Financial Crisis: Democracy and Institutions
Eugenia Correa  1@  , Alicia Giron  1, *@  
1 : Mexico Autonomous National University  (UNAM)
* : Auteur correspondant

The relation between democracy and financial crises is of great importance in the political and economic analysis. It means the existing correlation between the structural economic changes and the political regimes in Europe and Latin America since the crisis arrived six years ago. 

In the economic, political and social history of the last years, we can observe how the adjustment measures to balance the budget and to pay the creditors have destabilized democratic regimes. The economic crisis that already points the course of six years within the most tragic and unfolding unemployment rate and social loss of wealth being that has affected economic alternatives. To the point even of put aside the main debates about the economic growth and the economic development. 

It is not easy to think that democratic regime support growing unemployment rate, falling incomes of workers and middle classes, failure of small and middle enterprises, weakening of the welfare state, and deterioration of public services. Moreover, it is difficult to understand the alternation in political parties, but that don't change the policies that have created all this mess. The incapability of the parties, democratic regimes and even social movements to change the main direction of the economy during the last so many years, raise so many questions for economics and political science. 

Democracy and Financial Crisis are part of the existing correlation between the structural changes and the political regimes in Europe and Latin America in the economic, political and social history of the last four decades. Unemployment rate hasn't been reduced as before the beginning of the crisis behind a social loss of wealth. The new monetary consensus isn't solving the economic growth. Our position is the opposite, the dispositions should have centered in increasing the public deficit, clearing the financial shield of the central banks to guarantee the employment. Taking these policies would have resulted in gains for the entrepreneurs and new investments had multiplied the demand.

The dispute of the profits in the financial markets by the institutional investors is affecting setbacks that head the democracy to a deepening of opposite measures to leave out the crisis. The obstruction of the stabilizing measures will entail to conscious social movements of the economic change. These will take to the recovery in a long term. Indeed, it is an economic structural crisis, deeper than the 1929's crack.

The purpose of this work is to give a vision of the economic indicators of the European countries and of the Latin American countries as of the first decade of the present century towards it to demonstrate how democracy is a regime that responds to the economic incentives granted by the State in favor of the creation of the wealth for the entrepreneurs.

Reference

BOBBIO, N., El futuro de la democracia, Plaza Janés, Barcelona 1985.

GALBRAITH, James (2008) Predator State, Free Press, New York

GIRÓN, Alicia, et. al. (Coordinadora) 2010 Pensamiento Poskeynesiano de la inestabilidad financiera a la reestructuración macroeconómica, IIEc-UNAM, México

RAWLS, J., La justicia como equidad. Una reformula-ción, Ed. Paidós, Barcelona/Buenos Aires, 2002.

SARTORI, Giovanni, ¿Qué es la democracia? , IFE-TRIFE, México 1993.

TOURAINE, A., Qué es la democracia, Ed. Temas de Hoy, Madrid 1994. Un nuevo paradigma para comprender el mundo de hoy, Paidós, Barcelona/Buenos Aires 2005.

VALADÉS, D. y GUTIÉRREZ, Rodrigo, Democracia y gobernabilidad, UNAM, México 2003.



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