What’s the relationship between democracy and economic growth? Does democracy have a direct effect on the growth of a nation’s economy?<\/p>\n\n\n\n
Policymakers around the world are conflicted on the role democracy plays in economic growth. Amartya Sen, author of Development as Freedom<\/em>, says that the key to helping poor economies thrive is to implement a democracy into their government.<\/p>\n\n\n\n Let’s look at Sen’s argument that supports establishing democracies in underdeveloped nations\u2014and why some people disagree with him.<\/p>\n\n\n\n\n\n\n\n The role that democracy plays in development has divided policymakers around the globe. First, we\u2019ll examine the arguments against<\/em> establishing democracy in comparatively underdeveloped nations. Then, we\u2019ll explain Sen\u2019s argument for why democracy and economic growth have a beneficial relationship<\/a>.<\/p>\n\n\n\n Sen identifies two common arguments against democracy in poor nations<\/strong>, which he believes are misconceptions<\/strong>:<\/p>\n\n\n\n Some opponents of democracy in developing countries echo the \u201cLee thesis,\u201d named for former Prime Minister of Singapore, Lee Kuan Yew, which states <\/strong>that <\/strong>authoritarian regimes are better at enriching economic growth than democracies.<\/p>\n\n\n\n Proponents of the Lee thesis<\/a> attribute this to an authoritarian focus on economic development rather than on freedom, which is seen as unnecessary to eradicating poverty<\/a>. <\/strong>For example, Singapore, South Korea, and China achieved higher growth while under authoritarian governments than did democracies like India, Costa Rica, and Jamaica.<\/p>\n\n\n\n However, Sen states that the Lee thesis is based on faulty evidence. Empirical studies reveal little relationship between authoritarianism and economic growth. <\/strong>By contrast, democratically-oriented policies have helped increase economic growth<\/a>.<\/p>\n\n\n\n Examination of the \u201cEast Asian Miracle\u201d economies (such as Japan, Singapore, Taiwan, and South Korea), which achieved rapid economic growth in the 20th century, suggests the following policies are most helpful:<\/p>\n\n\n\n Sen argues all of these helpful policies are compatible with democratic rights. Additionally, many authoritarian regimes that have failed to adopt these policies have remained poor. Therefore, the assertion that authoritarianism is either necessary or sufficient to achieve economic growth is false<\/strong>.<\/p>\n\n\n\n Another argument made against democracy is that most people in underdeveloped nations don\u2019t want it: <\/strong>They\u2019re too concerned with putting food on the table to worry about voting rights or other tenets of democracy.<\/p>\n\n\n\nDoes Democracy Help Development More Than Authoritarianism?<\/strong><\/h2>\n\n\n\n
The Lee Thesis<\/strong><\/h3>\n\n\n\n
Do the Poor Value Democracy?<\/strong><\/h3>\n\n\n\n