Module XIV·Article I·~1 min read

Populism and the Crisis of Liberal Democracy

The Political Economy of Security and Sanctions

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Populism and the Crisis of Liberal Democracy
A wave of populism has swept the world: Trump, Brexit, Orbán, Bolsonaro, Le Pen. What is behind this phenomenon? What are its political-economic roots?

What is Populism
Definition. Populism is a political style that pits the “pure people” against the “corrupt elites.” It claims to represent the “real people.”

Left-wing and right-wing populism:

  • Left-wing (Latin America, Podemos) — against economic elites, in favor of redistribution
  • Right-wing (Trump, Le Pen) — against cultural elites, for national identity, against immigration

Economic Roots

Globalization. The “losers” from trade and immigration are the base of populism.
The “Milanovic elephant” — the squeezing of the middle class in developed countries.

Inequality. Growth of inequality undermines the legitimacy of the system. Elites have become detached from the people.

Economic shocks. The 2008 financial crisis — banks were saved, people were abandoned. Resentment towards the establishment.

Precarization. Uncertainty about the future, gig economy, lack of career perspectives.

Cultural Factors

Not only economics. Cultural anxieties — immigration, changing values, loss of status.

Status anxiety. Fear of losing status — “we used to matter, now we are ignored.”

Backlash against progressive values. Reaction to the liberalization of morals, multiculturalism, political correctness.

Threats and Responses

Threats:

  • Undermining of institutions — courts, press, the electoral process
  • Polarization and loss of shared public space
  • Authoritarian drift

Responses:

  • Addressing economic grievances — jobs, dignity
  • Institutional reform — restoring trust
  • Inclusive narrative — not against, but in favor of

Populism is a symptom of deeper problems. One must treat the causes, not the symptoms.

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