The third panel of the second BSC day, moderated by Goran Buldioski, Senior Fellow, Hertie School, University of Governance in Berlin addressed key questions shaping the future of democratic governance amid steadily intensifying global authoritarian pressure and the erosion of institutional resilience caused by internal liberal trends.

With democracies facing simultaneous external coercion and internal decay – from judicial erosion and media capture to disinformation and declining public trust – the panel examined whether the democratic model requires restoration, reinvention, or both.

Stephen B. Heintz, President and CEO of the Rockefeller Brothers Fund, argued that American democracy is undeniably in crisis, but the root causes predate the 2016 and 2024 elections. He noted that the U.S. has been experiencing democratic backsliding for roughly 40 years, driven by reinforcing trends such as the growing influence of money in politics, the rise of social media, increasing inequality, and a general decline in public trust in democratic institutions and processes. Heintz emphasized that reversing this trajectory will not happen within a single election cycle; rather, it requires long-term institutional reforms and cultural shifts – without which democratic renewal remains impossible. He concluded by stating that democracies must rethink the relationship between capitalism and governance. In his words, capitalism must serve democracy, not the other way around.

Adriana Zaharijević, Principal Fellow at the Institute for Philosophy and Social Theory (University of Belgrade), focused on Serbia’s current situation, describing the country’s system as “transactional authoritarianism.” She defined this model as one where everything is negotiable, everything is for sale, and everything is up for grabs – a political environment where rules are fluid, institutions are hollowed out, and power operates through constant exchange rather than formal democratic procedures. On a more optimistic note, she highlighted the importance of the student movement, agreeing that Serbian students are reshaping civic culture by practicing democracy directly through plenums and collective decision-making. For her, this represents a rare emerging counter-narrative to the dominant political logic. Responding to a question from the audience, Zaharijević warned that the role of the European Union must also be approached critically. She argued that the EU cannot simply be viewed as a “democracy shield” or an inherently democratizing force, noting that the accession process itself often contains contradictions and limitations that should not be overlooked.

Soli Özel, Non-Resident Senior Fellow at Institut Montaigne, reflected on the democratization paradigm of the 1990s – a supposedly universal model that countries were expected to adopt or at least emulate, given that the post–World War II political economy left little ideological space outside liberal democracy. He criticized the EU’s approach to supporting democracy globally, suggesting that its efforts have often been inconsistent or insufficient. Despite his largely pessimistic diagnosis, Özel ended on a cautiously hopeful note, arguing that public mobilization is emerging across the region – in Serbia, Georgia, and Turkey.

Marika Mikiashvili, Foreign Secretary of the Georgian party Droa, focused on Georgia’s democratic crisis. She described the ruling party, Georgian Dream, as a pro-Russian regime that functions effectively as an extension of Moscow, despite the fact that pro-EU and anti-Russian sentiment are deeply embedded in Georgian national identity. Mikiashvili explained that the government is stuck in a stalemate: it has not fully consolidated authoritarian control, yet, similar to Serbia, the opposition lacks the material and organizational resources to generate a sufficiently powerful push to oust the ruling party. She criticized the limited international support for Georgian citizens, who have been protesting continuously for over a year in defense of democratic norms.

In conclusion, all speakers agreed that democratic decline is not a sudden event but a long-term process—one that requires sustained civic resilience, institutional reform, and international support.

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