Transparency, Protest and Democratic Stability∗

Democratic rule can only be maintained so long as all actors in the political system comply with the institutional rules of the game. Since constitutions cannot be enforced by external actors, democratic institutions must be self-enforcing – democracy must be an equilibrium. In this paper, we examine the role of transparency in supporting a democratic equilibrium. We contend that transparency improves the functioning of elections – in transparent polities, elections effectively resolve adverse selection problems between the public and their rulers. Consequently, transparency increases the legitimacy of electoral institutions and reduces the incentive for citizens to resort to mass mobilization as a means of removing under-performing politicians. We illustrate these arguments through a game-theoretic model, and test these claims and find they enjoy robust support. Transparency stabilizes democratic rule