Income Gap in Democratic Countries Owes It to Tech-Driven Growth

Technology has led to increase in income gap in democratic countries caught in nationalist fervour these days.

The progress of democracy, globally, has seen multiple ups and downs; with the first wave beginning in the early 19th century, when suffrage was extended to most of the white male population in the United States.

The wave peaked with restricted forms of democracy crossing the borders of 29 countries, and started to ebb when Italian fascist dictator Benito Mussolini ascended to power in 1922. By 1942, the number of democracies worldwide had receded to 12.

Democracy and Technological Advancement

The second wave of democratisation commenced post the Allied win in the Second World War, with the number of recognised democracies peaking at 36 in 1962.

After going through a decade of flat line growth, a third wave began with the number of electoral democracies exploding from 45 in the early 70s to 120 by the late 90s, with the increase accelerating post the fall of the Soviet Union in 1991.

Since then, increased internet penetration and the advent of social media have further revolutionised means of communication, heightened transparency during information dissemination, internetworked billions across the world dissolving geographic boundaries, and have enhanced avenues of economic collaboration.

The phenomenon has thus created an ideal environment for a world with an equitable globally participatory democracy, thereby leading a vast majority of the political scientists and theorists of our times to believe that liberal democracy would end up as the default form of the Government in the 21st century.

‘Democratic Recession’ Across the World

However, for an unprecedented 11th straight year, Freedom House, an organisation that quantitatively measures rights across the world, has found that every single region across the world experienced a democratic recession, with 67 countries suffering net declines in political rights and civil liberties in 2016, compared to 36 that had gains.

The past decade has also seen several countries – the list led by the likes of Russia and Turkey – suffering an outright reversal of their democratic gains from the 90s, by reverting to authoritarian regimes.

On the other hand, populists and nationalists gained strongholds among majority of the established democracies, including India, UK and the United States.

Ironically, the innovative technologies of our times have played a larger than imagined role in the creation of this political landscape.

Also Read: Minimum Government, Not an All-Powerful ‘Sarkar’, Need of the Hour

Technology to be Blamed for Income Inequality

Breakthroughs in Artificial Intelligence, Robotics, 3D printing, and driverless automobiles have systematically replaced high volume and lower skilled jobs, the ones that aided in the upward socio-economic mobility of the lower and middle income classes. These have been replaced with far fewer, higher skilled, higher income jobs, thereby creating high levels of unemployment, previously unseen inequalities, and mass public dissatisfaction.

India is a case in point, with the 2016 Labour Bureau data stating that the employment generation in the top eight formal sectors stood at a meager 1.35 lakh, against a backdrop of almost 1.5 crore annually entering the job market.

A recent research paper by economists Thomas Piketty and Lucas Chancel has showed that our income inequality has reached the highest levels since the British Indian days of 1922.

Beyond Campaign, Accountability is Missing

Social media platforms and Big data driven personalised messaging campaigns were, in the recent years, effectively used by all the major opposition parties worldwide, many of them relying on strong populist and nationalistic rhetoric, to appeal to this unsatisfied electorate majority, disillusioned with incumbent governments.

These parties, however, seem more adept at campaigning than in governing, with all of them without exception, rapidly losing popularity post electoral victories.

Many of these governments started considering the weakening or removal of the checks, balances, and institutions intended to curb the abuse of their political clout – the likes of a strong opposition, independent media, empowered civil societies, or unbiased judicial systems, as an easier alternative for retaining power, than meeting the expectation of their electorate, duly noted the Freedom House report.

Their isolationist and sectarian worldviews, revolving around parochial national interests are however, counterproductive in resolving the major concerns, ranging from trade, security, climate change, and sustainability; all requiring transnational co-operation.

The few standing liberal democracies collaborating to create and propagate policies of market friendly, redistributive economics, and social inclusiveness would be able to find a way out of this constrained political cycle.

Also Read: Why Majority Rule Is a Threat to India’s Democracy

(The writer is Executive Director of Cyber India and Vice President of Navoothan Foundation. He can be reached @anilkantony. This is an opinion piece and the views expressed above are the author’s own. The Quint neither endorses nor is responsible for the same.)

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