Early last month, I did a blog entry looking at how the global downturn was creating urban unrest and violence and how it, in a replay of what we saw in the 1930s, was threatening democracy.

Now added to that comes some alarming Economist Intelligence Unit data showing that the spread of democracy has come to a screeching halt, particularly in the Middle East, Latin America and Russia. But there are problems in the developed world too where there has been less participation and more curbs on civil liberties. It says the push for democracy might have lost its momentum thanks to an unpopular US president and military intervention (thank you George W.) but also warns that the economic malaise could have a massive impact. "Economic recession could boost extremist political forces in western Europe, and is also likely to feed anti-immigrant sentiment,'' it says. "Serious recessions typically threaten democracy via increased social unrest."

Just another warning about the fallout from the economic crisis. The impact could spread well beyond the market. We have the lessons of history showing us how dangerous it could get.