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Does Democracy Promote or Retard Economic Development?
1. Does democracy significantly related to economic development?
The relationship is just as similar as the  relationship between Health and Money
 <Four Basic Principles for Health & Money> ,[object Object]
Toil to earn money may hurt your health
 You need a good health for keeping earning money
 Recovering health cost your money,[object Object]
Governments identified themselves as democracies FOR… ,[object Object]
Democracy conform to public expectations
Democratic identity is beneficial for government interest
...,[object Object]
However, many of countries have been criticized with NO democracy Pay attention to China, it remains a high speed of GDP growth, but it has been criticized as undemocratic all the time ,[object Object],[object Object]
So… 2. Is democracy a good thing or bad thing for economic development?
2.1 Disadvantages of Democracytoeconomic development  1.Needahugeeconomiccostfor reaching democracy 2.Reducetheefficiencyofeconomicpolicy,especiallywhenthepolicyisright. 3.Toomuchemphasisondemocracyleadthemarketandevensocietytoconfusion.
 Democracy has ahugeeconomiccost: Cost of Institution Cost of Implement Cost of Chance Cost of Risk
The Cost of Democracy:radical change of Eastern Europe
Too much emphasis: Disintegration of the Soviet ,[object Object]
“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)—— Mikhail Gorbachev (Russian President of the Soviet Union (1985-91))
ConfusionofSociety: Tiananmen Event, China, 1989 The Statue of Democratic Goddess on Tiananmen Square. People: Too Irritated to get democracy The government: Too conservative  the result of the event is terrible.
2.2 Advantages of Democracy to economic Development… 1. Get balance in wealth distribution 2. Supervise power and rectify mistakes protect economy from social and political disaster 3. Ensure the stability of economic development with a good political institution, although not a good leader
The bigger the Gini Index, the bigger gap between Rich and Poor. Get Balance in Distributing Economic Achievement 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.
To prevent social and political disaster which harmful to economy The Great Leap Forward. It is said that more than 30 million people died in famine after the movement. Seems natural disaster, but actually political.
Contribute a good system, but not a particular leader DEMOCRACY  Depends on Human votes  Depends on the majority  a better result Undemocratic  depends on the highest leader  IF he is wrong  all the results are terrible
3. Conclusion:Maximum the Benefit and Minimum the Risk To sum up, democracy is a contextual thing which may cause both positive and negative impact on economic development at different situations.
democracy can promote or at least protect economic development when… The particular democratic policies suit to the level of economic development The country can afford the cost without toil Good opportunity and stable politic condition.
Democracy may retard economic development when… ,[object Object]
Social tradition and public expectation has obvious conflicts with the policies
The government can not balance benefits of different aspects.,[object Object]

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Does Democracy Promote or Retard Economic Development?

  • 1. Does Democracy Promote or Retard Economic Development?
  • 2. 1. Does democracy significantly related to economic development?
  • 3. The relationship is just as similar as the relationship between Health and Money
  • 4.
  • 5. Toil to earn money may hurt your health
  • 6. You need a good health for keeping earning money
  • 7.
  • 8.
  • 9. Democracy conform to public expectations
  • 10. Democratic identity is beneficial for government interest
  • 11.
  • 12.
  • 13. So… 2. Is democracy a good thing or bad thing for economic development?
  • 14. 2.1 Disadvantages of Democracytoeconomic development 1.Needahugeeconomiccostfor reaching democracy 2.Reducetheefficiencyofeconomicpolicy,especiallywhenthepolicyisright. 3.Toomuchemphasisondemocracyleadthemarketandevensocietytoconfusion.
  • 15. Democracy has ahugeeconomiccost: Cost of Institution Cost of Implement Cost of Chance Cost of Risk
  • 16. The Cost of Democracy:radical change of Eastern Europe
  • 17.
  • 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)—— Mikhail Gorbachev (Russian President of the Soviet Union (1985-91))
  • 19. ConfusionofSociety: Tiananmen Event, China, 1989 The Statue of Democratic Goddess on Tiananmen Square. People: Too Irritated to get democracy The government: Too conservative the result of the event is terrible.
  • 20. 2.2 Advantages of Democracy to economic Development… 1. Get balance in wealth distribution 2. Supervise power and rectify mistakes protect economy from social and political disaster 3. Ensure the stability of economic development with a good political institution, although not a good leader
  • 21. The bigger the Gini Index, the bigger gap between Rich and Poor. Get Balance in Distributing Economic Achievement 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.
  • 22. To prevent social and political disaster which harmful to economy The Great Leap Forward. It is said that more than 30 million people died in famine after the movement. Seems natural disaster, but actually political.
  • 23. Contribute a good system, but not a particular leader DEMOCRACY  Depends on Human votes  Depends on the majority  a better result Undemocratic  depends on the highest leader  IF he is wrong  all the results are terrible
  • 24. 3. Conclusion:Maximum the Benefit and Minimum the Risk To sum up, democracy is a contextual thing which may cause both positive and negative impact on economic development at different situations.
  • 25. democracy can promote or at least protect economic development when… The particular democratic policies suit to the level of economic development The country can afford the cost without toil Good opportunity and stable politic condition.
  • 26.
  • 27. Social tradition and public expectation has obvious conflicts with the policies
  • 28.
  • 29. Henes Chi and Vida CAI Instructor: Professor Michael E. DeGolyer b630400012@mail.uic.edu.hk or caiweichao@gmail.com POLS 1120 2009 Summer
  • 30. 1. Is Democracy the Best Setting For Strong Economic Growth? http://online.wsj.com/public/article/SB117330214622129995-wXADlsfRHp9Z34RAyyVjN_w1yBI_20080311.html 2. Is Democracy Good for Economic Growth? http://www.objectivistcenter.org/cth--259-Is_Democracy_Good_Economic_Growth.aspx  3. Does Economic Success Require Democracy? http://www.american.com/archive/2007/may-june-magazine-contents/does-economic-success-require-democracy 4. Development and Democracy http://www.foreignaffairs.com/articles/61023/bruce-bueno-de-mesquita-and-george-w-downs/development-and-democracy 5. Website relating to Tiananmen Incident http://www.hkhkhk.com/ Websites
  • 31. 6. Democracy Journal http://www.democracyjournal.org/ 7. Democracy and Economic Development http://politics.as.nyu.edu/docs/IO/2800/sisson.pdf 8. Balancing democracy, market economy http://www.firmaspress.com/546.htm 9. Economic Development and Democracy http://www.cla.wayne.edu/polisci/kdk/seminar/sources/robinson.pdf 10. The Relationship Between Economic Development and Democracy in Africa http://www.politik.uni-trier.de/pubs/ma/olk.pdf 11. Economy and democracy: Don't turn out the light http://www.thejakartapost.com/news/2004/06/22/economy-and-democracy-don039t-turn-out-light.html Websites
  • 32. 12. Political Freedom and Economic Well-being: A Causality Analysis http://www.ecomod.net/conferences/ecomod2003/ecomod2003_papers/Kirmanoglu.pdf 13. Political Freedom and The Stability of Economic Policy http://www.cato.org/pubs/journal/cj24n3/cj24n3-4.pdf 14. Freedom Democracy and Economic Welfare http://www.fraserinstitute.org/researchandpublications/publications/3116.aspx 15. Economic Freedom and Economic Growth in Mexico http://www.ncpa.org/pub/ba605 16. Empirical Linkages Between Democracy and Economic Growth http://www.jstor.org/pss/194169 17. Democracy and Economic Development http://www.jstor.org/pss/422069 Websites
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