Power to the Privileged

A central theme of global integration in recent years has been the spread of free markets and democracy. Yale professor Amy Chua argues that these features of globalization can create serious problems in countries where economic levers lie in the hands of an ethnic minority. She gives the example of Venezuela, where a president elected by the poorer section of society and the majority ethnic group is at loggerheads with an economically and politically influential minority. Chua says that “Markets — even if marginally lifting all boats — concentrate wealth in the hands of the market-dominant minority, while democracy increases the political power of the impoverished majority.” She concludes that unless ways are found to spread the benefits reaped by the minority to the broader section of the population, “markets and democracy will continue to clash, destabilizing economies and exacerbating ethnic conflict throughout the world.” – YaleGlobal