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Democratic governance vital to policy issues

Wednesday 19 – Friday 21 March 2025 I WP3596

Africa map

A range of policy priorities are now dominating the attention of political leaders. These include economic growth, security and the climate crisis, among others. It is therefore harder to secure time for them to focus on the decline in global democracy. This dialogue reviewed the evidence on the relevance of democratic governance to addressing those policy challenges, which all societies face.

Inclusive and sustainable economic growth

There is a clear link between democracy and sustained, long-term economic growth 1. Overall, the rule of law, accountable regulatory frameworks, and stability are essential in fostering environments conducive to investment and economic expansion. As such, democratic governance can help drive economic growth by ensuring transparency, inclusion, and predictability, all of which contribute to business confidence.

Although it is true that examples such as China and Singapore exist where non-democratic governments have overseen economic growth, these remain exceptions to the rule. Democracies perform better than autocracies on the longer-term and human development definitions of economic growth and welfare.

Economic evolution presents both opportunities and risks, particularly as growth in many Western economies stagnates and young people face increasing exclusion due to wages not keeping up with inflation, rising energy bills, and high housing costs especially in big cities. Wealth concentration is on the rise and correspondingly inequality is growing – within and between countries and regions. The feeling that ‘the system’ is not answering to people’s concerns and aspirations contributes to the sentiment that democracy is not delivering and causes some to seek alternatives.

The expectation that developing and developed economies would converge has not materialised due to structural challenges, including deindustrialisation and autocratic economic practices. Currently, financial regulations and global financial architecture continue to limit access to capital, particularly in developing economies, creating further barriers to inclusive growth.

Future economic reforms must consider the evolving nature of energy demand. The rise of artificial intelligence and cryptocurrency technologies has markedly increased the need for energy, for example to power data centres. This increased demand necessitates policies to accelerate energy supply and reduce costs. This could in turn neutralise geopolitical tensions by reducing reliance on autocratic countries to provide energy to democratic countries.

Additionally, a broader understanding of economic growth is required, beyond gross domestic product (GDP) measures. Some noted the importance of not just focusing on growth, as inequality can be high within this, but also looking at indicators such as the Gini Coefficient2 , as well as qualitative data. Democracies should focus on the inclusive and sustainable elements of growth which they can deliver better than autocracies.

Some aspects of international financial regulation have limited access to financing in the developing world. It is more expensive to do business with countries deemed high risk for financial crime. These structures contribute to economic growth not being experienced equally across the globe. Multilateral institutions like the World Bank and the International Monetary Fund (IMF) continue to have a role in supporting democracy through economic policies and investment strategies that prioritise governance and accountability, although some note their need for internal reform.

Climate change and the environment

The global climate crisis is already here – often most urgently felt by Global South countries. Responses today will determine future outcomes. However, political prioritisation at national level and international cooperation on the issues has been inconsistent, with many commitments under the Paris Agreement yet to be fulfilled 3.

There are various ways in which efforts to tackle climate change are aligned with democratic governance principles. Democracy provides a framework for access to information, inclusive decision-making and legal justice. Autocracies may ostensibly perform better on climate action in some instances, as they can take executive decisions without consultation or opposition. However, crucially, if these decisions transpire to have negative implications, there is no method for redress as citizens cannot remove the autocratic regime from power.

The rule of law within democracies provides a better environment for climate action to take place. Democratic governance allows for fairer resource distribution within society, which is crucial for managing climate change. It is also necessary to have a long-term approach to climate action, which lends itself well to democracy.

Simultaneously, climate change disrupts democratic processes. In 2024 alone, 15 countries’ elections were negatively impacted by extreme weather4 . As such, climate action and democratic principles must go hand in hand – woven together rather than pitched against each other where political bandwidth is limited. Civil society organisations (CSOs), as well as community-led citizen assemblies, have played a significant role in advancing climate action, though their capacity is often constrained by funding limitations and political restrictions in various countries.

There also remain gaps in international cooperation on climate governance. Climate discussions often occur in silos, and events such as the Conference of Parties (COP) have been criticised for limited effectiveness. Only 13 countries submitted 2035 climate commitments under the Paris Agreement by the deadline this year5 . As COP has non-democratic countries participating, this means it is not an effective space for democracy and climate action discussions.

Environmental democracy offers a way to integrate climate action with governance structures. The principles of transparency, participation, and accountability ensure that policies reflect the needs of communities while holding the public and private sector to account for their environmental harm.

Furthermore, strengthening democratic institutions can enhance climate adaptation and mitigation efforts, while investments in climate initiatives can, in turn, reinforce democratic governance. Greater engagement from parliaments and regional governance structures is also necessary to enhance democratic accountability in climate policymaking.

Regionally, Africa is taking bold steps to address climate challenges, with initiatives such as the AU Climate Change and Resilient Development Strategy and Action Plan (2022-2032) 6. Globally, the International Climate and Democracy Coalition (IDCD) is demonstrating how policy solutions for democracy and environmental concerns can be developed holistically. There is also hope in leadership from Global South countries on these interwoven issues, for example through South Africa currently holding the G20 presidency.

National and human-centred security

The rapid securitisation of society coupled with unprecedented technological change risked long-term autocratic trends without the commensurate increase in democratic governance and oversight. Calls for reform of global security frameworks, including access to capital and accountability mechanisms, highlight the evolving nature of security threats. In Africa, authoritarianism is resurging, with militarism increasingly celebrated – a concerning trend for democratic governance. The UN Security Council is no longer fit for purpose due to the breakdown of the international rules-based order. Simultaneously, the underpinnings of democratic peace theory are being challenged, with some countries moving towards transactionalism on security and away from norms.

National sovereignty is also challenging the international system. At the regional level, three countries pulled out of the Economic Community of West African States (ECOWAS) as the organisation turns 50 years old7 . In East Africa, Somalia and the Democratic Republic of Congo were keen to join the East African Community (EAC) not due to democratic governance principles, but largely for security reasons8 .

Despite this, democracies are inherently better equipped to manage security challenges due to institutional and legal frameworks that promote accountability and conflict resolution, including participatory governance structures and dialogue mechanisms. In contrast, autocratic regimes concentrate power and limit recourse, increasing the risk of instability. Autocracies may be able to suppress conflict internally, but they do not resolve it. Anti-democratic forces are well organised around making people believe they are insecure, yet it is within democracies that people have greater physical security, being able to move and speak freely. Democracy proponents need to reclaim and redefine the security term, highlighting the personal security it provides, for example, in healthcare, as well as how international order protects from external threats.

To address security threats, greater international cooperation is needed, particularly in countering malign actors and disinformation campaigns. Existing security infrastructures, such as the North Atlantic Treaty Organization (NATO) and the Intergovernmental Authority on Development (IGAD), play a role in regional security coordination. Financial institutions like the Financial Action Task Force contribute to global efforts against money laundering and terrorist financing, while regional initiatives like the AU Convention on Cyber Security and Personal Data Protection address cyber threats.

People-centred approaches to security strengthen resilience by fostering trust between governments and communities. Inclusive security strategies, such as community policing and engagement with religious leaders, have demonstrated effectiveness in countering radicalisation and strengthening social cohesion. In the long term, democracies must ensure that security policies uphold rights and freedoms while maintaining state stability.

The rule of law, inclusivity, and participatory governance are essential in fostering long-term security and resilience. Moving forward, it is imperative to ensure that the rule of law prevails over rule by law, and strengthen multilateral cooperation through knowledge exchange and joint initiatives.


Footnotes
  1. https://journals.sagepub.com/doi/10.1177/22338659231194945; https://www.researchgate.net/publication/378368969_The_Relationship_between_Democracy_and_Economic_Growth_An_Empirical_Analysis ↩︎
  2. https://ourworldindata.org/what-is-the-gini-coefficient ↩︎
  3. https://unfccc.int/process-and-meetings/the-paris-agreement ↩︎
  4. https://www.idea.int/news-media/multimedia-reports/impact-natural-hazards-elections ↩︎
  5. https://www.iied.org/only-13-countries-submitted-2035-climate-targets-time ↩︎
  6. https://au.int/en/documents/20220628/african-union-climate-change-and-resilient-development-strategy-and-action-plan ↩︎
  7. https://www.bbc.co.uk/news/world-africa-68122947 ↩︎
  8. https://www.bbc.co.uk/news/world-africa-67522844 ↩︎

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