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Populism
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This paper develops a political economy model that provides an explanation as for why ruling elites in oligarquic societies may rely on income redistribution to the poor (the masses) in order to prevent them from attempting a revolution. We refer to this kind of redistribution as populist redistribution because
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alternatively
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and decreases with the relative importance of a human capital externality in production. The model explains why in some cases the use of an apparently ine cient policy of populist redistribution turns out to be optimal for both groups (the ruling elite and the poor class) when the alternative is to use of military repression or default to conflict
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and second it seeks to “buy” political support (peace) to perpetuate the elite’s control of political power. We examine the conditions under which ruling elites choose to deter the poor (by means of military repression and/or populist redistribution)
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conflict
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democracy
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first it does not increase the poor’s productive capacity (human capital)
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if any
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increases with initial wealth inequality and with the amount of redistribution that the poor can undertake under democracy
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inequality
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oligarchy
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or
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to engage in a dispute with the poor for the control of political power
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to extend democracy. According to the results of the model populist redistribution (or military repression)
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English
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Mejía, Daniel
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Posada, Carlos Esteban
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Banco de la Republica de Colombia
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Discussion paper / Centre for Economic Policy Research
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Anuario de estudios centroamericanos
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Belorusskij ėkonomičeskij žurnal : ežekvartalʹnyj naučno-praktičeskij žurnal
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Populist Policies in the Transition to Democracy
Mejía, Daniel
;
Posada, Carlos Esteban
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Banco de la Republica de Colombia
Persistent link: https://www.econbiz.de/10005113904
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