i) How does democracy influence economic growth of a country?
ii) Why is the economic growth better in dictatorship regimes than in democratic regimes?
SOLUTION:
Answer 1-
More economic development occur in dictatorship rather than democracy because-
Answer 1-
- Democracy is associated with higher human capital accumulation, lower inflation, lower political instability, and also higher economic freedom.
- Democracy is closely associated with economic sources of growth, like education levels and lifespan through improvement of educative institutions as well as healthcare.
- As democracy expands in developing countries, newly empowered workers are likely to demand better living conditions, health care, access to clean water, and so on all conditions that contribute to increased life expectancy and, in turn, to increased productivity.All this helps in the economic growth of a country.
More economic development occur in dictatorship rather than democracy because-
- Dictatorship can take quicker decisions on economic issues like land acquisition, infrastructure development etc.
- Dictatorship brings better scope for economic development by taking uninterrupted decisions.There is no opposition to obstruct decisions. Hence, the lingering problem of poverty could be reduced by efficient decision-making by dictatorial leaders.