Skip to main content

Democracy in the age of neoliberal capitalism: Market forces 'reshaping' governance

Bhabani Shankar Nayak
 
Universal adult suffrage and the broadening of democratic rights were achieved through long struggles against feudalism, colonialism, capitalism, imperialism, racism, apartheid, and other forms of authoritarianism. These efforts advanced the universality of citizenship and deepened democratic practices worldwide. The trajectory of democracy was disrupted by two World Wars and the Great Depression but regained momentum through anti-colonial and anti-apartheid movements in Asia and Africa, which expanded both political and economic democracy.
In the postwar era, the rise of welfare states provided limited protection to labour while ensuring capital expansion through the free market. This system, often referred to as welfare capitalism, created conditions in which governments offered greater security to capital than to workers. Institutions and policies tied to unregulated markets were frequently shielded from democratic scrutiny under the rationale of efficiency and development.
This period also saw the emergence of what is described as democratic capitalism, a global order sustained by organisations such as the World Bank, IMF, and WTO. At the same time, socialist alternatives weakened, exemplified by the decline of the Soviet system during Perestroika and Glasnost. Market-oriented reforms did not necessarily promote greater political transparency; instead, they advanced economic policies aligned with the priorities of capital.
The neoliberal framework of liberalisation, privatisation, and globalisation further eroded welfare state protections and reduced avenues for decentralised democratic development. Structural adjustment programs shifted responsibility for systemic failures onto democratic institutions while masking the inherent inequalities within capitalism. Critics argue that this process has created a democratic deficit, concentrating wealth and power while marginalising large sections of society.
Market-led democracies often prioritise profit and property rights, treating citizens as consumers and shaping states into entities that secure capital rather than empower people. This dynamic has fostered a political culture in which leadership is seen as aligned more with capital than with the needs of the wider population.
The result is a system in which democratic ideals risk being weakened by market forces, creating conditions of inequality and exclusion. Observers suggest that revitalising democratic movements is essential to ensure that citizenship rights and democratic governance are not overshadowed by the priorities of capital. History shows that struggles led by working people have played a decisive role in expanding democratic space, offering lessons for the present.

Comments

TRENDING

Is vaccine the Voldemort of modern medicine to be left undiscussed, unscrutinised?

By Deepika*    Sridhar Vembu of Zoho stirred up an internet storm by tweeting about the possible link of autism to the growing number of vaccines given to children in India . He had only asked the parents to analyse the connection but doctors, so called public health experts vehemently started opposing Vembu's claims, labeling them "dangerous misinformation" that could erode “vaccine trust”!

Budgam by-poll to decide if National Conference still holds the ground in J&K

By Raqif Makhdoomi   “Zoun ho Zoun ho, PDP’an Zoun ho” — the chant echoes through the streets of Budgam as election fever grips the district. Despite the dipping temperatures, people continue to gather at late-night rallies with enthusiasm. The slogan gained popularity during the 2024 assembly elections when People’s Democratic Party (PDP) leader Iltija Mufti, while campaigning, inadvertently mispronounced it as “Zoon ho Zoon ho,” a moment that went viral and has since become a fixture in local political rallies.

Justice for Zubeen Garg: Fans persist as investigations continue in India and Singapore

By Nava Thakuria*  Even a month after the death of Assam’s cultural icon Zubeen Garg in Singapore under mysterious circumstances, thousands of his fans and admirers across eastern India continue their campaign for “ JusticeForZubeenGarg .” A large digital campaign has gained momentum, with over two million social media users from around the world demanding legal action against those allegedly responsible. Although the Assam government has set up a Special Investigation Team (SIT), which has arrested seven people, and a judicial commission headed by Justice Soumitra Saikia of the Gauhati High Court to oversee the probe, public pressure for justice remains strong.

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

From the black liberation struggle to exile: The story of Assata Shakur

By Harsh Thakor*  Assata Shakur , former member of the Black Liberation Army and a prominent figure in the Black liberation movement , died on September 25 in Havana, Cuba , at the age of 78.

Where are the graphs for the emergency? The missing data behind the climate crisis narrative

By Bhaskaran Raman  Ever so often, we are reminded by the media that we are living in a “climate emergency.” This especially happens after every natural disaster, such as after the recent floods in North India. While nature’s fury and its victims are not trifling matters, is there anything new about this that warrants a declaration of “crisis” or “emergency”?

What happens when cricket is turned into 'dharmayudh' between India and others

By Vidya Bhushan Rawat*  India ‘lost’ the World Cup. Winning or losing is part of the game, but what happens when the game becomes part of the political propaganda and the audiences are not sports lovers but fans who hate others? An Uttar Pradesh daily gave a headline for the final game as ‘dharmyudh’.   The game of cricket is being used for political purpose. As cricket is a powerful business in the country, every non-playing dignitary in the game earns much bigger sum than the player. 

Govt claims about 'revolutionary' rice varieties raise eyebrows: SC order reserved since Jan '24

By Rosamma Thomas *  In a matter of grave importance for agriculture, public health awaits Supreme Court ruling, even as top Government of India bureaucrats stand accused of “willful and deliberate disobedience” of the top court. While a contempt petition filed by Aruna Rodrigues , lead petitioner in the Genetic Modification (GM) of crops matter remains pending in the Supreme Court since July 2025, the Union ministry of agriculture asserts that two home-grown gene edited rice varieties are of superior quality, and hold potential for “revolutionary changes in higher production, climate adaptability, and water conservation.” In May 2025, the Press Information Bureau released a press release stating that a “historic milestone” had been reached, under the leadership of Prime Minister Narendra Modi ; the new varieties, DRR Rice 100 (Kamla) and Pusa DST Rice 1 , the press release stated, offer both benefits – increased production and environmental conservation. 

Ex-civil servants warn of ecological disaster, demand fiscal support for Himalayan states

By A Representative   The Constitutional Conduct Group (CCG), a collective of 103 former civil servants, has written to Dr. Arvind Panagariya , Chairman of the 16th Finance Commission, urging that the Commission give special consideration to the ecological fragility and economic vulnerability of India’s Himalayan states . The group has called for the creation of a substantial “ Green Fund ” or “Green Bonus” to compensate these states for their contribution to the country’s environmental stability and national well-being.