The Surprising Link Between Economic Liberalization and Authoritarianism (2026)

In the realm of global politics, the relationship between economic liberalization and the erosion of democracy is a complex and often counterintuitive narrative. The conventional wisdom, espoused by many political economists, posits that opening up economies should foster democracy. However, the reality, as explored in the book 'The Road to Repression' by José Kaire, paints a different picture. This article delves into Kaire's theory, its implications, and how it might apply to contemporary cases like Cuba and Venezuela. Furthermore, it extends the discussion to the rise of artificial intelligence and its potential impact on autocratic regimes.

The Puzzle of Autocratic Repression

Kaire's book addresses a paradox: why do autocracies become more repressive when they open up their economies? The conventional wisdom, associated with Nobel laureates Milton Friedman and Friedrich Hayek, suggested that economic liberalization would empower people, reducing their dependence on the state and fostering political autonomy. However, Kaire's research reveals a different trajectory. Many countries that embraced liberalization, such as Mexico, Malaysia, and Senegal, experienced increased human rights abuses.

The Role of Autocratic Political Elites

Kaire's theory focuses on the autocratic political elites, including party officials, military officers, and regime insiders. For these elites, economic liberalization represents a political threat. It can empower regime outsiders, such as an emerging business class or opposition leaders, who may later challenge the old guard. Dictators who liberalize risk alienating their ruling coalition, as they must appease insiders to avoid potential coups. Repression, in this context, is not just about silencing dissent but also about managing elite politics.

Cuba and Venezuela: The Theory in Action

In the case of Cuba, the power has shifted from the leader to the party, with the military gaining more autonomy. This suggests that elites have extended their capacity to make demands on the leadership. Further economic liberalization could trigger the dynamics described in Kaire's book, pushing the regime toward more repression. Similarly, in Venezuela, the removal of Nicolás Maduro might create an opportunity for regime insiders to gain more independence and influence. Future deregulation could hurt, rather than help, human rights.

The Implications of International Pressure

Kaire's theory also highlights the implications of international pressure for economic reform. Leaders pushed to liberalize their economies may become especially repressive if they face the threat of international prosecution. They want to avoid ending up in front of institutions like the International Criminal Court, so they go to greater lengths to stay in power. This often means keeping their elites satisfied at all costs.

The Rise of Artificial Intelligence

The book's implications extend to the rise of artificial intelligence. When new sources of wealth or influence emerge, they can give leaders an opportunity to bring in new allies and weaken established elites. China, under Xi Jinping, is a relevant case for how these dynamics might play out in AI. The state has been heavily involved in promoting AI firms aligned with priorities associated with Xi's leadership, while disciplining more independent tech entrepreneurs.

Conclusion: The Complex Relationship Between Liberalization and Repression

In conclusion, the relationship between economic liberalization and the erosion of democracy is complex and often counterintuitive. Kaire's theory provides a nuanced understanding of this relationship, highlighting the role of autocratic political elites and the implications of international pressure. As we look to the future, the rise of artificial intelligence adds another layer of complexity, with potential implications for the balance of power within autocratic regimes. Ultimately, the outcomes will depend on how these regimes evolve, but the dynamics described in Kaire's book offer a cautionary tale about the fragility of democracy in the face of economic liberalization.

The Surprising Link Between Economic Liberalization and Authoritarianism (2026)
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