The Influence of Direct Democracy on Agency Costs: Lessons from Corporate Governance

This dissertation seeks to improve the usage of direct democracy in order to minimize agency cost. It first explains why insights from corporate governance can help to improve constitutional law and then identifies relevant insights from corporate governance that can make direct democracy more efficient. To accomplish this, the dissertation examines a number of questions. What are the key similarities in corporate and constitutional law? Do these similarities create agency problems that are similar enough for a comparative analysis to yield valuable insights? Once the utility of corporate governance insights is established, the dissertation answers two questions. Are initiatives necessary to minimize agency cost if referendums are already provided for? And, must the results of direct democracy be binding in order for agency cost to be minimized?

Things Fall Apart: Dictatorships, Development, and Democracy in Africa

Recent events in Africa provide evidence of the failure of dictatorships to meet the needs of citizens and serve to debunk a number of development theory assumptions: that democratization is culturally determined, that democratization will follow economic development, and that dictatorships tend to produce durable, stable development. Therefore, the attempt to achieve development without democratization is risky and potentially very costly. We argue that dictatorship in Africa serves a function akin to Myrdal's backwash effects, thwarting economic progress in a cumulative and circular way, and that democratization must become a necessary criterion of engagement with African countries.

Does Satisfaction with Democracy really increase Happiness? Direct Democracy and Individual Satisfaction in Switzerland

This paper takes the influential “direct democracy makes people happy”-research as a starting point and asks whether direct democracy impacts individual satisfaction. Unlike former studies we distinguish two aspects of individual satisfaction, namely satisfaction with life (“happiness”) and with how democracy works. Based on multilevel analysis of the 26 Swiss cantons we show that the theoretical assumption on which the happiness hypothesis is based has to be questioned, as there is very little evidence for a robust relationship between satisfaction with democracy and life satisfaction. Furthermore, we do not find a substantive positive effect of direct democracy on happiness. However, with respect to satisfaction with democracy, our analysis shows some evidence for a procedural effect of direct democracy, i.e. positive effects related to using direct democratic rights, rather than these rights per se.