Middle class and democratization under capital and land inequality: a theoretical approach

Abstract

The study revisits the relationship between the middle class, transition to democracy and inequality. This paper uses mathematical methodology to represent the role of the middle class on democratization under capital and land inequality based on Acemoglu and Robinson 2006 models. This paper extends social class from two to three class models including the rich, the middle class and the poor. Moreover, the paper also describes how capital and land inequality affect democratization. To test an impact of the middle class on democratizing process under capital and land inequality conditions, this study divides into three cases; (1) capital and land inequality, (2) capital inequality and (3) land inequality. As a result, the richer middle class has more similar preference to the elites which make they have more fear of the future income redistribution under full democracy. Hence, capital intensive society is more likely to be partial democracy. The study finds an income of the middle-class variable has a negative impact on transition to democracy. Because the poorer middle class demand higher land redistribution which is costly to the elites, democratization is not attractive to the elites. Thus, land abundant countries seem to be less democratic. However, the results do show a significant role of the middle class as human capital on democratization. When the middle class become dominant to an economy, this economic structure is called human capital-intensive societies and they are more likely to be democratic.