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The following article was published in our article directory on October 26, 2010.
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Democracy Whether can Promote Economic Growth

Article Category: Business

Author Name: xia zihui

In a totalitarian system, visionary leaders can do more than the democratic government, because they are not implementing policy legislative, judicial or media constraints. The late 70s of last century, Deng Xiaoping decided to reform and opening up, the introduction of individual incentives in the agricultural sector, a substantial increase in short-term output. In China Taiwan, South Korea, Singapore and Chile, who introduced a radical centralization of economic reform, and achieved similar success. Such changes are usually the private sector and enterprises play a more important role.

Of course, the centralized management also had negative effects. Strong leaders who are seriously misleading, it will cause a huge catastrophe. China's "Great Leap Forward" is a terrible and prominent example. In addition, Castro, he forced the Cuba government-controlled, inefficient centrally planned economy. In Iran, the Islamic disabilities during the administration of religious foundations and all other religious monopoly. In short, the impact of authoritarian rule, subject to the leaders of the knowledge can be described as mixed.

Beneficial consequences of democratic control policy. In a democracy, visionary leaders can accomplish much. Example, between 1991 -1996 Singh Indian finance minister, was elected in 1979 • British Prime Minister Margaret Thatcher, 80 years of last century the U.S. president Ronald • Reagan, and "World War II" in Japan after leaders. However, their success is often subject to legislative, judicial proceedings and the interests of the Group. On the other hand, the leaders of democratic countries too poor to be bound, not only subject to due process, there is free competition, monitoring the press and television coverage, and now there is the Internet.

Democracy is more conducive than the centralized system of economic growth, far from inconclusive. But the point is clear, democratic countries have less uncertainty: Compared with the centralized system, its achievements may not be great, but will certainly be less long-term disaster. Bad results are often more disastrous than the centralized state, with less uncertainty to democracy more attractive.

Compare different political systems on economic growth, there is a vague and the fact that rapid economic growth in the centralized state, individual freedom often increased dramatically. China is a good example. China's rapid growth began 30 years ago when the remains centralized system of the ruling party, but personal freedom has improved considerably. In 1981, my first visit to China, economic reform was just the start, China has no personal freedom of movement is almost impossible, people can not even access to Western-style restaurants and shops.

Since then I've been to China several times, most recently in a few weeks ago, and was compared to a great contrast. Although they can not criticize the ruling party, but the students and many others criticized the government's economic and social policies, including the one-child policy. Many Chinese people travel abroad, the Internet also let Chinese people to be aware of vast amounts of views and the fact that no one can contain.

South Korea, Chile and China Taiwan etc., in the authoritarian era, individual freedom is also rising. Their economies are in one-party rule gradually prospered. But they often experience rapid growth, the emergence of radical opposition. Presently, they have become a democratic system of party competition.

Go back to the comparison of China and India, my analysis shows that obviously can not conclude that competition in the economy, democratic India will be more competitive than China. From the growth point of view, despite the political and social freedom in India on the obvious advantages, but China and India each have short length.

In the future, if China continues the pragmatic leaders in power, an advantage of future economic growth. This is partly because China's all class, regardless of entrepreneurs, professionals, or workers, are keen to reshape the old China to great power status. However, as weak leaders came to power, would cause enormous economic losses. In short, I expect India's economic growth lower than China, but more stable, and stability may be more valuable.

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