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For over 2,000 years, banks have served to facilitate the exchange of money and to provide a variety of economic and financial services. During the most recent financial collapse and subsequent recession, beginning in 2008, banks have been vilified as perpetrators of the crisis, the public distrust compounded by massive public bailouts. Nevertheless, another form of banking has also emerged, with a focus on promoting economic sustainability, investing in community, providing opportunity for the disadvantaged, and supporting social, environmental, and ethical agendas. Social Banking and Social Finance traces the emergence of the “bank with a conscience” and proposes a new approach to banking in the wake of the economic crisis. Featuring innovations and initiatives in banking from Europe, Canada, and the United States, Roland Benedikter presents an alternative to traditional banking practices that are focused exclusively on profit maximization. He argues that social banking is not about changing the system, but about improving some of its core features by putting into use the "triple bottom line" principle of profit-people-planet. Important lessons can be learned by the success of social banks that may be useful for the greater task of improving the global financial system and avoiding economic crises in the future.

 

 

Critical Acclaim for This Publication

 “This volume provides a description of social banking and social finance, their background in the history of ideas and their importance within the current globalized economy. It is not only an excellent didactical introduction, but also an entertaining and at the same time scientifically sound and differentiated explanation, which to my knowledge is so far unparalleled in English-speaking academia. I believe that the insights of this volume can have a progressive impact on the thinking about money and finance of the new generations, as well as the broader public in theUnited States and inEurope. I therefore consider this volume to be one step (among the many necessary) toward a realistic and sober rethinking of capitalism. Even if it is just a brief text and thus a small step, it is an important one. Because, as German philosopher Friedrich Nietzsche said, every long voyage starts with a brief first step. And this step, as compressed, simple and surprising as it may sometimes seem, may prove to be inspiring for those which come afterwards. I think that Benedikter’s volume is a valid response to the profound challenges arisen with the economic and financial crisis of 2007–2010. The solutions and perspectives it proposes are useful tools to help us to avoid further crises.”

-Professor Dr. Hans Christoph Binswanger, Chair Emeritus of National Economics, University St. Gallen, Switzerland, and former director of the Swiss Research Association on National Economics, Zürich 

 

“The recent crisis has shown that the time for more differentiated and just approaches to money and finance is ripe. I hope that with this outstanding didactical introduction oriented not primarily toward specialists, but to students and teachers, as well as to the broad public, the discussion about how we can move forward in making better use of money and finance will gain further momentum. This volume is an important contribution to broadening the financial literacy of our time.”

-Professor Dr. Udo Reifner, Department for Economics and Social Science, Hamburg University

 

“This is a clear and intense text. It has the advantage of summoning up some of the most important questions of current economics and finance in a short, easily  understandable and well-structured way. The reader is on the one hand provided insight into the main issues of today’s debate about the future of capitalism. On the other hand, she and he are informed about the ongoing (r)evolution in the banking and finance sector. The present change goes beyond the traditional reductionisms of the mainstream banking and finance sector. It starts to demonstrate how the creation of economic value on the one hand and a sustainable social and environmental development on the other hand can be integrated into one and the same approach. The international educational sector has to be grateful for this volume.”

-Professor Dr. Leonardo Becchetti, Department of Economics, Università Roma II “Tor Vergata, ”Italy 

 

“One of the first soundly scientific publications of its kind in English, this volume provides a complete overview over the contemporary field of social banking and social finance. Written in a short and easily understandable manner, it explains the history, the philosophy, the current state, and the perspectives of social banking and social finance in theUnited Statesand inEurope. This volume is an indispensable first entry for everybody who wants to know how we can deal with money in a better, sustainable way.” 

-Professor Dr. Ernst Ulrich von Weizsäcker, dean emeritus, Bren School of Environmental Science and Management, University of California at Santa Barbara, former policy director of the United Nations, Centre for Science and Technology for Development New York City, member of the Club of Rome, ordinary commissioner of the World Commission on the Social Dimensions of Globalization  

 

“Without need of prior knowledge, this volume is the ideal introduction to social banking and social finance for students and teachers. As a result of the economic crisis of 2007–2010, the request for a better handling of money and finance has increased on a global level. Social banking and social finance are answers that while not everybody must agree with them, they are worth to be known by everybody who wants to join the discussion on a well founded basis.”

-Professor Hanns-Fred Rathenow, director of the Institute of Social Sciences and Education in History and Politics, head of the Center for Global Education and International Cooperation, The Technical University of Berlin

 

“Social banking is a field of civil society engagement that has surfaced to international attention during the most recent financial crisis. This volume is an excellent introduction from a contemporary viewpoint. It departs from outlining the main traits of the economic crisis of 2007–2010, but its insights and teachings are not limited to it. This volume uses the crisis just as a starting point to explain how the financial system can move forward toward a more rational constellation of balance and inclusion. It is as unique as it is valuable.”

-Professor Dr. James Giordano, The Oxford Uehiro Centre for Practical Ethics, Oxford University, director of Academic Programs of The Potomac Institute for Policy Studies Arlington, Virginia

 

“I appreciate particularly the interdisciplinary and multilayered approach of this volume. It is one of the first English publications that transcends the limits of reducing social banking and social finance to ‘developmental aid’ for the so-called ‘developing world,’ or to simply identify it with approaches like ‘helping the poor’, like it has been done too often in the past. Instead, as this volume shows, social banking and social finance are more: They are about rationally and soberly innovating the system of capitalism, but without revolutionizing it. That is because social banks consider capitalism as a basic social good of modernity, that in the aftermath of the crisis has to be transformed into a ‘better’ capitalism which serves the greater society instead of benefiting just a few. The whole argumentation of this volume is about creating a broader range of options for the average bank customer in theUnited Statesand Europeand to make the use of capital more ‘humane,’ by serving the specific needs of the ‘real economy’ instead of abstract speculation. This volume, although short and concise, gives a quite realistic picture of the situation and its perspectives. The author finds the right balance between simplification, precision, and vision.”

-Professor Dr. Michael Opielka, Department of Social Welfare and Social Politics, The University of Applied Sciences Jena, Germany

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Ruby Gropas is Lecturer in International Relations at the Law Faculty of the Democritus University of Thrace (Komotini) and Research Fellow at the Hellenic Foundation for European and Foreign Policy (ELIAMEP).

Ruby has worked on asylum and migration issues for UNHCR in Brussels and worked for McKinsey & Co. in Zurich and Athens (2000-2002). As part of the ELIAMEP team, her research concentrates on European integration and foreign policy, Transatlantic relations, human rights, migration and multiculturalism. She was Managing Editor of the Journal of Southeast European and Black Sea Studies (Taylor & Francis) between January 2006 and October 2009. Ruby has taught at the University of Athens and at College Year in Athens. She was Southeast Europe Policy Scholar at the Woodrow Wilson International Center for Scholars in Washington DC in 2007 and again in 2009. She is Vice-President of the Alexander S. Onassis Public Benefit Foundation Scholars' Association since June 2009, and was Member of the Academic Organisation Committee of the Global Forum for Migration and Development, Civil Society Days, Athens 2009.

Ruby studied Political Science at the Université Libre de Bruxelles (1994) and undertook graduate studies at the University of Leuven (MA in European Studies) and at Cambridge University (MPhil in International Relations). She holds a PhD in History from Cambridge University (New Hall, 2000).

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Dr. Abbas Milani, Director of Iranian Studies at Stanford University, co-director of the Iran Democracy Project at the Hoover Institution, and CDDRL affiliated faculty has just published his latest book, The Shah, released by Palgrave Macmillan this month.

The 496 page memoir details the life and legacy of the last Shah of Iran, Mohammad Reza Pahlavi, providing an authoritative account of his 37-year rule marked by forced modernization, political consolidation, and personal over-indulgence that drove his country into the throes of Islamic fundamentalism. Milani's biography sheds new light on the mercurial Shah through the examination of recently declassified materials and interviews, which provide intimate details of a monarch and his relationship to the West. To fully grasp Iran's potential for democratic reform today we must first examine its past. The Shah brings us closer to that understanding.

Prior to coming to Stanford, Milani was a professor of history and political science and chair of the department at Notre Dame de Namur University and a research fellow at the Institute of International Studies at the University of California at Berkeley. Milani was an assistant professor in the faculty of law and political science at Tehran University and a member of the board of directors of Tehran University's Center for International Studies from 1979 to 1987. He was a research fellow at the Iranian Center for Social Research from 1977 to 1978 and an assistant professor at the National University of Iran from 1975 to 1977.

Dr. Milani is the author of Eminent Persians: Men and Women Who Made Modern Iran, 1941-1979, (Syracuse University Press, Syracuse, NY, 2 volumes, November, 2008); King of Shadows: Essays on Iran's Encounter with Modernity, Persian text published in the U.S. (Ketab Corp., Spring 2005); Lost Wisdom: Rethinking Persian Modernity in Iran, (Mage 2004); The Persian Sphinx: Amir Abbas Hoveyda and the Riddle of the Iranian Revolution (Mage, 2000); Modernity and Its Foes in Iran (Gardon Press, 1998); Tales of Two Cities: A Persian Memoir (Mage 1996); On Democracy and Socialism, a collection of articles coauthored with Faramarz Tabrizi (Pars Press, 1987); and Malraux and the Tragic Vision (Agah Press, 1982). Milani has also translated numerous books and articles into Persian and English.

Milani received his BA in political science and economics from the University of California at Berkeley in 1970 and his PhD in political science from the University of Hawaii in 1974.

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Abbas Milani is the Hamid and Christina Moghadam Director of Iranian Studies at Stanford University and a visiting professor in the department of political science. In addition, Dr. Milani is a research fellow and co-director of the Iran Democracy Project at the Hoover Institution.

Prior to coming to Stanford, Milani was a professor of history and political science and chair of the department at Notre Dame de Namur University and a research fellow at the Institute of International Studies at the University of California at Berkeley. Milani was an assistant professor in the faculty of law and political science at Tehran University and a member of the board of directors of Tehran University's Center for International Studies from 1979 to 1987. He was a research fellow at the Iranian Center for Social Research from 1977 to 1978 and an assistant professor at the National University of Iran from 1975 to 1977.

Dr. Milani is the author of Eminent Persians: Men and Women Who Made Modern Iran, 1941-1979, (Syracuse University Press, Syracuse, NY, 2 volumes, November, 2008); King of Shadows: Essays on Iran's Encounter with Modernity, Persian text published in the U.S. (Ketab Corp., Spring 2005); Lost Wisdom: Rethinking Persian Modernity in Iran, (Mage 2004); The Persian Sphinx: Amir Abbas Hoveyda and the Riddle of the Iranian Revolution (Mage, 2000); Modernity and Its Foes in Iran (Gardon Press, 1998); Tales of Two Cities: A Persian Memoir (Mage 1996); On Democracy and Socialism, a collection of articles coauthored with Faramarz Tabrizi (Pars Press, 1987); and Malraux and the Tragic Vision (Agah Press, 1982). Milani has also translated numerous books and articles into Persian and English.

Milani received his BA in political science and economics from the University of California at Berkeley in 1970 and his PhD in political science from the University of Hawaii in 1974.

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Abbas Milani Hamid and Christina Moghadam Director of Iranian Studies; Visiting Professor in the department of Political Science; Co-director of the Iran Democracy Project; CDDRL Affiliated Faculty Speaker
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"I would like to invite my colleagues, students, friends, and supporters to celebrate what we have worked together to achieve over the last decade and I ask you all to join me in continuing this record of achievement in the decade to come."

Gi-Wook Shin
Stanford KSP Director
 

Gi-Wook Shin came from the University of California, Los Angeles to Stanford University in 2001 to establish a program in Korean studies. "Naturally, I had mixed feelings—of excitement and hope, but also of anxiety and uncertainty," says Shin. "Looking back, I made the right decision." The Stanford Korean Studies Program (KSP), today a thriving and vibrant program at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), recently held a series of major events to celebrate its tenth anniversary in February 2011.

Stanford KSP is unique among other Korean studies programs in its interdisciplinary, social science-based research focus on contemporary Korea. The U.S.-Korea relationship, particularly policy issues, is strongly emphasized in the program's research and publishing activities. Stanford KSP is instrumental in the success of Shorenstein APARC's two initiatives—the Korea-U.S. West Coast Strategic Forum and the New Beginnings policy study group—aimed at improving policy-making decisions in the two countries.

The program is grateful for the strong and generous support it has received from individuals, corporations, and foundations since the very beginning. In 1999, an endowment was established for the professorship that Shin holds, the Tong Yang, Korea Foundation, and Korea Stanford Alumni Chair of Korean Studies, which was followed closely by funding for two more Korea chairs. In 2004, Dr. Jeong H. and Cynthia Kim provided funding to establish a professorship named after former U.S. Secretary of Defense William J. Perry. Dr. Kim is President of Bell Labs at Alcatel-Lucent and a member of the Freeman Spogli Institute for International Studies Advisory Board. A search is currently underway to fill this important position. The Korea Foundation then donated funds in 2005 to establish a third professorship, which is currently held by Yumi Moon of the Department of History.

Stanford KSP has successfully established two annual professional fellowship programs, the Pantech Fellowship for Mid-Career Professionals and the Koret Fellowship, something unparalleled by other Korean studies programs. The program's faculty, fellows, and visiting scholars—most of whom teach courses and speak at public events—greatly contribute to the intellectual vigor of the Stanford community. Paul Y. Chang, PhD '08, an assistant professor at Yonsei University's Underwood International College, says, "The program provided the ideal context to engage with passionate scholars and develop my research program."

Stanford KSP's visitors find themselves, in turn, rewarded by the experience of being at Shorenstein APARC. Former Korean Minister of Unification Jongseok Lee, a visiting scholar from 2008 to 2009, says, "While enjoying every bit of life at Stanford . . . I worked hard in the office from early morning to late evening, as if I were a graduate student preparing his final dissertation . . . It was a truly meaningful and memorable year." Stanford KSP maintains strong ties with its former students, fellows, visiting scholars, and other affiliates, in part through the Stanford Shorenstein APARC Forum in Korea, an organization that has grown since 2003 to boast a roster of over 100 members.

In addition to the interaction with Stanford KSP's faculty and visitors, Stanford students benefit greatly from numerous social science and language courses, internship and overseas seminar opportunities, and the ever-growing Korean-language library collection supported by the program. Social science courses cover such topics as the Korean economy, the politics of the Korean Peninsula, modern Korean history, and many others. Through the Stanford Language Center, students may take a rigorous, comprehensive offering of beginning- through advanced-level Korean-language courses. An internship program co-sponsored with the Center for East Asian Studies provides students with the valuable opportunity to live and work in Korea each summer. Since its establishment in 2005, Stanford's Korean-language library collection has expanded to include a total of 41,300 print volumes and 13 electronic databases.

On an annual basis, Stanford KSP offers innovative and impactful programs addressing current, policy-relevant issues and events, as well as historical factors with contemporary relevance, that are shaping the future of the Korean Peninsula and the U.S.-Korea relationship. Conferences and workshops bring together leading Korea scholars with policymakers and other subject experts, including business leaders and international journalists, for productive and meaningful dialogue, research, and publishing activities. Stanford KSP's popular, long-time seminar series and special events afford members of the Stanford community and the general public the opportunity to listen to and engage with distinguished political figures and prominent scholars.

Stanford KSP celebrated its tenth anniversary on February 23 with a special public seminar examining the state and prospects of science, technology, and economics in Korea and Northeast Asia. The next day, it held its annual Koret Conference, a major event bringing together prominent Korea experts to discuss the future of North Korea. The anniversary activities concluded that evening with a dinner and reception to honor the generosity of Stanford KSP's long-time donors.

Proud of the program's accomplishments to date and optimistic about the future, Shin says, "I would like to invite my colleagues, students, friends, and supporters to celebrate what we have worked together to achieve over the last decade and I ask you all to join me in continuing this record of achievement in the decade to come."

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Gi-Wook Shin, director of the Stanford Korean Studies Program, delivered remarks at a dinner celebrating the program's tenth anniversary, February 24, 2011.
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Today's world abounds in international courts, laws, and tribunals, yet war is becoming more brutal, more transnational, with mounting civilian casualties. Helen Stacy, FSI senior fellow and Stanford scholar in international and comparative law, notes that "civilians, often women and children, who played no role in the conflict – these are the people who suffer first, last, and in the middle." Stacy recently moderated a panel on Civilians in War Zones, that included Richard Goldstone, former justice of the Constitutional Court of South Africa, history Professor James Campbell, and Peter Berkowitz, senior fellow at the Hoover Institution, as part of this year's Ethics and War series.
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The catastrophe unfolding in the Ivory Coast is due to the fact that the committed backers of both candidates are unwilling to accept anything other than complete vindication and victory by their man.  A substantial portion of the ordinary population would just like a resolution of the issue and peace, but because this is all tied to questions of land ownership, government support to different regions, and competing elite claims tied into increasingly strong ethnic and regional identities, a substantial portion also feel that it would be a disaster if their man were not president.  It is pretty obvious that Mr. Ouattara won, and that Mr. Gbagbo has been devious, even dishonest, for a long time. But simply giving the presidency to Mr. Ouattara would hardly solve the country's problem.  There has to be power sharing with various regions getting a cut of government programs, and a good bit of local autonomy if any kind of peace is to be achieved. 

Even if Gbagbo goes, some of those around him have to have a share of power.  The same is true for those who back Ouattara.  I think that personally Ouattara is a better man, but many of those around him are no better than those around Gbagbo.  There are local warlords in various parts of the north, for example, who are just as frightening as the "young patriots" who do the killing for Gbagbo in Abidjan.  To understand the difficulties facing this country requires some background to explain what happened when civil war broke out in 2002, and a discussion of why just making either Mr. Gbagbo or Mr. Ouattara president is not an ideal solution. 

An electoral victory by Mr. Ouattara was bound to produce a backlash by those who will not accept a northern Muslim president and who are afraid to lose everything if Mr.  Gbagbo goes.  Standing on legalisms and claiming that either side is cl!  early right gets us nowhere.  None of the contending political forces in this country have clean hands, including Mr. Bedie, the former president who threw his support to Mr. Ouattara in the second round of the election after coming in third in the first round. 

In some ways, even though it takes very specific local knowledge to understand what is happening, the tragedy in this country resembles the situation in quite a few other African cases as well.  Decades of poor governance and corruption have exacerbated ethnic and religious tensions, and too few of the leading politicians are willing to act for the greater good rather than for their own and their supporters' narrow interests.

Daniel Chirot, Job and Gertrud Tamaki Professor of International Studies at the University of Washington, has authored books about social change, ethnic conflict, Eastern Europe, and tyranny.  His most recent works are the co-authored Why Not Kill Them All?  about political mass murder (Princeton University Press, 2nd edition, 2010), and a short text on ethnic conflicts, Contentious Identities (Routledge, 2011).   He has edited or co-edited books on Leninism's decline, on entrepreneurial ethnic minorities, on ethnopolitical warfare, and on the economic history of Eastern Europe.  He founded the journal East European Politics and Societies and has received help in his research and writing from the US State Department, the Guggenheim, Rockefeller, and Mellon Foundations.  He has done some work for, among others, the US Government, the National Endowment for Democracy, and the Ford Foundation.  In 2003, 2004, and 2006 he did some consulting for CARE in Cote d'Ivoire.  He has also worked in Niger and elsewhere in West Africa.  In 2004/05 he was a Senior Fellow at the United States Institute of Peace working on the study of African conflicts.  He has a BA from Harvard and a PhD in Sociology from Columbia.

Co-sponsored by The Center on African Studies

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Daniel Chirot Job and Gertrud Tamaki Professor of International Studies Speaker The University of Washington
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The toppling of a brutal, corrupt, and long-ruling dictator, Zine el Abidine ben Ali, is an extraordinary achievement for the diverse elements of Tunisian society who came out into the streets in recent weeks to demand change. Ben Ali's startling fall is another reminder of how suddenly political change can come in authoritarian regimes that substitute force, fear, and fraud for legitimacy. Such regimes may appear stable for very long periods of time, but when the people lose their fear and the army refuses to fire on the people, they can unravel very quickly.

Unfortunately, the demise of a dictator does not guarantee the rise of a democracy in its place.  Historically, most authoritarian regimes have given way to a new (and often only slightly reconstituted) autocracy. This has been the principle pattern not only in the successor states to the Soviet Union, but in much of Africa since independence, and in numerous states in Asia and Latin America historically as well. In the Middle East, the odds against a successful democratic transition are particularly long, since there have hardly been any (outside Turkey and Israel) since the end of colonial rule. In Iran in 1979, a popular uprising against a long-serving dictator led not to democracy but rather to an even more odious and murderous form of oppression.

 If Tunisia is to defy the odds, it will need a significant period of time to reform the corrupt rules and institutions of the authoritarian regime and create an open, pluralistic society and party system that is capable of structuring democratic competition. Even if elections for a successor government are pushed out to six months, rather than sixty days, it is highly unlikely that this will provide sufficient time to create even a minimally fair and functional democratic playing field. 

Think of the many components of a democratic election, and Tunisia today is far from having them in place. After decades of fixed and phony elections, Tunisia needs a complete overhaul of its electoral machinery: a new and impartial electoral administration, a new electoral register, and perhaps as well a new electoral system. An energetic program of civic education should help Tunisians understand not only the mechanics of a democratic electoral process but also the underlying norms, rights, and responsibilities of democratic citizenship. This is a long process, but from Poland to Chile to South Africa, civil society organizations have shown that much can be accomplished to lay the foundations for popular democratic awareness and capacity if the models, materials, and resources are made available, and if there is a decent interval of time and political space to do the work. Doing this work-and enabling political parties and candidates to convey their messages-also requires a new and more pluralistic media environment. State control of the electronic and print media must be radically refashioned.  Privately owned media must be allowed to form and function, and critics of the old order must be allowed to enter the arena of ownership.

An effective democratic election requires not just freedom of opposition parties to organize, but time, resources, and training for them to form-or reform-and develop some ability to perform the essential functions of modern parties:  to establish what they stand for, to develop programmatic agendas, to elect leaders and recruit candidates, to forge ties with constituencies, and to survey public opinion and respond with appropriate messages. Trade unions, business chambers, and other civic groups need time as well to purge themselves of corrupting ties to the old order, or form anew, cultivate their natural constituencies, and build an authentic civil society.  Independent think tanks and public opinion surveys can also help to structure and enrich an emergent democratic process, but they as well need time and resources to function effectively.

Free and fair elections-especially in a context where they have never taken place before-also require extensive preparations for domestic monitoring and international observation, so that fraud can be detected and deterred, honest mistakes can be exposed and corrected, and public confidence can be generated in the new procedures.

Many of these tasks are ongoing after a successful transition to democracy, and setting too ambitious an agenda for reform could risk waiting indefinitely and squandering the opportunity for democratic change. But one of the most common reasons for failed transitions is a rush to early national elections and a failure to prepare the ground adequately for a fair and meaningful contest. Two common consequences of hurried elections are chaos or renewed autocracy, as some portions of the old order rally behind a new figure or old party and win by hook or crook. 

Unfortunately, there are also risks in waiting too long. Democratic energy in society can dissipate.  If (putative) democratic forces enter into a broad-based transitional government, as is now happening in Tunisia, they risk being corrupted or tainted with the stench of the old order if they hang around for too long, sharing some authority and stature but no real power. A prolonged transitional period can also give authoritarian forces time to regroup, purge the worst elements, present cosmetic changes, divide and confuse the opposition, and return to power under the guise of a pseudo-democracy. That is why it is important that opposition figures in Tunisia insist on a serious program of institutional and possibly constitutional reform during the transitional period, with extensive public dialogue and broad popular participation, so that interim rule is not a stagnant pause but rather a dynamic historical moment that engages and mobilizes public opinion for real democratic change. The risks of delay could also be reduced if a non-partisan, technocratic figure, not associated with the Ben Ali's political machine, could be tapped to lead the interim government, and if the political opposition could unify to negotiate strong conditions for the period of interim rule, including basic freedoms, an end to censorship, and removal of Ben Ali loyalists from the cabinet.

There is an important role for international actors at this seminal moment in Tunisian history. Like peoples throughout the Middle East and other post-colonial spaces, Tunisians are understandably wary of foreign intervention. After a quarter-century of lavish Western (especially French) aid and political comfort to Ben Ali, Tunisians will no doubt cast a suspicious eye on grants, statements and actions that purport to now, suddenly, want to build democracy in Tunisia. But Tunisians may welcome limited and specific steps if they are transparent and taken in careful consultation with diverse elements of Tunisia's civil society and historic opposition. 

Fortunately, Tunisia has many liberal and democratic figures in business, intellectual, cultural, and civic life who understand what liberal democracy is and would like to see it emerge in Tunisia. And it has other distinct advantages. It is a relatively small country in size and population, which makes some of the tasks of institution building and promotion of democratic norms a bit easier. Educational levels are relatively high, and there is a significant infrastructure of a middle class society. The security forces seem to be divided, and it appears the army refused to fire on peaceful protestors-a very positive precedent. Without blood on its hands from the recent violence, the army is better poised than other elements of state security to guarantee a process of democratic change, if its leadership comes down in favor of it (for whatever reason). And in contrast to Algeria, Egypt, or Jordan, Islamists do not seem to have strong public support. Thus, it is difficult for the forces of the ancien regime to manipulate public fears of radical Islam (or of disorder that the old elites themselves covertly generate) in order to discredit liberalism as naïve and ride back to power. 

It is vital that Europe and the United States not fall again for the specter of disorder or an Islamist surge, but rather insist on genuine democratic reforms, and tie future aid and geopolitical support to this. The US and EU should hold forth the prospect of Tunisia achieving a special and potentially transformative status in economic relations if it negotiates the path to become the first Arab democracy of this era. At the same time, they should threaten to institute targeted travel and financial sanctions against diehard defenders of the old order who frustrate or sabotage a democratic transition, or who use violence against peaceful demonstrators.  These kinds of prospective inducements, positive and negative, can help to tip the balance in the calculations of a lot of elites from outside the Ben Ali "family" but who were part of the Ben Ali regime and must now be wondering where their own interests lie. To complement the necessary private messages, the US ambassador (and others representing democracies in Tunis) should stand up publicly for democratic reforms, embrace democratic reformers, support new democratic initiatives with small grants, and warn old regime elites against repression.

In the coming weeks and months, American and European democracy foundations and aid organizations, along with the United Nations and its political assistance programs in the UNDP, can do a lot-transparently, and in consultation with Tunisian society-to train and support the emerging infrastructure of democracy in the state administration, political parties, and civil society. The funding required to make a difference is not large in absolute terms, and it should be a priority. Time is of the essence, and more flexible instruments, like USAID's Office of Transition Initiatives, should be tapped to activate assistance quickly.        

History-and the grim realities of pervasive authoritarianism in what is known in the political science discipline as a "bad neighborhood"-do not justify a high degree of optimism about the prospects for democracy in Tunisia. Yet the third wave of global democratization is replete with instances of successful democratization in even more unlikely circumstances. The speed with which the Tunisian protests mushroomed in a few weeks from a lone act of self-sacrifice to a national uprising, and the intensity with which this uprising has resonated in nearby countries, shows the pent-up demand for democratic change in the Arab world. If that demand can be directed toward pursuit of concrete institutional reform, with timely international support, the Jasmine Revolution could surprise again, by giving birth to the first Arab democracy of our time.

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Since October 2007, Professor Núñez-Seixas has been head of the Department of Modern and America's History at the University of Santiago de Compostela. He has been a fellow and visiting professor at numerous European universities, most recently at the Zentrum für Zeithistorische Forschung in Potsdam, Germany in 2005.

His main fields of research are Spanish migration to Latin America in the 19th and 20th centuries; European nationalist movements in comparative perspective; Galician, Basque and Catalan nationalisms; the nationality question in interwar Europe; and Spanish nationalism in the 20th century.

His current book project, forthcoming in January 2012 from Oxford University Press, is titled "Decentring Dictatorships: The regional in Franco's Spain and Hitler's Germany."

Professor Núñez-Seixas holds a Ph.D. in Modern History from the European University Institute, Florence.

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Xosé Manoel Núñez-Seixas Professor, Department of Modern and America's History, University of Santiago de Compostela Speaker
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