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One of the key insights in Arrow’s theorem is that institutions matter: when three options or more are available, different procedures can induce the same society (with exactly the same individuals) to take different decisions on the same matter. We might, for example, end up with a different government depending on whether we use a first past the post or a proportional electoral system. We need to acknowledge this unpleasant characteristic of collective decision-making: there is nothing divine about these rules and about the decisions which are taken using them. The best we can hope for is that everybody (or at least a qualified majority of citizens) agrees on the rules themselves irrespective of the outcome that they deliver.
This is the reason why most constitutions provide a bias in favour of the status quo when it comes to issues of extreme importance, like amending the constitution itself. While ordinary policy is normally taken by simple majority rule, constitutional changes require more complex procedures. These procedures typically create a status quo bias both to protect minorities against a “tyranny of the majority” and to make it more likely that the changes have been carefully evaluated, possibly by different independent players. Broad coalitions must then be formed to pass a constitutional change.
Amendments to the US constitution, for example, must be voted by two-thirds of both the House and the Senate and must then be approved by three-quarters of the 50 state legislatures. In Italy, there will soon be a referendum on a major constitutional reform. This reform has already been passed twice by the parliament (with a “reflection pause” of at least three months between each vote).
In comparison, it is quite extraordinary to observe the levity of the Brexit decision-making process, ever since Cameron committed to a referendum. Brexit is no less important that a major constitutional change (except maybe that it is more costly) and yet, following a consultative referendum, it now seems to be taken as an accomplished, inevitable outcome, which only needs to be implemented (if only we knew how). Brexit is “the will of the British people”, the contemporary correspondent of the divine will in the ancient regime.
Such misunderstandings as to the interpretation of the outcome of the referendum can emerge for many reasons, including short-term political opportunism, but there are at least two other reasons worth discussing. The first is the somewhat naïve view that democracy is the simple implementation of majority rule and that the referendum has enabled us to discover the “will of the British people”. Unfortunately, the absence of written constitutional rules has allowed this simplistic view to become prevalent.
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