Does Democracy Promote or Retard Economic Development?


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POLS 1120
Introduction to Political Economy
Instructor: Professor Michael E. DeGolyer

Published in: Education, Business, Technology

Does Democracy Promote or Retard Economic Development?

  1. 1. Does Democracy Promote or Retard Economic Development?<br />
  2. 2. 1. Does democracy significantly related to economic development?<br />
  3. 3. The relationship is just as similar as the relationship between Health and Money <br />
  4. 4. &lt;Four Basic Principles for Health & Money&gt;<br /><ul><li> You may have a good health but few money
  5. 5. Toil to earn money may hurt your health
  6. 6. You need a good health for keeping earning money
  7. 7. Recovering health cost your money</li></li></ul><li>In Worldwide…Most of Governments self identified as democracies<br />   Governments self identified as democracies.<br /> Governments not self identified as democratic. (Vatican, Saudi Arabia, Myanmar, Fiji, Tonga and Brunei)<br />
  8. 8. Governments identified themselves as democracies FOR…<br /><ul><li>Democracy is a common trend of development
  9. 9. Democracy conform to public expectations
  10. 10. Democratic identity is beneficial for government interest
  11. 11. ...</li></li></ul><li>The Deeper the color, the faster the GDP growth<br />Their GDP Real Growth Rate, 2007<br />
  12. 12. However, many of countries have been criticized with NO democracy<br />Pay attention to China, it remains a high speed of GDP growth, but it has been criticized as undemocratic all the time<br /><ul><li>palest blue  Black = democratic  undemocratic.</li></li></ul><li>Reasons for these countries have been criticized are…<br />Authoritarian Government<br />Unfair Policies <br />Autocratic Actions on particular events<br />Restrictions to public freedom<br />…<br />
  13. 13. So…<br />2. Is democracy a good thing or bad thing for economic development? <br />
  14. 14. 2.1 Disadvantages of Democracytoeconomic development <br />1.Needahugeeconomiccostfor reaching democracy<br />2.Reducetheefficiencyofeconomicpolicy,especiallywhenthepolicyisright.<br />3.Toomuchemphasisondemocracyleadthemarketandevensocietytoconfusion.<br />
  15. 15. Democracy has ahugeeconomiccost:<br />Cost of Institution<br />Cost of Implement<br />Cost of Chance<br />Cost of Risk<br />
  16. 16. The Cost of Democracy:radical change of Eastern Europe<br />
  17. 17. Too much emphasis: Disintegration of the Soviet<br /><ul><li>“More socialism means more democracy, openness and collectivism in everyday life.”(1985-91)
  18. 18. “do not engage in any 'democratic', as there will be no good results! Please do not let the situation in chaos, stability is the first one.“(2006)</li></ul>—— Mikhail Gorbachev (Russian President of the Soviet Union (1985-91))<br />
  19. 19. ConfusionofSociety: Tiananmen Event, China, 1989<br />The Statue of Democratic Goddess on Tiananmen Square.<br />People: Too Irritated to get democracy<br />The government: Too conservative <br />the result of the event is terrible.<br />
  20. 20. 2.2 Advantages of Democracy to economic Development…<br />1. Get balance in wealth distribution<br />2. Supervise power and rectify mistakes protect economy from social and political disaster<br />3. Ensure the stability of economic development with a good political institution, although not a good leader<br />
  21. 21. The bigger the Gini Index, the bigger gap between Rich and Poor.<br />Get Balance in Distributing Economic Achievement<br />Pay attention to China again, Some people appeal that its time for China to reform its political system in order to distribute its economic achievement more fair. <br />
  22. 22. To prevent social and political disaster which harmful to economy<br />The Great Leap Forward.<br />It is said that more than 30 million people died in famine after the movement.<br />Seems natural disaster, but actually political.<br />
  23. 23. Contribute a good system, but not a particular leader<br />DEMOCRACY  Depends on Human votes  Depends on the majority  a better result<br />Undemocratic  depends on the highest leader  IF he is wrong  all the results are terrible <br />
  24. 24. 3. Conclusion:Maximum the Benefit and Minimum the Risk<br />To sum up, democracy is a contextual thing which may cause both positive and negative impact on economic development at different situations. <br />
  25. 25. democracy can promote or at least protect economic development when…<br />The particular democratic policies suit to the level of economic development<br />The country can afford the cost without toil<br />Good opportunity and stable politic condition.<br />
  26. 26. Democracy may retard economic development when…<br /><ul><li>Politic go too fast, while the economic condition can not catch up with the democratic policies
  27. 27. Social tradition and public expectation has obvious conflicts with the policies
  28. 28. The government can not balance benefits of different aspects.</li></li></ul><li>In general, the economic development often goes faster than democratic system, especially in developing countries.<br />To get democracy is one of a significant purpose or result in developing economy, but not always a useful method.<br />Democracy may be ignored in a undemocratic country which remains a high speed of economic growth, and will draw people’s attention when the system shows a big problem.<br />Otherwise, we need to Pay Attention<br />
  29. 29. Henes Chi and Vida CAI<br />Instructor: Professor Michael E. DeGolyer<br /><br />or<br /><br />POLS 1120<br />2009 Summer<br />
  30. 30. 1. Is Democracy the Best Setting For Strong Economic Growth? <br /><br />2. Is Democracy Good for Economic Growth?<br /> <br />3. Does Economic Success Require Democracy?<br /><br />4. Development and Democracy<br /><br />5. Website relating to Tiananmen Incident<br /><br />Websites<br />
  31. 31. 6. Democracy Journal<br /><br />7. Democracy and Economic Development<br /><br />8. Balancing democracy, market economy<br /><br />9. Economic Development and Democracy<br /><br />10. The Relationship Between Economic Development and Democracy in Africa<br /><br />11. Economy and democracy: Don&apos;t turn out the light <br /><br />Websites<br />
  32. 32. 12. Political Freedom and Economic Well-being: A Causality Analysis<br /><br />13. Political Freedom and The Stability of Economic Policy<br /><br />14. Freedom Democracy and Economic Welfare<br /><br />15. Economic Freedom and Economic Growth in Mexico<br /><br />16. Empirical Linkages Between Democracy and Economic Growth<br /><br />17. Democracy and Economic Development<br /><br />Websites<br />
  33. 33. 18. Democracy, Economic Development, And Income Inequality<br /><br /> <br />19. Inequality, democracy, and economic development<br /><br /> <br />20. Democracy and Economic Growth: A Causal Analysis<br /><br />Websites<br />