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How democracy leads to economic growth and development? |
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Answer» Thank you \xa0The contribution of democracy towards economic\xa0growth and development is a debatable topic. However, sometimes democracy has proven helpful.\tDemocracy consists of various stable and predictable institutions and tends to implement those policies which are beneficial to private enterprise. Thus, it results in higher rates of economic growth over a long period of time.\tAs democracy is accountable to the public rather than to privileged, they produce more public goods, invest more in human capital, maintain the rule of law and protect private property rights.\xa0\tDemocracy engages more in large-scale redistribution than autocracies. However, the various negative effects of redistribution are offset by the fact that democracies have lower barriers to entry, promoting competition and innovation.\xa0 |
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