Question

Political Science
One of the most often studied correlations in comparative politics is that between democracy and economic development. Examine three of the five developing countries (India, China, Russia, Mexico, and Nigeria) that we have discussed in the second half of the course. What can these countries tell us about this connection? Can a country move from poverty to prosperity while maintaining the institutions of democracy? Or is a more authoritarian form of government more likely to produced economic development? Make sure to connect your arguments back to the specific countries we have examined.

Answer 1

Democracy and economic development

Consider India:

In a democratic country people themselves select and elect a representative as their leader. It is government of the people, by the people and for the people.

At the time of independence India has many economic problems; widespread illiteracy and poverty. The entire political economics structure has to be reconstructed for genuine development of the country. The policymakers in India launched the project of economic development with a heavy involvement of the state and a democratic polity.

Major failure was the growth rate in national income was very slow, particularly in per capita income.

Then government has introduced liberalisation privatisation globalisation major economic reforms took place - Flexible industrial licensing policy, increased FDI, adoption of information technology and an increased domestic consumption.

Privatisation helped many to established there own private companies, liberalisation helped to remove restrictions of government this helped so that many people got employment to come out from poverty, globalisation helps India to compete with other countries worldwide.

Thus Economically country stands in good position and politically stands stable, society moves from poverty to prosperity.

Consider China:

China’s is an socialist government, china has presidential form of government The President of the People's Republic of China is the head of state.

In socialist market economy of the People's Republic of China is the world's second largest economy by nominal GDP and the world's largest economy by purchasing power parity. It is the world's largest manufacturing economy and exporter of goods.

During the 1930's, China developed a modern industrial sector, which stimulated modest but significant economic growth..According to the World Bank, more than 500 million people were lifted out of extreme poverty as China's poverty rate fell from 88 percent in 1981 to 6.5 percent in 2012.

China's lack of democracy has curtailed economic growth,China's economic growth it could have been even higher if there had been more political freedom.

Consider Russia:

Russia is a semi-presidential form of government. The members of the government are the Prime Minister, the deputy prime ministers, and the federal ministers.

Russia has an upper-middle income mixed and transition economy with state ownership in strategic areas of the economy.

More than one-fifth of the Russian population now lives in poverty, according to a study. President Vladimir Putin has set an ambitious target of cutting Russia's poverty rate in half by 2024.

Taking a long-term perspective, various government initiatives could double Russia’s potential growth rate. Maintaining Monetary policy, steps towards industrial growth, providing job opportunities, banking sector improvements to be made, labour market reforms etc. People should invest there money into market instead of saving in bank so that money supply will be there in the market.

A potential sudden tightening of global financial conditions could negatively affect growth in Russia by pressuring the financial account and exchange rate, translating into higher inflation and lower domestic demand.