact that after the first six months of the Democratic administration, the position of Assistant Secretary for Western Hemisphere Affairs was still vacant indicates what little priority Latin America has for current US policymakers. As the Western Hemisphere can be considered the US’s “backyard,” it is a region in which the emergence of a hegemonic country – like China- cannot be tolerated, and current US foreign policy does not seem suited to address this challenge.
This paper emphasized the cruciality of the Latin American strategic quadrant for the US’ interests by recommending a set of economic policy measures which should respond to an organic and coherent economic-strategic logic, aimed at increasing trade flows and boosting regional economic integration. Since the 1950s, scholars have tried to find a solution for the trade volatility between LAC countries and industrialized countries, such as the US or EU. They proposed implementing measures aimed at privileging intra-regional trade and building a regional integration process (Goodman & Schneider, 2023).
Nonetheless, the failure of economic integration from the inside should make the US consider how it can foster both trade flows with LAC countries and favorable conditions for building a regional integration process. Such a strategy would also counter China’s growing influence, derived from their FTAs already negotiated with four countries and the Belt & Road Initiative (BRI) (Duckworth, 2023). Chinese funding for infrastructure projects leveraged LAC countries’ structural need to build a regional integration space to face the low levels of trade with more advanced economies such as the US and EU and the uncertainty of access to their markets.
(*) This policy paper is based on research conducted by Andrea Sanchez, Angelica Lisa Rossi-Hawkins, Christo Pretorius, Massimo Ronco, and Muhmmed Sihabudheen during the ECPS Case Competition “US Foreign Policy and Populism,” held as part of the ECPS Summer School from July 1-5, 2024.
Authors’ Biographies
Massimo Ronco is a Researcher and International Policy Analyst with a master’s degree in international studies from Turin and a master’s degree in EU external relations from the Brussels School of International Studies of Kent. He is currently working in Brussels in the field of EU research and project management. In 2023, he became a member of the “German-Italian Young Leaders Dialogue,” a forum promoted by the Italian and German Ministries of Foreign Affairs. Also, in 2023, he obtained a diploma in Geopolitics at the Italian Institute for International Political Studies. His areas of interest and research are geopolitics, US foreign policy, European security, Russian foreign policy, politics and culture of the Middle East, and political philosophy.
Christo Pretorius graduated with an MSc in International Public Policy and Diplomacy from University College Cork and was the first student to receive a postgraduate “Student of the Year” award from the Department of Government. His dissertation was published and acquired by the Bar of Ireland’s Law Library and has gone on to support Irish policymakers. Stemming from his undergraduate degree in Ancient and Medieval History and Culture from Trinity College Dublin, his research interests include the mechanisms for authoritarian power and control, as well as democratic backsliding, particularly when viewed from a historical lens.
Angelica Lisa Rossi-Hawkins is a second-year Ph.D. researcher at the University of Oxford. Her research primarily concerns studies of masculinity and elite culture in post-WWII Italy. By examining a number of clusters of upper-middle-class male networks of solidarity from 1945 to the mid-1970s, she hopes to understand the fabric of the post-war democratic ‘classe dirigente.’ While working on her thesis, she also continues to research the development of Christian Democratic politics in the 20th century and remains broadly interested in the history of gender, the history of friendship, and – when time allows — 19th and 20th-century art history.
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Given the inability of Turkey’s strongman Recep Tayyip Erdogan’s to satisfy Turkey’s 86 million citizens with an economy reliant on corrupt patronage networks and the challenges of implementing a heavy austerity program within a democratic framework, diverting public attention to domestic and foreign disturbances to suspend democracy becomes a realistic expectation. Ultimately, Erdogan’s pursuit seems to lead toward a costly Pyrrhic Victory.
In one of his poems, the late Turkish poet Sezai Karakoc, whose verses were even recited with enthusiasm by Turkish President Recep Tayyip Erdogan, proclaimed, “Never say fate, there is a fate beyond fate,” and spoke of “victories growing from defeat.” Through these words, he sought to nurture the hope that the oppressed, who steadfastly endure in their just “cause,” will ultimately triumph.
Tactical Commitment to Democracy Between 2003-2011
It all began with a “cause”! Erdogan and a few friends decided to engage in politics in an independent party, breaking away from the main political backbone known as National Outlook (Milli Gorus), of which he was a member, and its cult leader, Necmettin Erbakan, in the early 2000s. Erdogan explained his “taking off the National Outlook shirt” as “evolving and transforming towards perfection.” He described Turkey’s fundamental problems as political repression, leading to corruption and resulting in poverty. To break this vicious cycle, Erdogan declared that his team would not address the ambiguous rhetoric of National Outlook but rely on human rights-based, pluralistic, participatory democracy, full membership in the EU and, in this context, a modern and democratic constitution.
The party program of the Justice and Development Party (AKP), which he founded, confirmed this. With the support of EU reforms, favorable domestic and international circumstances, and relatively good governance, he continuously elevated the bar for success during a period that could be considered successful. As a Muslim country on the path to EU membership, adhering to the norms and values of a democratic secular regime and safeguarding the rule of law and a market economy, Turkey stirred feelings of admiration in the Islamic world, underscoring its role model status.
As the famous political historian Lord Acton wrote in a letter to an Anglican priest in 1887, “Power corrupts, and absolute power corrupts absolutely.” Having observed Erdogan’s successive election victories in general elections for central government and local elections for municipalities and his subsequent rise in power, I raised questions in my commentary in Project Syndicate in 2011 about how Erdogan would wield his increasing power or how it would be balanced. The question is legitimate because when populist politicians come to power, they might disregard the promises made to society during their time in opposition. Instead, they may opt to perpetuate the old regime and exploit it for their own benefit rather than reforming it in a positive direction, particularly when confronted with real challenges in governance, leading to the implementation of unrealistic solutions to real problems. Additionally, the manner in which they would relinquish power in case of failure remains a highly controversial issue.
Corruption Economy and Return to Authoritarian Agenda
Much has transpired since then, and the AKP’s utilization of its acquired power has been viewed with dismay. Indeed, following the success of the 2011 elections, Erdogan veered toward a different path. AKP Istanbul Provincial Chairman Aziz Babuscu openly declared at the April 1, 2013, Inner City Meetings what they intended to do: “… in the next decade, we will separate our ways from our stakeholders with whom we collaborated when we were powerless because we will no longer need them. For us, the state and social order they idealized were merely tactics and war ploys. We will depart from this intersection, and due to the bitter realities of life, we will have a callous agenda to eliminate them.”
Therefore, society would come to understand for the first time that the proclamation of being an “exemplary secular-conservative democratic model” before and upon assuming power was merely a strategic maneuver until the AKP cadre consolidated enough power. With the eruption of a corrupt regime, where Erdogan diverted economic resources to construct a political order he had long envisioned, coupled with the environmentalist Gezi Protests in June 2013 and the police-judicial graft operations on December 17-25, 2013, he found himself compelled to expedite the inevitable transition towards authoritarianism. This pivotal juncture, symbolizing the crossing of the Rubicon, is fraught with danger for individuals like Erdogan, burdened by a multitude of transgressions and devoid of any avenue for retreat. Indeed, the die has been cast, the arrow released from the bow, and the conflict has commenced.
We have also witnessed how the evolving multipolar world provides authoritarian populists with additional opportunities to validate their “political engineering” and shift towards more oppressive regimes. By labeling corruption files and probes as “imperialist-foreign capital induced coup attempts against the autonomous government of the people,” Erdogan promptly forged an emergency alliance with the previously corrupt state apparatus inherited in 2002, significantly overhauling it to align with Turkey’s EU membership requisites. In exchange for his cooperation, Erdogan directed his highly politicized judiciary to dismiss all former Gladio-related cases in 2014, thus safeguarding his government and himself while closely collaborating with members of the old oligarchy.
After the defeat in the general elections on June 7, 2015, amidst escalating violence due to a resurgence of intelligence-led terrorism and heightened pressure on the Kurds, Erdogan capitalized on security concerns among the populace. He was subsequently reelected in the snap election held on November 1, 2015. However, achieving his political goals required strategic planning and luck. The “witch hunt,” which couldn’t be conducted within the bounds of a democratic rule of law, found fertile ground only under a state of emergency where legal norms were disregarded. This tactic, often employed by Turkey in the past to target minorities of various ethnic backgrounds, proved effective under such circumstances. The “failed coup attempt” on July 15, 2016, served precisely this purpose.
Following the coup attempt, hundreds of thousands of public employees were dismissed from universities, the judiciary, the police, the military, and the Ministry of Education etc. Dozens of foundation universities, widespread educational institutions, and prep schools were shuttered. Thousands of companies were seized, and their assets confiscated. A witch hunt ensued, wherein people were stigmatized for exercising their constitutional rights, ostracized from society, and rendered unemployable. To solidify Erdogan’s party state, hundreds of thousands of political militants were recruited without regard for merit-based criteria to fill the vacancies left by those purged from the public sector.
With the controversial July 15 coup attempt, not only was the relatively moderate faith-based Gulen movement demonized by Erdogan, but also those who did not support the regime were declared open enemies, or at the very least intimidated, with the slogan “those who are impartial will be eliminated.”
The final stage in the regime’s transformation occurred with the 2017 referendum. The adoption of a partisan Presidential system effectively eradicated the separation of powers and checks and balances. The Turkish Parliament (The Grand National Assembly of Turkey, TBMM) lost its efficacy, becoming a mere formality. The judiciary, police, and media were completely co-opted and utilized to serve the regime’s interests. Authoritarian populism, forsaking long-term scientific and institutional planning in favor of a cult of strong leadership centered around a single man, led to decisions made on a whim and managed arbitrarily. Decisions made overnight were rescinded during the day, while personal preferences and exceptions proliferated. Institutions whose autonomy was dismantled were infiltrated by unqualified party militants.
Several crucial examples illustrate the extent of the damage: the Turkish Statistical Institute’s (TUIK) inability to provide accurate information; the Central Bank of the Republic of Turkey’s (CBRT) inability to execute specialized monetary policies crucial for price stability; the Competition Authority’s inability to prevent market monopolization; and the Banking Regulation and Supervision Agency (BDDK) and the Savings Deposit Insurance Fund’s (TMSF) inability to fulfill their roles in the financial system. Furthermore, the Court of Accounts’ capacity to audit the legality of public administration actions was compromised. The Public Procurement Law underwent constant amendments and violations, leading to inflated costs through preferential tenders, while compromising quality and exacerbating impoverishment. The erosion of the rule of law was further evidenced by the severe repression of civil society.
At this juncture, political power took precedence over social dialogue, exacerbating polarization and conflicts. While certain influential industrialists, pro-government media entities, and rent-seeking groups found favor under the regime, disillusionment grew among the educated middle class and youth, who had once harbored hopes for a society founded on principles of freedom of thought, expression, rule of law, and human rights. The Turkish populace, yearning for an open and progressive society, felt betrayed, particularly evident during the 2017 referendum and the 2018 presidential and parliamentary elections, where they expressed their discontent by voting against Erdogan.
The consolidation of political power within Erdogan’s inner circle, notably through intra-party elections in August 2017 which saw power being transferred to his relatives, and the appointment of his son-in-law as Treasury and Finance Minister in the subsequent government, heightened perceptions of “familism” and cronyism among the public. Projects backed by “customer and foreign currency-indexed price guarantees,” which were later transferred to the Treasury, became significant drains on public finances, resembling black holes in their insatiable consumption of resources.
At this point, it’s crucial to briefly examine Erdoganism’s governing model. Erdogan’s tenure, starting from his days as the mayor of Istanbul, has been characterized by notable successes in creating “win-win games” and “interest coalitions” primarily through rent-seeking. In this corrupt system, Erdogan has enriched himself through a give-and-take approach. Secondly, “purchased loyalty” emerges as another key aspect. His transactional strategy involves incentivizing individuals to partake in his corrupt regime by generously sharing the spoils, thereby securing their loyalty, and inducing compliance. Thirdly, a tactic of creating scapegoats and governing through division, even if it means ruthlessly sacrificing one’s allies and offspring when necessary. For Erdogan, any means to achieve his objectives are deemed permissible. Politics is regarded as a battlefield, where deceit and stratagems are not only necessary but also legitimate. This ethos shapes both alliances and enmities. Just as forming coalitions is inevitable, so too is the elimination of partners to strengthen one’s position at every stage.
Tragedy of Patronage in A Low Productivity Economy
Despite the exposure of Erdogan’s blatant corruption model during the December 17-25, 2013 corruption operations, the public did not retract its support from this political structure, which it perceives as vital to its bread and freedom. As is the case globally, the political behavior of Turkish society oscillates between instability, fear of authority, and the risk to livelihood. Until the adverse effects of the deeply entrenched corruption within the regime directly impacted their lives, society not only refrained from reacting out of fear that Erdogan’s absence could lead to instability, but also remained steadfast in their support for him.
Numerous factors, including justice, contribute to the source of political legitimacy, yet the provision of livelihood stands out as the pivotal influence. Erdogan’s dilemma lies in maintaining the sustainability of a patrimonial order characterized by high levels of contingency and arbitrariness in a country as populous as Turkey, with its 86 million inhabitants, largely possessing relatively weaker human capital. Furthermore, the challenges posed by the country’s large population and the inadequacy of natural resources are compounded by external changes. As the world undergoes a new wave of “creative destruction” marked by intensified technological competition, driven by the Fourth Industrial Revolution and the Fifth Generation Communication Revolution, Erdogan’s focus on sectors from the first and second industrial revolutions, such as textiles and land-construction, which are shielded from foreign trade and competition, as well as rent-seeking activities facilitating wealth transfer, proves unsustainable.
Attempting to evade the Middle-Income Trap (MIT) through reliance on these sectors—often associated with the lowest value-added and situated at the cheapest end of the global value chain—is futile. The MIT concept posits that traditional sectors, at the current stage of development, are excessively costly to compete with low-cost developing countries, while modern sectors demand higher quality and added value to rival leading industrialized nations. Consequently, the manufacturing industry finds itself trapped between traditional sectors characterized by high prices and modern sectors marked by inadequate quality.
Indeed, in a 2012 economic report I edited for the Independent Industrialists and Businessmen’s Association (MUSIAD), of which Erdogan was one of the founders, I forecasted a continuous decline in per capita income from 2013 onwards, suggesting that Turkey would likely fall into the MIT by the 100th anniversary of the Republic. These projections have largely materialized today: Per capita income, which stood at $12,500 in 2013 and for the first time in her modern history put Turkey on the brink of entering the high-income country group and attracting global attention, has steadily decreased and plummeted to $10,674 by 2022. In the context of the 2023 election, due to excessive suppression of the exchange rate and the exclusion of migrants, who were considered in the calculation of the gross domestic production (GDP), when GDP was divided by the population, per capita GDP was reported as $13,000 (Figure 1). Despite the national income remaining at $1 trillion in 2023, the per capita income aimed at $25,000 stagnated at half that level—a loss of a decade’s worth of progress. Turkey, which climbed to the top of the developing country groups in the 2012-2013 transition, has slipped back to the status that Erdogan took over 20 years ago, as of 2022. In 2021, Turkey dropped out of the “top 20 largest economies in the world” rankings for the first time in modern history.
The predictions regarding macroeconomic management under populist regimes, spanning from right to left-wing populists, have been largely confirmed in Erdogan’s case. Initially, Erdogan began his term in late 2002 with an IMF program and effectively implemented EU reforms. However, following the regime change in 2018, which marked the onset of his authoritarian tendencies, Erdogan exhibited numerous shortcomings. These included the implementation of expansive monetary and fiscal policies, resulting in soaring inflation rates, price controls, credit rationing, persistent budget deficits, unsustainable debt accumulation, arbitrary and short-term decision-making, non-compliance with established economic programs, and failure to achieve projected outcomes.
Erdogan’s management has failed to address chronic macroeconomic imbalances, characterized by persistent external and internal deficits, high inflation rates, volatile borrowing and lending rates, and depreciation of the Turkish Lira (TL), thus impeding the economy from achieving sustainable growth. The economic environment, marked by a sharp annual increase in broad money supply by 65 percent and the political decision to keep the policy rate well below inflation, has led to a significant negative real return, creating conditions favorable to speculative attacks on the TL. Heightened insecurity and uncertainty have further increased demand for foreign exchange, while the annual credit volume has surged by approximately 55 percent, driving up consumption and import demand and inflating the real estate sector bubble. These factors have exacerbated inflationary pressures, which have already spiraled out of control (Figure 2a). Johns Hopkins University professor Steve H. Hanke and the Inflation Research Group (ENAG) have meticulously uncovered a stark reality: TURKSTAT, evidently under the direct influence of Erdogan’s administration, has significantly understated inflation data. This revelation sheds light on a deliberate manipulation aimed at distorting income distribution, particularly impacting fixed-income civil servants, workers, and employees. The wealth transfer orchestrated through this misrepresentation has inflicted a substantial blow to their financial well-being (Figure 2a).
Meanwhile, the dollar exchange rate surged from ₺3.86 in 2018, the year of the regime change, to ₺32 by the end of March 2024, marking an 850% depreciation of the TL over five consecutive years. Despite unreliable public data, inflation spiked to around 100% at one point in 2022, up from 17% in 2020, before closing the year at 65%. The same level of inflation, 65%, was recorded in the election year 2023. However, Erdogan intervened aggressively in the foreign exchange markets to curb further inflation after his politically motivated decision to lower interest rates, depleting over $200 billion from central bank reserves in just two years.
With Mehmet Simsek’s return to politics, who served as finance minister in the AKP government until 2018, in June 2023, and his reappointment to the same ministry, there has been discussion of a stabilization program under the motto “cutting off the wrong and returning to rational ground.” However, despite having a name, its content has remained unfulfilled. When Simsek took office, the CBRT policy rate stood at 8.5%, with inflation around 39%. By the end of 2023, the interest rate had soared to 45%, while inflation reached 65% by the year’s close. Despite selling more than 40 billion dollars of additional borrowed reserves from the Central Bank, and the interest rates rose to 50% during the election to repress inflation, it hit 68,50%. Such a doubling of consumer inflation over less than a year, accompanied by an almost 6 to 7-fold increase in the policy rate, is highly unusual, reflecting the heavy injury of the demand and supply mechanism. Populist policies implemented following successive elections have worsened expectations, and the secondary effects of the inflation shock in autumn 2021 appear to be further strengthening.
Erdogan’s “economic model,” based on unfulfilling prophecies and aimed to determine the opportunity cost of money through political decrees centrally, assumed that lowering interest rates would reduce production costs and decrease inflation. It also posited that an increase in the exchange rate would enhance Turkey’s export competitiveness, thus allowing the country to close its foreign exchange deficit. However, these prophecies did not come true, and instead, the opposite happened. The model eventually transitioned into a tragic stage when Erdogan and his “politburo members” attempted to control inflation through direct and indirect exchange rate and price controls at all costs. This “learning-by-doing experience,” which incurred a devastating political and economic cost, reflects the tragic “self-fulfilling prophecies” of populist leaders like Erdogan, who aim to keep interest rates low while unreasonably hoping to prevent prices, foreign exchange rates, and inflation from rising. The process resulted in an incredible transfer of wealth and increased cost of living in favor of a small segment of society at the expense of the majority.
As outlined above, the challenges under Erdogan’s regime extend beyond resource allocation efficiency and raise significant concerns about distributional issues. This is sadly reflected in Turkey’s income and wealth distribution statistics in 2023, compiled by TUIK. According to labor union studies conducted in March 2024, the hunger threshold for a family of four in Turkey, where the minimum wage is 17,000 TL, was estimated at nearly 20,000 TL, while the poverty line stood at almost 55,000 TL. Thus, voters faced dire circumstances without security or other guarantees when hunger and poverty levels reached such heights. According to TUİK, by 2023, the share of the highest-income group, comprising 20 percent of the population, had surged to 50 percent of the national income, while the lowest-income group remained stagnant at 6%.
The Gini coefficient, a key measure of income inequality (where zero indicates perfect equality and one signals extreme inequality), has been on the rise since 2014, reaching an estimated 0.433. Finally, data released by Credit Suisse and UBS in March 2024 depict an even grimmer picture of wealth distribution in Turkey. The country’s wealth Gini coefficient stands at 0.8, with the wealthiest 10% owning a staggering 70%. According to a recent European Commission for Turkey report, Turkey still lacks a dedicated poverty reduction strategy. After sustained price increases, the poverty rate reached 14.4%, up from 13.8% in 2021. The severe-material-deprivation rate reached 28.4% in 2022.
In that, after 2011, it became increasingly evident that Erdogan’s focus shifted towards exploiting the flaws of the old regime to consolidate his government rather than addressing political repression, corruption, and poverty. Instead of actively tackling poverty and income inequality, he opted to “manage” these issues, perpetuating a cycle of dependency. Emerging data summarized above shows that Erdogan can not sustain his role as a Robin Hood figure, redistributing part of the wealth generated from public rents to society through various mechanisms in a low-value-added, low-productivity economy (Figure 3) with a population of 86 million people.
A recent publication indicates that this range of patronage or patrimonial economic relationships was facilitated through cultural and ideological narratives, civilizational and religious populism, anti-elite polarization, and the government’s inclination to scapegoat foreigners.
Erdogan’s purported model, as discussed thus far, aims to position Turkey as a “cheap production base” in the western part of Eurasia and the eastern part of Europe by suppressing real wages, utilizing cheap surplus labor provided also by immigrant workers, channeling people’s savings to cronies through subsidized interest rates, attracting capital by devaluing all national assets through currency depreciation, sustaining economic growth inflated by inflation, raising indirect taxes, and ultimately exporting low-value-added products to improve the external balance. However, these objectives have yet to be fully realized. Despite the sharp devaluation of the TL and the imposition of very high customs duties, trade deficits have continued to increase, and financing quality has deteriorated, leading to the accumulation of unsustainable foreign debt (Figures 4 and 5).
From a longer-term perspective, the combined impact of institutional erosion, the dismantling of checks and balances, and a contentious foreign policy under autocratic rule have resulted in flawed economic policies and the disintegration of the production fabric. The total volume of Foreign Direct Investment (FDI) entering Turkey has experienced a sharp decline since 2007. The crisis of trust has led Turkey to detach from the European value chain. Simultaneously, political tensions with major Arab countries like Saudi Arabia and Egypt have prompted a distancing from the Middle Eastern market. Meanwhile, Erdogan’s allies in Eurasia, such as China and Russia, dominate in trade deficits but do not contribute to financing. China relegates Turkey to merely an “open market” and a “transit route” to access the EU and neighboring countries duty-free. In summary, China and Russia are the primary sources of Turkey’s trade deficit, while the source of finance remains traditionally Western Europe (Figure 6, Table 1).
‘God of Hunger’ Prevails over the “Gods of Fear’
In Greek mythology, Limos represents the embodiment of starvation, hunger, and famine, while Deimos and Phobos epitomize chaos and fear. Deimos symbolizes terror and dread in ancient Greek religious beliefs and mythology, whereas his sibling Phobos embodies panic, flight, and rout. Recently, the Turkish populace, losing hope and experiencing escalating hunger, has rebelled against the dominion of the “gods of fear.” Instead, they find themselves under the sway of the god of hunger, embodying their current struggles.
In the March 2024 local elections, amid the economic crisis and regional and global contractions in foreign policy, a pivotal moment emerged where the “god of hunger” prevailed over the “god of fear.” Despite the government’s extensive propaganda urging the populace to prioritize “stability,” maintain “gains” under Erdogan’s regime, and resist foreign influence, people turned a deaf ear to these messages. Consequently, the elections resulted in a resounding defeat for the ruling party.
In recent years, Erdogan has crafted his entire political narrative around themes of national honor, sovereigntism, independence, and autonomous foreign policy. Consequently, he has leaned towards polarization, alienation, and divisive governance both domestically and internationally. Erdogan has positioned himself as the guardian of the Muslim ummah, the champion of a Free Palestine, and the rightful inheritor of former Ottoman territories. However, his loss of ability to engage in economic and political populism at home and abroad during the March 2024 local elections underscores the unsustainability of populism in a country of Turkey’s magnitude and geopolitical complexity. It is indeed a notable irony in the history of a religiously motivated populist authoritarian political leader to transition from the rhetoric of the “caliphate of the ummah” to being labeled as a “collaborator of Zionism” amid Israel’s Gaza massacres. This shift arises from the diverse forms of support, including weapons and kerosene, extended to the Netanyahu government during the ongoing massacre of civilians in Gaza and the relentless destruction of the city. This transformation must be viewed as a profound turn of events in the history of the region.
Finally, despite the ruling party’s defeat in the local elections, the opposition strategically positioned itself to claim victory. Firstly, by gaining control of critical municipalities in major cities through the “Nation Alliance,” formed in 2019 as a counterforce to Erdogan’s “People’s Alliance,” the opposition effectively deprived the government of a populist tool while providing an avenue for engagement with the public and showcasing its capabilities. Despite Erdogan’s acknowledgment that losing Istanbul equated to losing Turkey, he couldn’t prevent it in 2019. Fast forward to 2024, not only did he fail to reclaim any major cities lost in 2019, but the losses extended further, with additional significant cities slipping away.
Utilizing this opportunity, opposition-led municipalities efficiently reached out to citizens facing hardships during the crisis. Secondly, the opposition embraced positive populism, taking cues from Erdogan’s playbook. This involved a notable transformation within the main opposition party, the Republican People’s Party (CHP), which shifted from its elitist and establishment image to a more grassroots approach. By speaking the language of the people, acknowledging past shortcomings, and seeking forgiveness, the CHP significantly bolstered its appeal and credibility among the populace.
Conclusion
Following Erdogan’s recent electoral defeat, exacerbated financial crisis, and foreign policy constraints, the period between 2024 and 2028 is poised for turbulent developments. The stark contrast between the people’s needs and Erdogan’s priorities renders the situation even more fragile. Erdogan’s primary objective is to maintain power and evade accountability at all costs.
The inevitable repercussions of the March 2024 local elections seem unavoidable, primarily due to the substantial number and size of municipalities lost, rather than merely the overall voting percentages. These cities predominantly housed Erdogan’s rent projects, thrived on corrupt economies, and relied on assistance to people experiencing poverty, cementing their dependence on him.
Hence, Erdogan suffered losses not only in terms of the popular vote but also in terms of financial resources. Ambitious projects like “Canal Istanbul” or the construction of malls in Taksim Gezi Park now seem unattainable. Moreover, his loss of domestic support and resources has tarnished his reputation. To reclaim these lost assets, it’s foreseeable that Erdogan will centralize numerous resources and administrative units previously overseen by municipalities. This might involve appointing trustees to many cities, obstructing municipal budgets, and hindering investment financing initiated by municipalities.
However, instead of focusing on trivial matters, a more comprehensive political strategy should be anticipated to address the underlying issues. The saying goes, “each blow that doesn’t kill strengthens.” Erdogan finds himself wounded, vulnerable, and, consequently, highly perilous. Just as Turkey spiraled into a state of fear following the June 7, 2015 elections that he lost and witnessed the suspension of law after the failed coup attempt orchestrated by government intelligence on July 15, 2016, Erdogan might resort to provoking Kurds and stoking societal tensions using his concocted “FETO” narrative to neutralize the impact of local elections by sidelining legal procedures once more.
The recent attempt to hinder the elected candidate in Van province immediately after the election may signify something more than a conclusion but rather the inception of a more extensive process. Erdogan’s alliance with the ultranationalist National Action Party (MHP) and its leader, Devlet Bahceli, known for their connections with criminal elements, could potentially draw Erdogan into hazardous undertakings, leveraging Turkey’s instabilities to their advantage.
Another urgent agenda that influences the aforementioned projects is Turkey’s austerity program, whether implemented with or without the IMF. Turkey is currently facing economic and political crises, and implementing a rigorous stabilization program is crucial to mitigate inflation and urgently address the foreign exchange shortage. However, the societal burden of such programs is significant, and only a newly elected government with high credibility could realistically enact one. Given the ongoing erosion of trust, compounded by Erdogan’s autocratic regime’s arbitrary and amateurish practices, it seems unlikely that the current government could effectively execute such a demanding program to fully address the situation.
The upbeat “signaling effect” of an IMF agreement is undoubtedly more urgent than a gradual loan dispersal. Yet, Erdogan’s acceptance of such an agreement presents another challenge, as it would require substantial reforms, including transparency, accountability, addressing past crimes, and moving away from entrenched corruption. Moreover, the specific political and economic concessions the US might demand from Turkey to facilitate an IMF agreement still need to be determined.
In terms of the root cause of Erdogan’s tragedy in Turkey, while Erdogan endeavors to assert leadership within “the Islamic Ummah” rather than “bowing to Europe,” he finds himself increasingly isolated not only from Europe but also from the Arab world. His efforts to appease Russia and China have faltered, and he is entangled in a costly “war of liberation” without sufficient resources. In this scenario, the longstanding propaganda that portrayed Erdogan as “the guardian of the Ummah” has collapsed and been replaced by the perception of him as a “Zionist collaborator.”
Therefore, given Erdogan’s inability to satisfy Turkey’s 86 million citizens with an economy reliant on corrupt patronage networks and the challenges of implementing a heavy austerity program within a democratic framework, diverting public attention to domestic and foreign disturbances to suspend democracy becomes a realistic expectation. Ultimately, Erdogan’s pursuit appears to lead toward a costly Pyrrhic Victory.
Axford, Barrie. (2024). “The Implications of Rising Multipolarity for Authoritarian Populist Governance, Multilateralism, and the Nature of New Globalization.” Populism & Politics (P&P). European Center for Populism Studies (ECPS). March 30, 2024. https://doi.org/10.55271/pp0031
Abstract
What is it about the current phase of globalization that feeds on and is fed by the populist zeitgeist? In what follows I will tie the discussion of populism to the changing character of globalization, sometimes called the “new” globalization, though that label does less than justice to the overlapping nature of historical globalizations. The “new” globalization is both a description of the de-centered and multi-polar constitution of globality today and a reflex to safeguard against the roils of an ever more connected and turbulent world. It is a reminder that globalization has always been a multidimensional and contradictory process, moving to no single constitutive logic, and historically variable. The new globalization is the context for the current populist surge and, in turn, that surge is testimony to its emergence as a serious political force, perhaps as an embedded global script. In this same context the much-trumpeted failures of multilateralism are set against a burgeoning multipolarity which is itself an expression of the changing face of political modernity.
The end of multilateralism and the onset of a multipolar world is a compelling narrative today. Here is a flavor of that narrative as told by academics and players of different hue:
First, Gideon Rose in 2017: “Today the liberal international order is a bit dilapidated. The structure still stands, but paint is peeling, walls are cracking, and jerry-built additions jut out from odd angles. Even at its best the arrangements never fully lived up to their ideals, and benefits have not always been distributed equally or fairly. Slowing growth, increasing inequality, declining social mobility, excessive bureaucracy, self-dealing elites, poor responses to transnational problems such as terrorism and climate change—the litany of current problems is long and familiar.”
Second, EU foreign affairs supremo, Josep Borrell, who in July 2023 opined “(w)e live indeed in a more and more multipolar world, but multilateralism is in retreat. It is a paradox. Why? Because when the number of participants in a game increases, the natural response should be to strengthen the rules governing the game. However, we are facing the opposite trend: the rules governing the world are running out of steam. We must find ways to overcome this paradox.”
The third intervention has it that regardless of what robust multilateralism might imply or even require, as Donald Trump repeated in early Spring 2024, collective security – among other things – can go hang if America is expected to go on bearing undue financial costs.
The penultimate reference is to Elizabeth Braw’s recent claim that “the uprising of Europe’s farmers is a final nail in the coffin of globalization.” She goes on, “globalization is rapidly retreating and the forces of populism it helped to unleash are on the march.” Which, of course, echoes similar predictions made over the 30 years since Silvio Berlusconi first promised Italians a videocracy shorn of usual politics and politicians. Some years later various factions of the British “Leave” campaign weaponized Brexit with the promise to “take back control.”
Finally, from the Politico App in October 2023 a swingeing judgement: “For years we debated whether multipolarity would strengthen or weaken multilateralism. Now we know it has killed it.”
With the exception of the Politico quote none of these references is a full-blown jeremiad on the twilight of the liberal order. Is Trump really serious about NATO? Will his “Second Coming” deliver the brain-death of the liberal international order? Does widespread agricultural protest actually signify a wider and deeper disenchantment with the globalized economy; or even suggest that globalization is crumbling? Well, perhaps, but we are right to question the credentials of such claims. At the least exercising social-scientific caution will alert us to the complexity and dangerous messiness of world geo-politics and economics today, and this almost irrespective of whether one stands on the rise or decline in American power.
In what follows I begin by addressing the key terms in use: first multilateralism and particularly its troubled confrere the liberal international order; then multipolarity, which, with something of an Orwellian cast, can be read in different ways and with quite different agendas in mind. And finally, the part played by populism in these scenarios; bearing in mind the need to couch all this in a rather wider canvass of what might be called “new” globalization with the attendant shift to what looks like a re-racinated modernity, and what that might entail for world order.
Multilateralism Today
The concept of liberal international order is far from precise, despite its routine usage by scholars, journalists, and politicians. It is often spoken about as an open and rule-based order, enshrined ‘in institutions such as the United Nations and norms such as multilateralism’ (Ikenberry, 2011: 56; 2010). States are core actors in this order, which nonetheless prescribes a cooperative demeanor on their part and, in some cases, a partial abrogation, or pooling, of state power (Ruggie, 1993: 562). So far – so uncontentious. But at this point some definitional, and thus operational, issues arise (Kundnani, 2017). These include obvious qualifiers as to its actual openness – is it really no more than a Western club masquerading as a universal order? What is meant by ‘rules? – who makes them and what are the sources of their legitimacy? There is also the matter of what ‘liberal’ implies. Does it suggest a modal opposition to authoritarianism? (political liberalism) Is it just about open markets and opposition to economic nationalism? (economic liberalism). Or is it just an abstract and scholarly term, used to disparage realist and neo-realist theories of international relations? (liberalism as IR theory). Well in fact, the concept melds all these definitions of liberal, but in doing so highlights tensions between them. These tensions are evident in what, some years back, became known as the ‘Beijing Consensus,” whose precepts were succinctly put by Stefan Halper (2012) when he wrote that states outside the West have been ‘learning market economics with traditional autocratic or semi-autocratic politics in a process that signals an intellectual rejection of the Western economic model.’Here economic and political liberalism are distinct and one does not predicate the other.
The present international order fuses two distinct notions of order. The first dates back to the Peace of Westphalia in 1648, somewhat contentiously taken to have laid down the concept of state sovereignty (Teschke, 2003). The second draws on liberal thinking developed first in Britain and the US over the past two centuries. Here being ‘liberal’ means embracing ‘open markets, international institutions, cooperative security, democratic community, progressive change, collective problem-solving, shared sovereignty and the rule of law’ (Ikenberry, 2011: 2). So, what we currently depict as the international liberal order is in fact a hybrid based on more-or-less statist assumptions and, since 1945, a regard for multilateral cooperation in many policy areas and issues of common concern.
In all but name this was a settlement made in the image of the Western powers that initiated it. Realist in its commitment to state autonomy, it also espoused liberal principles, and these found limited expression in the United Nations Charter. The great economic institutions of the postwar era – the General Agreement on Trade and Tariffs (GATT – later to be replaced by the World Trade Organization or WTO), the World Bank and the International Monetary Fund (IMF) were resolutely liberal, but still dominated by Western powers and reflected Western economic interests.
In sum, the idea of a liberal international order comprises three basic elements. The first is a systemic configuration of power in the doctrine of sovereignty. Second is the architecture of fundamental rules and practices that designate sources of authority in that order and smooth its routine operation. Finally, there is the framework of social norms that sanction the other two elements. This third element provides the justification for what might otherwise appear as a system governed by contradictory imperatives – territorial particularism (sovereignty) and moral universalism (seen, for example in the United Nations doctrine of human rights). These elements have developed in different, and sometimes contradictory, ways and these are manifest in the tensions over what constitutes an international security order, an international economic order and an international human rights regime, all under the auspices of a self-styled benignAmerican hegemony.
Current arguments between the West and authoritarian powers such as China and Russia are not so much about international order per se but about different versions of it and in particular about the way Western powers have sought to change it since the end of the Cold War. Russia – some startling appearances to the contrary – wants to go back to the order agreed at the Yalta Conference in 1945, in which states with different ideologies and political systems co-exist and in particular respect territorial sovereignty — a Westphalian world in other words. In contrast, the more ‘liberal’ order for which many in the West argued in the post-Cold War period, “demands that states be obedient to liberal principles in foreign policy” (Kundnani, 2017: 47)
What About Multipolarity?
At this point it is appropriate to add that opposition to the liberal world order is not confined to China, Russia, and their allies. During Donald Trump’s presidency and still a feature of his current bid for office, is the rhetorical dismissal of the postwar liberal order and America’s stewardship of it. Moreover, it is clear that states of different hues do not share the vision of a benign US hegemony or, if they share it, wonder if the United States is still suited or committed to playing that role.
In 2016, Fu Ying, then Chair of the Foreign Affairs Committee of the Chinese National People’s Congress identified three features of what she called the ‘US-led world order.’ These are ‘the American value system,’ the ‘US military alignment system’ and ‘international institutions, including the UN system.’ Although she did not use the term hegemony, what she describes amounts to the same thing. Apparently willing to support the third element of the international order, she said that China would always temper its approval of a system based on Western, and especially American, values. This reaction is increasingly widespread and has led to demands to dismantle the postwar geopolitical order and inaugurate a more obviously multipolar world, much like the economic sector. Americans counter that their hegemony has been, and remains benevolent, but the fact is that many outside the geographic and ideological West (and some within it, including countries in Europe) see the Liberal International Order as an ideological project. China is still frequently mentioned as a possible or likely successor to America’s hegemony, and so attention rightly turns to the kind of world order it would support and pursue.
Multipolarity is the defining feature of this order, and it elicits both approbation and opprobrium. Some commentators argue that it is a myth, and even those who discern its rise claim either that it is “unbalanced” and therefore dangerous, or that it reflects a growing demand for sovereignty (for which read recognition) and identity and recognizes that there are multiple routes to economic modernity, especially in the Global South. As Josep Borrell also wrote, this new multipolarity results from the combination of three dynamics. First, a wider distribution of wealth in the world, second, the willingness of (hitherto middle-ranking) states to assert themselves strategically and ideologically and third, the emergence of an increasingly transactional international system, seen in bilateral deals – strategic partnerships and the like, or in forms of minilateralism – rather than in global rules. All this is a good way from the uniform “end of history” envisaged by Fukuyama in the early 1990’s, or visions of the smooth, networked world of hyperglobalist fantasy, and is clearly threatening to liberalism and universalism as the paradigm expressions of a post-ideological world. Moreover, the multipolar cast of twenty-first-century globalization is significantly different from the twentieth-century version. Before coming to, that let me say, a preliminary word about populism.
The current (and seemingly protracted) spate of populisms is also part of a post-triumphal, post-hegemonic phase of global rebalancing. It is an expression of the tension that arises between globalization as a process of interconnection and de-bordering on the one hand, and strains of consciousness, as well as pressing exigencies, that resist any such convergence. It is at once fractal and ubiquitous; national populism was clearly orthogonal to the ideological landscape of the neo-liberal narrative of late twentieth century globalization, with its borderless credo. Then, it was fashionable, and for a while prescient, to declaim the potentially borderless quality of every kind of network and flow. Now that bullishness is largely absent – in the global north as well as south. Populism in its current guise is a specific moment in the more encompassing dialectic of global convergence and heterogeneity; a dialectic that displays various types of accommodation between national and global imaginaries, while still proclaiming an ontological divide between the two.
Globalization in Flux
The much-rehearsed crisis of (Western) liberal capitalism is, along with the travails of Western modernity, more generally construed a staple in accounts of global change, leading to intense arguments about the end or rebirth of modern history. Sometimes this is glossed as a hegemonic shift, the sequential, and even cyclical, passing of preponderant might. But more often today the emphasis is on systemic disruption, disjunction, and fragmentation, and on alternative futures, where nothing is certain, and insecurity is rife. In terms of scholarship’s attention to things global this is an important development. For one thing, it locates the much touted “backlash” against globalization and modernity in a global crisis of “existential security,” which is a matter of consciousness.
In his book the “Silent Revolution,” published in 1977, Ronald Inglehart drew attention to extraordinarily high levels of existential security experienced in mature democracies in the decades following World War II. This condition brought an unprecedented shift from materialist values that emphasized economic and physical security alongside endemic fears over the liminal quality of many lifestyles; to post-materialist values privileging individual autonomy, self-expression, openness to change and embracing diversity. The value shift so described brought with it huge social and political changes, from the rise of anti-war movements, demands for stronger environmental protection and their partial fulfillment, higher levels of gender equality across the social spectrum and the mainstreaming of gay rights. Democracy as a global cultural script also flourished. It too was dependent upon unprecedented levels of economic prosperity and geo-political stability. Of course, none of this happened overnight. Change was often quite protracted, occurring at the speed of intergenerational population replacement and, while secular, always subject to short, and sometimes not so short, economic downturns.
But, for the past forty years or so, citizens of even high-income countries have seen more volatility in fortunes, so that they no longer take material wellbeing, or even survival, for granted. As a result, the graph tracing feelings of security has dipped markedly. Ulrich Beck argued that this is part of the crisis of second modernity – the inevitable consequence of living in the risk society (1996). In risk society, hazards have become much less predictable than of yore and even when predictable, profoundly more unmanageable. As a result, the scope for contingency, doubt and relativism increases vastly, to the point where fears about survival are rife; all without the dampening effects of fatalism or the haven of insurance. In this scenario the list of contributory ailments is familiar – declining real incomes, erosion of job security, rising income inequality within, if not always between, nations, and fears for the lot of subsequent generations, not least in terms of actual or impending environmental and health disasters and perceived threats from uncontrolled immigration and the displacement of whole peoples. Inglehart argued that the “Silent Revolution” dynamic still musters, but that – to a marked extent – it has gone into reverse with acute consequences, both politically and socially. The consequences include growing support for xenophobic, populist, and authoritarian movements, along with a morbid fear of globalization, at least in its paradigmatic Western and capitalist (neoliberal) shape (Brubaker, 2017).
In systemic language all this suggests a faltering of the Western model of globalization and of Western modernity; modernity shaped by rational, cognitive reflexivity on the part of individuals and institutions, along with critical monitoring of the self and social institutions by all actors. And as a reaction to the perceived failure of reflexive modernization and the ability to manage the trials of everyday life, there has been a search for, or reversion to, seemingly more “authentic,” and decidedly more expressive components of self and collective identity. Anti-globalization and neo-statist rhetoric and activism is one such expression – distilled in the slogan “taking my country back” – and it appears in various shades of contentious politics; not all of them regressive. And where it is not seen as part of a cyclical process, but as a contingency born of circumstance – de-globalization is another; often taking the form of the “innovative fortification” of various enclaves and identities to protect against globalization’s relativizing and integrative dynamics (Betz, 2023; Benedikter et al, 2022). Populism is a key – though not the only – component in such politics.
What are the implications for globalization’s 21st century profile?
The politics range from exclusivist forms of collective identity, like ultra-nationalism, through a world in which the “other” – however conceived – is forever consigned as alien and untrustworthy; to adopting designer selves in line with fashion or circumstance, making identity construction a lifestyle choice (Foges, 2020). Crucially, for the temper of politics abroad in such a milieu, the latter often entails a rejection of meaning systems that are mediated by technical expertise, abstract systems and rationality; ironically at a time when life itself is ever more subject to the pervasive technologies of the Internet, AGI (artificial general intelligence), and soon, quantum computing. The first two are all too familiar as the tools of what Joshua Neves calls “under-globalization” with its panoply of fake news, deep fakes, conspiracy theories, disinformation and polarized worldviews (Neves, 2020).
On the ground the search for security and for recognition has triggered new forms of contentious politics. As well as varieties of populism, new social movements – of indigenous peoples, climate change protestors, communitarians, feminists, and Trans activists – have invoked elements of the romantic-aesthetic tradition. But in its most robust, and least palatable, form the search to minimize exposure to risk tribalizes relations between groups. In this scenario the recently dominant trope of a hegemonic, benign and borderless global order – capitalist, liberal and embracing of (cultural) diversity – has less and less purchase. Other contenders, other globalizations, such as “justice globalism” or “jihadist globalism,” perhaps civilizationism, as well as evidence of multiple routes to modernity, point up the increasingly fissiparous, or at any rate plural qualities of the umbrella concept “globalization” (Steger, 2015). The point is that all such changes in the real world demand an agile scholarship to address changing global complexity which is comprised – inter alia – of the emergence of non-western, post-western, post-capitalist, and post-socialist globalities and a myriad of glocal formations, including platforms in cyberspace.
A sense of impending doom on many fronts lends a febrile quality to any discussion of current global change and its direction; though the actual set of the world aftera veritable glut of deluges remains hard to fathom. Which will undo us first; nuclear Armageddon courtesy of a throwback to what – pre-Ukraine – most scholarship had consigned as an outdated twentieth century trope for world order? Or might demise lie in the kind of politics occasioned by excessive inequalities and growing precarities, in the spillover from wars in Ukraine and Gaza and the weakening of US hegemony on many fronts? Is climate change the obvious, or only, form horse in the apocalypse stakes? These are hardly frivolous questions, and for some, they betoken a world already far down the road to perdition. But here a word of caution is appropriate because while a focus on dislocation and crisis is seductive and the narrative of impending ruin compelling, they tell only part of the story, at least for how we construe and consign the global, both in the academy and in popular imagination.
So, Is There a New Globalization?
Neoliberal globalization is experiencing profound challenges, sometimes simplified as a “backlash,” and its opponents have markedly differing prescriptions for the global future, including a world disaggregated into national redoubts. In the climate engendered by the Coronavirus pandemic the latter scenario is less a strategic vision of multi-polar or decentered globalization than the reflex of insecure humanity looking for succor where it can. The responses to Covid-19 reflect a sense of collective (global) vulnerability while decanting to mainly local ways of dealing with it, and this is a paradigm for the present global condition. The same is true of the politics of climate change, where the cause of national exceptionalism, seen in what became known as “vaccine nationalism,” was reflected in health security measures and more draconian forms of immigration control.
Viral and ecological disasters, along with the possibility of nuclear Armageddon aside, there is widespread agreement that liberal globalization has been usurped by rising protectionism and by diverging growth paths in emerging markets. Taken together they describe a concatenation of crises for previous versions of globality (Gills, 2020). But talk of a backlash against this model does not imply an end to globalization, or even a systematic process of “deglobalization.” Rather it posits a rebalancing in, as well as a destabilization of, what Steger and James describe as once “taken-for-granted shibboleths,” most obviously the centrality of unfettered markets (Steger and James, 2019: 191; Benedikter and Kofler, 2019; Steger, 2019b; Steger, 2019a). Rebalancing tends to what I call a “new” globalization, though the attribution has to be used with care. New globalization is no hyperglobalist rebirth; but neither is it an unequivocal shift to more state-centric forms of national liberalism or, for that matter, national populism.
So, what is it?
First, we should note a shift in the global balance of economic power, which is, or may be, of world-historical significance. We are in the midst of another long-term transition – from the Atlantic economy (Atlantic globalization?) to the Pacific economy (Pacific globalization?) (Nederveen Pieterse, 2018: 124) – a shift that further attests to globalization’s dynamism and its indeterminate nature. This re-balancing is often characterized as a process of “post-Westernization,” or “Easternization.” Using such labels is still simplifying but qualifies the urge to treat radical changes as just another increment in the cyclical transfer of hegemonic power. It is more accurately portrayed as a process of “multi-polar globalization,” no longer in thrall to Western neoliberalism (Nederveen Pieterse, 2018; Arrighi, 2007). Easternization is a complex process wherein “non-Western societies and civilizations acquire, institutionalize, and transform…. modern traits” (Casanova, 2011: 263), but crucially, also enact their own versions of modernity out of their own pasts. The Chinese case underlines the fact that the pattern of global economic integration is not a Western telos, and in key respects never has been (Axford, 2018).
As Jan Nederveen-Pieterse says, twenty-first century globalization involves a “new geography of trade, weaker hegemony and growing multipolarity” (2018: 11). Increasing multipolarity has cast shadows on the relevance, legitimacy, and effectiveness of established multilateral organizations and processes seen, most obviously, in the UN, G-20, World Bank, IMF, EBRD, WTO, and WHO. Chronic weaknesses have been concurrent with the rise of initiatives such as BRICS – plus, the Shanghai Cooperation Organization (SCO), and China’s Belt and Road Initiative (BRI), driven by authoritarian and populist leaders, who have now staked a claim on the future demeanor of global governance. Meanwhile the Western architectures of post-war global governance are often perceived as “weak” or “disingenuous.” These developments have far-reaching implications, not least in the ability to address global challenges such as climate change, food security, conflict resolution, and humanitarian crises. And proxy conflicts, political oppression, terrorism, and ethnic and community displacement have triggered irregular and uncontrolled migration, contributing to the rise of far-right and other populist parties and movements in developed nations.
What really sets the two strains of “old” and “new’ globalization apart is the rise of emerging economies in the current phase. Their growth has outstripped rivals in the developed world to the point where they are now the drivers of the world economy. Data for 2023 confirms this trend. A group of 24 emerging economies accounted for 50% of Global GDP in 2023, and 66% of global GDP growth in the past 10 years (2013-2023) (World Economics 2024). Although dramatic, this growth spurt might still be seen as tracking a pattern of global convergence already extant, whereby Asian and other emerging economies strive to achieve per capita GDP and living standards currently enjoyed by developed nations. But that understates the extent to which the rise of emerging economies upsets, and possibly overturns, the practices and mythologies of two centuries of North over South domination, with its “familiar expressions of colonialism, imperialism and American hegemony” (Nederveen-Pieterse, 2018: 10).
Because of this shift, the new globalization has something of an epochal feel to it, although such a conclusion may be premature. Overall, the demeanor of twenty-first century globalization is not assured because the data lends itself to different interpretations. Thus, in 2019 geopolitical uncertainty in the guise of the US-Iran conflict and a slowing Chinese economy combined to trigger a global manufacturing downturn. A year later the novel coronavirus that began in China dampened Asia’s growth prospects still further, with the global consequences still being played out, most obviously through its effects on those developing nations with poor healthcare systems, pronounced national debt and generally fragile economies. The Coronavirus pandemic then reshaped trade by shortening supply chains. For many multinationals a move towards regional, rather than global, supply chains offers the prospects for resilience and, as the Economist Intelligence Unit reported in 2021 the flexibility to shift production of key components from one location to another. Global trade networks have also shrunk or been damaged in the fallout from the Russian invasion of Ukraine and from Israel’s response to Hamas’ massacre of its citizens in October 2023.
Relations between old and new preponderant powers are also more volatile. In particular, US-China trade relations remain fragile. Geo-strategically the same is true, a consequence of China’s insistent and persistent claims on Taiwan. Calls to decouple Western economies from “strategic dependency” on China for a range of goods and infrastructural services increased markedly during the time of the Coronavirus, partly as a reflection of worsening relations with the USA, and partly out of fears that the CPR controlled too great a proportion of trade in goods critical for national security.
So, important questions have to be asked about the significance of events and trends and about the rise of emergent economies and fragmented societies more generally. Are these secular changes, heralding an epoch-ending, terminal failure of the status quo, or another periodic adjustment in the dominance of global (read Western) capitalism? Do they advance or retard neoliberalism or is that question already redundant? Are they just another frisson in the changing (if not cyclical) fortunes of nations in general and preponderant nations in particular? Do they signify the advent of post-liberal globalization tout court, as an illiberal and authoritarian state (China) and its cohorts, make the running in terms of global growth and stewardship? Most portentous, are the shifts epochal because they intimate the breakup of the capitalist world economy, of capitalist modernity and thus of capitalist history? The weight of these questions imparts a more nebulous quality to any judgment about apparently seminal indicators of change.
The likelihood is that multi-polar globalization has its own dynamics, including the lineages of Chinese and Indian economic development as alternatives to Western models of growth. But this is not another grand narrative of globalization – a new hegemony – in the making; more a major rebalancing in key areas such as trade, finance, international institutions, and soft power. It contributes to a crisis of dominant modes and the appearance of a globalization that is more complex, overlapping, disjunctive and (dis)ordered.
Second:Digitalization. Of course, there are still robust signs of global convergence economically and culturally, but the drivers and character of that convergence are changing, and this has consequences for the character of world trade, for growth, as well as for wealth creation and distribution. Such drivers also impact profoundly on the ways we live our lives. Here I advert digitalization – the displacement of analogue technologies and cultures by digital means – as a new global formation that has become “continuous and ubiquitous” (Sandywell, 2011: 14). In this respect, though in many others too, the “emergent global” as Appadurai says, is (or has been) all about speed (2020). While the trade in goods seems to be slowing down, and may be stagnating, trade in global services and information – especially where they are digitally enabled – continues to boom.
Of course, there are disabling pinch points in these developments. Digital technologies are not replacing mass and low-cost manufacturing altogether; or not yet. But the roboticization of production threatens an ever-wider constituency of workers, not only just low or unskilled operatives. The consequent political need to protect jobs in face of such pressures is growing stronger, especially in advanced economies, and this spawns a protectionist politics to match. But here there is a crucial prospect to consider. Across the board digital media are no longer just intermediaries between social agents, no longer just channels or conduits of information. Rather, they are generative social apparatuses that produce the social. Digital technologies are designed for a borderless world because, as Barry Sandywell argues, “the images of life, nature and relationships they promulgate tend to take a universal form” (2011: 15). Yet there are paradoxes, some of them apparent in the ruttedness of places and identities when set against the desire to live “in the moment,” to benefit from simultaneity and routine access and yet be free of the usual joys and trammels of human contact.
Arguably, these developments have few, if any, parallels in previous analogue cultures. The virtual inscriptions of cyberspace are creating new spaces and times of politics, governance and leisure, new business practices and new kinds of imagined community. The changes are perhaps most advanced and dramatic in visual worlds – especially in the seductiveness and growing availability of worlds through virtual and augmented reality technologies and AGI (artificial general intelligence). But in truth, they are everywhere, mainly because digital information is accessible at any point on the planet – if not always easily – and thus supplies resources for personal and institutional innovation and greater reflexivity, and also opportunities for more systematic and draconian surveillance. This process is never going to be a tale of bland homogenization. The globalization of digital culture is variable and contested in terms of its liberating potential, its repressive and dehumanizing possibilities, and its variation across localities. And the digitalization of personal worlds and cultures demonstrates the same features, arousing the same passions.
Third, Sovereigntism (neo-statism): In a recent foray Jonathan Friedman corrals populism’s basic precepts with the label “sovereigntism” (2018; see also Kallis, 2018 and Basile and Mazzoleni, 2019, Gerbaudo, 2021) an almost elemental regard for retaining or “taking back” control over one’s conditions of existence. In like vein Paolo Gerbaudo labels this phenomenon “neo-statism. This is a mantra that keeps on giving, witness ex-UK Prime Minister Elizabeth Truss’ reference to the Trumpian “deep state” at the CPAC conference in February 2024. Sovereigntism is a very portable concept and popular sovereigntism, the “will of the people,” is the evocation most favored by populists. Just where does all this sit in the narrative of the new globalization?
Sovereignty resides center-stage, if uneasily, in all accounts of modern globalization, where debate and dispute focus on the capacity and future of the state and the international system of states, alongside the threat or promise of statelessness. Sovereigntism looks back longingly to a more untrammeled version of sovereign power based on “mutually exclusive territories and the retrenchment to the national dimension” (Kallis, 2018). If populism is the bully-boy opponent of globalization, then sovereigntism and neo-statism are its intellectual and ideological avatars. They instantiate the “innovative fortification” of the national I spoke of earlier, but they do not amount to de-globalization.
Most observers now agree that states are not in demise, which was the hyper-globalist conceit not all that long ago. But are they routinely effective actors, not just in the mythology of realist and neo-realist theory, but in their actual ability to penetrate, extract and coordinate resources within a territorially defined space and act in concert with others? These resources include the size of the available pool of trust in governments, and the belief that, by and large, what they do will enhance the quality of life for citizens. The Covid-19 pandemic trialed the strength of that trust, challenging the state’s position as a bastion for nationals, while underlining its vulnerability to the indifferent globality of pathogens. But is this a limiting case, or was the pandemic a turning point in the capacity of individual states to manage their affairs, as well as in the shape of global geopolitics?
Taking back control is an elemental, if often non-specific, ambition. The complexities of twenty-first century globalization confront all shades of populism as a battle for the future of the national imaginary in geo-political, geo-economic and geo-cultural guises. Taking note of the previous indicators of new globalization, it can be argued with some conviction that since the millennium the “rise of a multifaceted populist challenge to the liberal mainstream” (has) exposed the shallowness of liberalism’s supposed triumph in the world more generally, but critically in its heartlands in Europe and North America (Kallis, 2018). We might also claim that in the shape of a renewed sovereigntism, the national state, indeed the national imaginary altogether, have staged something of a comeback in recent years. Indeed, sovereigntism as a facet of the new globalization may have “emerged as one of the primary ideological-political fault lines of contemporary politics” (Kallis, 2018: 13). It is, as Aristotle Kallis notes, benefitting from lying at the “intersection between rival populist projects of re-defining and allegedly re-empowering the community of ‘the people’” (2018: 13) and frequently apocalyptic – though sometimes experiential – accounts of a world in chaos, or soon heading that way.
But Are There Reasons to Be Cheerful?
Populism – which traffics the relativization and even transcendence of modernity’s principles and forms – holds up a mirror to current politics and the current phase of globalization, and what that shows is both unedifying and palatable. But the fissiparous quality of politics around the world should temper any impulse to generalize. This is a world manifesting different kinds of conflict and revolt, and that variety is itself a reflection of growing – not to say systemic – multipolarity. The de-centeredness, or multi-centeredness of this world also qualifies any neat blanket labels such as “global capitalism,” “global neoliberalism” or liberal order, as unequivocal descriptions of a predominant or hegemonic variety of globalization or global system. Capitalism is differentiated, and neoliberalism increasingly fails to convince as an overarching and steadfast rubric because big players in emerging markets – China, India, and Northeast Asia – have developed, and continue to develop, outside it (Arrighi, 2007). And to underline further the variety of origin and temper, Modi’s populism in India is a mix of autocracy, ethno-religious nationalism, and neo-liberal economic dogma. Donald Trump – in his guise as the “come-back kid,” still beggars any model of ideological (or policy) consistency; touting a blend of Jacksonian conservatism and protectionism, alongside neo-liberal formulaics, and a now developed white version of nationalism.
It also remains true that in advanced economies in the West and North populist movements and parties of both the (notional) left and the (notional) right have emerged in recent years to protest and counter the perceived and experienced ills of market capitalism. To a greater or lesser extent, and almost regardless of ideological hue, they offer cures or palliatives for perceived maladies that are inimical, or at least challenging, to democratic elitism as the dominant mode of governance and political culture (Inglehart, 2018). On this count, populism, in what I have elsewhere termed its “postmodern” guise, can be seen either as a distinct (though not singular) challenge to the remnants of embedded liberalism and the currency of its neoliberal spawn, or a remedy for their ills (Axford, 2021). As Dani Rodrik says, populism so conceived is part of an ideological and policy rebalancing of globalization (Rodrik, 2018). That said it may be no more than a cathartic response to periodic crises; a shock to the system, rather than its successor-in-waiting, and that syncs with its hit-and-run style of politics. Populism appears to demand transformation, albeit of a back-to-the-future variety but is perennially light on detail. In the aftermath of Covid such coltishness may continue to find favor with sections of disaffected electorates. But in the longer-term, perhaps not. The spate of elections – including to the European Parliament – around the world in June 2024 may provide some of the answers to that question.
And to a great extent it depends on how deep and how widespread the politics of anger and of cultural insecurities run. How serious is the demand for change in the battle to rebuild the world and domestic economies after successive crises? We know the depth of anger and the degree of polarization, or so we now think; though many commentators dismiss such frustration as either whimsy, or as an unlikely basis on which to build a new politics, to fashion radical economic policies, and to mend broken cultures. Populism’s credentials in these respects remain open to question. How committed are various electorates to radical solutions as opposed to garish gestures – and what would a politics born of such radical commitment look like? The “cultural turn” of late has encouraged citizens to repose what were once seen as biddable political issues into matters of identity that are not so malleable, and these may be legion.
So, in the broader warp of social change what signifies is a politics founded on insecurity as the dominant motif for turbulent times. Crucially, insecurities are manifest over the stability of borders and identities, as much as over jobs and wages. And, of course, Covid-19 added a new source of universal insecurity. Populism did not cause these insecurities but taken in the round it narrates a crisis of modernity that is unlikely to be resolved through mere refurbishment of usual politics. Because of that it has a course still to run. Nonetheless, can it be redeemed as a project that tempers globalist excesses; holds at bay the indifferent globalities of microbial infection, and heals cultural divisions? The answer is probably not, and certainly not entirely. But what I have argued here locates populism as a feature of a globalized world itself in the midst of change; and a quickener in the ontological shift away from political and quotidian modernity. This will look like a re-racinated version of twentieth century Western modernity, but notably without its universalist cast and, to say the least, such a designation adds a sting to routine talk of a multipolar world. Populism may not be an embedded feature of current geo-politics, but it is expressive of what is a now likely to be a modal force for change; perhaps for good, but more likely for ill.
Note: A version of this article was delivered by Professor Barrie Axford at the ECPS’ Third Annual International Symposium on “The Future of Multilateralism Between Multipolarity and Populists in Power” with the same title on March 19, 2024.
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“The Implications of Rising Multipolarity for Authoritarian Populist Governance, Multilateralism, and the Nature of New Globalization,” by Dr. Barrie AXFORD(Professor Emeritus in Politics, Centre for Global Politics Economy and Society (GPES), School of Social Sciences and Law, Oxford Brookes University).
Panel -I-
Interactions Between Multilateralism, Multi-Order World, and Populism
Moderator
Dr. Albena AZMANOVA (Professor, Chair in Political and Social Science, Department of Politics and International Relations and Brussels School of International Studies, University of Kent).
Speakers
“Reimagining Global Economic Governance and the State of the Global Governance,” by Dr. Stewart PATRICK (Senior Fellow and Director, Global Order and Institutions Program, Carnegie Endowment for International Peace).
“Multipolarity and a post-Ukraine War New World Order: The Rise of Populism,” by Dr. Viktor JAKUPEC (Hon. Professor of International Development, Faculty of Art and Education, Deakin University, Australia; Faculty of Economics and Social Sciences, Potsdam University, Germany).
Panel -II-
The Future of Democracy Between Resilience & Decline
Moderator
Dr. Nora FISHER-ONAR (Associate Professor of International Studies at the University of San Francisco).
Speakers
“The Impact of Populist Authoritarian Politics on the Future Course of Globalization, Economics, the Rule of Law and Human Rights,” by Dr. James BACCHUS (Distinguished Professor of Global Affairs; Director of the Center for Global Economic and Environmental Opportunity, School of Politics, Security, and International Affairs, University of Central Florida, Former Chairman of the WTO Appellate Body).
“Resilience of Democracies Against the Authoritarian Populism,” by Dr. Kurt WEYLAND (Mike Hogg Professor in Liberal Arts, Department of Government University of Texas at Austin).
“Global Trends for Democracy and Autocracy: On the Third Wave of Autocratization and the Cases of Democratic Reversals,” by Dr. Marina NORD (Postdoctoral Research Fellow at V-Dem Institute, University of Gothenburg).
Day II (March 20, 2024)
Keynote Speech
“How Globalization, under Neoliberal Auspices, Has Stimulated Right-wing Populism and What Might Be Done to Arrest That Tendency?” by Dr. Robert KUTTNER (Meyer and Ida Kirstein Professor in Social Planning and Administration at Brandeis University’s Heller School, Co-Founder and Co-Editor of The American Prospect).
(Postdoctoral Research Fellow, China Research Analyst at Institute of East Asian Studies, Duisburg-Essen University).
Speakers
“China’s Appeal to Populist Leaders: A Friend in Need is a Friend Indeed,” by Dr. Steven R. DAVID (Professor of Political Science at The Johns Hopkins University).
“Belt and Road Initiative: China’s Vision for Globalization?” by Dr. Jinghan ZENG (Professor of China and International Studies at Lancaster University).
“Predicting the Nature of the Next Generation Globalization under China, Multipolarity, and Authoritarian Populism” byHumphrey HAWKSLEY(Author, Commentator and Broadcaster).
Special Commentator Dr. Ho Tze Ern BENJAMIN (Rajaratnam School of International Studies in Singapore, Coordinator at the China Program, and International Relations Program).
Closing Session
Economic Implications of Rising Populism and Multipolarity
(Associate Professor in International Relations at School of Society and Culture, University of Plymouth).
Speaker
“Demise of Multilateralism and Politicization of International Trade Relations and the Multilateral Trading System,” by Dr. Giorgio SACERDOTI (Professor of Law, Bocconi University; Former Chairman of the WTO Appellate Body).
Ozturk, Ibrahim. (2023). “Confronting Populist Authoritarians: The Dynamics of Lula’s Success in Brazil and Erdogan’s Survival in Turkey.” Populism & Politics (P&P). European Center for Populism Studies (ECPS). December 6, 2023. https://doi.org/10.55271/pp0027
Abstract
This article delves into the political trajectories of anti-establishment leaders Inácio Lula da Silva (Lula) in Brazil and Recep Tayyip Erdogan in Turkey, both of whom ascended to power in the early 2000s amid politically fragmented environments. The analysis explores the dynamics of their rise, governance styles, and the factors influencing the retention or loss of power. Lula’s success in the 2022 elections against right-wing populist Jair Bolsonaro is attributed to his adept coalition-building and pragmatic policies. In contrast, Erdogan, facing economic crises and deep political unrest, managed to secure his position in the May 2023 elections, showcasing the complexities of populism. The article examines the leadership qualities, coalition-building strategies, and responses to challenges encountered by Lula and Erdogan. Despite initial similarities, Erdogan’s transformative approach to institutions and the establishment of a self-sustaining clientelist regime contributed to his longevity, in contrast to Bolsonaro’s defeat. The role of clientelism, rent-seeking, and corruption in both countries’ politics is discussed, emphasizing their impact on public perception. Lula’s effective positioning as an alternative to Bolsonaro is contrasted with Turkey’s lack of a convincing opposition. Despite bringing Turkey to the brink, Erdogan’s retention of power is attributed to maintaining a “man of the people” persona amid societal concerns for security and stability. In conclusion, the article underscores the nuanced dynamics of populist leadership, emphasizing the significance of historical context, governance strategies, and external factors in shaping the trajectories of leaders such as Lula and Erdogan.
In Brazil and Turkey, nations marked by histories shaped by military coups and dictatorships, establishment forces found themselves unable to thwart the ascent of anti-systemic actors to power. In the early 2000s, the leftist Inácio Lula da Silva (Lula) and the rightist Recep Tayyip Erdogan (Erdogan) rose to prominence in a highly fragmented political environment, garnering support from individuals who had long been marginalized.
Contrary to apprehensions, the transition of power from so-called establishment elites to the “real people” occurred primarily within the existing rules, devoid of bloodshed or violence. Two pivotal factors played a decisive role in shaping this outcome. Firstly, the global landscape witnessed the winds of democracy and market economy reforms, coinciding with the collapse of the Soviet Union in the 1990s, the decisions of China and India to embrace globalization, and the zenith of the appeal of the European Union and the United States. Secondly, public anger and discontent intensified due to the escalating number and depth of economic and political crises in developing countries, such as Brazil and Turkey, which struggled to keep pace with globalization and increasingly found themselves on the periphery.
Furthermore, Turkey’s fragmented political environment, in addition to addressing country-specific challenges like corruption, terrorism, and natural disasters, contributed to the impetus for change. Despite Erdogan’s party receiving limited support with only 34.28 percent of the vote in the 2002 elections, the Justice and Development Party (AKP) disproportionately secured 363 deputies in the 500-seat parliament due to an unfair electoral system, while many other parties were excluded. In Brazil, the Lula-led alliance triumphed in the presidential race with 61.27 percent support, compared to 38.73 percent for its opponents. Recognizing the significance of coalition-building in such a delicate political climate, Lula moderated his left-wing working-class discourse in Brazil, and Erdogan adjusted his religious and anti-secular rhetoric in Turkey. Both leaders shifted towards the political center, aligning themselves with democratic and market-oriented principles. This suggests that citizens in both countries anticipated a measured and predictable change in central policies rather than a complete overhaul of the system.
Lula and Erdogan assumed power amid the implementation of painful austerity programs in response to economic crises, yielding impressive initial results in both countries. Consequently, they fostered a “responsible” image regarding market economy principles and demonstrated a “sensible” approach toward those experiencing poverty. In Brazil, where macroeconomic stability improved and capital inflows surged, significant commodity exports fueled growth, generating foreign currency. Meanwhile, Turkey garnered attention for its EU membership-oriented reforms, heightened institutional quality, predictability, and productivity. Positive developments in Turkey were primarily driven by structural reforms, leading to productivity and efficiency-driven growth, while in Brazil, the advantage of being a “commodity exporter” was leveraged through the rapid increase in global commodity prices.
Protesters protest for the freedom of Luiz Inácio Lula da Silva on Avenida Paulista in São Paulo, Brazil on April 7, 2019. Photo: Cris Faga.
After Lula was barred from politics for a third term amid corruption allegations, unaddressed judicially, issues such as corrupt scandals, weakened economic growth, deteriorated income distribution, and political chaos paved the way for the rise of right-wing populist Jair Bolsonaro, with a military background, to power at the end of 2018. In contrast, Erdogan did not lose power. After securing control for the third consecutive time in the 2011 elections, Erdogan’s response to the economic crisis and systemic corruption scandals took on an authoritarian tone. He implemented “counter-coup” processes to legitimize his ultimate aim of marginalizing democracy in the country. This led to subsequent practices of a state of emergency, the enforcement of radical public security measures, and a rhetorical emphasis on national independence and sovereignty, defining the characteristics of his governance. That is, he maintained power by leveraging security concerns and intimidating voters.
Bolsonaro and Erdogan, facing the pandemic crisis, were expected to leave power due to the severe economic crisis triggered by their incompetent and arbitrary one-person regime practices. While this expectation came true when Lula returned to power for the third time in the March 2022 elections, Erdogan, who had been in power for 20 years, retained his position in the May 2023 elections. This article explores why Erdogan held onto his seat against a coalition led by a center-left-wing leader in 2023, while in 2022, a left-wing coalition led by Lula emerged victorious against the right-wing authoritarian populist Bolsonaro.
The paper unfolds as follows: after establishing a framework outlining the globalization-populism transmission mechanism in the next section, the third section focuses on a brief comparative perspective of the economies of Brazil and Turkey. The fourth section utilizes social welfare policies to elucidate Lula’s rise and Erdogan’s endurance in the aftermath. The fifth section delves into the nature of the “coalitions” subject to contestation between the populist incumbent regime and the mainstream opposition. The final section summarizes the main findings and derives some policy implications.
Populist Waves in the Post-Cold War Global Conjuncture
Over time, the Western-centered liberal multilateral order (LMLO), established in the post-Second World War (WW-II) era, and the unparalleled globalization it ushered have given rise to some pathological contradictions due to the economic, political, and social fault lines they activated. The traditional values and norms of the LMLO prioritized rapid growth, full employment, the pursuit of equality, and democracy, imposing a certain level of control and discipline on excessive capitalist tendencies. In other words, while economies became more integrated through trade, governments could maintain firm control of corporate activities and regulate labor markets, trade unions wielded strength, and, above all, finance was restrained (Kuttner, 2018).
Three global imbalances in different regions and countries triggered uncharted globalization, but self-serving market mechanisms failed to “correct” or neutralize them. First, with the opening up of China and India and the collapse of the Soviet Empire, billions of cheap surplus labors changed the nexus of the world economy, not through direct labor movements but through free trade. Second, radical technological shifts fundamentally transformed the existing global economic paradigm in trade, production, and finance, highlighting excessive connectivity and dependency. Third, the emergence of a substantial structural saving glut in northern Europe, centered on Germany, and in East Asia, centered on China and Japan, triggered enormous global financial flows (Cheung et al., 2020). Despite the surge in production, trade volume, and financial flows that created employment, generated income, and helped lift many people from absolute poverty, it also set parallel and more destructive trajectories in motion.
Taken together, these factors operated in diverse geographies in a complex manner, yielding asymmetric outcomes such as the ascent of a powerful and wealthy business elite, the decline of trade unionism, escalating worker insecurity, financial instability, and surging income and wealth inequality. This process triggered significant migrations and dislocations, perceived as threats to established endogenous lifestyles, national identity, and security in developed countries. Consequently, these outcomes inevitably and dangerously contributed to the rise of populist, xenophobic, and authoritarian attitudes among a growing proportion of the population (Cingano, 2014).
Simultaneously, the “voice of the great masses” emerged against elites who economically oppressed the people, humiliated them as a way of life, and excluded them politically. Given that globalization diminished national sovereignty and independence in both developed and developing countries from various perspectives, opposition to existing multilateral governance institutions (i.e., the United Nations, NATO, IMF, WTO, and World Bank) and multinational companies externally, along with criticism of the status quo internally, has become a prevalent trend. The possibility of pursuing multiple balanced politics, created by the emerging multipolar world, also provided a fertile ground for alternative combinations of populist rhetoric. As the global economic crisis (GER 2008-2009) and the COVID-19 pandemic (2019-2021) have shown, excessive connectivity undermines the resilience of national economies. Therefore, sustained economic growth and the protection of social peace in semi-peripheral countries like Turkey and Brazil rely on their capacity to manage their adaptation to the instabilities of the global economic system. The similar crises opened the avenue for further populism.
Experts highlight the crisis of trust in democracy over the last three decades, a period dominated by neoliberal globalization as the primary alternative. This crisis is primarily attributed to corruption and the failure of governments to provide essential public goods, particularly in health and education, ultimately impeding the transition of developing countries into higher-income status.
Therefore, populist leaders, who initially adhered to global market norms and upheld the rule of law amid the remarkable global economic growth from 2002, shifted their stance with the onset of the global economic recession (GER 2008-2009) associated with the neoliberal paradigm and its political and economic challenges. Taking advantage of the increasingly multipolar world order, they began gravitating towards their “hardcore” ideologies, legitimizing them with populist rhetoric. This era marked the golden age of global populism until the COVID-19 pandemic (Posner, 2017).
Recent studies (DEMO Finland, 2023; International IDEA, 2022; V-Dem Institute, 2023) measuring the global state of democracy underline that the number of countries moving towards authoritarianism is more than double that of those moving towards democracy, placing 37 percent of the world’s population under authoritarian rule (The Economist Intelligence Unit, 2023). A recent report from Freedom House (2022) finds that only 43 percent of countries can be classified as free and considered democracies.
On the other hand, as discussed by Öztürk (2022a), the consequences of the COVID-19 pandemic and the deepening economic crisis did not yield definitive results regarding populist trends. Viktor Orbán in Hungary defeated the opposition coalition and remained in power, while Donald Trump, who lost the elections but increased his votes in the USA, contested the results, refusing to concede peacefully and leaving behind “Trumpism.” In Brazil, Bolsonaro lost the election by a narrow margin and, like Trump, attempted to deny the results. In Turkey’s most recent case, the ruling populist Erdogan remained in power in largely unfair elections. While the defeat of populist leader Kaczyński in the elections in Poland (October 15, 2023) created some early signals for optimism, the victories of libertarian outsider populist Milei in Argentina and far-right Wilders in the Netherlands suggest that the populist backlash has resurged amid the economic crisis following the COVID-19 pandemic.
One of the paradoxes or fragilities of incumbent regimes is that, despite their shortcomings, they enable populist leaders to come to power through relatively free and fair elections. However, once in power, the populist leaders often deny the rules of the game, refraining from adhering to or improving upon the same rules, norms, and values, thereby turning elections into mere spectacles. Unsurprisingly, the “defeating of authoritarian populist leaders” has become a hot topic worldwide. Two such cases are Lula’s victory over the incumbent populist leader Bolsonaro and his subsequent rise to power. The other is Erdogan’s survival in office in the May 2023 elections despite multiple political and economic crises, pandemics, and a devastating earthquake.
Brazil and Turkey in Perspective
Introducing Main Political Figures
Although the international interconnectedness and geographic proximity (the so-called geostrategy), democratic experiences, population dynamics, economic structures, and cultural codes of these two countries are significantly different, the strategies and policies of said political leaders in mobilizing these different parameters can still provide a reasonable basis for a comparative study with an opportunity to draw far-fetched lessons in the fight against democratic backsliding. Lula and Erdogan ascended to power during a profound governance crisis in 2002. After decades of military dictatorship, Brazil emerged as a prominent and the youngest democracy in Latin America and the world since 1985, undergoing a relatively peaceful power transition. Subject to the separation of powers among the judiciary, legislative, and executive branches, Brazil also possesses a civil oversight mechanism comprising an independent media and an autonomous central bank. Its current constitution provides robust protections for civil liberties.
On the other hand, while Turkey’s democratization efforts date back to the second half of the 19th century, genuine multi-party free elections only took place after World War II. Despite numerous interruptions, the multi-party parliamentary system, based on checks and balances, persisted until the implementation of the Presidential Government System (PGS) in 2018. Theoretically, Turkey’s PGS can be characterized as a representative democracy and a constitutional republic within a pluriform multi-party system, where the president (serving as the head of state and head of government), parliament, and judiciary share powers reserved for the national government. In practice, since the consolidation of power in 2018, the political regime in Turkey has lost its democratic and rule-of-law-bound characteristics. The parliament has effectively become a rubber-stamping body, providing legitimacy cover for Erdogan’s arbitrary and erratic one-person rule. Numerous elected representatives have been expelled from the parliament and imprisoned. Elected mayors, particularly in the Kurdish region of the country, were ousted, imprisoned, and replaced by appointed public servants as “substitutes.” The judiciary underwent a thorough purge by the Erdogan regime, with positions filled by professionally unqualified individuals demonstrating a cult-like adherence to the regime.
Given the overarching characteristics of political regimes and the pragmatic, opportunistic, and contingent attitudes of populist leaders reflecting their personalities, comparing populists and deriving reliable, generalizable conclusions proves challenging. Nevertheless, despite differences in rhetoric, their discourse ultimately aligns with mainstream ideology when in power. In this context, Lula is a left-wing populist, Bolsonaro is right-wing, and Erdogan represents a hybrid form, oscillating between left and right-wing rhetoric.
Of working-class origin, Lula embarked on his career as a metalworker, evolving into a trade unionist during the 1970s. Amidst the Brazilian military dictatorship, he led significant workers’ strikes from 1978 to 1980. He played a pivotal role in founding the Workers’ Party in 1980, contributing to Brazil’s political opening and the end of the military regime. Although Lula has maintained ideological consistency, his two terms in power from 2003 saw him adopting a more market-friendly approach to gain confidence while concurrently upholding a “pro-citizen” stance through extensive social welfare policies.
In contrast, as a right-wing populist, Bolsonaro utilized anti-elitist sentiments, challenging the establishment and positioning himself as a spokesperson for the “common people” while championing family values. Bolsonaro, who entered politics in the late 1980s as a retired representative of a “democratically defeated military class,” is the complete opposite of Lula, who fought against the military class. His national populism relied on themes of neo-nationalism, social conservatism, and economic and fiscal conservatism. It should be an incredible coincidence that after successfully confronting Bolsonaro’s military forces in the late 1980s as a left-wing trade unionist, actively contributing to the revival of democracy in Brazil, Lula found himself in a new role as Bolsonaro’s rival in civilian politics in the 2020s. While Bolsonaro aimed to undermine Brazil’s democratic gains through civilian means, Lula declared his intention to advance democracy even further. As a seasoned trade unionist and politician, Lula again emerged victorious in the battle against Bolsonaro, this time in civil politics.
On the other hand, Erdogan, with a “hybrid” political personality, defies easy comparison with center-left-wing figures like Lula, right-wing figures like Bolsonaro, and others. This uniqueness led Cagatay (2017) to label him the “inventor of 21st-century populism” in the post-Cold War multipolar world. Beyond his personality and ideological affiliation, the geopolitics of Turkey has significantly shaped Erdogan’s approach, compelling him to adopt a pragmatic stance to balance competing interests at the intersection of the East and West, and the global North and the South. Additionally, the varied impacts of Brazil’s abundant natural and energy resources, along with Turkey’s dependence on them, have contributed to the formulation of distinct policies and strategies by these leaders.
Despite the mentioned differences between Lula, Erdogan, and Bolsonaro, and regardless of their tenures in power, they all fell short of exhibiting transformative leadership. Instead, they pragmatically engaged in transactional give-and-take relationships, mainly when circumstances were favorable. Ultimately, they could not steer the economy onto a sustainable growth path. As de Colvalho (2017) puts it, the combination of low-quality intellectual rather than political leadership, poor strategic thinking, and weaknesses in the face of financial markets made the adoption of ‘a liberal capitalism with a human look’ a done deal. In both countries, it was not a step in any direction but the result itself.
Campaign posters of opposition Republican People’s Party, CHP leader Kemal Kilicdaroglu and Turkish President Recep Tayyip Erdogan in Istanbul, Turkey, on May 3, 2023. Photo: Tolga Ildun.
The final political actor to be considered in this analysis is Kemal Kilicdaroglu (referred to as Kilicdaroglu), the leader of the main opposition Republican People’s Party (CHP) and the opposition coalition’s presidential candidate in the May 2023 parliamentary elections. A retired bureaucrat with left-wing leanings, Kilicdaroglu observed a significant shift in political rhetoric toward right-wing ideologies during Erdogan’s rule. Recognizing the need to resonate with the conservative silent majority, he endeavored to align his discourse and the CHP’s rhetoric more closely with them. At the same time, Kilicdaroglu anticipated that the traditional elites would remain loyal voters to the CHP. However, neither he nor his party managed to establish a consistent, convincing, and trustworthy line within this evolving discourse. That is mainly because CHP is known to be the status quo party whose supporters include the elites, military and civilian bureaucrats, and a privileged, wealthy class. Aware of the ongoing negative political legacy or image of the CHP’s top-down societal engineering, repression, negation, and insult of the lifestyle of the so-called silent majority, Kilicdaroglu built his entire election campaign in 2023 on a kind of defense, apology, self-criticism, and the need for a new “social contract.” However, with his weaker and indeterminate leadership quality, these “last-minute efforts” were seen as a tactical maneuver and remained unconvincing. Although his established electorate continued to support him, in the end, he was not entirely successful in recruiting a significant number of “borrowed votes” from the alternative circles.
By leveraging his shared ethnicity as an advantage, he also managed to prevent the Kurds from fielding a separate presidential candidate and thereby secure their support. Although the nationalist tone of his discourse unsettled the Kurds and the conservative aspect troubled the secular Kemalists, the prevailing distrust towards Erdogan garnered him significant support. However, despite leading in the early phase of the first round of the May 2023 elections, he ultimately failed to secure victory after Erdogan’s alleged voting fraud which was left unchallenged and uninvestigated because every single apparatus of the state and the media is controlled by him and his cronies. Unfortunately, his passive response to political interference, silence, non-compliance with voter laws, cowardice, indecision, and the highly volatile nationalist stance he adopted in the second round resulted in a decline in his supporters’ numbers. As a consequence, Erdogan emerged victorious in the elections once again. However, rather than relying heavily on populist rhetoric, he should have shown that his party was more competent for power with his coalition partners than Erdogan. By triggering a populist race regarding distributive policies, he opened Eden’s doors by legitimizing Erdogan’s destructive policies. At a more fundamental level, as compared to Lula’s stance against Bolsonaro, Kilicdaroglu has no past combative stance or leadership capacity for such a Herculean race.
It can be stated that Kilicdaroglu failed to garner the support of (i) the white pro-status quo Kemalist Turks due to his ethnic Kurdish origins, (ii) a large Sunni Muslim population due to his minority religious affiliation (Alevism), (iii) Kurds and Leftists because of his Kemalist-nationalist ideology, and, last but not least, (iv) liberals and the big capitalists because of his distance from the market economy, inconsistent statements against the capital owners. Furthermore, given his late age, relatively weak leadership, the fact that he had lost every election he had contested, and opaque “negotiations” with various lobbying forces, it was unlikely that a coalition led by Kilicdaroglu would defeat Erdogan. In conclusion, while Lula competed in a more anti-establishment and anti-elite position than Bolsonaro in Brazil, Kilicdaroglu failed to settle in the same position against Erdogan’s competitive authoritarian regime.
Economic Challenges
When Lula and Erdogan took over the power in the early 2000s, they faced three main challenges with crucial implications for their success: i) Overly politized and excessively divided political culture hinders stability, social capital, and coalition building. ii) A decade of stagnated economy with chronic high inflation. iii) High level of uncertainty caused by a lack of trust in Lula’s hardcore left and Erdogan’s conservative Islamist ideology.
To address these serious concerns, starting from the election campaign at the latest, they emphasized trust building and maintaining social coalitions by promoting a pragmatic, flexible approach to economic management in their first years in power. They also promised to continue ongoing reforms, respect for the rule of law, and adherence to market economy principles. The external world was also quite supportive to their advantage, as the 2000s witnessed one of the golden ages of global capitalism in terms of production, trade, and financial flows. The ongoing austerity programs in the economies of both countries began to show positive results, and the reforms enabled them to take advantage of the new opportunities emerging in the expanding global economy. Turkey’s comprehensive reform program for the EU membership provided additional anchors.
To succinctly summarize the stylized facts of macroeconomic progress during the initial two terms of Lula and Erdogan, average growth generally aligned with Brazil’s and Turkey’s long-term averages of 4 and 5 percent, respectively. From a comparative standpoint, Brazil exhibited significant volatility compared to similar emerging market economies, while Turkey’s growth saw a consistent decline post-2014. In Erdogan’s initial years, the surge in productivity resulting from EU and IMF reforms took center stage in driving growth, whereas Brazil relied on commodity exports as the primary engine of economic expansion. Both countries achieved the upper-middle-income (UMI) country status regarding their per-capita GDP, which hit 13,000 dollars in Brazil in 2012 and 12,500 in Turkey in 2013. Both countries’ monetary and fiscal discipline, implemented in response to the persistent threat of inflation during the 1990s, played a pivotal role in achieving reasonably high growth and a successful disinflation process. Inflation remained in single digits for both nations. Alongside the disinflation process and the expansion of employment opportunities, capital inflows, surpassing historical benchmarks for the two nations, facilitated the financing of a substantial fight against poverty, leading to a notable improvement in income distribution.
However, the global financial crisis laid bare the vulnerable and fragile nature of both countries’ growth trajectories. The growth episodes in both nations, highly susceptible to external conditions, were significantly interrupted by the global crisis in late 2008, contributing to a deterioration in the political climate. Although the growth performance surpassed the OECD (2 percent) and world average (3 percent), it remained well below the growth achieved by the reference group of upper-middle-income countries (UMI) at 7.3 percent. This disparity can be attributed to both countries experiencing unstable and long-term declines in growth, indicating structural issues, an overemphasis on fiscal austerity, and a lack of well-designed and implemented industrial policies.
Over the subsequent decade, the situation further deviated. Average growth between 2011 and 2018 was 0.7 percent in Brazil during the unstable post-Lula years and 6.2 percent in Turkey until the full institutionalization of the one-person regime. In contrast to their 2012 achievements, Brazil and Turkey fell behind the world GDP per capita and the UMI group. Several negative factors, including the post-2014 recession bringing renewed unemployment and poverty, political instability, and associated uncertainty, paved the way for Bolsonaro’s rise to power in 2018. Turkey faced persistent reform backlogs, loss of EU membership perspective, and Erdogan’s increasing authoritarian tendencies after the 2011 election, resulting in significant regression. Widespread and systemic corruption scandals from December 17-25, 2013, Erdogan’s self-orchestrated coup attempts on July 15, 2016, and the system reform in 2018 triggered a period of deconstruction (Öztürk, 2022b; Guriev & Papaioannou, 2020).
During the Bolsonaro era (2019-2022) and Erdogan’s single-man regime, average growth remained at 0.7 percent and dropped to 4.7 percent in Turkey. Professional and autonomous institutions in both countries were undermined and occupied by Erdogan’s incompetent but ambitious loyalists, becoming highly politicized and discredited. Consequently, these figures are deemed unreliable, exaggerated, and manipulated. Unlike Brazil, the excessive use of unsustainable expansionary monetary and fiscal policies made inflated growth costly and short-lived. Growth was significantly lower during Bolsonaro’s era and insufficient in Turkey after the presidential change in 2018.
In the 2019-2022 period, the most concerning socioeconomic indicators in Brazil include a surge in poverty due to low growth and a deteriorating fiscal balance resulting from the escalating public debt burden. Conversely, in Turkey, alongside these issues, the alarming increase in external deficits and inflation reaching triple digits are significant factors contributing to the economic challenges. It is crucial to note that these factors have led to an extreme depreciation of the Turkish lira.
From a comparative perspective, the rise of right-wing populist Bolsonaro to power in Brazil and the complete transformation of the Turkish parliamentary system towards one-person presidential rule in 2018 played a crucial role in the subsequent years of both countries. The argument that unsustainable growth dynamics and populist policies would lead to a deterioration in the macroeconomic environment and those populist leaders, contrary to their promises, would cause more significant damage to society was proven. Like Bolsonaro in Brazil, Erdogan worked to curb the country’s institutional capacity by attacking the judiciary’s power and electoral institutions. Their aggressive manner and attacks on women and journalists served as apparent methods of implementing a “divide and rule” strategy (Phillips, 2022). Their far-right rhetoric also exhibited hatred for minorities.
The pandemic also highlighted how populists deny science, scientists, and expertise. They both dismissed and denied COVID-19 and promoted unproven remedies (Burni & Tamaki, 2021). Even went beyond that, Erdogan mobilized people for political campaigns during the pandemic and expressed skepticism about vaccines. Both countries have recorded some of the worst COVID-19 responses, with death tolls presumed to be significantly undercounted (Béland et al., 2021; Phillips, 2022).
Neglecting the green economy deal and environmental sustainability has been another significant aspect of their populist approach. Deforestation in the Amazon region returned in Brazil, turning the country into a pariah in the global fight against climate change. In Turkey, the construction sector took center stage in Erdogan’s economic policy, leading to shrinking agricultural areas (Adiguzel, 2023; Le Monde, 10.08.2023).
Bolsonaro’s actions after the elections raised concerns about how authoritarian populist leaders (do not) leave power. Far-right supporters stormed the presidential palace, Supreme Court, and Congress in Brasilia on January 8, 2023, echoing the attack on the US Capitol in 2021. Erdogan’s use of state resources for the campaign and his slander against opposition candidates during the 2023 elections further highlighted populist tendencies. Both leaders have shown a pattern of opposing what they promised in opposition, resorting to unsustainable policies, and not leaving power quickly when unsuccessful.
With Bolsonaro’s election at the end of 2018 and Erdogan’s significant regime change in Turkey in the same year, the political environment in both countries took on an increasingly repressive character. Indicators of democracy, separation of powers, human rights, and quality of governance began to decline. The Freedom House Report (2023) classified Turkey as a “not free” country, contrasting Brazil’s status as a “free country.” According to the World Justice Project’s (WJP) Rule of Law Index (RLI) (Table.1), Turkey ranked 117th out of 140 countries in 2023, with an overall score of 0.42 (the higher the score, the better the rule of law). Turkey, which had a “rules-governed, albeit weak, country” status with a score of 0.52 in 2012 and 2013 when the WJP began, has steadily declined and has been mainly out of the “rule of law” realm since 2015. However, Turkey’s most worrying scores focus on limitations on government powers at 0.28, fundamental rights at 0.30, and criminal justice at 0.34.
These data clearly show that, besides the economy, fundamental rights have also been sacrificed under the arbitrary one-person regime introduced in Turkey in 2018. In Brazil, the RLI was 0.58 in 2012-2013, right after Lula. However, it fell steadily to 0.49 until 2022, when Bolsonaro lost the election.
So, if Bolsonaro had stayed in power as long as Erdogan and managed to reshape the system, the results in Brazil might have mirrored those in Turkey. This sheds light on why the authoritarian right-wing populist leader Erdogan, unlike Bolsonaro, successfully secured his 21-year seat and retained power in Turkey’s May 2023 elections.
Answering the question, “How and why was Bolsonaro defeated and had to accept the results so that Lula could return for a third term in 2022, while Erdogan retained power in Turkey’s 2023 elections?” leads to the first conclusion: Changing populist-authoritarian governments in power is a daunting task, especially if they persist and fundamentally change the regime, as Erdogan effectively did in 2018. As discussed by Yilmaz and Morieson (2022) from different perspectives, Erdogan’s ability to impose his point of view on society depends on taking control of the press, manipulating the justice system, and effectively using national culture. Society’s ability to adapt is influenced by time, and over the past two decades, Erdogan has found or artfully created such an opportunity in Turkey. While the elections in Brazil took place within a functioning democratic constitutional state, such an order was almost abolished in Turkey, turning elections into a mechanism for legitimizing an authoritarian leader.
The following section focuses on the extraordinary relationships that Lula and Erdogan have built through social welfare policies and the two leaders’ coalition-building ability with society to ensure that all of these factors produce results in the complex web of relationships with each other.
The Use of ‘Social Policy’
Family Stipend (Bolsa Família) During and After Lula
During their first two terms, economic growth in two countries with the above-discussed fragile aspects until the global economic crisis in 2008-2009 and the significant rise in national income allowed both Lula and Erdogan to implement social policies toward the most fragile targeted groups. To start with Brazil, the growing export surplus and rising tax revenues allowed the Lula government to fight widespread poverty by investing in social programs. During Lula’s era, social spending accounted for 16 percent of GDP through direct/indirect social assistance. Direct transfers included conditional cash transfer programs, non-contributory pensions, food transfers, unemployment benefits, exceptional circumstances pensions, etc. In-kind transfers are benefits of universal free public education and health systems. According to OECD (2023), with the addition of contributory pension payments, social spending topped 25 percent of GDP.
Among others, Bolsa Família (the Family Stipend), the core of Lula’s social policies, was implemented in 2003 as the world’s most extensive direct conditional cash-transfer program directly to the poor. It supported families with children with a per capita income of fewer than 70 dollars a month, granted a small sum of money per child (up to three children) as long as they were vaccinated, stayed in school, and did not engage in illegal child labor. The benefits are mainly paid to women via a chip card. As a result, as of 2010, 12.4 million households had enrolled in the program, and, in sum, 20 to 30 million Brazilians were rescued from poverty. According to Neri (2010), one-sixth of Brazil’s strides in poverty reduction can be attributed to this program, which only cost 0.5 percent of the Brazilian GDP.
Through Bolsa Família, nearly 13 million new jobs were created, and the increase in the minimum wage from $100 to $205 during Lula’s presidency was crucial in addressing Brazil’s traditionally skewed income distribution. Recent studies indicate that targeted cash transfer programs associated with Bolsa Família and minimum wage hikes accounted for more than half (55 percent) of the decline in earnings inequality among formal sector employees and thus contributed to Lula’s re-election for a second term in 2007 (Ferrari & Bittes, 2023).
According to World Bank (2022) indicators, the Gini coefficient, an inequality measure, stood above 0.60 in 1995 and was at 0.58 when Lula assumed office in 2003. It then declined to 0.53 after his two terms in 2010, signifying a noteworthy improvement, although still ranking as the highest among major countries and democracies. This is attributed to the constraints on the state’s social spending caused by financial needs, emphasizing the necessity for increased employment generation and targeted cash transfers to address the significant inequalities. Despite their significant success, Neto & Vernengo (2007) argue that Lula’s social policies failed to break the longstanding pattern of income inequalities and escalating social injustice.
After Lula, things rapidly changed.Dilma Rousseff, who ruled Brazil after Lula but was impeached in 2016, was subject to the nexus of problems like massive corruption scandals, economic recession, and fiscal crisis and had to limit social spending, especially after 2014. When Brazil’s worst-ever recession began in 2014, and GDP per Brazilian dropped by 10 percent from 2014 to 2016, progress stopped and, in some areas, reversed. Michel Temer, who led the country until the end of 2018, opted for a complete austerity program in which social spending would be cut entirely. Instead of turning to capital and the rich, he assumed that poverty would be combated under market conditions only after economic growth returned (Ferrari & Bittes, 2023). However, growth and the market mechanism alone are unlikely to eradicate poverty or improve income distribution.
An unusual aspect of social welfare spending in Brazil is that, although total social transfers reached an enormous 25 percent of Brazil’s GDP, even higher than in most prosperous countries, they have been “hardly redistributive” in Brazil. Interestingly, while 2015 taxes and transfers reduced the average Gini coefficient in OECD countries from 0.47 to 0.31, Brazil cut inequality by only half as much on average. The Gini coefficient stood at 0.53 in 2017 (Higgins & Pereira, 2013). One reason for this is the biased tax structure against the poor (OECD-IDB, 2020). At the end of 2018, the number of people living on less than $1.25 a day reached 8.2 million, the highest since 2007.
Besides other factors, that process finally allowed the right-wing party leader Bolsonaro to come to power. However, unlike his rhetoric favoring the poor, he did the opposite with the policies favoring the rich; like his predecessor Temer, he thought that economic growth and employment increases would contribute more to the fight against poverty than that kind of direct cash support. In that line of thinking, he underestimated hunger and malnutrition; thus, tens of millions were impoverished. Morevoer, Bolsonaro, who wanted to get out of Lula’s shadow, instead of developing and popularizing theBolsa Família, wanted to go around and erase it from the public’s memory with other names, measures, mechanisms, and policies. Among others, restricting applications, extending the waiting period, expelling the current beneficiaries, and reducing the real effect of aid amounts by not updating according to inflation were the central approach (Higgins & Pereira 2013).
According to experts, while many areas must be intervened to save a resource close to 10 percent of the national income, the Bolsa Família aid category, whose share of national income is meager but whose marginal contribution is unmatched, caused the most significant deterioration in income distribution. As a result, Brazil reappeared on the World Food Program’s “Hunger Map” of the United Nations (UN) in 2021, with 28.9 percent of the population living in food insecurity. Thirty-three million Brazilians faced acute hunger, and 100 million lived in poverty, the highest number in years. It was a significant setback for a country removed from the map in 2014 (France 24, 2022). As the 10th largest economy in the world, the largest one in Latin America, and one of the world’s largest food producers and exporters, Brazil’s return to the UN’s hunger map is not easier to bring any convincing explanation other than an overall wrong management system.
As compared to his rivals, during his first two terms, Lula remained in the past as a model and mechanism in the fight against poverty and income inequalities. Adapting a patriarchal approach, he regarded social expenditures as his blessing rather than handling them from a modern constitutional perspective. Thanks to favorable global economic conjuncture, he increased social aid significantly compared to the past. The society focused on aid, and the model, mechanism, and philosophy behind it remained of secondary importance. Most importantly, with time after 2010, the Lula period stood out as a success story due to the cutting of social aid that started with Temer and continued with Bolsonaro in the aftermath of the global crisis and an environment of instability and economic stagnation.
Erdogan’s ‘Green Card’ and Transactional Approach
The banner ‘Potato, onion, goodbye Erdogan’ was carried in the 1 May rally, which coincided with the critical 14 May elections in Turkey on May 1, 2023. Photo: Shutterstock.
Since 2003, Erdogan has employed social transfer and protection spending as practical fiscal policy tools to address poverty (Sarısoy and Koç, 2010). His social policies blend market-friendly economic strategies with substantial redistribution effects, incorporating health education elements and active labor market policies like training programs and public works (Sagdic, 2021; Baylan, 2019).
Besides the central government benefits, after the ruling AKP changed the Metropolitan Municipalities Law to expand municipalities’ social assistance capacities in 2004, benefits were exponentially expanded to poor families, encompassing various types of in-kind and cash assistance programs. For instance, by 2014, regular central government benefits in kind and cash for low-income families had risen to $260 monthly, while the official minimum wage stood at $370. Initially, a free healthcare card program for the poor (the Green Card program) was implemented and covered 6.9 million individuals, 4.2 percent of the population in 2003 and 12.7 percent in 2009. Finally, a universal healthcare system was established, and Green Card holders were included in the new system in 2022 (Yörük, 2023).
The number of beneficiaries and the share of government budgets allocated to these programs have dramatically increased. As a result, public social spending increased from 3.4 percent of GDP in 1995 to 12.5 percent as of 2016. Adjusted for inflation, spending increased by 176 percent between 2006 and 2017 (Yentürk, 2018; Üçkardeşler, 2015). Social programs are funded by the state’s general budget, municipalities, the European Union, and other funds for encouraging social assistance and solidarity.
The AKP’s wage policy also targeted society’s most fragile or vulnerable segments, composed of its potential conservative voters (Karataşlı, 2015). Intentionally or not, the minimum wages have been used as an income distribution policy in the form of “low-wage equalization.” With all these caveats, the minimum wage, $100-150 band in 2001, rose sharply to $450 by 2008. After 2018, marking the consolidation of the “contingency management” came with a one-man rule, the sharp rise in exchange rates from 2,20 per US dollar in January 2014 to 27 in July 2023, a 12-fold increase over a decade resulted in a steady decline of minimum wage, falling to an all-time low $220-250 range during 2021-2022.
A notable weakness in Erdogan’s approach, intentionally overlooked for reasons to be elucidated later, was the curtailment of the “protective welfare state.” This reduction specifically targeted passive labor market policies, including unemployment insurance, workplace regulation, and the tolerance of trade union activities, as well as agricultural support and housing subsidies.Considering all these facets, some economists characterize Erdogan’s social policies as “social neoliberalism” (Öniş, 2012).
What has a crucial implication from the viewpoint of the current discussion in this article is that despite Erdogan’s social spending policies failing to bring a lasting impact on poverty and income inequalities amidst a sharp increase in living costs, Erdogan has successfully maintained the adherence of even the most vulnerable segments of society to his political career, necessitating an explanation. In addition to Erdogan’s widely recognized populist strategies involving media manipulation, scapegoating the opposition as inept and colluding traitors, and employing fear-based politics by portraying the outside world as an enemy and a threat to national independence and sovereignty, a pivotal factor in his success is his transactional approach, linking aid and voting through sustained dependency.
The modern welfare state, aiming to “liberate the individual and protect his dignity,” as advocated by Amartya Sen (1999), necessitates transformational leadership with a focus on a clear vision, collective benefits, and long-term value. On the contrary, as Kuhnert and Lewis (1987) stated, transactional leaders prefer to operate within the existing organizational structure and culture, adhering to precedent rather than instigating change. In other words, instead of addressing poverty and permanently liberating individuals from its grasp, this approach perpetuates and manages poverty by creating a system that fosters people’s dependence on aid in exchange for votes, forming a parasitic symbiosis of “give-and-take.”
In this context, Erdogan’s leadership is characterized by a transactional approach centered on negotiations for short-term goals, seeking voter loyalty through clientelism—a pyramid structure wherein selective benefits are distributed, with the assistance of brokers, to individuals or groups in exchange for political support (Gherghina & Volintiru, 2017). The crucial aspect here is to furnish this structure with the essential political, cultural, and psychological elements that sustain loyalty and affiliation with politics based on this aid rather than prompting questioning the enduring poverty among those in need. This characteristic positions Erdogan as a contender for the title of the “populist of the 21st century,” as mentioned earlier.
President Recep Tayyip Erdogan has attended the rally in Izmir as part of the 14 May General Elections campaign in Izmir, Turkey on March 29, 2023. Photo: Idil Toffolo.
By taking the historical legacy of the patrimonial state, Erdogan has successfully positioned himself on the side of the people against the elites and the system and, more importantly, articulated social aid with this discourse. In the particular case of Turkey, transactional leadership involves: i) Honoring the so-called homogeneous, virtuous, silent majority by claiming to represent their voice and interests. ii) Legitimizing their visibility and vertical mobility as their right to effectively participate in governance has been severely blocked. iii) Improving income distribution by transferring a larger share of social assistance to the selected social groups.
This approach has long-term implications regarding the rule of law, economic development, democracy, and human rights. Erdogan comes from a political tradition claiming that the elites and institutions of the political establishment, such as the Constitutional Court and the High Judiciary, are allied to prevent people from achieving power. In that regard, as Aytaç and Öniş (2014) stated, like his predecessor Necmettin Erbakan, he continued employing the famous motto “Milli İrade” (The Will of the Nation), the term refers primarily to the Muslim lower classes as opposed to the establishment elites. The persistent and polarizing insistence of populists that the interests of “establishment elites” and the large silent majority, representing the “national will,” are mutually exclusive implies that, in power, those who subject to positive discrimination in controlling public resources will change hands.
Soon after coming to power, the AKP, garnering broad support from the urban poor and conservative masses affected by recurring economic crises, and who had lost trust in mainstream political parties, aimed to forge relevant coalitions and implement swift, albeit progressively more heterodox policies, to introduce new forms of targeted social policy. The essence of the matter is that, considering the volatile voting behavior among the average electorate, assisting the poor primarily through “modern state mechanisms” may not foster perpetual dependency and “loyalty.” For this reason, alongside conventional social state approaches outlined in the previous section, aid was also “privatized” through pro-business wealth transfer policies, individualized to the voters, closely monitored by party branches, and coordinated with governorates and municipalities.
All the way down to the neighborhood committees, local party organizations identify the loyalists and channel aid and employment opportunities. In doing so, the ruling party established mutual interdependence between the party, the urban poor, and the business or economic elites through highly partisan methods of targeted resource distribution. Over time, this symbiosis evolved into their shared destiny. In other words, with the flow of resources, privileges, and dependence on the AKP’s continued control of the state apparatus, the two constituents of this trio became increasingly partisan and apprehensive of redistribution and reprisal should the AKP lose power (Esen & Gumuscu, 2021). Through the social networks where Erdogan holds influence, mainly via various foundations and associations managed by his family members, close relatives, and other conservative structures, he cultivates self-fulfilling prophecies, portraying Erdogan as a patrimonial figure, a big brother, a modern-day Robin Hood who “takes from the rich and gives to the poor.” By that, he aims to implant in people’s consciousness the idea that “corruption is inevitable for the good of the people.” To reinforce this image, some religious authorities have even attempted to produce religious credentials (fatwas), discussing “what is corruption and what is a legitimate commission of the Sultan” in Islam (Yilmaz, 2020).
In essence, the efficacy of the “divide and rule” strategy lies in scapegoating others. In alignment with this approach, Erdogan, at the expense of the ongoing comprehensive reform and the EU membership agenda, subjugated the entire establishment. Instead of dismantling exclusive interest groups, he adopted a confiscation strategy in Olson’s (1982) terminology, institutionalizing corruption, political pressure, and exclusion, thus introducing a fundamentally new approach to social spending.
Erdogan’s transactional approach revolves around a well-established and highly sophisticated form of clientelism, emphasizing dyadic relationships, contingency, hierarchy, and iteration (Hicken, 2011). It is more accurate to characterize these developments as a product of a learning-by-doing or trial-and-error process during his tenure as the mayor of Istanbul, which he assumed in 1994 amidst a highly divided opposition landscape, securing the lowest vote rate at the time. This incubation period allowed him to evolve his system from its rudimentary stages to a state of sophistication (Compiegne, 2022).
For Erdogan’s “give-and-take” or “win-win” game to operate successfully, the following conditions must be met:
i) Utilizing the state apparatus as a platform for executing the “distributional game” involves creating rent arrears in various regions and sectors as leverage for distributional purposes.
ii) Developing an anti-systemic religious-nationalist language for the “divide and rule” strategy (Tahiroglu, 2022).
iii) Gaining control of financially dependent media to collaborate in manipulating the public by disseminating fake yet appealing stories (Yanatma, 2021; Coşkun, 2020; Kizilkaya, E. 2023; Tahiroglu, 2022b).
iv) Distancing from external actors and anchors, such as the EU and the IMF, which advocate transparency, discipline, and compliance with the rule of law. Notably, Erdogan halted EU accession negotiations at the transparency and tender chapters, citing political, religious, and national reasons. Subsequently, Erdogan projected the image of a country failing to implement European Court of Human Rights decisions (Eurobarometer, 2022).
v) Enlisting “militant bureaucrats,” particularly within the judiciary, to cooperate in undermining systems like public procurement, facilitating favoritism and money laundering. The corruption files of December 17-25, 2013, revealed lenient treatment of government contract favoritism by law enforcement, ensuring a steady revenue stream in exchange for support in Erdogan’s re-election (Emek & Acar, 2015; Arslantas & Arslantas, 2020; Özgür, 2020; Akça & Özden, 2021; Özel & Yıldırım, 2019).
vi) Establishing dependent capitalists or an economic elite through extensive patronage networks of corruption and favoritism to serve as intermediaries in the rent distribution process (Esen & Gumuscu, 2021).
vii) Establishing effective intermediaries, such as local party branches, municipalities, foundations, associations, and religious sects, to facilitate the delivery of privatized aid to the targeted social segments.
As convincingly demonstrated by Esen and Gümüşçü (2021), Erdogan’s transactional approach and corruption are closely related and mutually supportive.First, in the abovementioned process, Erdogan established an alternative, dependent capitalist class. This class contributes a portion of the rents it acquires from the government, involving practices such as construction permits, land allocation, municipal companies, and large infrastructure projects without tenders but with customer guarantees (Emek, 2015). Second, the enormous corrupt economy allowed him to create massive sources of rent arrears and distribute it partly to people experiencing poverty in the form of “cash and kind or subsistence allowances in exchange for loyalty and votes.” (Buğra, 2020; Özel & Yıldırım, 2019). The explained pay-off matrix has brought critical political repercussions, namely, the AKP’s weakened reluctance to resign through democratic means and the increased tolerance of its coalition partners for democratic backsliding. Therefore, with the personalization of power and rising authoritarianism under Erdogan’s rule, especially after the 2018 regime change, the need to attract voters and dependence on the economy for private resources decreased, underlining a further alert on the collapse of democracy.
The same happened in Brazil but with different dimensions. Although clientelism, rent-seeking, and kleptocracy – altogether corruption- are the dominant features of politics in Brazil, they are not subject to profound public awareness or concern as long as economic growth delivers positive results. Rather than eradicating the sources of corruption, the regime’s grand barons use the existing “culture of ignorance” as an integral part of their reckoning in the struggle for power against one another. As an expression of social culture or helpless devotion, society tends to justify that mechanism by relying on the understanding of “he who keeps honey licks his finger” or “it does not matter if politicians steal from what they produce.”
Lula’s dismissal in 2010 at the height of his popularity, conviction in 2018, and return to power in March 2022 are case in point. Lula, who was argued to have been involved in “Operation Car Wash-2014,” the most extensive corruption investigation involving politicians, public institutions, and major construction companies, was found guilty and imprisoned in 2018. However, according to the UN resolution and many other observers, Lula’s trial process was unfair because of insufficient evidence and human rights abuses. Indeed, the appointment of the case judge as minister of justice by Bolsonaro, who won the 2018 elections while Lula was in prison, shows the nature of the above-mentioned intra-elite power struggle. To continue with the same logic, the fact that Lula’s case was dropped, and his political career was reopened due to the aforementioned systemic shortcomings does not show Lula’s absolute innocence either.
It is emphasized here that in many countries such as Brazil and Turkey, where institutions are weak, social culture is accommodative, and voters’ awareness of citizenship is insufficient, overt conflicts between elites through the judiciary and the media only prepare the ground for further negotiations between the status quo powers rather than radically reforming and improving the system to achieve better democracy, human rights, and economic development.
Establishing ‘Coalitions’Against the Populist Incumbent Regime
Establishing a coalition within the voter base to attain and retain power is crucial, but equally essential is forging a robust alliance in parliament after the removal of authoritarian populists. As observed in the 2022 elections in Brazil and the 2023 elections in Turkey, the electoral process witnessed significant economic, political, and social upheaval orchestrated by the reluctant incumbent populist government. Recent evidence also highlights that even in defeat, populists leave behind a resilient structure and a trail of destruction, particularly challenging when they narrowly lose elections. Overcoming these challenges necessitates efficient administration through sustained coalition building.
As Lemos (2022) discusses, the overarching goal is establishing a government committed to implementing essential reforms and mending the nation’s economic, political, and social fault lines. However, overcoming this legacy poses a significant hurdle for the new government, requiring efficient administration. It necessitates concerted efforts to gather diverse interests and navigate challenges posed by the remnants of the populist regime. The focus should be on acquiring and leveraging power to build a resilient government. This government must confront the enduring legacy of populism, enact necessary reforms, and prevent a recurrence of populist influences in future elections. Despite facing considerable resistance and witnessing the destructive impact of the right-wing authoritarian-populist leader in Brazil, Lula’s rallying cry to “let’s leave everything else aside other than taking back democracy and institutions” proved effective. Reflecting on his past success, society reconsidered its preferences, particularly evident in the second round of the election. In contrast, Turkish voters did not afford the opposition coalition a similar opportunity. The opposition encountered additional reluctance in garnering support, especially following apparent missteps in the second round of the election. Voters, skeptical of the leadership’s capacity to either counter Erdogan’s destructive actions or propel the system forward, chose to withhold their endorsement.
Highlighting Lula’s advantage, absent in the Turkish opposition coalition, it is crucial to note a shortcoming in Bolsonaro compared to Erdogan. Bolsonaro’s limited time in power prevented him from establishing an Erdogan-like kleptocracy, as described earlier. Unlike Erdogan, he couldn’t consolidate control over institutions and failed to institute a robust “transactional model” that resonated with voters. Consequently, Bolsonaro couldn’t position himself as an anti-establishment and anti-elite or embody the image of a “paternal figure” redistributing wealth from the affluent to the less privileged.
An important observation regarding Erdogan’s situation is that, unlike Bolsonaro in Brazil, he has gained control over the state apparatus, the judiciary, the press, and economic resources. That allowed him to manipulate the opposition to determine whom to cooperate with and compete against within the opposition. As a reminder, when Erdogan was President and his party lost power in 2015, neither CHP (Kilicdaroglu) nor MHP (led by Devlet Bahçeli) formed a coalition with Erdogan’s party. In the next elections that year, Turkey entered a turbulent phase marked by fear that came with political bloodshed, heightened public security concerns, and Erdogan’s party regaining power independently. As a reaction to Bahçeli’s resistance to establishing a “coalition government” following the June 7, 2015, events that caused Erdogan’s bloody victory, opposition within MHP intensified. Although Bahceli lost his post in the party congress in June 2016, the pro-Erdogan court came to his aid, declaring the party congress invalid and allowing him to maintain his leadership. However, that episode rendered Erdogan’s former rival politically beholden to him, resulting in a notable shift in his political discourse towards becoming Erdogan’s long-term coalition partner. Erdogan has also been proactive in disseminating compromising materials of a prominent opposition leader and orchestrating his replacement through various media manipulations.
The success of keeping his political rival, whom he had consistently defeated in previous elections, in his seat by portraying him as oppressed and victimized, with unfair attacks reminiscent of those directed against Erdogan in the past, serves as evidence of Erdogan’s strategy to divide and rule Turkey along deep fault lines. Indeed, taking it a step further, Erdogan, with his charismatic leadership, effectively dismantled the concept of “center politics” in the past. By steering the language of politics towards the right and conservative spectrum, he eradicated space for left-wing political discourse. Consequently, he compelled his opponents to navigate unfamiliar terrain, leaving them as guests, novices, or the away team, ultimately defeating them. (Korkmaz, 2022a-b).
To further consolidate the above perspective, it is interesting to briefly compare the Great Marmara Earthquake of 1999, which played a significant role in his rise to power amid ongoing significant political pressure, enduring economic crisis, and heightened political instability, with the recent earthquake in Southeast Anatolia in 2023. This time, it reflects Erdogan’s heavy toll of political-populist mistakes, economic crisis, and instability. Despite these challenges, he managed to stay in power. Besides the factors mentioned in the former earthquake, his performance in the mayorship of Istanbul, plus his unfair discrimination by the establishment forces in the media, judiciary, bureaucracy, and the military, brought him to power.
Unlike the 1999 Marmara Earthquake, conditions in the earthquake of 2023 were remarkably against the Erdogan government in power. In deep shock, his response to the earthquake was incomplete, incorrect, and significantly delayed. Similar to the previous natural disasters, the main reason was the government’s unpreparedness, the incompetence of civil servants, and the fragile institutions. In addition, the government prevented nongovernmental organizations outside the government’s direction and control from engaging because it feared this would be to its detriment. Despite the earthquake’s devastations, the loss of more than 50,000 lives, the economic destruction it brought, the heavy systemic corruption that caused it, and the ongoing economic crisis, aside from Turkey in general, Erdogan’s high vote in this specific earthquake-hit disaster region in the last election needs explanation.
Despite the recent economic hardships and the devastating earthquake that caused an unknown number of lives, exposing Erdogan’s corrupt regime, other things being equal, the outcome changed due to manipulations by Erdogan-controlled media and the belated yet highly organized efforts of agents in relief organizations closely aligned with Erdogan’s rent-seeking coalitions, like large private companies, religious civil society organizations, and public institutions. In other words, Erdogan’s well-functioning “transactional approach,” successfully implemented in the earthquake environment, came together with cultural codes, creating an invincible armada in his favor. This is not the first time the government bought political loyalty in return for short-term material rewards combined with religious-nationalist language. The same tactics have been successfully employed in many natural disasters and industrial or occupational accidents.
In the context of Kilicdaroglu, the opposition leader, (i) his low-profile leadership that lacks conviction, (ii) his perceived ethnic and religious affiliation, and (iii) CHP’s elitist, oligarchic, and pro-capitalist identity, rooted in the tradition of top-down social engineering, hinder him from gaining resonance in society. Conversely, Erdogan’s portrayal of him as “a coupist and junta supporter, collaborator with foreigners, and enemy of national will” has proven effective in triggering concerns related to national security, independence, and sovereignty. In an environment of shifted political cleavages and conservative-right-wing rhetoric, his efforts were perceived as a “last-minute tactical maneuver.”
Conclusion
In conclusion, the economic, social, and political crisis caused by unrestrained neo-liberal globalization and overconnectivity, highlighted during the contagious global financial crisis in 2008-2009 and the COVID-19 pandemic, has resulted in significant disappointments and a growing public inclination toward populist rhetoric.
Populists, capitalizing on fractures in existing governance structures, rise to power and attempt to retain it by transforming the main characteristics of the regime. This creates a “populist vicious cycle,” where their central ideology and personality lead to contingency management and arbitrariness in governance, inadvertently inviting failure by disabling institutions, rules, merit, independent-autonomous bodies, science, and check-and-balance mechanisms. As populists lose the capacity to fulfill extreme promises made while in opposition and exhibit effective governance, they tend to become even more oppressive, leaning towards a one-person regime.
This process ultimately gives rise to clientelism, rent-seeking, and kleptocracy, constituting corruption as a dominant feature of politics in countries like Brazil, especially under Bolsonaro since 2018, and in Turkey, starting with Erdogan’s third term in 2011.
The challenges of how populists come to power and leave it are markedly different. While it is possible to replace incumbent conventional politicians bound by the game’s rules, replacing a populist who stays in power for an extended period and shifts the regime from its central axis requires entirely different skills. Authoritarian populists leverage the state’s power during election campaigns, often pushing legal and ethical limits.
The personal leadership capacity of populists also plays a decisive role. For example, Erdogan’s crony capitalism, rooted in transactional rather than transformative leadership, is closely tied to his ability to blend cultural, economic, and political elements, combining hope with fear and security with short-term self-interest. This entails intertwining his political destiny with the fate of a large segment of voters.
In such a scenario, an opposition leader aiming to remove a populist from power must possess leadership capacity, the ability to form a coalition, and the capability to present voters with a more adaptable and transformative vision for the future, persuading them of its merits.
In contrast to Lula, who effectively positioned himself as a viable alternative to Bolsonaro in Brazil in 2022, the opposition in Turkey failed to do the same. Bolsonaro lost power not only because of his failures but also because of Lula’s past performance and high leadership quality in forming inclusive coalitions. Despite bringing Turkey to the verge of destruction during the 2023 election, Erdogan, by successfully using pro-citizen and anti-establishment rhetoric, presented himself as “the man of the people” persona. No leader emerged in Turkey to convincingly replace him amidst an environment of fear and societal concerns for security, stability, and sovereign independence.
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It is evident that populist politicians, even if they come to power through free elections, deviate from the same path when they stay in power for an extended period and transform the regime. Turkish President Erdogan’s prolonged tenure in Turkey allowed him to skillfully reshape the political regime into a one-person rule. By monopolizing the achievements of his ancestors and emphasizing religious values in opposition to ultra-secularist elites, whom he portrayed as foreign puppets and defenders of the oppressive status quo that insulted the way of life of ordinary citizens, Erdogan successfully created a deep polarization in society to maintain his grip on power.
In my Project Syndicate piece titled “Erdogan’s Success Story” (June 14, 2011), I provided a positive assessment of Erdogan’s remarkable economic achievements over the past decade, highlighting Turkey’s expected entry into higher-income country status during his third term. However, I concluded the article by posing the question: “How will Turkey utilize its rapidly growing economic power?”
In a notable departure from the initial period (2003-2011) when Erdogan strengthened his position and reformed the regime, he veered away from the essential factors that contributed to his success. The period following the 2011 election victory witnessed a shift towards a process of power intoxication, culminating in the complete consolidation of the presidential government system (PGS) in 2018. This marked a departure from the so-called “orthodoxy,” replaced by a more arbitrary approach characterized by learning by doing and trial-and-error, which Erdogan referred to as “heterodoxy.” Although this era resulted in unprecedented economic and political turmoil, Erdogan’s election for a third term as president raises the question of why a populist government that initially came to power amidst an economic crisis did not encounter more significant challenges.
However, empirical evidence suggests that populists often come to power through relatively “free,” if not entirely “fair,” elections, yet only a few of them are consistently able to exit power. This usually occurs through being voted out of office, primarily if they manage to stay in control long enough to transform the system into a more authoritarian one. Consequently, the modes of departure often involve scandals, impeachment or resignations, constitutional crises, refusals to step down, coups, suicides, or tragic accidents. The recent elections in Turkey have demonstrated that in cases of democratic backsliding, an economic crisis alone is a necessary but insufficient condition for an authoritarian leader to change course. The positive case of successfully defeating an authoritarian populist in Brazil in March 2013 highlights that the sufficiency condition lies in the opposition’s ability to employ and manage various factors more effectively than the government, even when the latter abuses state power.
Erdogan as a Mastermind of Populism
Engaging in debates about the fairness or fraudulence of Erdogan’s election victory at this stage does not provide significant insights. As highlighted by Funke et al., when populists manage to remain in power for a decade or longer, they often shape their country’s political destiny in negative ways. After Erdogan’s prolonged tenure, Turkey has regressed from being considered a “free” country, as indicated by the Freedom House Index of 2023, and the elections can no longer be deemed fair. In a country like Turkey, where the general election results show that the opposition party (Republican People’s Party, CHP – 25%) consistently lags behind the ruling party (Justice and Development Party, AKP – 35% on May 14, 2023) by approximately 10 percentage points for nearly 21 years, the transfer of power appears unlikely, regardless of the coalition formed.
While the definition of populism may vary, as the Pope declared, it is commonly viewed as an “evil” that tends to lead to undesirable outcomes. Erdogan’s brand of populism aligns perfectly with a Machiavellian approach, where any means or methods to secure victory are deemed permissible or legitimate. Engaging in a political game with a leader like Erdogan, who does not hesitate to employ divisive tactics and polarize society through the creation of antagonistic groups such as “us vs. them,” “the people (ordinary, virtuous citizens) vs. the elite (pro-statuesque, corrupt, self-serving),” “true believers vs. infidels,” and “nationalists vs. traitors,” is a recipe for a nightmare scenario. He consistently invents and substitutes (foreign or domestic) enemies, identifies (internal or external) scapegoats, stokes security concerns within society, and perpetuates a state of conflict to solidify his hold on power.
Populism, with its rhetoric in defense of the rights of the “innocent and silent majority” against the perceived beneficiaries of an establishment or elite, implies that political power should not be held by economic, financial, intellectual, or political elites, but by a homogenous and virtuous “people.” This perspective, as highlighted by Arnesen and Peters, draws from Norris (2018) and encourages the emergence of a charismatic leader who presents themselves as an outsider to the establishment and claims to understand the “true desires” of the people, representing their voice and serving their interests. Consequently, this discourse undermines the significance of “mediating institutions,” particularly in the countries dominated by a paternalistic or patrimonial culture like Turkey. As a result, modern governance institutions, norms, and values, such as the division of labor and expertise, lose their relevance. Merit is increasingly replaced by loyalty and militant advocacy, and professional, autonomous specialized institutions are either weakened or filled with supporters. Erdogan’s era exemplifies the harm inflicted upon institutions and the economy as populists remain in power. It is important to note that Erdogan’s “populism” is not a learned, an acquired or imported ideology but an original synthesis deeply connected to geography, culture, history, and the cult of his leadership personality.
Several factors play a decisive role in Erdogan’s populist discourse:
A multipolar world in power transition without an omnipotent hegemonic power dictating its unilateral will to the “rest.”
Geopolitics, which can be negotiated and marketed in such a world, just like the geography of Turkey. A situation that brings both high risk and return.
A majority population whose “memory” has been manipulated and updated with an older version of the software, ancestors, and religion being the two strategic tools.
In such a geostrategic location of great power rivalries, Erdogan’s situation can be likened to a person who owns few rooms but several keys to open them. Obviously, it is almost impossible to find the right key and open the door in time always quickly. But he doesn’t waste time opening the door; either he breaks it in an emergency or uses the only lock in this geography to open all the doors with a magical capacity; culture! In that regard, Erdogan can be called the “inventor of populism” in the 21st century when it comes to the creation and exploitation of a nostalgic “populist heartland” that corresponds to a retrospectively imagined utopia built on an abandoned but undead human based past.
As Yilmaz and Morieson put,“the addition of religion has made populism a formidable force capable of producing a range of emotions among segments of the public, thereby increasing the demand for populism.” Keeping society intact with his constantly renewed agenda, Erdogan’s emotional populism allows him to employ the elements of religion-history-culture and friends-foes antagonism.
An additional defining trait, and perhaps surprising to some, is Erdogan’s religious belief, encapsulated by the motto “After you have done all you can, leave the rest to God and trust it.” This philosophy stems from the recognition that in the face of complex and ever-changing circumstances, risks are amplified by deteriorating institutions and declining human capital. Such challenges reflect the vulnerability of the “one-man system,” where even an omnipotent dictator cannot single-handedly handle significant challenges. In such situations, prayer becomes the only recourse, driven by the conviction that “the new day will come with new hopes or opportunities!”
Erdogan’s approach to economic management serves as a field where his populism is exemplified through the stylized characteristics outlined above.
The Transformation of Turkey’s Economy: From Orthodoxy to Heterodoxy
In countries with strong institutions, an orthodox economy signifies a market that operates based on its internal dynamism, guided by market-friendly rules that address potential market failures. Conversely, in a country dominated by authoritarian populism, a heterodox economy implies arbitrariness and uncertainty. Both of these approaches were tested and experienced in Turkey from 2003 to 2023. In this article, Erdogan’s economic management can be examined within three distinct periods: the first period (2003-2011) characterized by the application of good governance principles to a reasonable extent, the second period (2011-2018) marked by a turbulent transition to a completely different regime, and finally, the consolidation of the authoritarian PGS since 2018.
In the following discussion, I will summarize the key achievements and highlight unresolved problems that have spiraled out of control, particularly with the consolidation of the single-man regime under the PGS.
During the first period, the orthodox approach primarily involved:
(i) the establishment of quality institutions such as central bank autonomy and the rule of law,
(ii) fostering peaceful coexistence and regional relations through the “zero problems with neighbors” policy, and
(iii) pursuing integration with the EU, the global community, and global governance institutions.
Except for the global economic crisis of 2008-2009, the first period witnessed domestic reforms, solid institutional capacity, and comparable long-term growth performance to similar countries. The economy expanded by an average of around 5.8 percent, as depicted in Figure 1, although with a visible loss of momentum. By 2013, national income surpassed the trillion-dollar threshold, and per capita GDP reached $12,500, propelling Turkey to the status of an “upper middle-income country” for the first time.
i) According to Acemoglu and Üçer, a notable development during this period was the dominance of overall productivity growth over factor inputs, marking a significant shift. Additionally, the implementation of monetary and fiscal discipline contributed to a decrease in inflation from 55% in 2002 to single-digit figures by 2005.
ii) In terms of financing economic growth, there was a notable increase in capital inflows across all categories and terms, which facilitated a smooth expansion. Furthermore, thanks to fiscal and monetary discipline, interest rates experienced a significant decline across all categories and terms. This period also witnessed a reduction in the budget deficit and a decrease in the share of interest burden on the budget.
iii) According to World Bank data, there was a striking improvement in income distribution during this period. This was evident in the decrease of the Gini Coefficient from 0.45 in 2005 to 0.38 by 2007, indicating a more equitable distribution of income.
On the downside, despite positive progress in leading economic indicators and relative macroeconomic stabilization, the following aspect remained fragile, with long-term implications:
i) While the population increased from nearly 65 million to 85 million as of 2023, primarily due to the influx of millions of unorganized refugees, GDP receded to nearly 800 billion dollars after 2019. As a result, per capita GDP also declined by 8000-9000 dollars, indicating Turkey’s middle-income trap status as of 2022.
ii) Turkey’s potential for growth did not improve, primarily due to a decline in productivity growth resulting from the discontinuation of reforms after losing external anchors, such as Turkey’s full membership negotiations process with the EU.
iii) The halted structural transition led to the persistence of a growth model based on classical low-value-added, capital-labor intensive industries. Moreover, the share of upper-middle-income technology in production and exports remained stagnant at around 2.5% until 2022, showing no improvement over nearly two decades. It is worth noting that countries like South Korea and China achieved a share of 35% at a similar development level.
iv) Reflecting the insufficiency of national savings and structural weaknesses, Turkey’s reliance on imports and capital inflows for growth persisted. As a result, each period of economic growth led to a significant increase in the current account deficit, which reached approximately 5-6 percent of GDP in 2022.
In his third term, which began in June 2011, Erdogan exhibited an increasing authoritarian tendency, reflecting a sense of power intoxication. Unfortunately, this period saw a decline in the gains that had been achieved. The process was initiated by the corruption operations on December 17-25, 2013, and further exacerbated by the self-orchestrated coup attempt by “the team Erdogan” on July 15, 2016. It culminated in a complete overhaul of the system in 2018, leading to a severe economic downturn referred to as a “free fall.”
Throughout the years, Erdogan systematically politicized and undermined the independence of key judicial institutions, including the Council of State, Court of Cassation, Court of Accounts, and the Constitutional Court. He also exerted control over institutions such as the Central Bank, Statistical Institute, Competition Authority, and banking supervision and regulation bodies. This process resulted in a loss of control over inflation, unemployment, domestic and foreign deficits, and the accumulation of national debt. Official figures indicate that annual inflation reached 86% in 2022, significantly higher than the global average rate of less than 8%. These macroeconomic imbalances were primarily causedby the excessively low policy rate pressure imposed on the Central Bank of Turkey and excessive monetary expansion, which became rapidly unsustainable. Moreover, these policies enabled Erdogan-backed speculators to generate exorbitant profits.
Then Why and How Erdogan Wins: A Hate and Hope Paradigm
Displays of a foreign currency exchange bureau in Istanbul, Turkey, on May 5, 2023. Photo: Tolga Ildun.
In a country the size of Turkey, lacking abundant natural resources, it is impossible to conceal economic facts and failures from the public and international community for an extended period. Manipulating data through Soviet-style fabricated politburo methods or exerting strict militant control over autonomous policy-making authorities like the statistical institute is ineffective. This is because the impact of these developments is directly felt in people’s daily lives.
This finding aligns with the overall understanding that populist economic policies have a short lifespan and are not sustainable. Furthermore, it predicts that such a government either loses power or transitions into complete authoritarianism. Unfortunately, Turkey currently teeters on the brink of such a development following the May 2023 elections.
Does Erdogan’s continued stay in power, particularly with the main opposition party CHP trailing the ruling party by almost 10 points, imply that economic factors have lost importance in authoritarian regimes during elections? While the literature suggests that populist parties often come to power after a macroeconomic crisis, the reverse is not necessarily true. These elections demonstrated that an economic crisis is necessary but insufficient to dislodge an authoritarian government. It also indicates that Erdogan skillfully constructed an ‘uneven playing field’ and relied on a dependent electoral majority. The opposition made every effort to win the rigged game, even adopting the populist-ethnonationalism strategies of its adversary, but ultimately failed. In addition to Erdogan’s “success” in providing livelihood security to a significant portion of the electorate, he also stoked security concerns and fear of a return of the old status quo elites, known as “White Turks,” who previously threatened and humiliated the lifestyle of ordinary citizens.
The most crucial factor that neutralized or balanced the devastating economic crisis, as indicated in Table 1, is the extensive and effective use of the “Welfare regime.” Despite Turkey’s unfavorable rankings in all categories compared to similar authoritarian populist countries like Argentina and Brazil, it excelled in implementing widespread social support programs, including those targeting the most vulnerable families. Furthermore, these measures were presented skillfully within the framework of culture and religion, yielding profound political consequences. Culture matters. In a region where the notion of citizenship demanding justice and the rule of law as a public good has remained premature for centuries due to the culture of patrimonialism, citizens perceived “social support” not as a constitutional guarantee but as a benevolent offering from the Sultan. Their “loyalty” was consequently secured through a minimum level of economic security, protecting those who felt neglected and left behind.
Table.1 Governance in Selected Populist/Authoritarian Countries
The second decisive factor is the utilization of immigrants as a source of cheap labor and a voting reserve for the ruling AKP. Despite having to work informally in low-wage sectors without social security protection, Erdogan adeptly leveraged foreign funds, primarily from the EU, to compensate for their losses, including providing social protection. In the midst of a deteriorating economic environment, the opposition’s discourse of repatriating immigrants did not resonate, particularly among small and medium-sized companies, due to this practice that alleviates labor costs for millions of refugees and grants a comparative advantage to low value-added sectors.
In addition to financial support, Erdogan fostered a strong emotional connection and sense of belonging among the immigrants by invoking a highly susceptible concept from religious literature known as “ummah” or “Ansar brotherhood.” Moreover, he transformed this imaginary notion into tangible expectations that shape the minds of millions of people. Depicting a mythical “global land of brotherhood” based on religious commonalities and historical memories, Erdogan conveys the message: “Just like our esteemed ancestors, it is time to reclaim our history as the worldwide Muslim diaspora eagerly looks to us as protectors.” As a result, sympathy towards Erdogan among the average person on the streets of any Muslim country may be higher than in Turkey itself.
While these “pull factors” served their economic purpose, Erdogan also strategically employed “push elements” in his rhetoric. Believing in the power of media under his control and the limited memory of the people, Erdogan not only took credit for past successes but also shifted blame for past failures onto present-day politicians who were not in power at the time and never governed Turkey. In a country with low levels of political, religious, and economic literacy, he manipulated the decision-making capacity of the electorate through the media he seized. The production of manipulated statistics, inventions, and innovations within this context instilled a sense of pride and superiority in a society yearning for a return to the glory days of the past.
Conclusion
Therefore, it is evident that populist politicians, even if they come to power through free elections, deviate from the same path when they stay in power for an extended period and transform the regime. Erdogan’s prolonged tenure allowed him to skillfully reshape the political regime into a one-person rule.
By capitalizing on and monopolizing the achievements of his ancestors and emphasizing religious values in opposition to ultra-secularist elites, whom he portrayed as foreign puppets and defenders of the oppressive status quo which oppressed and insulted the life patterns of ordinary citizens, Erdogan successfully created a significant divide that was crucial for maintaining control.
To secure the loyalty of the people, with whom he had “connected with heart and imagination,” particularly those who were likely victims of economic difficulties, Erdogan employed a combination of cultural and economic transactional policies. He not only provided various economic benefits but also manipulated them by instilling fear of losing their privileges and fostering a sense of national security, sovereignty, and even independence. When one considers the opposition parties’ leadership, policy quality, and communication skills with the public, it becomes clear that Erdogan would not be replaced with the configuration of such a coalition.
“Saving multilateralism and democracy under global power transition and rising authoritarian populism,” by Věra JOUROVA (The Vice President of the European Commission for Values and Transparency –Previously the European Commissioner for Justice, Consumers and Gender Equality).
Panel -I-
Multilateralism: The Past and the Future
Moderator:Aline BURNI(Policy Analyst on International Relations, Foundation for European Progressive Studies, Brussels).
“How international law enables great power domination and great power competition and what can be done about it,” by Mattias KUMM(S.J.D. Harvard, Research Professor for Global Constitutionalism, WZB Berlin Social Science Center).
“Mini-literalism in the Indo-Pacific as an alternative to multilateralism and bilateralism? The role of public support and populism,” by Werner PASCHA (Prof. of Economics, Duisburg-Essen University, Institute of East Asian Studies-IN-EAST).
“On the new paradigms of cooperation in the rising world of multiplexity in countering populism,” by Richard CLARK(Associated Professor, Department of Government, Cornell University).
Panel -II-
Power Shift, Multiplex World, and Populism
Moderator: Emilia ZANKINA(Interim Vice Provost for Global Engagement, Dean, Temple University Rome).
“Cooperation regimes and hegemonic struggle: Opportunities and challenges for developing countries,” by Sara CARIA(Research Professor at The Center for Public Economics and Strategic Sectors at the Institute of Higher National Studies).
“The Chinese perspective of multilateralism, power transition, and the so-called new world order,” by ZHANG Xin (Associated Professor, School of Politics and International Relations, Deputy Director/Center for Russian Studies, East China Normal University, Shanghai).
“In pursuit of Xi Jinping’s dream world order: The case of the BRI,” by Ibrahim OZTURK(Professor of Economics, The ECPS Senior Researcher and the University of Duisburg-Essen, Institute of East Asian Studies).
Panel -III-
The ‘New Globalization’ and Countering Populism
Moderator:Helmut WAGNER(Professor of Economics, Fern Universität in Hagen).
“Economic populism and sovereigntism: The rise of European radical right-wing populist parties,” by Oscar MAZZOLENI (Political Sciences, University of Lausanne).
“Populism or embedded plutocracy? The emerging world orders,” by Michael LEE (CUNY-Hunter College, New York).
“Chinese ‘hub and spoke’ – multilateralism and the notion of populist economic policy,” by Marcus TAUBE(Professor of East Asian Economics/China, Mercator School of Management, Institute of East Asian Studies (IN-EAST), Duisburg-Essen University).
Closing Keynote Speech
“Multipolar globalization, learning curves and populism,” by Jan Nederveen PIETERSE(Mellichamp Chair and Distinguished Professor of Global Studies & Sociology, University of California, Santa Barbara, CA).
Closing Remarks
By Naim KAPUCU(Pegasus Professor, School of Public Administration & School of Politics, Security, and International Affairs, University of Central Florida).