柏林圍牆倒塌 Capitalism and Democracy

Twenty years have gone by since the collapse of Berlin Wall in 1989. It was a remarkably historical event from every aspect. Not only because it brought to an end of years of conflict between East and West, but also it announced the victory of capitalism and democracy in an ideological war with communism. However, capitalist democracy did not win completely. Many countries around the world today are adopting a modified capitalism rather a pure one. And democracy has bumped into a number of difficulties along the way.

From the viewpoint of the West, capitalism will bring in democracy eventually, because the emerging middle class in a capitalist society will surely have an appetite for liberty beyond the purely economic. When the Soviet Union was broke up, it seemed to prove the inefficiency of communism. Former communism countries in central and east Europe have made themselves embrace the capitalism and free market, the governing principals of commerce. And they spread out through globalization. The free movements of goods, capitals, personnel, and ideas around the world have boosted the prosperous economy, so few places openly oppose it.

However, there is still a huge gap between the economic freedom in capitalism and the political freedom in democracy. For some countries like China or other members of WTO maintain an authoritarian regime while participating in global economy. With the support of their authoritarian government, large multinational corporations are attracted to invest in the local market, which promotes economic development and, at the same time, stabilizes the legacy of their rule. Therefore, the process has led to a gradual move toward capitalism but away from democracy.

On the other hand, with the free trade and globalization, China and other emerging giants are catching up with developed countries, which creates fear in the West about losing relative economic power and leads to calls for protectionism among public. In a democratic society, if these concerns continue to grow the public will vote a relatively conservative government and reverse the process of free trade and free market, the important elements of capitalism.

In short, the hypothesis of a relationship between capitalism and democracy is never definite and we should not take it for granted.