Can Capitalism Save Democracy?

Issue Date July 2025
Volume 36
Issue 3
Page Numbers 5–15
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While capitalism today is widely seen as a threat to democracy, the free market plays a central role in fostering pluralism. A strong and autonomous private sector is critical to the creation of a robust opposition and an independent civil society that are central to democratic resilience. At the same time, even rich and powerful private sectors in high-income countries may be vulnerable to government pressure with regulatory coercion — a fact that makes these countries potentially susceptible to democratic backsliding. Indeed, state capture of business — to a greater degree than business capture of the state — represents the most direct threat to democratic survival.

About the Authors

Semuhi Sinanoglu

Semuhi Sinanoglu is a researcher at the German Institute of Development and Sustainability (IDOS).

View all work by Semuhi Sinanoglu

Lucan A. Way

Lucan Way is Distinguished Professor of Democracy at the University of Toronto, co-director of the Petro Jacyk Program for the Study of Ukraine, and co-chair of the Journal of Democracy Editorial Board.

View all work by Lucan A. Way

Steven Levitsky

Steven Levitsky is David Rockefeller Professor of Latin American Studies and professor of government at Harvard University.

View all work by Steven Levitsky

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