Question

In: Economics

The type of economy a country has influences its government. Countries w/ energy based economies (like...

The type of economy a country has influences its government. Countries w/ energy based economies (like Russia & Venezuela) struggle w/ democracy. Now that the US is a net energy exporter will this have a corrisive effect on its democracy?

Solutions

Expert Solution

It is more of the political orientation of the government, its constitution and civil rights of the citizens of the country that decide the nature of political setup in the country. So, it is not the economy, influencing the political setup, rather the political setup that affects the nature of economic system and its dependence, is based upon the presence of resources, capabilities in the economy. In case of Russia and Venezuela, the political orientation is socialism or communism driven, irrespective of the nature of resources. So, these nations struggle with the democracy. So, only identifying a factor such as net energy export by the USA, like that of Russia and Venezuela, does not mean that there is a threat or corrosive effect to the democracy in the USA. Rather, it is the US constitution, distribution of power in different arms of the government, a check and balance between judiciary, legislative and executive branch, ensure that civil rights are intact, democracy moves from strength to strength and USA remains the land of freedom. Besides, USA is also at a very advanced level in the value chain in production of technological products and innovations that further boost the democracy. So, it is not correct to quote the case of Russia and Venezuela to make a similar impact upon democracy in the USA.


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