{"id":237423,"date":"2023-04-11T20:57:01","date_gmt":"2023-04-11T15:27:01","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=237423"},"modified":"2023-04-11T20:57:01","modified_gmt":"2023-04-11T15:27:01","slug":"do-the-wealthy-influence-policy-making-more-across-all-forms-of-democracy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/do-the-wealthy-influence-policy-making-more-across-all-forms-of-democracy\/","title":{"rendered":"Do the wealthy influence policy-making more across all forms of democracy?"},"content":{"rendered":"\n<p><strong>Source-<\/strong> The post is based on the article \u201cDo the wealthy influence policy-making more across all forms of democracy?\u201d published in \u201cThe Hindu\u201d on 11th April 2023.<\/p>\n<p><strong>Syllabus: <\/strong>GS2- polity<\/p>\n<p><strong>Relevance<\/strong>&#8211; Issues related to democracy<\/p>\n<p><strong>News<\/strong>&#8211; The article explains the study \u2018Affluence and Influence in a Social Democracy\u2019 published in American Political Science Review (2023).<\/p>\n<h2><strong>What are the issues with democracies?<\/strong><\/h2>\n<p>In the real world, no democracy is perfect. Affluent people enjoy a disproportionately <strong>greater influence over policy-making <\/strong>compared to the average citizen.<\/p>\n<p>As per a study, public policy favors the affluent section at the expense of the poor and the middle classes. American democracy has certain unique features like <strong>heavy reliance of political parties<\/strong> on private donations. It makes policy-making <strong>unresponsive to the non-affluent.<\/strong><\/p>\n<p>Three different studies were conducted in Germany, the Netherlands and Sweden. In all these countries, policy was <strong>skewed in favour of the affluent.<\/strong><\/p>\n<h2><strong>How is Norway different from other democracies?<\/strong><\/h2>\n<p>Public policy is skewed toward the preferences of the affluent. But the opinions of the poor and the middle classes also matter.<\/p>\n<p>On economic issues, the preferences of both the poor and the rich seemed to matter almost equally. The <strong>link between money and politics<\/strong> was much weaker than in the U.S.<\/p>\n<h2><strong>Why are the wealthy in Norway not able to influence policy-making?<\/strong><\/h2>\n<p><strong>Universal welfarism<\/strong>&#8211; The first factor is Norway\u2019s <strong>universal welfare schemes<\/strong> and high levels of <strong>wealth redistribution. <\/strong>Universal welfare measures benefit every citizen. This contrasts with <strong>\u2018targeted schemes\u2019<\/strong> which only benefit needy people.<\/p>\n<p>It generates <strong>resentment among the non-needy people<\/strong> about how their tax money is being given away in \u2018freebies\u2019. It ensures their <strong>legitimacy and endorsement<\/strong> across classes.<\/p>\n<p><strong>Income equality<\/strong>&#8211; Norway has one of the<strong> lowest levels of income inequality<\/strong> in the world. So, the affluent section does not enjoy resource advantage to influence politics.<\/p>\n<p>Resource rich people are not able to convert money power into political influence through <strong>political party funding<\/strong>. Here, the contrast between Norway and the U.S. is sharp.<\/p>\n<p>Political candidates in the U.S. rely on l<strong>arge donations from individuals and organizations<\/strong> to run their campaigns. But parties in Norway get two-thirds of their financing from<strong> state subsidies. <\/strong><\/p>\n<p>Television advertising is a huge <strong>campaign expense<\/strong> in American elections. But<strong> political advertising<\/strong> on television is banned in Norway. This brings down the campaign costs. It also reduces the effect of disparities in spending power between candidates and makes the campaign process<strong> less vulnerable to private wealth. <\/strong><\/p>\n<p>In India, there is the opposite scenario. <strong>Electoral bonds <\/strong>empower wealthy private entities to make donations to political parties with <strong>zero transparency. <\/strong><\/p>\n<p><strong>Strong trade unions<\/strong>&#8211; Norway has historically had <strong>strong trade unions.<\/strong> They have been able to <strong>influence economic and social policy<\/strong> through their close political links with the Norwegian Labor Party. It acts as a <strong>counter force to the influence of the wealthy<\/strong>.<\/p>\n<p>Norway has <strong>vast reserves of oil and natural gas<\/strong>. It enables the government to maintain generous welfare schemes while imposing lower tax rates. It fulfils the needs of both the poor through subsidies and the wealthy through low taxes.<\/p>\n<p><strong>Less wealthy politicians<\/strong>&#8211; The country\u2019s political class is not particularly wealthy. The median wealth among Norwegian MPs is zero.<\/p>\n<p>Norwegian laws require <strong>proportionate representation of women<\/strong> in government institutions. Women on average have lower income than men. Their <strong>higher levels of representation<\/strong> results in greater political influence for women. It translates into <strong>greater political influence<\/strong> for lower-income citizens.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source- The post is based on the article \u201cDo the wealthy influence policy-making more across all forms of democracy?\u201d published in \u201cThe Hindu\u201d on 11th April 2023. Syllabus: GS2- polity Relevance&#8211; Issues related to democracy News&#8211; The article explains the study \u2018Affluence and Influence in a Social Democracy\u2019 published in American Political Science Review (2023).&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/do-the-wealthy-influence-policy-making-more-across-all-forms-of-democracy\/\">Continue reading <span class=\"screen-reader-text\">Do the wealthy influence policy-making more across all forms of democracy?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10498],"class_list":["post-237423","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=237423"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237423\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=237423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=237423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=237423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}