Political Science Essay on Debate about Market-Based Governance within Democratic Societies


Among the frequently discussed debates in the field of democracy is the linkage between the unrestricted market capitalism and the growth of democracy. Anecdotal and empirical study displays a strong relationship between the two. Even though there is certain mere controversy, but the evidence, which connect the two is the practice and theory (Baber & Bartlett 2009, p.60). The motivator causing individuals to trail democratic leadership and establish their capabilities for independence are viewed as the similar reasons driving them to trail capitalism and establish their capability to prosper in unrestricted market. Nevertheless, while connected, capitalism and democracy are also in a confrontation with one another. Right free market capitalism unavoidably results in uneven sharing of treasures (Bohman 2011, pp. 56-70). These disparities are integrally high-handed and attempt to generate pressure, which are undermining to democracy. Therefore, dismembering what democratic system professional, Robert Dahl called the aggressive symbiosis is imperative to comprehending the way the nation’s economy donates to its democratic visions. This essay, therefore, gives a critical examination of the debate concerning the market-oriented governance with democratic communities through examining the effect of market capitalism on the democracy.

Free Market Capitalism Democracy Improvement

The founder of what is currently referred to as modernization theory of democratization was Seymour Lipset. Therefore, an individual may experience difficulties in getting an examination of democracy that never refers to their imperative work during the 1950s that formed a linkage between capitalist success and democratic leadership (Baber & Bartlett 2009, p.60). According to him, economic prosperity brought on through shift to manufacturing, unrestricted market capitalism continues to yield egalitarianism. In most cases, it yields autonomous supremacy which is seems crucial in sustaining, as well as, strengthening equality. Ensuing study carried out by Baber & Bartlett (2009, p.60) supports this concept. Reviewing history (Baruah, et al.2010) developed a scale believed to estimate the lifespan of democratic governance according to per capita gross domestic product. The outcome of examination indicated that the democratic nations with $1500 per capita gross domestic product will last for eight years, while the ones with $1500-$3000 can anticipate their democracies to last for eighteen years (Ithaca et al. 2010). They concluded that immediately a nation gets a $ 6000 national capital per head degree; there is a better opportunity for administration performance.

The correlation between economic development and democracy can be explained with the aid of Lipset theory. When nations shift from government-controlled economy or feudal, wealth is produced by the private sector, which is mostly external to the regulation of the nation (Baruah et al. 2010). This entails different kinds of fortunes together with land tenure as was in pre-colonial period. As the democratization of fortune causes forces for governance democratization, the extended allocation of wealth symbolizes Lipset stance, with reference to bankruptcy of authorization regimes. Therefore, Philip Levy; an economist shortened this perspective in forms of double use duty carried out by the values and processes of the capitalist (Bohman 2011, p.60).

As private stuff comes into existence in various structures and as different universal markets grow, a lively middle class is formed with admittance to schooling, as well as, introduction to a collection of thoughts acquired through worldwide travel and trade. Private possessions as well as involvement in the business forms, those proficiency combinations are the same as that meant for the involvement in democratic regime (Baruah et al. 2010). This collection of knowledge entails the capability of compromising, as well as, bargain, which causes the growth and development of what most individuals have named the trust networks. In the absence of these, economic dealings between foreign members extending over a long time would be nonexistent (Stiglitz, Sen,Fitoussi and Commission on the Measurement of Economic Performance and Social Progress 2010, n.p). Therefore, to comprehend this, an individual needs to contemplate what is being released into an economy dealing with unrestricted market (Fleras 2009, p 70). Seller and buyer are inspired by various interests and have to compromise on coming up with a price (Bohman 2011, p.60). 

Immediately an agreement is reached, mechanisms should be formed to warrant the practicality of contracts. In fact, every part needs to have grounds to think that payments would be done and orders transported as arranged (Fleras 2009, p 70). Accountability, transparency, and trust become beneficial commodity of and in them. A premium is put in novelty, efficiency, receptiveness, and communication. In the view of Lipset, the market place informs people to take into account longer duration standpoint, as well as, more multifaceted and gradualist perceptions of politics, the similar principles, which fortify democratic leadership (Bohman 2011, p.60). Because of this, Fleras (2009 p.70) has partially called capitalism as a freedom school in which people study the characters, build up the skills, values, and types the institutions, which encourage democracy.

Past these habits, principles and skills, most of tools utilized in the production of economic growth rooted on economic growth within the free market, as well as, open trade are the similar tools utilized by democratic advancers. Franzen & Mulder (2007, pp.34-50) have explained the benefit of coordination goods within the efforts of democratization. These entail tools, which aid the development of human and political rights. This equipment enables the reformers with the same mentality to interact with one another as well as, with the external world, to broadcast government exploitations, as well as, extravagances and establish a significant mass for critical demonstration movements (Bohman 2011, p.60). All things from email, cell phones, as well as websites enables this more possible; this equipment was originally designed to carry out trade dealings. As communities open up informally, it is, therefore, very hectic for tyrannical governments to share the coordination commodities, which usually come to perform a strong double function.

Above the capacity development role of the marketplace, there is exist crucial motivating reasons following the link between capitalism and democratic leadership. As fiscal growth takes place and successes expand, extra people emanate to have a position in the framework, which leads them. The improved stake makes people acknowledge the rule of law, as well as, incentivize them to engage in government (Franzen & Mulder, 2007, pp. 34-50). Similarly, their wealth forms the free time essential for them to behave so. The majority of the professionals have divergent views to hierarchy of needs by Abraham Maslow, which is linked to the emotional development of individuals (Bohman 2011, p.60). Within his classic psychological model, people are only able to shift to following more sophisticated connection demands after they have attained their primary survival requirements for housing, safety, and food (Fukuyama 2004,pp.56-70). Correspondingly, once societies attain amount of economic success, which gives the basic needs, they are inspired to propagate to a highly sophisticated concern in search of civil as well as political freedoms, as well as, the establishment of institutions, which promote these.

Optimism is an essential element of unrestricted market capitalism as it makes it easy for individuals to encourage each other through their won bootstraps rather than having their destiny predetermined during birth (Bohman 2011, p.60). Optimism played a crucial duty of remedy to political pessimism, and affected the motivation of individuals to take part in the markets and governments. It implied trust in the process, as well as, development, which is instrumental to the democracy (Fukuyama 2004, pp.56-70).

In addition, in the perception of certain unrestricted marketplace capitalism finally makes the totalitarian or authoritarian state archaic. When the imperceptible influence of the market determines the demand, supply, and all economic interactions between people, the nations will lose portions of their legitimacy (Holden 2002, p.80). As the effectiveness becomes valued within a marketplace economy, distended government-controlled firms usually cannot compete. According to (Ithaca et al. 2010), government driven firms get it rough within the flattened playing areas; there are limited resources present to support patronage. Consequently, the validity of the tyrannical government is weakened while individuals instantaneously become enthused and adept of self-governance (Holden 2002, p.80). This theory can be concluded that momentum produced by improving financial privileges stretches towards desiring civil as well as political privileges. Entrepreneurship creates success, it equates with being connected to equality, and equality comes to being linked to prosperity (Ithaca et al. 2010). It also suffices to conclude that the cycle turns out to be self-perpetuating, as well as, democratically controlled nations act as a strong model for other nations in quest of economic development.

The Way Free Market private enterprise weakens equality

Crucial limitation to the aforementioned supposition exists; however, a widely acknowledgment to the open market is very effective drivers of economic development and growth, it is also correct that this development and growth are usually unevenly spread in the community (Holden 2002, p.80). In its perfect nature, open marketplace and entrepreneurship is established in relation to the theories on societal Darwinism, implying the individuals with high capability of competing perform the best, while those who are unable to compete in forms of gaining to jobs or capital, efficiency or innovations, lose. The imperceptible influence of market only provides no social security network (Ithaca et al. 2010, pp.45-56). These results are called the poverty, class tensions, market failures, as well as, vast imbalances of wealth, among others.

            The poverty, class tensions, market failures, as well as, vast imbalances of wealth are perceived as undemocratic (Ithaca et al. 2010). This implies that the free market capitalism establishes the conditions conducive to the growth of electoral democracy, but is might disrupt the advancement of wider democratic results, as well as, liberal democracy. Within a no restriction marketplace, significant parts of the society decline to enjoy equally the benefits, as well as, opportunities of economic development and growth (Kjaer 2004, pp.20-25). The resulting class confrontation might be very disrupting for any government, especially one that acquires its power from the individuals.

Joyce, Binkley & Mcguire (2009, pp.12-30) also pointed out, which is important to consider that radical industrialized capitalist markets of the universe today technically perform total free market capitalism. These states, parenthetically, are representations, as well as, democracies of the connection between democracy and capitalism. For years of western modernization, failures of markets emerged and were handled, especially after too much misery, in the form of same European and great deal mechanisms like the British Unemployment Act of 1934. As managers are informed of de-equalizing influences felt on open entrepreneurship, white regimes, at some degree, started superseding in the processes of the market (Joyce, Binkley, & Mcguire 2009, pp.12-30).with the aim of reallocating the outcomes of free enterprise via communal security strategies that would perhaps easien any struggle in unintended antagonism. Presently, although duty proceeds as well as supplementary procedures are in use, many thriving democratic regimes try to offer a least living standard for all individuals, irrespective of their capability to compete  within the marketplace(Kjaer 2004, pp.20-25).

It is imperative to create the crucial but usually overemphasized difference between free market capitalism, as well as, the amended social welfare capitalism, which is currently practiced in superior economies. According to Joyce, Binkley & Mcguire (2010, pp.3-15), such a difference proposes that the advanced capitalist democracies like the United States survived and succeed not just due to unrestricted market capitalism, rather the consolidation, as well as, increment of democracy relies on the destruction of certain components of capitalism (Kjaer 2004, pp.20-25). This is crucial to alleviating the immense anti- democratic disparities in wealth, which are produced by free competition.

In this respect, nevertheless, an autonomous regime can only perform so much to alleviate the disparities generated by the market. Honor in most instances causes the honor. Some Certain set, by intention of the prosperity, is capable of perpetuating their advantage through transferring education, wealth, as well as, employment opportunities to their infants (Kjaer 2004, pp.20-25). Other acquires advantage by corruption, which usually involves legislatures of the regime itself. The battlefield cannot be totally planed through redistributive, as well as, affirmative action measures (Lawn (2010, p.56). Therefore, economic inequality is an unavoidable seal of capitalist unrestricted markets, especially due to the lack of corruption, as well as, in the existence of social welfare procedures (Joyce, Binkley & McGuire 2010, pp.3-15).

Lawn (2010) explained personal effective sequence, which is applicable as financial disparity thrives within communities amid fundamental democratic governance institutions. People who feel they have been left back by the market forces view the regime depressingly since they do not individually enjoy the richness, which capitalism and, in addition, democracy appeared to guarantee. Lower classes in specific are usually indifferent, as well as, cynical, and due to this, in numerous situations, they efficiently hand over on the democratic enterprise (Joyce, Binkley & McGuire 2010, pp.3-15). Shown by little constituent crowd by sample amongst these groups, as well as, decreased burden on the framework to guard their interests. Eventually, this establishes more chances for wealthy people, as well as firms exercising unbalanced impact within the administration, therefore, intensifying viewed disparities. During the sequence recurrences, typical individuals drop confidence accorded to the framework, in the midst of this, unintentionally assist in commencing elimination oneself out of the framework (Joyce, Binkley & McGuire 2010, pp.3-15).

Many individuals would assert this as a characteristic of private enterprise, which troubles still the developed egalitarianisms, interrupting their inherent egalitarian structure, as well as, any wellbeing affecting the organizations. Lawn (2010, pp.453-472) raised concern on this phenomenon in America community while carrying out his study. In his report, he noted that the market globalization is enabling corporation, as well as, elites buoyed through runaway economic prosper to weaken the ability of government to respond to citizens’ concerns within the race of arms for political inspiration (Joyce, Binkley & McGuire 2010, pp.3-15).

When the disaffected do not leave of the process, any constancy touching the whole structure; both democratic along with capitalist are threatened. As mentioned by Leard (2011, pp.56-80), the disaffected can turn out to be vulnerable to the effect of a strong, who exploits their wrath to acquire control of the political process and the economic assets. In extreme situations, civil conflict rescinds the society (Lawn 2010, pp.453-472). When rejections of the private enterprise are focused in the direction of some specific cultural community, since it usually happens, considerable anxiety, as well as, inconsistencies result to violence. Further implications result into mass killings, as mournfully (Ruger 2010, pp.89-97) explained. According to him, capitalism has the capability of creating democratic intentions, as well as, the powers to abolish such.

 Further situations, have pointed out to private enterprises have in fact, worked at strengthening severe administrations, as opposed to deteriorating such. Majority assert to industrialist transformations within Marxist propagators encompassing formed the success, which has assisted to endure the validity of the demanding government, not deteriorate them (Lawn 2010, pp.453-472). Many would contend that a capitalist reform within communist china has formed the success, which has assisted in upholding the legality supporting totalitarian administration. Ruger (2010, pp.89-97) noted, this occurs in two forms. To begin with, economic growth appoints the average citizens, which normally act as driving forces of the self-governing biased transformation. Characterized by satisfaction with success, the individuals undergo industrialist disparities in affluences leading to separateness in addition to devoted survival existing to disputing tyrannical  inclination regimes (Joyce, Binkley & McGuire 2010, pp.3-15). In addition, economic development impacts administrations wealthier via investment as well as taxation, providing the same with extra possessions channel to exploitive dealings, which hinder egalitarianism of civil as well as social dominions (Kjaer 2004, pp.67-80).

Extra cash can be utilized on checking internet use, as well as, repressing liberated association as well as speech, relentlessly conceding elected transformation activities. For instance, individual privileges campaigner Kjaer (2004, pp.76-80), was presently detained in Chinese governments with charges amidst unlawfully owning national surreptitious. PRC the (people’s republic of China) alongside Vladimir Putin’s Russia were capable of reaping financially viable importance in private enterprise and while forestalling the democratizing political influences (Joyce, Binkley & McGuire 2010, pp.3-15). Through frameworks like  managed coercion or selective repression, the aforementioned authoritarian governments enable sufficient  political and social space for capitalist innovation, however, not sufficient to produce transformation, as well as the pursuit of the correct civil or political freedom by its nationals (Kjaer 2004, pp.67-80). Paradoxically, there are exist experts who view the argument as possibly single, the approaching years possibly will show a constructive correlation among industrialistic expansion, as well as, expansions involving some electoral democracy (Fukuyama 2004, pp.76-80). Though infrequently recognized; China bears a two multiplied numeral when it comes to expansion. When an authoritarian system of China develops mechanical problems as capitalist success increases, which a few anticipate, it provides an influential credibility notion of an open bazaar that is liberalizing (Fukuyama 2004, pp.76-80).

In summary, issues like fighting corruption, nurturing corporate governance, improving women’s business associations, as well as, reducing barriers to formality have established new chances (Kjaer 2004, pp.67-80). Each acts a pivotal point to move forward with market reforms, as well as, adoption of democratic practices. For instance, sound corporate governance needs a framework of market institutions and sound business practices according on democratic principles. On the same note, ensuring that entrepreneurs and women of diffident means have access to the business framework as participants, as well as, leaders helps to make sure that an open market economy exists for all firms, not just for preferred few (Fukuyama 2004,pp.76-80).

Therefore, resources are dedicated to egalitarianism agendas simply in cases of understandable opinionated force to both sides receiving nation as well as acknowledgement of the help in addition to implement the proposed plans, or else, money will be squandered. In the form of program priorities, there need to be in place so the  triple major crucial individual privileges such as rights of living, right not to be labored, as well as, the right to due process are all taken into account regardless of what the regime (Kjaer 2004, pp.67-80). For instance, from the example presented herein, USAID thrive by removing the truthfully exploitive circumstances. When that is attained, great triumph in egalitarianism present’s situations. In wide focus, chosen government is highly subtle towards issues of person privileges.

According to the majority of the political analysts, it pays to spend capitals to improve systems of government nominated by the individuals, but it makes little meaning dedicate resources to offering nominal backings to bureaucracy if not judiciary on progress, when the administration fights egalitarian (Kjaer 2004, pp.67-80). Even when effectiveness is promoted because of those backings, a likelihood is that a basis of impartiality will begin, well known structures will improve. When probable, beneficials connect conventional expansion help agendas via egalitarianism. Determining effects of egalitarianism vocations prove more difficult as compared to other conventional options, which USAI installs. Nevertheless, it needs to be tried wherever feasible (Fukuyama 2004, pp.76-80). For instance, reductions of the details situations of person privileges exploitations and larger contribution at restricted administration comparatively tend to be extra evaluatable.

In conclusion, from the discussion presented herein, it suffices to conclude that free market capitalism both undermines and promotes democracy in the contemporary society. Therefore, the government should employ different methods to improve democracy since existence of democracy will improve the productivity, peaceful existence, as well as,  corporation of people, which in turn will lead to economic growth and development of the nation. The increased economic growth and development will improve the living standards of individuals, hence relieving the government from the financial support to the citizens.

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