Is democracy possible?

Abstract

This is the third essay in a trilogy Socialism, Capitalism and Democracy Reconsidered. The title refers to Schumpeter's Capitalism, Socialism and Democracy, written more than fifty years ago. Indeed, the collapse of real existing socialism and the ensuing processes of rapid transition give every reason to reconsider the three notions of economic and political order, both apart and in their interrelationships. As distinct from Schumpeter's days, transition today is generally seen as a process from socialism to capitalism rather than the other way round. So I started with a reconsideration of socialism based on the question whether its downfall in Eastern Europe could in any way be related to certain deficiencies in the idea of socialism. Although economically possible, centralist socialism runs into serious political difficulties, was the conclusion. The problem for socialist government is to acquire and maintain legitimacy, particularly in the long run. The present article further explores the core notion of legitimacy.