Economic and non-economic risks for democracies

Muller (1995a) claimed that during the 1960s and 1970s countries with (high) income inequality are more likely to face decline in democracy than countries with lower income inequality. This article uses new data to compare the negative impact of two economic determinants (income inequality, inflation) and two non-economic determinants (percent of Islamic population, world system periphery) on democracy. It is found that neither income inequality nor world system periphery does contribute to the explanation of the decline in democracy. Only inflation offers a tentative explanation for decline in democracy. The validity of the results is lessened by sample problems. Especially the data from communist countries appear to be less reliable.