The Surprising Link Between Economic Liberalization and Authoritarianism (2026)

The world is witnessing a concerning trend: autocracies are becoming increasingly repressive, even as they open up their economies. This paradoxical phenomenon raises critical questions about the relationship between economic liberalization and authoritarianism. In this article, we delve into the insights of political scientist José Kaire, whose book, "The Road to Repression," offers a compelling explanation for this global trend.

The Paradox of Economic Liberalization

Kaire's research highlights a puzzling reality: economic liberalization, which was once believed to be a pathway to democracy, has often led to heightened authoritarianism. This is particularly evident in countries like Mexico, Malaysia, and Senegal, where human rights abuses have increased post-liberalization. Approximately half of all autocracies have experienced similar trajectories, prompting the question: why does a policy intended to weaken authoritarian rule sometimes have the opposite effect?

The Role of Autocratic Elites

Kaire's theory centers on the role of autocratic political elites, including party officials and military officers, who control the state. For these elites, economic liberalization represents a political threat. It empowers outsiders, such as an emerging business class or opposition leaders, who may challenge the influence of the established elite. Dictators who liberalize risk alienating their ruling coalition, especially if the elites are strong and can threaten a coup.

In such cases, leaders must find ways to appease the elite, often through repression. By cracking down on opposition groups, leaders signal their commitment to protecting elite interests, managing elite politics, and maintaining their grip on power. This dynamic is evident in Mexico, where presidents have used repression to compensate the party elite for accepting reforms that threatened their political influence.

Case Studies: Cuba and Venezuela

Kaire's theory provides a lens to understand the situations in Cuba and Venezuela. In Cuba, former leader Raúl Castro extended and institutionalized the role of the party, suggesting that elites have gained more power. Similarly, Venezuela's removal of Nicolás Maduro in a U.S. raid may create an opportunity for regime insiders to assert more independence. In both cases, future economic liberalization could lead to increased repression, as leaders strive to maintain elite backing while adhering to international demands.

The Surprising Findings

Kaire's research began with personal stories from his father about the liberalization of Mexico's automobile industry in the 1970s. Initially, he assumed this was a unique case, but his research revealed a widespread pattern. Most dictatorships that have liberalized have displayed this pattern of repression. Additionally, Kaire's core argument has implications beyond economic liberalization. Leaders facing international prosecution threats may become even more repressive to keep their elites satisfied and maintain power.

The Rise of Artificial Intelligence

One area where Kaire sees these dynamics playing out is in the rise of artificial intelligence (AI). AI represents a new source of wealth and influence, and autocratic regimes are adapting to this shift. Leaders can bring in new allies through AI, potentially weakening established elites. China, under Xi Jinping, provides a relevant case study. The state has centralized control over the AI sector, promoting firms aligned with Xi's leadership while disciplining independent tech entrepreneurs. This could create an alternative base of support for leaders, giving them more leverage in dealing with established elites.

Conclusion

Kaire's research offers a thought-provoking perspective on the complex relationship between economic liberalization and authoritarianism. It highlights the critical role of autocratic elites and the political dynamics that can lead to increased repression. As the world navigates the challenges of globalization and economic reform, understanding these dynamics is essential for promoting democracy and human rights.

The Surprising Link Between Economic Liberalization and Authoritarianism (2026)
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