Is democracy the best form of government for economic prosperity?
Vikram SK
Abraham Lincoln once posited that ‘the ballot is stronger than the bullet’, highlighting the value of democratic principles as a substitute for violence and coercion. While this view may have been pertinent to human morals during the American Civil War, it is questionable whether such a notion continues to apply in a state’s pursuit of economic prosperity. At first glance, it would seem as though democracy is the best form of government for economic prosperity owing to its robust mechanisms of accountability and utilitarianism. Yet, on closer inspection, it becomes apparent that autocracies may be better suited to development as they can avoid short-termism and plan for the long-term more effectively. Indeed, while neither politico-economic system is innately a ‘silver bullet’, autocracies that harbour the correct institutions are more successful than democracies in pursuing economic prosperity. Economic prosperity can be gauged as an amalgamation of the following factors: the wealth accrued across a state and its population, the nature of wealth distribution, and the sustainability of this capital. This essay aims to evaluate democracy through these metrics and weigh it against the most prominent alternative: autocracy. Perhaps all democratic principles are associated with two societal values: enfranchisement of the populace, and a devotion to the best interests of the people. In this sense, it would seem as though democracy is the optimal form of government for economic prosperity owing to its ability to make calculated decisions to maximize both economic and social benefit. According to MIT economist Daren Acemoglu, a democratic structure can result in up to a 25% increase in GDP over the long term owing to a greater responsiveness to the state’s needs and interests. 1 Such a statistic is true mainly due to the fact that, whilst in most modern democracies the public does not have the power to vote on individual policies, they have a right to vote on the parties who do. More simply phrased, public opinions in democracies translate to tangible legislative outcomes. Hence, a relationship is established between the people and the public policies which affect them. So, as long as the public is aware of its own best interests, democracies greatly benefit the state by making optimal decisions which drive economic prosperity. One of the most relevant examples of democratic success in this manner is the United States of America. Touted as the ‘cradle of modern democracy’, the United States has experienced immense evolution from largely rural foundations to a now flourishing economic model which dominates global markets in myriad areas. Indeed, perhaps one of the most crucial factors in the US’s success is its consistent dedication to democracy. Following the economic onslaught of the Great Depression, in which Americans were forced to retreat from patriotism and civic engagement, the public voice became more powerful than ever. In the 1932 presidential election, the American population voted overwhelmingly in favour of Franklin D. Roosevelt, who promised to establish public work initiatives, such as the Civilian Conservation Corps, alongside various social programs to benefit the masses. Once elected in 1932, many of Roosevelt’s planned policies soon came into being and America gradually
1 Acemoglu, Naidu, Restrepo & Robinson 2019.
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