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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Anna Denisenko
Exit, Voice and Loyalty. On the Way to Democracy.
Economics
(Bachelor’s programme)
2017
In the modern world, totalitarian and militaristic regimes practically disappeared. The number of autocracies - states in which power rests with a small number of people - declines over the last thirty years. Nevertheless, it is a mistake to assume that all the remaining countries are democratic. The governments' of many nations are both superfluously severe to the citizens but do not prevent the development of the democratic institutions in the society. Such countries are called anocracies.

It seems that the power of the governor in the anocracy is almost ultimate: in such regimes, the opposition is nominal and fully supports the head of the state. The ruler can declare laws that violate the property rights of the citizens as well as adjust the constitution to serve his needs. The only remaining power that can influence the governor's decisions —— the mass protest of the population.

Using a theoretical model, I show the importance of the protest movements in those countries where freedom of speech is limited and independent sources of information are absent. I demonstrate that the governor of the anocracies, as well as the dictators in the autocracies, prefer to hire unqualified employees, and I also prove that the higher the qualification of the adviser in the undemocratic regime, the higher the probability of his betrayal.

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