F icke, Thomas
A icle
Edi o ial: Winning Back he Fu u e – P epa ing o a
Comeback o Democ acy
In e economics
Sugges ed Ci a ion: F icke, Thomas (2025) : Edi o ial: Winning Back he Fu u e – P epa ing o a
Comeback o Democ acy, In e economics, ISSN 1613-964X, Pa adigm Publishing Se ices, Wa saw,
Vol. 60, Iss. 5, pp. 254-255,
h ps://doi.o g/10.2478/ie-2025-0048
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In e economics 2025 | 5
254
Edi o ial
In e economics, 2025, 60(5), 254-255
JEL: G30, L51, B22
DOI: 10.2478/ie-2025-0048
Winning Back he Fu u e – P epa ing
o a Comeback o Democ acy
Whe e will i end – and lead o? Fo some ime now, go e nmen s a ound he wo ld ha e been d i -
en by acu e c isis managemen , wi h democ acies inc easingly challenged by populis s and au-
ho i a ians. Will populis s de ea hemsel es by no ul illing he p omises hey ha e made, as has
been he case o he B exi ee s? Will he F ench, he B i ish o he new Ge man go e nmen s suc-
ceed in comba ing igh -wing populis pa ies by pu suing mig a ion policies ha mimic igh -wing
he o ic? O will classical ma ke -libe al ecipes help win o e s’ us by supposedly s eng hening
economic g ow h? I seems ques ionable a bes . Despi e he appa en ailu e o B exi , igh -wing
populis s ha e egained suppo . Simila ly, es ic i e mig a ion policies in Ge many ha e no p e-
en ed he Al e na i e o Ge many (A D) om becoming he s onges pa y in he polls.
The answe depends on he big pic u e. One eading ha has been empi ically alida ed in ecen
yea s is ha sh inking con idence in democ acy is due o he ailu e o ma ke -libe al globalisa ion
ha has le many eeling helpless and ang y. Wi hou new and con incing ideas ede ining he
ole o ma ke s and go e nmen s in socie y, he co esponding acuum has, as o en in his o y, le
space o populis s who ill he oid wi h easy and inc easingly au ho i a ian answe s.
I his eading is co ec , inding a new and mo e con incing pa adigm ha allows us o espond o
he eal challenges o ou imes will be c ucial o s op populis s om winning. I may e en be he
p econdi ion o democ a ic go e nmen s o win back us and eal e ec i eness. I would hen
be wise o s a hinking abou such a new se ing in he mids o u bulence ha only allows o im-
media e c isis managemen o limi he damages – om ade wa s o se backs in clima e policies.
Ul ima ely, he ask will be o demons a e ha he e a e be e policies ha e ec i ely add ess he
powe lessness widely el in a wo ld se iously challenged by inequali ies, he igh ening powe o
ech oliga chs, a deepening clima e c isis, poo ly managed globalisa ion and he ine iciencies o
public ac ion. I is also abou designing policies beyond he o me nai e belie in global ma ke s,
as well as beyond he old o m o bu eauc a ic go e nmen . This idea o hinking beyond he acu e
c isis has been a he cen e o wha has been discussed a he second Be lin Summi in June
2025 on “Winning back he u u e”.
The e has been plen y o e idence ha populis s ha e massi ely p o i ed om he despai o peo-
ple in le -behind egions like he indus ial Rus Bel in he midwes e n US. I such dis us is linked
o a sen imen o ha ing los con ol, hen any a emp a demons a ing he e ec i eness o poli-
cies migh be help ul. Such policies do no s a om ze o; on he con a y, he e a e a lo o les-
sons o be lea ned om ecen a emp s.
This is, in pa icula , he case o indus ial policies implemen ed in coun ies like he US and Ge -
many. While hese policies ul ill he c i e ia o ein oducing con ol, he e has been li le p ac ical
e idence on implemen a ion due o he long-las ing aboo a ound ac i e indus ial policies. The e
is cu en ly a g owing consensus abou he need o go e nmen s o in e ene in speci ic cases,
be i o p o ec a coun y agains s a egic dependencies om ano he coun y, o o c ea e in a-
s uc u e o enewables. The e is now g owing e idence ha he co esponding socio-economic
changes need s ong egional owne ship and commi men beyond he poli ical and socie al on-
ie s in o de o succeed in he long un.
© The Au ho (s) 2025. Open Access: This a icle is dis ibu ed unde he e ms o he C ea i e Commons A ibu-
ion 4.0 In e na ional License (h ps://c ea i ecommons.o g/licenses/by/4.0/).
Open Access unding p o ided by ZBW – Leibniz In o ma ion Cen e o Economics.
ZBW – Leibniz In o ma ion Cen e o Economics 255
Edi o ial
Thomas F icke, Fo um
New Economy, Be lin, Ge -
many.
A huge challenge will be o design an in e na ional se o indus ial policy s anda ds o a oid he
cu en end owa ds highly na ionalis policies a he expense o o he s, e.g. con lic ual ade and
a i wa s. The ul ima e goal should be o de elop a coope a i e global go e nance ha allows
indus ial policies on a na ional o ansna ional le el, o easons ha a e commonly seen as legi i-
ma e. Ha ing such ules could e en be a p e equisi e o sa ing ee ade in all o he well-de ined
sec o s whe e ma ke s unc ion o he bene i o he many.
The e is ample e idence oday ha clima e policies a e highly ine ec i e when dependen on he
economic impac o nega i e incen i es h ough highe p ices on ex e nali ies, e.g. ca bon. Such
policies a e epea edly con on ed wi h popula discon en , especially i cleane al e na i es a e
no a ailable o oo expensi e. The ecen US a emp o subsidise enewables ia he In la ion
Reduc ion Ac is a showcase o he po en ial e ec i eness o such posi i e clima e policy. A mo e
mode n policy migh hus coun on a new mix o policies, whe e ca bon p icing only se s in when
ce ain condi ions a e ul illed and policies a e designed o a ac in es o s and consume s.
Su ely, democ a ic leade s will no succeed wi hou add essing he challenge o mig a ion. Go -
e nmen s will need o ake in o accoun whe e an i-mig an sen imen s come om. This means
aking people’s conce ns abou he a ailabili y o housing o po en ial labou ma ke compe i ion
se iously. Pa o he answe hen should be o p o-ac i ely in es in egions ha a e pa icula ly
a ec ed by mig a ion, ins ead o jus unning behind na ionalis igh -wing he o ic.
All hese new kinds o policies a e a om eady o be implemen ed. Wha is needed is a whole
new unde s anding o he ole o ma ke s and go e nmen s a e decades o o e ly simpli iying
hings, wi hou isking alling back in o old- ashioned s a e in e en ions.
A i s a emp o implemen such a new unde s anding has been made unde US P esiden Joe
Biden whose In la ion Reduc ion Ac ied o add ess he conce ns o dep i ed egions by in es -
ing in hem. And, i will be c ucial o unde s and why his has had so li le elec o al impac . The
in la ion shock a ound 2022 has de ini i ely played a ole. Pe haps such policies need mo e ime
o change people’s minds. Bu o he ac o s need o be aken in o accoun . Winning back o e s
om populism equi es mo e han jus good policies. Ra he , he elec o a e mus be able o unde -
s and how he policies bene i hem di ec ly.
His o y does no epea i sel . Bu he e may be pa allels ha can help unde s and whe e hings
s and oday. A e he 19 h cen u y’s libe al pa adigm ailed wi h he i s Wo ld Wa , he in e wa
yea s ha e e y much been d i en by a emp s o epai o e ly ha sh and socially cos ly capi al-
ism – be i h ough he a emp o c ea e a ansna ional ins i u ion like he League o Na ions, o ia
he in oduc ion o social laws, like he educ ion o wo king hou s.
The d ama hen was ha his was no enough o b ing dis essed socie ies oge he again, wi h he
ca as ophic consequences his had a e he Wall S ee c ash o 1929 and du ing he 1930s. A
new pa adigm hen only p og essi ely appea ed, s a ing wi h he New Deal in he US and du ing
he Second Wo ld Wa leading o he much mo e egula ed pos -wa pa adigm including in e na-
ional ins i u ions like hose designed in B e on Woods.
I he e is any hing like his o y epea ing i sel , he yea s be ween he Financial C isis o 2008 and
2024 ha e wi nessed he in oduc ion and es ing o a mo e mode a e capi alism ia mo e egula -
ed inancial ma ke s, he e u n o indus ial policies o he s eng hening o wo ke s ia Bidenom-
ics. I may need a second wa e and some lessons lea ned om hese a emp s o le a con incing
pa adigm a ise ha will allow people o us in public policies and democ acy again.
We should hope ha his o y does no epea i sel oo much. I will be e en mo e impo an o
de elop wha could be he nex pa adigm. This is a ace agains ime, wi h populis s always being
quicke wi h hei seemingly easy and adical answe s.
