Does Government Enhance Economic Development?

There are numerous governmental systems and economic policies in the world. A central argument amongst policy makers is what kind of government is best for its people? Advancing economic development is perhaps the central goal of each regime for its respective state. As stated by Michael Todaro, economic development “is an increase in living standards, improvement in self-esteem needs, and freedom from oppression as well as a greater choice.” Economic development is essentially advancing a population into a better all-around world. However, how does a state enhance economic development? There are several routes a state can explore. Nonetheless, economic development starts with a government that adheres to the wants of its population. Democracies …show more content…
Rather than the government being accountable towards elites (like in autocracies), democracies are held accountable by the public. Reelection terms put power in the hands of the people. If a leader is making poor decisions in a democracy, he/she will not get reelected. Democracies also have strong checks on power. The president/prime minister cannot pass legislation without going through a parliament or congress. This process lessens the possibility for corruption because more people are involved in the government. It is easy to get away with corruption in an authoritative state because the ruler answers only to himself. One can point out that there is a corruption issue, however, in intermediate democracies. Certain intermediate democracies have shown to have higher levels of corruption than …show more content…
Ferero explains how many Latin American states have grown frustrated with the slow process of democracy. The people want immediate change and development. This can be difficult to carry out in a new democracy because of the transition of power and the length of time it takes to pass legislation in democracies. Even after legislation is passed, democratic policies may take several years to take effect. Nonetheless, democracies eventually become the best solution for advancing economic development. A proper democracy is good for development because of its free market nature, accountability, and higher potential to grow. It can be difficult for a state to get to high-functioning democracy status, but when done right, democracy is positively related to development. Economic development is raising the standard of living of the population and democracy provides the avenues and opportunities to elevate