THE END OF THE END OF HISTORY
Today's global liberal democratic order faces two challenges. The first is radical Islam -- and it is the lesser of the two challenges. Although the proponents of radical Islam find liberal democracy repugnant, and the movement is often described as the new fascist threat, the societies from which it arises are generally poor and stagnant. They represent no viable alternative to modernity and pose no significant military threat to the developed world. It is mainly the potential use of weapons of mass destruction -- particularly by nonstate actors -- that makes militant Islam a menace.
The second, and more significant, challenge emanates from the rise of nondemocratic great powers: the West's old Cold War rivals China and Russia, now operating under authoritarian capitalist, rather than communist, regimes. Authoritarian capitalist great powers played a leading role in the international system up until 1945. They have been absent since then. But today, they seem poised for a comeback.
Capitalism's ascendancy appears to be deeply entrenched, but the current predominance of democracy could be far less secure. Capitalism has expanded relentlessly since early modernity, its lower-priced goods and superior economic power eroding and transforming all other socioeconomic regimes, a process most memorably described by Karl Marx in The Communist Manifesto. Contrary to Marx's expectations, capitalism had the same effect on communism, eventually "burying" it without the proverbial shot being fired. The triumph of the market, precipitating and reinforced by the industrial-technological revolution, led to the rise of the middle class, intensive urbanization, the spread of education, the emergence of mass society, and ever greater affluence. In the post-Cold War era (just as in the nineteenth century and the 1950s and 1960s), it is widely believed that liberal democracy naturally emerged from these developments, a view famously espoused by Francis Fukuyama. Today, more than half of the world's states have elected governments, and close to half have sufficiently entrenched liberal rights to be considered fully free.
But the reasons for the triumph of democracy, especially over its nondemocratic capitalist rivals of the two world wars, Germany and Japan, were more contingent than is usually assumed. Authoritarian capitalist states, today exemplified by China and Russia, may represent a viable alternative path to modernity, which in turn suggests that there is nothing inevitable about liberal democracy's ultimate victory -- or future dominance.
CHRONICLE OF A DEFEAT NOT FORETOLD
The liberal democratic camp defeated its authoritarian, fascist, and communist rivals alike in all of the three major great-power struggles of the twentieth century -- the two world wars and the Cold War. In trying to determine exactly what accounted for this decisive outcome, it is tempting to trace it to the special traits and intrinsic advantages of liberal democracy.
One possible advantage is democracies' international conduct. Perhaps they more than compensate for carrying a lighter stick abroad with a greater ability to elicit international cooperation through the bonds and discipline of the global market system. This explanation is probably correct for the Cold War, when a greatly ...
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