The origin of democracy (GST 111 TERM PAPER TOPIC - TYPE 111)

Topic: The origin of democracy

 Abstract:

This paper seeks to provide an improved understanding of the origins of democracy. It submits that exogenous economic conditions had influenced both the incentives to establish democratic institutions and the likelihood that such institutions survive. It is argued that democratic institutions would expand where they mitigate important time-inconsistency problems and,

therefore, encourage investment. Exogenous conditions determine the magnitude of those time-inconsistency problems and, hence, the likelihood of democracy. A comparison of ancient Greek city-states suggests that the conditions under which democracy first emerged support the model. Other potential applications are discussed as regards the ancient-day democracies and contemporary times.

 Introduction

The democratic form of government has fascinated philosophers since the first democracies appeared in ancient Greece about 2500 years ago. (Indeed, democracy is a Greek word, meaning rule by the demos, or people. Plato, for example, regarded democracy suspiciously, but viewed certain manifestations as preferable to others. Aristotle theorized about the emergence of democracy, tracing its development in a series of steps. Modern democracy differs in many ways from the Greek version, but it fascinates modern scholars to the same degree. Particularly in recent years, economists have become greatly concerned with the question of how different democratic institutions arise, and what underlies their persistence in some cases and failure in others.

THEORETICAL APPEALS ON DEMOCRATIC RULE

In order to improve understanding of the origins and persistence of the democratic form of government, this paper develops a theoretical model and applies it to the first democracies: the poleis (city-states) of ancient Greece. The analysis would begin from the general premise that time-inconsistency problems create incentives for governments to find ways to constrain their power (e.g., Kydland and Prescott 1977, 1980). The model would present a stylized aristocrat deciding whether to extend political rights to an initially disenfranchised demo. Without political . . 

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