Capitalism and democracy. Challenges and responses in an increasingly interdependent world

Abstract:

Communism has failed, but has capitalism succeeded? Capitalism is on the march, but how many are walking in step with democracy? This work, which looks at the latter third of the twentieth century, might offer some answers.

The book, which comprises a collection of papers, is organised in four parts. Part one looks at the failings of democracy and capitalism to take hold earlier in the former Communist countries and explores the varied economic performance experienced through North America, Europe and Asia over the last three decades. Part two considers constitutional institutions that might be introduced to improve the performance of an existing democracy, or to create a new one. It also looks at globalisation and the accompanying aspects of tax competition and blurred concepts of citizenship. Part three explores the issues of tax and subsidies through two papers; the first addresses the question of public subsidies for private firms in a federalist democracy, and the second the taxing question of 'what ought to be taxed', and indeed who should bear the burden of tax. Part four focuses on the functioning of the economy, in particular the types of competition policies needed at the start of the twenty-first century. It is a thought-provoking work which looks beyond the banner words of Capitalism - Socialism - Democracy.

The work will interest academics engaged in public choice theory, political economics, and industrial organisation and all those with an interest in globalisation and the European Union.

Dennis C. Mueller is Professor of Economics at the University of Vienna, Austria.