Market Economies & Peaceful Nations

Market Economies & Peaceful Nations

In his book on the decline of human violence, The Better Angels of Our Nature, Steven Pinker writes,
“A democratic peace strongly kicks in only when both members of a pair of countries are democratic, but the effects of commerce are demonstrable when either member of the pair has a market economy.”
Democratic peace theory suggests that countries that are democracies are less likely to go to war (especially with each other) than countries that are autocratic or otherwise non-democratic. But another consideration, that can be separate from how democratic a country is, is whether the country has an open market economy. If the country engages in trade with other countries, and whether that trade adheres to general market standards is an important factor in the likelihood of that country to go to war. “A country that is open to the global economy is less likely to find itself in a militarized dispute,” writes Pinker.
From a standpoint of global human peace, improved democratic institutions combined with global market participation are an important goal for all nations. The more we can encourage countries to democratize and engage in global markets, the more likely we are to see reductions in levels of violence. Historically, trying to push countries to democratize is difficult, but encouraging greater market participation seems like a better pathway to peace. A country’s leaders may not want a more democratic government, but they might be more likely to want the bounties of markets. Building more support and momentum toward open market economies can have positive externalities for everyone.