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Chapter

Cover Democratization

8. The Political Economy of Democracy  

Patrick Bernhagen

This chapter examines the relationship between democratization and the economy. It first provides an historical overview of the emergence of capitalist democracy before discussing some general problems of the relationship between democracy and capitalism, highlighting the main areas in which the two systems condition each other. It then considers the role of business in democratizing countries, and more specifically the role of business actors in the transition to democracy. It also explores the intricacies of combining major political and economic reforms. Some key points are emphasized; for example, capitalism focuses on property rights while democracy focuses on personal rights. Furthermore, capitalism produces inequality, which can both stimulate and hamper democratization.

Chapter

Cover Politics in the Developing World

20. Indonesia  

Dynamics of Regime Change

Gyda Marås Sindre

This chapter examines the dynamics of regime change in Indonesia since 1998, with a particular focus on political mobilization against the backdrop of institutional reform. In the decade since the collapse of the ‘New Order’ — that is, the authoritarian military-based regime that governed Indonesia from 1966 to 1998 — Indonesia has become one of the few success stories in the post-1970s wave of democratization in the Global South. In addition to being considered the most stable and the freest democracy in South East Asia, Indonesia remains the region’s largest and fastest growing economy. The chapter first provides an overview of the legacies of authoritarianism in Indonesia before discussing the government’s radical reform agenda of democratization and decentralization after 1998. It then looks at political mobilization and participation that accompanied regime change in Indonesia and concludes with an assessment of the role of civil society in political mobilization.

Chapter

Cover International Relations of the Middle East

6. The Puzzle of Political Reform in the Middle East  

Augustus Richard Norton

This chapter assesses the critical issue of political reform in the Middle East. The Arab world has been slow to respond to the global processes of democratization. The chapter then highlights the political economy of states, the persistence of conflict, regime type, and the ambiguity over the relationship between democracy and Islam. This relationship is not necessarily a contradictory one. Islamic discourse is marked by participation and diversity rather than by rigidity and intolerance. Further, as the Arab Spring has illustrated, civil society is vibrant and growing in many states across the region. Meanwhile, responses from the West to political reform have been lukewarm, with stability and regional alliances privileged over democracy. The evidence from the region, even before the Arab uprisings, is that peoples want better and more representative government, even if they remain unclear as to what type of government that should be.