Question

Under a totalitarian government, the Indonesian economy grew strongly for 30 years. Meanwhile, the economy of the largest functioning democracy, India, performed poorly for decades until recently. Do you think the Indonesian economy grew despite or because of a totalitarian regime?

What might explain India’s relatively poor performance under a democratic political system? What do you think you need to know about doing business in either of these 2 regions?

Answer 1

Totalitarian government means the involvement of the government in the control of all the economic activities and seeks to include the elements of individual lives in the authority of state. Indonesian economy grows strongly because of the involvement of majority of the people in the production activity. The politics of the country grows in a framework of presidential representative democratic republic in which the president is both head of government as well as state. From the last 30 years the involvement of the government in the Indonesia is to increase the productivity and to give support for the productive activities.
India is performing poor in the development because of the following reasons...
1. Large population and therefore the large dependency.
2. The problem of unemployment which reduces the productivity
3. Poor economic policies.
4. Poor implementation of the industrial policy.
Yes , I am in favor of the Indonesian economic development , as the totalitarian involvement in the government is the base of the development. India's relatively poor performance under a democratic political system is because of the above stated reasons. So the most profitable region is the Indonesia because of the involvement of the totalitarian government and it enhances the productive efficiency and the effectiveness