Capitalism for Peace

The Japan Times Online

See the link above for a short article on the idea being promoted by Erik Gartzke that capitalism is more important than democracy in ensuring world peace. Maybe this has been noted elsewhere on the Net, but if so I have missed it. The heart of the article is this:

"...Gartzke argues that "the 'democratic peace' is a mirage created by the overlap between economic and political freedom." That is, democracies typically have freer economies than do authoritarian states.

Thus, while "democracy is desirable for many reasons," he notes in a chapter in the latest volume of Economic Freedom in the World, created by the Fraser Institute, "representative governments are unlikely to contribute directly to international peace." Capitalism is by far the more important factor.

The shift from statist mercantilism to high-tech capitalism has transformed the economics behind war. Markets generate economic opportunities that make war less desirable. Territorial aggrandizement no longer provides the best path to riches.

Free flowing capital markets and other aspects of globalization simultaneously draw nations together and raise the economic price of military conflict. "

Sounds at least half plausible.