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As populist parties have surged across advanced democracies so, it seems, has a ‘globalisation backlash’. This column provides descriptive evidence on the backlash, discusses its theoretical underpinnings within standard trade models, and reviews the evidence on its drivers. It appears that globalisation is at stake partly due to reasons that are not strictly related to trade. ....
Giancarlo Corsetti, Gernot Müller The design of public budget constraints and the effects of austerity policies are salient topics for both policymakers and scholars. The main goal of this literature is to understand whether and how fiscal adjustment can improve the sustainability of welfare systems (Alesina and Perotti 1996, Corsetti 2012, Born et al. 2015). Overall, previous studies find mixed effects on budget constraints in terms of deficit and public debt reduction (Asatryan et al. 2015, Grembi et al. 2016, Coviello et al. 2017, Heinemann et al. 2018). Recent studies have also focused on the adverse political effects of austerity policies (Stiglitz 2016, Fetzer 2019). In a recent paper (Daniele and Giommoni 2020), we study the impact of fiscal austerity on corruption in the context of Italian municipalities. We find that these budget rules, the Domestic Stability Pact, has led to a reduction in corruption, driven by lower discretionary spending. ....
In an attempted self-coup – an ‘ autogolpe’ in Spanish – a sitting ruler tries to hold on to power by suspending the constitution or by upending countervailing powers in the judiciary, executive, or legislative branches of government. The ‘steal’ of an election from a victorious opponent has been attempted only once in a democracy, twice if you include the recent putsch provoked by President Trump in the US – for which he was swiftly impeached by Congress. According to Chin, the sole self-coup in a democracy occurred in Costa Rica in 1948. This led to a civil war that lasted six weeks. Ever since, Costa Rica has been an unwavering democracy, scoring a perfect ten on (a scale from -10 to +10) by one of the most widely used measures of democracy, compiled under the Polity5 Project at the University of Maryland. ....