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Elite and Middle-Class Destruction Under the International Financial Crisis

Democracy
Elites
Globalisation
Government
Institutions
Public Choice
Sandra Rodrigues Balão
Centro de Administração e Políticas Públicas
Mário Rodrigues Pontes

Abstract

The international financial crisis demonstrates the objective and clear existence of government failures as formulated in the Public Choice Theory. The financial markets pressure on the most fragile economies caused institutions as the IMF, CEB and EU to intervene in western developed countries in such a way that was only seen until now in the so-called “third world” or “developing” countries. The long term consequences of this so-called “aid” can put in question the main existing constitutional rights, liberties and guarantees and by doing so, democracy itself. So, the main question remains to be answered: what is to be expected from the elites in this new conceptual framework? The main objective of this paper is to argue that this kind of intervention causes a direct effect on the so-called middle-class in such a way that will contest its economic sustainability, which is to say, its own existence. In order to accomplish this goal, the methodology will consider both the qualitative and quantitative approaches along with an interdisciplinary perspective of analysis.