Democratization requires certain social and economic structures which – right now – do not exist in the Third World. Particularly the internalization of capital goods production which allows fiscal, monetary and distributional policies to create a growth stimulating incentive structure is lacking. The replacement of Slate classes, that had been oriented towards the western model and that emerged during the 1930’s as well as during the period of decolonization, by a new type of rising middle classes that expects nothing from the state, will not necessarily lead to such structures. Depending on the specific economic policies one has to expect different Institutional structures in the Third World, namely the takeover of economic decision making by western experts, the improvement of the competing abilities within a global market and the transition towards capitalistic middle class structures which have to be established at high costs against the aversion of the ruling classes.
