This chapter discusses the gradual erosion of democracy in world politics, beginning with the rise of the welfare state and the second political convergence of the postwar era—conservative retrenchment. Confronted with resurgent conservatism, reform-minded leaders worked to renovate left-leaning parties and brought the next convergence of Western politics, the Third Way. For some years, international Third Way forces had the wind in their sails, however, the Great Recession ended this era. Across the West, governments struggled to stave off financial collapse, halt the downward slide of output and employment, and restart economic growth. Meanwhile, a populist surge threatens the assumptions and achievements of mainstream politicians and policymakers from the center left to the center-right.
