From a Better Understanding of the Drivers of Populism to a New Political Agenda

Abstract

This paper explores how economic policies can tackle populism. Creating development perspectives for regions and individuals left behind in structural change is the main policy challenge derived from the related literature. While welfare policies are important, redistribution alone will not cure the dissatisfaction with globalization and technological change, that is one major reason for increasing populist support. It must be accompanied by labor market policies and regional policies that enable disadvantaged regions and individuals to participate in the successes of international economic development. Simultaneously, political communication has to adjust, reaching out to the supporters of populist parties and politicians.