International Institutions and Policy Cooperation between Democratic and Non-Democratic States

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A cause of conflict escalation rests on the failure to communicate between states with opposing interests. However, it is difficult to build a truthful communication channel between egoistic sovereign states because they have incentives to cheat on their intents and power under the anarchic international system. The contemporary theory of democratic peace argues that democratic states with transparent decision-making processes can avoid escalation of the conflict that each does not deserve.This study, based on the democratic peace theory, has explored international institutions that can lessen informational problems that plague the relationship between democratic and non-democratic states. It assumes that non-democratic states have nontransparent decision processes and thus generate problems of moral hazard, adverse selection, and verification in relations with democratic states. Focusing on nonproliferation and human rights regimes, the study evaluates the effectiveness of a limited trigger mechanism on the former and the clause conditioning free trade provision upon democratic governance on the latter. This line of research contributes to designing an effective international governance system with heterogeneous states.