does democracy promote or retard economic development?
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POLS 1120 Introduction to Political Economy Instructor: Professor Michael E. DeGolyerTRANSCRIPT
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
• You may have a good health but few money
• Toil to earn money may hurt your health
• You need a good health for keeping earning money
• Recovering health cost your money
<Four Basic Principles for Health & Money>
Governments self identified as democracies.
Governments not self identified as democratic. (Vatican, Saudi Arabia, Myanmar, Fiji, Tonga and Brunei)
In Worldwide…Most of Governments self identified as democracies
Democracy is a common trend of development
Democracy conform to public expectations
Democratic identity is beneficial for government
interest
...
Governments identified themselves as democracies FOR…
The Deeper the color, the faster the GDP growth
Their GDP Real Growth Rate, 2007
palest blue Black = democratic undemocratic.
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
Authoritarian Government
Unfair Policies
Autocratic Actions on particular events
Restrictions to public freedom
…
Reasons for these countries have been criticized are…
So…2. Is democracy a good thing or bad thing for economic development?
1. Need a huge economic cost for reaching democracy
2. Reduce the efficiency of economic policy, especially
when the policy is right.
3. Too much emphasis on democracy lead the market
and even society to confusion.
2.1 Disadvantages of Democracy to economic development
Democracy has a huge economic cost:
Cost of InstitutionCost of ImplementCost of ChanceCost of Risk
The Cost of Democracy: radical change of Eastern Europe
“More socialism means more democracy, openness and collectivism in everyday life.”(1985-91)
“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))
Too much emphasis: Disintegration of the Soviet
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.
Confusion of Society: Tiananmen Event, China, 1989
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
2.2 Advantages of Democracy to economic Development…
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.
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.
To prevent social and political disaster which harmful to economy
Contribute a good system, but not a particular leaderDEMOCRACY 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
To sum up, democracy is a contextual thing which
may cause both positive and negative impact on
economic development at different situations.
3. Conclusion:Maximum the Benefit and Minimum the Risk
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 can promote or at least protect economic development when…
Politic go too fast, while the economic condition can not
catch up with the democratic policies
Social tradition and public expectation has obvious
conflicts with the policies
The government can not balance benefits of different
aspects.
Democracy may retard economic development when…
In general, the economic development often goes faster than democratic system, especially in developing countries.
To get democracy is one of a significant purpose or result in developing economy, but not always a useful method.
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.
Otherwise, we need to Pay Attention
Henes Chi and Vida CAIInstructor: Professor Michael E. DeGolyer
POLS 11202009 Summer
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
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
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
18. Democracy, Economic Development, And Income Inequality
http://www.jstor.org/pss/2095732
19. Inequality, democracy, and economic development
http://books.google.com/books?hl=en&lr=&id=kkDcBWDxAB0C&oi=fnd&pg=PA1&dq=Democracy+AND+(economic+development+OR+growth)&ots=eccIbkll-Q&sig=i7wyo0NJmCu-Q1qqFRL7hDJnDLo
20. Democracy and Economic Growth: A Causal Analysis
http://www.jstor.org/pss/422444
Websites