President Bush argued in his second inaugural address that for the United States the spread of freedom abroad is the main guarantee of security at home. Liberal states tend to be more peaceful and more agreeable to U.S. foreign policy goals. But how could a country spread freedom? This course explores one of the best-established answers to this question, tracing the various connections among the ways states obtain revenue and the ways they act and evolve. It first considers the historical rise of parliamentary liberalism in England, in contrast to the Continent, and the question whether some kinds of taxation facilitated despotism and others, parliamentarism. It next turns to the current literature on the connection betwen oil wealth and authoritarianism. It then considers the influence of creditors, in today's global bond markets, on political outcomes, before looking at the question whether foreign aid ought to be conditioned on political reform. What is the relationship between markets and democracy? Format: seminar. Requirements: one medium-length book summary paper, two short reaction papers, a 20-page research project, short oral presentations. Prerequisites: at least two classes in international or comparative politics. Enrollment limit: 16 (expected: 16). Preference given to political science seniors International Politics and Comparative Politics Subfields