Capitalism and democracy in the twenty-first century: does it still take two to tango?

Abstract

Abstract This article reviews three books that offer thought-provoking insights on a central political science question, namely the relationship between capitalism and democracy in the twenty-first century. First, ‘Democracy and Prosperity’ by Iversen and Soskice posits a symbiotic relationship between capitalism and democracy. Advanced capital thrives on nationally rooted institutions, hence it needs democratic politics. A majority of voters ask for pro-advanced-capital reforms, hence democratic politics needs advanced capital. Second, ‘Capitalism, Alone’ by Milanovic depicts a troubled coexistence between capitalism and democracy. The former's tendency to concentrate economic and political power in the hands of the few is the main reason why democratic politics is under pressure. Third, ‘The Age of Surveillance Capitalism’ by Zuboff suggests a negative relationship between digital capitalism and democracy. Surveillance capitalism increasingly acts as a control means of individuals' behaviour, which undermines democracy at its roots. The last section brings the three contributions together. It maintains that a mutually beneficial coexistence between capitalism and democracy currently faces both internal (from within) and external (from without) challenges. In line with Milanovic and Zuboff, it argues that the concentration of economic and political power in the hands of the few is the most apparent from-within challenge. Drawing on Milanovic, it contends that rise of China as a global power combining capitalism with non-democracy challenges the relationship between capitalism and democracy from without. Finally, it contends that the environmental question and the pandemic represent two windows of opportunity for democracy to recover lost ground and re-establish a more balanced relationship with capitalism.