The Interchange Between Democratic Institutions and the Globalisation of the Economy

Project Information

DemoTrans

Grant agreement ID: 101059288

DOI

10.3030/101059288

EC signature date 2 June 2022

Start date 1 September 2022

End date 28 February 2027

Funded under

• Culture, creativity and inclusive society

Total cost

€ 2 630 148,75

EU contribution

€ 2 630 148,75

Coordinated by

KATHOLIEKE UNIVERSITEIT LEUVEN
Belgium

Periodic Reporting for period 2 - DemoTrans (The Interchange Between Democratic Institutions and the Globalisation of the Economy)

Reporting period: 2024-03-01 to 2025-02-28

Summary of the context and overall objectives of the project

Following World War II, globalisation and market liberalisation triggered a period of unprecedented growth. Recently, these trends appear to reverse, whereby globalisation and corporations started to pose challenges for liberal democracy, social cohesion and environmental sustainability. DemoTrans is an impact-driven research project that will provide theoretically and empirically robust recommendations on how to reinvigorate democratic governance by improving the accountability, transparency, effectiveness and trustworthiness of rule-of-law based institutions and policies. Moreover, it will provide robust recommendations on strengthening democratic governance through the expansion of active and inclusive citizenship empowered by the safeguarding of fundamental rights, thus showing pathways to a secure, open and democratic European society.
More specifically, DemoTrans has four interrelated objectives. Objective 1 offers novel insights with respect to three critical problems in the capitalism-democracy relationship (such as the impact of tax havens and the use of bureaucratic expertise). Objective 2 analyses and develops new ways to make corporations more accountable, inclusive and respective of human rights. Objective 3 studies the organizational design of democratic governance and its impact on policy outcomes and institutional legitimacy. Objective 4 examines the role(s) of lobbying in democracies. Taken together, these four objectives allow DemoTrans to add considerably to our knowledge about the interactions between corporations and governments as well as the consequences of weak versus strong public governance.
To reach its aims, DemoTrans is a gender-balanced multidisciplinary consortium of economists, political scientists, lawyers, as well as experts in sustainability, public administration, and operational research from leading research groups at four European research universities and an NGO.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The Horizon Europe project "DemoTrans" has shown remarkable progress in understanding the interplay between democratic governance and global economic dynamics. The project aims to provide concrete solutions to policymakers for overcoming negative impacts of corporatized and financialized capitalism on democracy, inequality, and environmental sustainability.

During the first reporting period (01/09/2022 - 29/02/2024), DemoTrans exceeded its initial goals. The research focused on four interrelated objectives: examining problems in the capitalism-democracy relationship, enhancing corporate accountability, exploring democratic governance's organizational design, and understanding the role of lobbying. The achievements are noteworthy in the realms of education, public finance, green public procurement, and the interface between elected politicians, bureaucrats, and public procurement.

Key Activities and Achievements include the following. First, in terms of research and publications, the project teams produced 11 journal articles and 16 policy briefs. Topics ranged from bureaucratic representations, corporate transparency and tax avoidance, to green public procurement. Second, in terms of data collection and Analysis, comprehensive datasets on corporate taxation transparency and procurement were compiled, fueling robust policy recommendations.

Overall, DemoTrans stands as a pioneering project, advancing the understanding of the complex dynamics between democratic institutions and the global economy. Its multidisciplinary approach and prolific output significantly contribute to policy formulation and public discourse, fostering a more sustainable and democratic future.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

The Horizon Europe project "DemoTrans" has produced significant results and potential impacts, particularly in understanding and influencing the relationship between democratic governance and the global economy. The project's multidisciplinary approach and extensive research have led to impactful outcomes in several key areas:

First, it obtained new insights into capitalism-democracy relationship. DemoTrans has offered novel insights into critical problems in the relationship between capitalism and democracy. This includes studies on the challenges posed by tax havens, the role of bureaucratic agencies, and institutional configurations that can mitigate the negative effects of corporations on democracy.

Second, it obtained insights on advancing corporate accountability. The project has made substantial progress in analyzing and developing new ways to make corporations more accountable and inclusive. This includes research on corporate taxation, transparency, public procurement, and respect for human rights, providing robust recommendations for more transparent and equitable corporate practices.

Third, it worked on enhancing democratic governance. DemoTrans has contributed to the understanding of the organizational design of democratic governance and its impact on policy outcomes and institutional legitimacy. This is particularly significant in addressing how changes in governance structures can improve policy effectiveness and increase public trust.

Fourth, DemoTrans obtained novel understanding on the role of lobbying: The project has investigated the role of corporate lobbying in democratic processes. By providing insights into the mechanisms, channels, and potential solutions to manage corporate influence, DemoTrans is helping to safeguard the integrity of democratic institutions.

DemoTrans team