The Democratic Deficit of the Global Dominance of Producer-Driven Society

The argument of this paper is sequential. Democracy is associated with openness in trade, investment, and entrepreneurship. This is because of its support of property rights, contract enforcement, open governance, and civil society operational freedoms. However, these institutions are potentially open to capture by producer-driven interests. Institutions and political processes are not fixed but change over time and are the products of political contestation including the global projection of national producer interests. It is essential to see the world economy as a complex system that evolves under pressures of political, economic, technological, and societal changes. Democratic control of powerful producer-driven interests is not a given. Addressing the potential democratic deficit is one of global society’s “Grand Challenges”.