Asked by joseph muganza on Apr 27, 2024
Verified
Is democracy relevant for economic development of underdeveloped countries? Support your position with reasoning and evidence.
Democracy
In a democracy, citizens exercise a high degree of control over the state. They do this mainly by choosing representatives in regular, competitive elections.
Economic Development
The process of improving the economic, political, and social well-being of a community or country, often through industrial, technological, or infrastructural growth.
- Analyze the role of democracy in economic development.
Verified Answer
BM
Breanna MeinhardMay 02, 2024
Final Answer :
Democracy is indeed relevant for the economic development of underdeveloped countries. There are several reasons to support this position.
Firstly, democracy promotes political stability and good governance, which are essential for creating a conducive environment for economic growth. In a democratic system, there is a greater likelihood of the rule of law, protection of property rights, and a fair and transparent legal system. This in turn encourages domestic and foreign investment, which is crucial for economic development.
Secondly, democracy fosters a culture of accountability and transparency. Elected leaders are accountable to the people, and there are mechanisms in place to hold them responsible for their actions. This reduces the risk of corruption and mismanagement of resources, which can hinder economic progress.
Furthermore, democracy encourages participation and inclusion, allowing for a diversity of voices and ideas to be heard. This can lead to more innovative and effective policies that address the needs of the population, including those living in underdeveloped areas.
There is also evidence to support the link between democracy and economic development. A study by the World Bank found that countries with democratic systems tend to have higher levels of economic growth compared to non-democratic countries. Additionally, research by economists Daron Acemoglu and James A. Robinson has shown that democratic institutions are associated with higher levels of income and better economic outcomes for citizens.
In conclusion, democracy is relevant for the economic development of underdeveloped countries because it promotes political stability, good governance, accountability, and inclusion. The evidence suggests that democratic institutions are associated with higher levels of economic growth and better economic outcomes for citizens. Therefore, efforts to promote democracy in underdeveloped countries can contribute to their economic development.
Firstly, democracy promotes political stability and good governance, which are essential for creating a conducive environment for economic growth. In a democratic system, there is a greater likelihood of the rule of law, protection of property rights, and a fair and transparent legal system. This in turn encourages domestic and foreign investment, which is crucial for economic development.
Secondly, democracy fosters a culture of accountability and transparency. Elected leaders are accountable to the people, and there are mechanisms in place to hold them responsible for their actions. This reduces the risk of corruption and mismanagement of resources, which can hinder economic progress.
Furthermore, democracy encourages participation and inclusion, allowing for a diversity of voices and ideas to be heard. This can lead to more innovative and effective policies that address the needs of the population, including those living in underdeveloped areas.
There is also evidence to support the link between democracy and economic development. A study by the World Bank found that countries with democratic systems tend to have higher levels of economic growth compared to non-democratic countries. Additionally, research by economists Daron Acemoglu and James A. Robinson has shown that democratic institutions are associated with higher levels of income and better economic outcomes for citizens.
In conclusion, democracy is relevant for the economic development of underdeveloped countries because it promotes political stability, good governance, accountability, and inclusion. The evidence suggests that democratic institutions are associated with higher levels of economic growth and better economic outcomes for citizens. Therefore, efforts to promote democracy in underdeveloped countries can contribute to their economic development.
Learning Objectives
- Analyze the role of democracy in economic development.