Political Economy of Illiberalism

Abstract This chapter discusses the role of economic factors in the rise of illiberal politics in today’s world. Unlike similar studies on this topic, it expands the focus beyond the “usual suspects,” such as populist, nativist, or far-right parties to also include the illiberal ideas, movements, and thought collectives in the conceptualization of illiberal actors driving this wave of democratic backsliding. Such an approach is arguably more instrumental in tracing how and when the ongoing backlash originated before illiberal parties and politicians had a chance to come to power. This chapter seeks to explore today’s illiberal wave by analyzing the role of economic factors such as accumulated frustration with the effects of neoliberalism, financial crises, and globalization. It also analyzes the economic policies embraced by incumbent illiberal parties and leaders. While focusing primary attention on Europe, it also traces parallels across countries’ trajectories in different regional contexts, including Asia and Latin America.