On February 12, Stanford’s Center on Democracy, Development and the Rule of Law (CDDRL), the Europe Center, and the Hoover Institution hosted Lucan Way, Distinguished Professor of Democracy at the University of Toronto, for a seminar titled “Economic Dependence and Authoritarianism: Russia in Comparative Perspective.” The talk, part of the REDS (Rethinking European Development and Security) series, examined the structural relationship between state resource concentration and democratic outcomes, using Russia as a central case while situating it within broader comparative patterns.

Way’s core argument centered on a simple but powerful proposition: when economic resources are concentrated in the hands of the state, autocracy becomes more likely; when resources are dispersed outside the state, democracy becomes more feasible. The key mechanism linking economic structure to regime type is the strength — or weakness — of countervailing societal power. Resource concentration generates societal dependence on political leaders. Citizens dependent on public-sector employment or state benefits face high personal costs for political opposition, including loss of income or access to essential services. Similarly, business elites reliant on state licenses, contracts, or regulatory goodwill incur substantial risks if they challenge incumbents. The result is weak opposition, limited activist networks, minimal independent funding, and fragile civil society organizations.

Way situated this framework within three major literatures on authoritarianism. First, underdevelopment (Lipset 1959; Przeworski et al. 2000) remains strongly associated with autocracy: roughly 70 percent of poor countries were autocratic between 2000 and 2021. Second, oil wealth (Ross 2001; Bellin 2004) produces an even starker pattern: about 90 percent of petrostates were authoritarian in the same period. Third, statist or weak private-sector economies (Fish 2005; Greene 2007; Arriola 2013; Rosenfeld 2021) show similar tendencies, with roughly 80 percent of the most statist countries classified as autocratic. Despite their differences — very poor African states, wealthy Middle Eastern petrostates, and middle-income statist regimes — the underlying mechanism is the same: resource concentration fosters weak countervailing power.

Russia exemplifies this structural dynamic. While the 1990s appeared to feature strong countervailing forces, including powerful oligarchs credited with supporting Boris Yeltsin’s reelection, Way argued that these actors were in fact institutionally weak. Russia’s private sector relied heavily on state connections in a system with weak courts and manipulable regulatory frameworks. The imprisonment of Mikhail Khodorkovsky after he challenged Vladimir Putin underscored the vulnerability of even the wealthiest economic actors. The broader business community remained largely passive, reflecting structural dependence rather than autonomous strength.

Statism further entrenched authoritarian control. A state-dependent middle class and political parties reliant on Kremlin financing limited the development of robust opposition. In oil-rich systems, public-sector employment and distributive benefits deepen citizens' dependence, while governments remain fiscally insulated from private-sector pressures. In underdeveloped postcolonial contexts, even modestly financed states wield disproportionate leverage over fragile economies, facilitating cooptation and repression.
Preliminary statistical evidence using V-Dem measures of “resource concentration” supports these claims. State ownership or control over key sectors correlates strongly with authoritarianism, high pro-incumbent mobilization, low opposition mobilization, media control, and weak civil society. Way acknowledged complications, including endogeneity: autocrats often increase resource concentration through nationalization or expansion of public employment. Nevertheless, certain structural conditions — such as large oil reserves, extreme underdevelopment, or historically weak private sectors — make concentration more feasible ex ante.

In conclusion, Way emphasized that autocracy is not inevitable in such contexts. However, where countervailing societal power is weak, imposing authoritarian rule becomes far easier. Across diverse regimes, economic dependence constitutes a common mechanism of authoritarian control — whether through business capture of the state or state capture of business.

At a recent REDS seminar co-hosted by the Center on Democracy, Development and the Rule of Law and The Europe Center, Andrew Michta, Professor of Strategic Studies at the Hamilton School, delivered a sobering assessment of European security in an era of renewed great power conflict. Framed around the question “Will deterrence hold?”, Michta’s talk examined the structural weaknesses of Europe’s post–Cold War security order, the evolving threat environment posed by authoritarian powers, and the limits of both U.S. and European military preparedness.

Michta argued that Europe has spent the past three decades on what he termed a “vacation from history” — a period marked by disarmament, strategic complacency, and the belief that economic integration could substitute for hard security. The post-1990 unification of Germany, the enlargement of the European Union, and the decline of territorial defense planning reinforced the assumption that major war on the continent was no longer plausible. This mindset, he contended, left Europe strategically unprepared for Russia’s gradual re-militarization and revisionism, culminating in the 2022 invasion of Ukraine.

A central theme of the talk was the failure of the European Union to develop a credible, EU-centric security architecture. While EU elites pursued visions of a “United States of Europe,” Michta emphasized that political fragmentation, divergent threat perceptions, and regulatory obstacles have undermined collective defense capacity. Events such as Brexit, the 2015 migration crisis, and internal disagreements over Russia have further eroded cohesion. In Ukraine, these weaknesses have translated into a fragmented and often reactive European response.

Michta placed Europe’s challenges within a broader systemic context, highlighting the emergence of what he described as an “axis of dictatorships” linking Russia, China, Iran, and North Korea across the Eurasian landmass. Russia, he argued, is now fully mobilized for war, while China is expanding its military capabilities at unprecedented speed and scale. These dynamics are producing an “expanding battlefield” stretching from Eastern Europe to the Indo-Pacific, raising the prospect of simultaneous regional conflicts. Referencing warnings by NATO’s Supreme Allied Commander Europe, Michta noted that a two-theater conflict by 2027 can no longer be dismissed as implausible.

The talk also addressed the constraints facing the United States and NATO. Despite unmatched global reach, U.S. forces have been reshaped by two decades of counterterrorism operations, face recruitment shortfalls, and are constrained by an industrial base ill-suited for protracted large-scale combat operations. European NATO members, with a few notable exceptions such as Poland, Finland, and the Baltic states, lack deployable forces and the industrial capacity needed for sustained deterrence.

In conclusion, Michta outlined a more pragmatic path forward centered on what he called NATO’s “Northeast Corridor” — a coalition of states in Northern, Baltic, and Central Europe that share threat perceptions and possess credible military capabilities. With continued U.S. support, particularly in nuclear deterrence, logistics, and long-range fires, this regional core could serve as the alliance’s new center of gravity. Whether deterrence ultimately holds, Michta suggested, will depend on how quickly Europe can translate recognition of risk into concrete military and political action — and on how the war in Ukraine ultimately ends.

In a recent REDS (Rethinking European Security and Development) seminar co-hosted by Stanford’s Center on Democracy, Development and the Rule of Law (CDDRL) and The Europe Center (TEC), Professor Kim Lane Scheppele offered a clear and urgent account of a growing crisis inside the European Union (EU): the erosion of democracy within some of its own member states. Her central claim was that the EU now faces two different democracy deficits. The first is the traditional, institutional problem — often described as the EU being “too technocratic” and “too distant” from voters. The second, and far more dangerous, is the rise of internal democratic backsliding, where member states that were once consolidated democracies begin to dismantle their own checks and balances.

Scheppele began by explaining the older, familiar form of the democracy deficit. Many key EU institutions — the European Commission, the Council, and the European Court of Justice — are not directly elected. The EU historically justified this by assuming that democratic legitimacy flowed upward from its member states. As long as all national governments were democratically elected and accountable at home, the EU’s supranational structure remained legitimate.

But this assumption has collapsed. Over the past decade, some member states, most notably Hungary, and, until recently, Poland, have shifted away from liberal democracy while still enjoying full voting rights and benefits inside the Union. Scheppele emphasized that the EU’s treaties never anticipated a scenario in which a member might stop being a democracy yet continue to shape EU policies, budgets, and laws.

The heart of the talk outlined how Hungary under Prime Minister Viktor Orbán gradually transformed into what scholars call an “electoral authoritarian” regime — a system that holds elections but systematically tilts the playing field. Scheppele detailed how Orbán’s government captured the Constitutional Court, restricted judicial independence, took control of public media, pressured private media owners, rewrote electoral laws, weakened civil society, and used EU development funds to reward loyalists. Despite this, Hungary still nominates a European Commissioner, sends Members of the European Parliament (MEPs) elected under unfair conditions, and holds veto power in the Council of the EU.

Scheppele explained why the EU’s main disciplinary tool, Article 7 of the Treaty on European Union, proved ineffective. Article 7 is designed to sanction members that violate EU values, but the final step requires the unanimous consent of all other member states. Hungary and Poland protected each other for years, making sanctions impossible.

A major turning point came when the EU created three financial conditionality systems: the Rule-of-Law Conditionality Regulation, the Recovery and Resilience Fund, and the Common Provisions Regulation. Unlike Article 7, these tools allow the EU to freeze funds when a member state violates rule-of-law standards. Scheppele noted that these mechanisms froze €137 billion for Poland and €36 billion for Hungary — pressures that contributed to Poland’s democratic opening in 2023 and helped fuel a new political challenge to Orbán.

Still, problems remain. In late 2023, the European Commission released €10.2 billion to Hungary for geopolitical reasons, despite rule-of-law violations. Scheppele warned that such political bargaining undermines the credibility of the new system.

She ended on a cautiously optimistic note: recent EU court decisions suggest that democracy itself, not just technical legal standards, may soon become an enforceable EU obligation. Yet the ultimate question remains one of political will. The EU now has tools to defend democracy from within — but must decide whether it will use them.