Between Rocky Democracies and Hard Markets: Dilemmas of the Double Transition

Abstract

There is a growing realization in academic and policy circles that the double transition to democracy and the market may not be as simple or as easy as first imagined. Beginning with a discussion of the relationship between economic policy and regime type, this review emphasizes the problems associated with the uncertainty of the double transformation. It then suggests three mechanisms discussed in the literature as contributing to a more stable transition. Some authors have emphasized the importance of social and political contracts. Others contend that the transition must be imposed by the domination of a class or the state. A third group has focused on the rise of a new civil society and the need for some form of trust between the various groups. The review concludes with a call for more field level research and a greater emphasis on perceptions and expectations of change.