The liberal peace: Challenges to development, democracy, and soft power

The term “liberal” peace refers to the absence of fatal conflict between democratic nations, which are also economically interdependent. This chapter sketches the ideal and economic versions of the liberal peace theory. Policies promoting globalization may engender social conflict risks, as they produce inequality. In developed countries, we are witnessing the rise of populism, and the rolling back of the liberal aspects of democracy in developing countries. The avoidance of these problems requires careful management such that growth is broad-based, and policies promoting greater openness are sufficiently cushioned to protect losers. It is also necessary to manage globalization, and limit its negative impact on domestic social contracts, particularly when it comes to inequality, worker rights, and fiscal austerity.