About Democracy and Industrial Revolutions

Motto: “Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of Government except for all those other forms that have been tried from time to time.” Sir Winston Churchill, 11 November 1947.

The term “dēmokratía” (democracy) appeared in the 5th century B.C. in the Greek city-state of Athens, by merging the words “demos” (people) and “kratos” (rule). It defines a system of government in which power belongs to the population and rulers are elected through free elections. According to Cambridge Dictionary: “Democracy is a system of government in which power is held by elected representatives who are freely voted for by the people, or held directly by the people themselves”. Nowadays, democracy is more than just electoral processes, being deeply intertwined with human rights, civil liberties and the rule of law. The Reykjavik Declaration, adopted at the 4th Summit of the Heads of State and Government of the Council of Europe (CoE) on 17 May 2023, affirms: “We consider democracy as the only means to ensure that everyone can live in a peaceful, prosperous and free society”.

Alain Berset, Secretary General of CoE, links democracy to security - “Security is more than military power. It is about human rights, democracy and the rule of law.” (Alain Berset, post on X, 14 February 2025) - and recent political evolutions encourage the search for a new narrative on democracy. According to a Concept Note prepared by CoE (“Building a New Democratic Pact”, 3 February 2025): “Over the past two decades, democratic backsliding has become a defining trend in European and global politics. A broad consensus points to a growing sense of insecurity and uncertainty, driven by conflicts, the rapid unchecked advancement and misuse of technology, widespread socio-economic inequalities, and escalating environmental threats”. The European Union (EU) has a similar approach: “Europe’s future in a fractured world will depend on having a strong democracy and on defending the values that give Europeans the freedoms and rights they cherish. The EU will do more to protect democracy and its citizens from rising threats posed by internal and foreign actors”. (“Protecting our democracy, upholding our values” – EU priorities for 2024-2029)

Symptoms of democratic decline include increasing disinformation, extremism, polarization and public distrust in institutions. Among the causes, there are the decreased participation in political life, loss of faith in electoral processes, socio-economic insecurity, digital isolation and ideological bubbles which limits critical debate. Global crises, such as the climate change and the Covid-19 pandemic, also contributed to undermining faith in democracy. The pandemic reshaped the geopolitics of globalization, with political, economic, social and technological consequences that will probably extend over decades, while public perception of the role of the state in society undergone dramatic changes. As Joseph Stiglitz (Nobel Prize in Economics in 2001) remarked: “The pandemic has opened up another set of dimensions of globalization. And like the climate change, this is a global problem and needs global solutions, so it needs global cooperation. And we have now come to understand that the basic political unit remains the nation-state.” (“An Economy without Spare Tires”, Institute for New Economic Thinking, 15 April 2020).

The reality is that economic globalization has advanced much faster than political globalization. The 2008 financial crisis could have been a lesson, because without massive capital injections by governments the global financial system would have collapsed. One of its consequences was the explosion of socio-economic inequalities. Then came the pandemic and exposed the fragility of long-distance supply chains of the global economy. As a result, we witness an effort of governments and companies to “de-risk” supply chains by bringing them home or close to home. The conclusion is that a new balance has to be found between the advantages of globalization and the need for resilience.

A glimpse at successive industrial revolutions suggests a one-to-one relationship with the economic elites in power. The First Industrial Revolution (late 18th century - mid-19th century), based on the use of water and steam to mechanize production, was a transitional period. During the Second Industrial Revolution (second half of the 19th century - beginning of the 20th century) economic leadership belonged to industrial elites, who based their prosperity on mass industrial production and were interested in protecting national markets, in order to protect domestic production from foreign competition.

The Third Industrial Revolution, which came after the Great Depression of 1929-1933, was characterized by electrification, automation, computers, internet, and the birth of social media. During that period industrial elites ceded power to financial elites, whose prosperity was based on the development of financial services and the free movement of capital, that flourish in a globalized world, without barriers to business. Its peak was recorded at the end of the 20th century – first decade of the 21st century. According to Michael Kimmage, Director of the Wilson Center’s Kenan Institute: “In the two decades that followed the Cold War’s end, globalism gained ground over nationalism. But in the early 2010s, a profound shift began and previous archetypes revived: the strong leader, the great nation, the proud civilization” (“American Power in the New Age of Nationalism”, Foreign Affairs, 25 February 2025). The timing coincides with the financial crisis of 2008 and the economic crisis generated by the Covid-19 pandemic.

When the Covid-19 crisis ended, the mankind entered the Fourth Industrial Revolution, with widespread use of Artificial Intelligence, digital platforms, interconnection, nanotechnology, synthetic biology, quantum computers, autonomous vehicles etc. In such a world, outsourcing of production and long supply chains are no longer necessary, while protecting markets and access to critical resources become vital. For instance, rare earths such as scandium, yttrium, lanthanum and cerium are key ingredients for magnets, batteries, catalytic converters, and used in everything from cell phones to cars. Minerals such as lithium, cobalt, nickel, graphite and copper are needed for the clean energy technologies. The International Energy Agency has projected that global demand for these minerals will quadruple by 2040. At the same time, according to experts: “In 2024 the amount of energy derived from oil and coal also hits all-time highs; the share of hydrocarbons in the global primary energy mix is about 80% today. Natural gas consumption is expected to continue to increase by 65% by 2040” (Foreign Affairs, “The Troubled Energy Transition”, 25 February 2025). The Fourth Industrial Revolution seems to bring again industrial elites to the forefront; among these are Big Tech companies.

Climate change also contributes to the new geopolitical landscape. As the climate warms, rising seas and extreme weather force people to flee towards more habitable places. Research by Stanford University demonstrates that agriculture could expand massively as temperatures rise in cooler climates, while agriculture productivity slows in already hotter regions when climates heat up.

Understanding the relation between democracy, economy and social challenges is essential for correcting the democratic backsliding. We may find inspiration in President Ronald Reagan’s address to the British Parliament, on 18 June 1982: “No, democracy is not a fragile flower; still, it needs cultivating. We must be staunch in our conviction that freedom is not the sole prerogative of a lucky few but the inalienable and universal right of all human beings. The objective I propose is to foster the infrastructure of democracy – the system of a free press, unions, political parties, universities – which allows a people to choose their own way, to develop their own culture, to reconcile their own differences through peaceful means”.

Each country has its own unique history, culture and identity. By learning from global democratic practices, enhancing dialogue with the Global South, and coordinating with EU and UN initiatives, CoE “New Democratic Pact” could make suggestions for a democratic governance better correlated with the socio-economic dimension of democracy. The Council of Europe would thus consolidate its reputation as advocate for democracy beyond European borders, with its open conventions acting as important tools for global outreach. For instance, CoE Convention on Cybercrime (the Budapest Convention, in force since 1 July 2004) constitutes the backbone of the UN Convention against Cybercrime adopted by the UN General Assembly on 24 December 2024, and the Cybercrime Program Office of the Council of Europe (C-PROC) in Bucharest (Romania), which is recognized for its expertize, could contribute to implementing the new UN convention.

On 28 January 2025, Alain Berset remarked in the CoE Parliamentary Assembly session: “In this highly turbulent multilateral context, the greatest challenges we face know no borders. The only effective response is therefore a multilateral one. It’s a response that requires collaboration with other international organizations. And it is obviously a response, in very concrete terms, that involves the creation of a Council of Europe office in New York.” Indeed, if there is a global centre of multilateral diplomacy, this is the UN headquarters in New York, with thousands of international meetings every year, and where important regional organizations are represented.

At a time of “polycrisis” (multiple crisis taking place concurrently, with no single cause and no one-size fits-all solution), a new narrative on democracy that is attractive beyond Europe’s borders too, will require wisdom, political will and like-minded countries, and Ronald Reagan’s words remain as relevant as ever: “We are bound by the same loyalties, traditions, and beliefs. We are bound by reality. The strength of America’s allies is vital to the United States, and the American security guarantee is essential to the continued freedom of Europe’s democracies. We were with you then; we are with you now. Your hopes are our hopes, and your destiny is our destiny.” (Speech on D-Day 40th Anniversary, France, 6 June 1984).

Dr. Ion I. Jinga

Strasbourg, March 2025

Note: The opinions expressed in this article do not bind the official position of the author.