Democracy and Development: A Complex Relationship by
1999
Abstract
Most of us, ardent democrats all, would like to believe that democracy is not merely good in itself, it is also valuable in enhancing the process of development. Of course, if we take a suitably broad concept of development to incorporate general well-being of the population at large, including some basic civil and political freedoms, a democracy which ensures these freedoms is, almost by definition, more conducive to development on these counts than a non-democratic regime. We may, however, choose to look at freedoms as potentially instrumental to development, as is usually the case in the large empirical literature that aims at finding a statistical correlation between some measure of democracy and some measure of a narrower concept of development (that does not include those freedoms as an intrinsic part of the nature of development itself). I have in general found this empirical literature rather unhelpful and unpersuasive. It is unhelpful because usually it does not confirm a causal process and the results often go every which way. Even the three surveys of the empirical literature that I have seen come out with three different conclusions: One by Sirowy and Inkeles (1991) is supportive of a negative relationship between democracy and development; one by Campos (1994) is of a generally positive relationship; and the one by Przeworski and Limongi (1993) is agnostic ("we do not know whether R. Wade, Governing the Market: Economic Theory and the Role of the
Key takeaways
AI
AI
- Democracy's relationship with development is complex and lacks clear empirical support.
- Comparative-institutional analysis reveals mechanisms through which democracy influences development.
- Authoritarian regimes in East Asia have achieved better economic performance than democratic South Asia.
- Democracy can exacerbate populist pressures that hinder long-term investment and growth.
- Insulation of bureaucracies from political pressures is crucial for effective development policies.
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